Malonis v. Browning-Ferris Industries, Inc.

2001 Mass. App. Div. 149, 2001 Mass. App. Div. LEXIS 63

This text of 2001 Mass. App. Div. 149 (Malonis v. Browning-Ferris Industries, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts District Court, Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Malonis v. Browning-Ferris Industries, Inc., 2001 Mass. App. Div. 149, 2001 Mass. App. Div. LEXIS 63 (Mass. Ct. App. 2001).

Opinion

Greco, J.

This is an action by a discharged attorney, George C. Malonis (“Malo-nis”), against his successor counsel, Robert W. Harrington (“Harrington”), for a share of the contingent fee that counsel received after the litigation involved was settled. A review of the trial judge’s rulings on Malonis’ requests for rulings of law requires us to consider the evidence in the light most favorable to Malonis. So viewed, the evidence would have warranted the following findings:

After an automobile accident in 1991, Marc Loiselle (“Loiselle”) hired Malonis to represent him in the ensuing tort action. They agreed that Malonis would receive a one-third contingent fee, but that if Malonis was discharged prior to the conclusion of the litigation, he would be entitled to receive his reasonable expenses and disbursements, together with compensation “for the fair value of the services rendered to [Loiselle] up to the time of discharge.” After Malonis filed a complaint and completed a considerable amount of work on the case, and after an offer of $30,000.00 in settlement was made and rejected, Loiselle discharged Malo-nis without cause and hired Harrington, with whom he also made a one-third contingent fee arrangement Harrington knew that Loiselle had prior counsel when he entered the case. Although additional work done on the case by Harrington was not extensive, he did suggest that the parties engage in private mediation, after which the case was settled for $57,500.00.

After he was discharged, Malonis filed for an attorney’s lien under G.L.c. 221, §50. Aware of that action, Harrington repeatedly sought from Malonis an itemized bill for the services he had rendered to Loiselle. Because Malonis had filed for a lien and because he assumed that the question of his compensation would he addressed once the case was settled, Malonis did not furnish Harrington with such an itemization until April of 1995. In the itemization finally submitted, Malo-nis sought fees of $10,320.00 and costs of $1,035.80. At one point, when litigation in this matter was pending in the Superior Court, counsel for one of the defendants in the original lawsuit brought by Loiselle, Paul Keane (“Keane”), told Harrington, “You still have the issue to deal with on Mr. Malonis’ lien.” Harrington responded that he would “take care of Malonis. Harrington never told Malonis, however, that he was going to pay him any money. Because Loiselle’s lawsuit was settled without any “judgment, decree or other order” in his favor, the Superior Court dismissed Malonis’ efforts to enforce any lien.

When this case was tried in the Lowell District Court, Malonis sought to [150]*150recover from Harrington on the grounds that Harrington was unjustly enriched by failing to reimburse him for his fees and costs out of Harrington’s contingent fee; that by retaining the whole fee, Harrington had converted money belonging to Malonis; and that Harrington had committed an unfair and deceptive practice in violation of G.L.c. 93A. After trial, the judge found for defendant Harrington and awarded no damages. Malonis bases this appeal on the denial of three of his requested rulings of law. Request number 1 sought a ruling that when a client discharges his lawyer and thereafter recovers a settlement, “the discharged attorney is entitled to compensation for the fair value of his services whether or not the discharged attorney and client have entered into a contingent fee agreement.” In request number 2, Malonis sought a ruling that when there is a contingent fee agreement, “the successor attorney is liable to pay to the discharged attorney the fair and reasonable value of the discharged attorney’s services to the time of discharge from the contingent fee collected.” Finally, request number 8 sought a ruling of law that the evidence warranted a finding in favor of Malo-nis.

1. “Essential to the lawyer-client relationship is the client’s right to change his lawyer at any time - even without cause.” Smith v. Binder, 20 Mass. App. Ct. 21, 23 (1985). While the discharged attorney remains entitled to his or her fee, the obligation to pay that fee falls on the client, not successor counsel. In Salem Realty Co. v. Matera, 10 Mass. App. Ct. 571 (1980), the Appeals Court noted that the right of a client to change lawyers would not have “much value if the client is put at risk to pay the full contract price for services not rendered and to pay a second lawyer as well.” Id. at 575. Consequently, “[f]or the discharged lawyer... recovery cannot be on the contingent fee contract, but for a reasonable fee on a quantum meruit basis.” Id. at 575-576. Nowhere in Salem Realty Co. did the Appeals Court even intimate that successor counsel bore any “risk to pay.” To the contrary, the Appeals Court cited Fracasse v. Brent, 6 Cal. 3d. 784, 791 (1972), in which the Supreme Court of California noted that to “[t]he extent that such discharge is followed by retention of another lawyer, the client will in any event be required, out of any recovery, to pay the former attorney for the reasonable value of ids services. Such payment, in addition to the fee charged by the second attorney, should certainly operate as a self-limiting factor on the number of attorneys so discharged.” See also Smith v. Binder, supra wherein the Appeals Court referred only to what the client was “bound to pay.”

We recognize that on further appellate review in Salem Really, the Supreme Judicial Court declined to “formulate a rule... which would bar recovery on a contingent fee agreement in all cases by an attorney who has rendered substantial performance.” Salem Realty Co. v. Matera, 384 Mass. 803, 804 (1981). In leaving this door open, the Court clearly indicated that any such enhanced recovery would be “on the contract in contrast to the restitutional species of recovery in quantum meruit” Id. Since the only contract involved would be the one between the client and the discharged lawyer, any such recovery would have to come from the client

Our conclusion that successor counsel cannot be held liable in an action by discharged counsel for a fee is in accord with that reached in other jurisdictions in addition to California. See, for example, Styler v. Hugo, 422 Pa. Super. 262 (1993), aff’d 535 Pa. 610 (1994); Adams v. Fisher, 390 So.2d. 1248 (Fla. App. 1980); Hoddick, Reinwald, O’Connor & Marrack v. Lotsoff, 719 P.2d 1107 (Hawaii App. 1986). More generally, see the cases collected in George L. Blum, Annotation, Limitation to Quantum Meruit Recovery, Where Attorney Employed Under Contingent-Fee Contract Is Discharged Without Cause, 56 ALR 5th 1 (1998). However, Malonis’position to the contrary is not without some support In particular, he relies on Saucier v. Hayes Dairy Products, Inc., 373 So. 2d 102, 118-119 (La.1979). In that case, a [151]*151sharply divided Louisiana Supreme Court2 held that where counsel was discharged and new counsel retained, “the highest agreed upon contingent fee” should he allocated between the lawyers. In the Courfs view, such a solution “should assure fair treatment of the client who will never be compelled to pay more than one reasonable fee in an amount he has agreed to pay.

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

Related

Hoddick, Reinwald, O'Connor & Marrack v. Lotsof
719 P.2d 1107 (Hawaii Intermediate Court of Appeals, 1986)
Pryor v. Merten
490 S.E.2d 590 (Court of Appeals of North Carolina, 1997)
Saucier v. Hayes Dairy Products, Inc.
373 So. 2d 102 (Supreme Court of Louisiana, 1979)
Styer v. Hugo
637 A.2d 276 (Supreme Court of Pennsylvania, 1994)
Smith v. Binder
477 N.E.2d 606 (Massachusetts Appeals Court, 1985)
Shapiro v. Grinspoon
541 N.E.2d 359 (Massachusetts Appeals Court, 1989)
Salem Realty Co. v. Matera
410 N.E.2d 716 (Massachusetts Appeals Court, 1980)
Styer v. Hugo
619 A.2d 347 (Superior Court of Pennsylvania, 1993)
MacNeil v. Hazelton
28 N.E.2d 477 (Massachusetts Supreme Judicial Court, 1940)
Salem Realty Co. v. Matera
426 N.E.2d 1160 (Massachusetts Supreme Judicial Court, 1981)
Poly v. Moylan
423 Mass. 141 (Massachusetts Supreme Judicial Court, 1996)
First Enterprises, Ltd. v. Cooper
425 Mass. 344 (Massachusetts Supreme Judicial Court, 1997)
Tetrault v. Mahoney
425 Mass. 456 (Massachusetts Supreme Judicial Court, 1997)
Kurker v. Hell
689 N.E.2d 833 (Massachusetts Appeals Court, 1998)
Community Builders, Inc. v. Indian Motocycle Associates, Inc.
692 N.E.2d 964 (Massachusetts Appeals Court, 1998)

Cite This Page — Counsel Stack

Bluebook (online)
2001 Mass. App. Div. 149, 2001 Mass. App. Div. LEXIS 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/malonis-v-browning-ferris-industries-inc-massdistctapp-2001.