Michael D. Sydow v. Verner, Liipfert, Bernhard, McPherson and Hand, Chartered

CourtCourt of Appeals of Texas
DecidedJanuary 25, 2007
Docket14-05-00877-CV
StatusPublished

This text of Michael D. Sydow v. Verner, Liipfert, Bernhard, McPherson and Hand, Chartered (Michael D. Sydow v. Verner, Liipfert, Bernhard, McPherson and Hand, Chartered) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michael D. Sydow v. Verner, Liipfert, Bernhard, McPherson and Hand, Chartered, (Tex. Ct. App. 2007).

Opinion

Affirmed as Modified and Opinion filed January 25, 2007

Affirmed as Modified and Opinion filed January 25, 2007.

In The

Fourteenth Court of Appeals

____________

NO. 14-05-00877-CV

MICHAEL D. SYDOW, Appellant

V.

VERNER, LIIPFERT, BERNHARD, MCPHERSON AND HAND, CHARTERED, Appellee

On Appeal from the 55th District Court

Harris County, Texas

Trial Court Cause No. 04-68632

O P I N I O N


Both parties appeal from the trial court=s final judgment modifying and confirming an arbitration award.  The arbitrator, in fact, issued two awards: an Aoriginal award@ and a subsequent Aamended award.@  Michael D. Sydow requested that the trial court confirm the amended award.  Verner Liipfert, Bernhard, McPherson and Hand, Chartered (AVerner Liipfert@) requested that the court confirm the original award.  The trial court modified the original award and confirmed it as modified.  On appeal, Sydow contends that the trial court should have confirmed the amended award instead of modifying and confirming the original award.  Verner Liipfert contends that the trial court erred in modifying the original award in certain respects.  We, in turn, modify the trial court=s judgment and affirm it as modified.

I.  Background

Sydow is an attorney in Houston, Texas.  In 1997, he negotiated with the law firm of Verner Liipfert to join its Houston office.  As part of the negotiations, Sydow met with Lenard Parkins, a Verner Liipfert shareholder, regarding which of Sydow=s preexisting cases the firm was interested in pursuing.  As part of this conversation, Sydow informed Parkins about the expenses he had already incurred in the cases.  One of these cases was Miller v. Texas Women=s HospitalSee HCA, Inc. v. Miller, 36 S.W.3d 187 (Tex. App.CHouston [14th Dist.] 2000), aff=d, 118 S.W.3d 758 (Tex. 2003).  The parties disagree as to whether Sydow told Parkins that the preexisting expenses in Miller were $30,000 or $300,000.  The parties also disagree as to whether Verner Liipfert agreed to reimburse Sydow for any preexisting case expenses or whether it simply agreed to pay for future expenses in certain of Sydow=s preexisting cases.  The parties agree, however, that Verner Liipfert did accept certain of Sydow=s preexisting cases for continued prosecution, including Miller.

In 2001, Verner Liipfert closed its Houston office.  As part of his severance package, Sydow signed a release, which left certain issues in dispute.  In August 2004, the parties entered into a binding arbitration agreement regarding the remaining disputes, pursuant to which they proceeded to a full arbitration hearing on September 17-18, 2004.  In both the original and amended awards, the arbitrator framed the issues between the parties as follows: (1) whether the release obligated Verner Liipfert to pay for attorney=s fees Sydow incurred defending against a grievance and an intervention filed by a former client; (2) whether Verner Liipfert was responsible for preexisting expenses on the cases Sydow brought into the firm; (3) whether the preexisting expenses in the Miller case were $30,000 or $300,000; and (4) whether Verner Liipfert failed to pay money due to Sydow under the release.


In the original award, regarding the first issue, the arbitrator found that the release obligated Verner Liipfert to pay Sydow=s attorney=s fees related to the intervention but not the grievance.[1]  The arbitrator consequently awarded Sydow $18,883.83 for the intervention attorney=s fees plus interest.  Regarding the second issue, the arbitrator found that Verner Liipfert had agreed to assume the preexisting expenses for the cases it accepted.  In explaining this holding, the arbitrator stated that it would have made no sense for Sydow to agree to give Verner Liipfert 25% of his recovery in certain cases if they were going to pay only expenses incurred after he joined the firm.  Regarding the third issue, the arbitrator held that Sydow was entitled to $57,003.32 of the requested $357,003.32 as preexisting expenses in Miller, which sum was within the reasonable range understood by Verner Liipfert.  The arbitrator stated that A[t]he fault in the misunderstanding of this issue rests between Sydow and Parkins.@  The arbitrator further found that because Verner Liipfert violated the contract, Sydow was entitled to certain of his attorney=s fees incurred in the present case.  The arbitrator then entered a variety of calculations of case expenses, credits for resolved cases, and interest.  Ultimately, the arbitrator awarded Sydow:

a.       $18,883.83 for his out-of-pocket fees for the [intervention];

b.       $167,579.92 plus interest thereon at 5% per annum following September 20, 2003; plus

c.       $76,456.97 attorneys= fees plus interest thereon at 5% per annum after ten (10) days from the date of this Award.

The total AWARD therefore is $267,920.72 in favor of Sydow against Verner, Liipfert, Bernhard, McPherson and Hand.

The arbitrator also ordered Sydow to help the firm collect in outstanding cases.


In the amended award, the arbitrator stated that Sydow filed a motion to reconsider urging that (1) the expenses in Miller were $300,000 not $30,000, and (2) in the alternative, plaintiff=s exhibit 8 permitted A

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Michael D. Sydow v. Verner, Liipfert, Bernhard, McPherson and Hand, Chartered, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michael-d-sydow-v-verner-liipfert-bernhard-mcphers-texapp-2007.