Malonis v. Loiselle

16 Mass. L. Rptr. 119
CourtMassachusetts Superior Court
DecidedMarch 20, 2003
DocketNo. 954429
StatusPublished

This text of 16 Mass. L. Rptr. 119 (Malonis v. Loiselle) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Malonis v. Loiselle, 16 Mass. L. Rptr. 119 (Mass. Ct. App. 2003).

Opinion

Billings, A.J.

This case was filed in this Court, transferred (after proceedings described below) to the District Court pursuant to G.L.c. 231, §102C, tried there, and returns here pursuant to a retransfer. In its present posture, it presents an issue frequently confronted by lawyers in private practice (the plaintiffs’ personal injury bar in particular), but seldom litigated. It is this: When an attorney (Al) has put substantial work and expenses into a contingent fee matter and is then discharged, the client retains a second attorney (A2), and A2 thereafter settles the case and takes his contingent fee, can Al compel A2 to share the fee with him? More precisely: When, if ever, does Al’s indisputable entitlement to a recovery in quantum meruit for services rendered lie against A2, as opposed to the client?

In the circumstances of this case, detailed below, I hold that Al (plaintiff Malonis) may recover in quantum meruit against A2 (defendant Harrington), and therefore order that judgment enter for the plaintiff on Count II of the Complaint.

Findings of Fact

The parties have presented the case as a “case stated,” on a record consisting of the transcript and exhibits from the District Court trial and a Stipulation of Facts which restates, in condensed form, the evidence presented at that trial. I have taken the Stipulation as binding on both parties, and have reviewed and relied upon the transcript and the exhibits where necessary to supplement the Stipulation. I have also taken judicial notice of the docket in Loiselle v. BFI, Middlesex Superior Court no. 93-3723, where necessary.

The facts, largely but not wholly undisputed, are as follows. The plaintiff Malonis and the remaining defendant Harrington are both attorneys licensed to practice in Massachusetts. Their common client, Marc Loiselle, was injured in a motor vehicle accident on April 26, 1991, in which the operator of the other vehicle was employed by Browning-Ferris Industries, Inc. (“BFI”), a self-insurer. Loiselle retained Malonis as counsel within a few days of the accident, for a contingent fee of one-third the recovery. The record does not establish conclusively whether or not Malonis and [120]*120Loiselle had a written fee agreement, as required by Rule 1.5(c) of the Code of Professional Conduct, SJC Rule 3:01.1 Malonis investigated the accident and secured payment to Loiselle, early on, of $6,780 in PIP benefits.

In early 1993, BFI offered $7,500 on the case. Loiselle rejected the offer, and Malonis prepared a demand under Chapter 93A, which he sent on May 12, 1993. On May 27, BFI offered $30,000, inclusive of PIP benefits already paid, which Loiselle again rejected. In June 1993, therefore, Malonis filed suit on Loiselle’s behalf in Middlesex Superior Court. Written discoveiy was exchanged, and Loiselle was deposed and underwent an independent medical examination.

Three years after the accident, Loiselle was still complaining of back pain. At Malonis’s suggestion, he underwent an MRI and an examination by a Dr. Pierce, an orthopedic surgeon at the Massachusetts General Hospital, in April 1994. Dr. Pierce recommended disc surgeiy. Malonis forwarded the surgeon’s report to BFI’s counsel, Paul Keane. BFI thereupon decided to increase its offer to $57,500. Keane did not, however, communicate this new position to Malonis. Malonis continued discussing with Keane a settlement in the range of $60,000 to $80,000, but no agreement was reached.

On September 14,1994 Loiselle discharged Malonis and engaged Harrington. Malonis forwarded his file to Harrington and on September 21, 1994, gave Loiselle, Harrington, and Keane written notice of an attorney’s lien on any recoveiy. Harrington wrote to Malonis on December 16, 1994, March 17, 1995, March 20, 1995 and March 27, 1995, each time asking him for a statement of his fees (the last letter requesting it no later than Friday, March 31). Loiselle chimed in on March 23, 1995, with a letter “instruct[ing]” Malonis “to submit a full and complete invoicing of your fees due you” on the case, and stating that “it would be appreciated” if this were provided to himself or to Harrington by March 30, 1995.

Harrington finalized a settlement with BFI at a mediation in early April 1995 for $57,500, the figure that BFI had determined to offer the preceding year but had not communicated to Malonis. This was paid in two checks dated April 4, 1995, one for $40,000 payable to Loiselle and his wife and the other for $17,500 payable to Harrington as attorney for Loiselle. This latter check, Harrington retained as his fee and expense reimbursement for Loiselle v. BFI. It represented a modest reduction from the one-third-plus-expenses specified in the fee agreement.

On that same day that the settlement checks were cut, Malonis finally provided the requested invoice to Harrington, setting forth an itemized breakdown of his hours and costs, and a claim for a fee of $10,320.00 and $1,035.80 in disbursements. Harrington viewed this claim as “ridiculous.”

BFI, Loiselle and Harrington consummated the settlement notwithstanding the fact that each had previously been notified of Malonis’s assertion of an attorney’s lien. BFI’s willingness to go forward was premised on an oral assurance by Harrington to Keane “that he [Harrington] would take care of Mr. Malonis.”2

Loiselle quickly developed second thoughts about the settlement, however, and filed (pro se) a motion to have it set aside. A hearing was scheduled for April 13, 1995 and rescheduled to April 21.

On April 10, Keane wrote to Harrington to say that BFI would be seeking costs if Loiselle pressed his motion, and adding, “As per our conversation today, you will resolve any issue regarding a referral fee owed to Attorney George Malonis.” So far as appears, Harrington did not reply to the letter. Keane reiterated this expectation two weeks later in a letter to Malonis, in which he stated that he had spoken with Harrington, “who has advised me that he will be in touch with you regarding the issue of your attorneys fee.”

On April 12, apparently as a consequence of Loiselle’s attempted repudiation of the settlement, Harrington moved to withdraw as his counsel. Also docketed that day was Loiselle’s “Motion to Determine the Existence and Validity of Attorney’s Lien.” It appears that a hearing was held on April 21, at which Loiselle withdrew his motion to set the settlement aside; an agreement for judgment was filed and approved; Harrington’s motion to withdraw was allowed; no action was taken on the motion regarding the attorney’s lien; and the case was closed.

Keane testified in the District Court that in his estimation, Malonis did about 80% and Harrington about 20% of the work on the case, an assessment that seems reasonable based on the record before me. The case was not extensively prepared by either counsel, but neither does it appear to have been underprepared for what it was: a motor vehicle case in which liability was essentially undisputed, and which involved moderate injuries. Malonis’s investigation included gathering records from the police and various medical providers; he met regularly with his client (whose office was in the same building as his); he filed the case; he conducted and defended such discoveiy as there was; and he negotiated with BFI, on the basis of which negotiations and the information Malonis provided BFI determined, before the case left Malonis’s practice, to offer the figure for which it ultimately settled.

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)
Adams v. Fisher
390 So. 2d 1248 (District Court of Appeal of Florida, 1980)
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)
Opert v. Mellios
614 N.E.2d 996 (Massachusetts Supreme Judicial Court, 1993)
Merrimack Mutual Fire Insurance v. Nonaka
606 N.E.2d 904 (Massachusetts Supreme Judicial Court, 1993)
Capozzi's Case
347 N.E.2d 685 (Massachusetts Appeals Court, 1976)
Salamon v. Terra
477 N.E.2d 1029 (Massachusetts Supreme Judicial Court, 1985)
Phelps Steel, Inc. v. Von Deak
511 N.E.2d 42 (Massachusetts Appeals Court, 1987)
Noble v. John Hancock Mutual Life Insurance
386 N.E.2d 735 (Massachusetts Appeals Court, 1979)
Salem Realty Co. v. Matera
410 N.E.2d 716 (Massachusetts Appeals Court, 1980)
DiMarzo v. American Mutual Insurance
449 N.E.2d 1189 (Massachusetts Supreme Judicial Court, 1983)
Levings v. Forbes & Wallace, Inc.
396 N.E.2d 149 (Massachusetts Appeals Court, 1979)
Styer v. Hugo
619 A.2d 347 (Superior Court of Pennsylvania, 1993)
Buckelew v. Grossbard
461 A.2d 590 (New Jersey Superior Court App Division, 1983)
Salem Realty Co. v. Matera
426 N.E.2d 1160 (Massachusetts Supreme Judicial Court, 1981)
Clickner v. City of Lowell
422 Mass. 539 (Massachusetts Supreme Judicial Court, 1996)
Craft v. Kane
747 N.E.2d 748 (Massachusetts Appeals Court, 2001)
Washburn v. McGuiness-Parlagreco
1 Mass. L. Rptr. 85 (Massachusetts Superior Court, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
16 Mass. L. Rptr. 119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/malonis-v-loiselle-masssuperct-2003.