Madison County Department of Human Resources v. T.S. Ex Rel. F.M.

53 So. 3d 38, 2010 Ala. LEXIS 93, 2009 WL 3415290
CourtSupreme Court of Alabama
DecidedMay 28, 2010
Docket1081405
StatusPublished
Cited by9 cases

This text of 53 So. 3d 38 (Madison County Department of Human Resources v. T.S. Ex Rel. F.M.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Madison County Department of Human Resources v. T.S. Ex Rel. F.M., 53 So. 3d 38, 2010 Ala. LEXIS 93, 2009 WL 3415290 (Ala. 2010).

Opinions

STUART, Justice.

The Madison County Department of Human Resources (“DHR”), the legal guardian of T.S., appeals the trial court’s judgment approving the settlement of a personal-injury claim involving T.S. and approving an attorney fee in the amount of $262,500, plus litigation expenses. We remand with directions.

Facts and Procedural History

In November 2006, DHR had temporary legal custody of T.S., a 13-year-old, hearing impaired, mute quadriplegic who resided at Ability Plus, Inc., a group home. Being severely mentally disabled and suffering from cerebral palsy, T.S. was unable to dress herself, bathe herself, feed herself, or perform any basic living skills without substantial assistance. On November 14, 2006, an employee of Ability Plus left T.S. unattended, in a bathtub filled with water the temperature of which was approximately 140 degrees Fahrenheit. T.S. sat in the tub of hot water until another employee noticed some of T.S.’s skin floating around her in the tub and removed her. T.S. suffered second- and third-degree burns to both her feet and ankles, her buttocks, and her bilateral posterior upper thigh and bilateral medial thigh area.

On August 4, 2008, F.M., T.S.’s mother, entered into a contingency-fee contract with Doug Fees, a lawyer with The Cochran Firm, to recover damages on claims against any and all parties for the injury to T.S. The contingency-fee contract provided:

“[F.M.] agrees that said attorneys shall receive for their services a sum equal to thirty-three and one-third percent (33 1/3%) of the total recovery so obtained.
“It is understood that the attorney’s fee is computed based upon 33 1/3% of the total recovery. It is also understood that the expense necessarily incurred by said attorneys in the investigation and preparation of this claim will be deducted from the balance of the proceeds after payment of attorney fees.”

On August 22, 2008, Fees filed a complaint on behalf of T.S., a minor suing by and through her mother and next friend F.M., and F.M., individually (hereinafter referred to collectively as “F.M.”), against Ability Plus, the group home where T.S. was injured; Cora, Inc., d/b/a/ Mr. Rooter, the plumbing company that installed a heater in the bathtub a week before T.S. was injured; and various officers and employees of Ability Plus. The complaint included claims of negligence/wantonness, negligence/wantonness per se, vicarious liability, negligent hiring/retention, negli-gentywanton supervision, product liability, breach of implied warranty, violation of the [41]*41Alabama Extended Manufacturer’s Liability Doctrine, failure to warn, and loss of consortium. DHR was not a party to the lawsuit.

In November 2008, the parties agreed to participate in mediation, and, in a one-day session, the parties agreed upon a confidential settlement. A settlement summary indicates that the total settlement was in the amount of $787,500. After the deduction of litigation expenses ($29,315.99), the attorney fee ($262,500), Alabama Medicaid’s subrogation lien ($85,628.81),1 and F.M.’s loss-of-consortium award ($50,-045.20), the remainder was to be used to purchase an annuity to fund a special-needs trust paying T.S. $1,780 a month for her care for her life. The annuity was guaranteed for 30 years.2

At the hearing to approve the settlement, the trial court viewed DHR as an indispensable party and refused to approve the settlement without DHR’s consent. When DHR was contacted, it refused to consent to the settlement. F.M. then filed a motion to add DHR as an indispensable party. In a response to the motion to add it as an indispensable party, DHR argued, in pertinent part:

“The attorney fee request is unreasonable, excessive, and may violate the prohibition of Rule 1.5(e)(4) of the Alabama Rules of Professional Conduct against charging an excessive attorney fee. The $262,500 attorney fee requested represents 33 1/3% of the total settlement amount of $787,500 (if the settlement summary [provided to DHR] reflects the total settlement amount correctly). Such a large fee amount and percentage is excessive and unreasonable in a case that was settled in the first year of litigation, before conducting extensive discovery. An attorney fee award of approximately 15% is more reasonable, especially considering the needs of [T.S.] for long-term financial assistance due to her injuries.”

Fees, on behalf of F.M., responded, arguing that the attorney fee of 33 1/3% of the settlement, plus expenses, was reasonable in light of both the standard contingency fee in a personal-injury case and the fact that when he accepted the case he had only three months before F.M.’s claim would be barred by the statute of limitations. In support of his fee, Fees executed an affidavit, stating:

“1. I reside in Huntsville, Alabama. I graduated from the University of Alabama School of Law in 1983, and was licensed to practice in Alabama in September 1983. For the past 25 years, my practice has focused exclusively in representing victims of serious injury or death due to the wrongful conduct of others.
“2. On August 4, 2008, I was retained to represent [F.M. and T.S.]. We agreed upon a 33-1/3 [%] contingency fee, plus expenses, with the fee for services to be paid only if there was a recovery.
“3. The expenses incurred in bringing about a successful recovery are the usual and customary expenses my firm advances on cases involving serious injury or death.
“4. The total recovery in this case was $787,500.00.’ Pursuant to the Professional Service Agreement executed by myself and [F.M.], my fee constitutes 33-1/3% of that recovery or $262,500.00, plus expenses.”

[42]*42Fees also submitted affidavits from two attorneys who practice in Huntsville and who stated that, in their opinions, the attorney fee of $262,500 (33 1/3% of $787,500), plus expenses, was reasonable.

The trial court added DHR as a party and conducted a hearing to determine whether to approve the settlement. No testimony was taken or evidence admitted at the hearing. At the hearing DHR challenged the reasonableness of the attorney fee. Fees acknowledged that the only evidence in support of the reasonableness of the attorney fee was the affidavits attached to his response and the case file. The trial court entered an order on March 6, 2009, approving the settlement. With regard to the attorney fee, the order stated:

“The Court has been advised that out of the proceeds of the settlement, plaintiffs attorney, Douglas J. Fees, is requesting to be paid an attorney’s fee in the amount of $262,5000.00 plus reimbursement of litigation expenses in the amount of $29,315.99. Based upon the evidence, the Court concludes that the attorney fees and expenses sought by counsel are just, fair and equitable for the service he has rendered.”

In April 2009, DHR filed a motion to alter, amend, or vacate the judgment insofar as it approved the attorney fee and expenses, stating:

“COMES NOW, Madison County Department of Human Resources (hereafter DHR) legal custodian of [T.S.] and moves this court to alter, amend, or vacate its final order filed March 6, 2009, approving attorney fees and expenses in the settlement of this case. For cause, DHR avers as follows:
“1.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
53 So. 3d 38, 2010 Ala. LEXIS 93, 2009 WL 3415290, Counsel Stack Legal Research, https://law.counselstack.com/opinion/madison-county-department-of-human-resources-v-ts-ex-rel-fm-ala-2010.