Michael M. Sellers v. Amit Gupta

Court of Appeals of Iowa·Decided April 13, 2022·No. 21-0888·Published

Opinion

IN THE COURT OF APPEALS OF IOWA

No. 21-0888

Filed April 13, 2022

MICHAEL M. SELLERS, Petitioner-Appellant/Cross Appellee,

vs.

AMIT GUPTA, Respondent-Appellee/Cross-Appellant.

Appeal from the Iowa District Court for Polk County, Jeanie Kunkle Vaudt, Judge.

In an attorney-client fee dispute, the attorney appeals from the district court’s confirmation of an award decision from the Polk County Bar Association Attorney Fee Arbitration Committee. AFFIRMED.

James L. Sayre, Des Moines, for petitioner-appellant/cross-appellee.

Amit Gupta, Los Angeles, California, self-represented respondent-

appellee/cross-appellant.

Considered by Tabor, P.J., and Greer and Ahlers, JJ.

GREER, Judge.

Following a fee dispute, Michael Sellers and his former client, Dr. Amit Gupta, entered arbitration before the Polk County Bar Association Attorney Fee Arbitration Committee (Arbitration Committee).1 Sellers asserts one of the Arbitration Committee panel members had a conflict of interest and, because of this evident partiality, the award should be vacated. Alternatively, he argues the Arbitration Committee exceeded its powers by determining the quality of his legal representation for Gupta. Gupta cross-appeals, arguing that the district court should have awarded him prejudgment interest, attorney fees, and costs. Because Sellers waived his challenge to the Arbitration Committee’s potential conflicts and the Arbitration Committee did not exceed its powers, and because the district court did not abuse its discretion by declining to award Gupta attorney fees and costs, we affirm the district court’s confirmation of the arbitration award. Background Facts and Proceedings.

This case arises out of an attorney-fee dispute between Sellers, an Iowa attorney, and Gupta, a medical doctor. Gupta hired Sellers to help with various issues. Gupta had been found guilty by a jury of a simple misdemeanor and sentenced to a deferred judgment and probation. He hired Sellers in November 2016 to help manage any disclosures that would be necessary to the Iowa Board of Medicine, which might impact Gupta’s physician status.

Around the same time, Gupta was also embroiled in a divorce proceeding, and he asked for Sellers’s counsel when his now ex-wife subpoenaed his current

1The Polk County Bar Association developed a process to allow parties to pursue alternative dispute resolution to resolve attorney-fee disputes.

employer in California, seeking financial documents and personnel records. According to Gupta, Sellers told him his current counsel was doing a poor job and that the consequences could impact his job and medical licensure. Sellers seemed confident he could finish the work for $10,000–$15,000. And after a wayward email in July 2017 from Sellers to Gupta’s counsel caused that counsel to withdraw from the case,2 Sellers encouraged Gupta to hire him. Gupta, trusting Sellers’s experience and knowledge, did so.

That August, as Sellers was getting more involved in the divorce proceedings, Gupta completed his probation as ordered in the criminal case. The case was dismissed and expunged; still, Sellers did not believe this was enough to prevent any career consequences Gupta could face. Sellers filed several motions and an application for postconviction relief (PCR), a remedy not available when the sentence results in a deferred judgment.3 He filed other motions about the criminal matter in the dissolution proceedings, which the dissolution court said was an improper venue to disturb a jury verdict in a different case. While Gupta testified that it was complicated to decipher because of Sellers’s billing model, it seemed that one such motion Sellers claimed could be done quickly and at minimal cost ended up costing around $20,000. Gupta explained he struggled to tell Sellers no because he would take the comments personally.

2 The email, which Sellers intended to send to Gupta but accidentally sent to counsel, referred to Sellers and Gupta as “the parents” and the other counsel as “the kids.” 3 Gupta had previously sent Sellers a case, Daughenbaugh v. State, 805 N.W.2d

591, 598 (Iowa 2015), which explained PCR was unavailable following a deferred judgment.

Still represented by Sellers, Gupta’s divorce trial occurred in March 2018.

Gupta testified that he wrote his own pre-trial brief and he and Sellers had agreed he would similarly write the post-trial brief. In May, when Gupta received his bill, he was taken aback by the charges and total cost and decided he could no longer afford Sellers’s representation. In an email, Gupta explained that the cost was prohibitive and asked Sellers to withdraw and let him continue on his own, especially since the judge said post-trial briefs were optional.4 Sellers responded that he still had to file a post-trial brief and would finish it; Gupta claims Sellers told him the work would be done at no charge as Gupta made it clear he was unwilling to pay for further legal work. Sellers says he made no such promise and time continued to be billed to Gupta—$19,200 after Gupta’s email.

Gupta began re-analyzing the bills he had been sent—they totaled more than $300,000—and challenged Sellers on some charges. He had paid more than $250,000, but the invoices showed $56,120.385 in outstanding legal fees. In November 2018, when Gupta had not paid the balance, Sellers sued for debt collection. But, that December, the parties filed a stipulated motion to dismiss without prejudice and moved the case to an alternative dispute resolution process through the Arbitration Committee.

The arbitration occurred in September 2019. At the onset of the hearing, one of the committee members, attorney Mark Weinhardt, stated that he had a potential conflict he wanted to address with the parties and other committee

4 In the dissolution trial, the court said it did not think it needed post-trial briefs but the parties could file them if they wanted. 5 The original amount was $1000 greater, but Sellers agreed there was one

duplicative charge and adjusted appropriately.

members. He talked it over with the committee members before the meeting, and then recapped his discussion on the record for the parties:

In Dr. Gupta’s materials he made reference to other fee disputes with other clients involving Mr. Sellers. One of those involved a physician named [Dr. P].[6] I represented [Dr. P] not in the litigation with Mr. Sellers over the fee dispute, but I took over the representation of [Dr. P] in the underlying matter where Mr. Sellers had previously been counsel.

I stated my judgment that I did not think with reference to the standards that would apply to judicial recusal, which is what I adopt by analogy, that my knowledge about that collateral fee dispute would disqualify me from participating here, but we then put this to both of the litigants in this proceeding, which we should probably [do that on] the record.

Both Gupta and Sellers affirmatively and without reservation said they did not object to Weinhardt’s participation in the panel.

As the arbitration hearing went forward, Gupta argued not only that he did not believe he should have to pay Sellers the final amount, but that he was entitled to a complete refund. He testified Sellers agreed to only do work after Gupta signed off on it to keep costs down but pointed to charges he had not pre- authorized. Gupta provided evidence comparing time stamps from word documents to the bills sent, which showed large discrepancies in the time spent working on given tasks. He also commented on tasks he thought were wasteful or meritless, such as the continuing motions about his criminal case in the dissolution court after the court had said it would not overturn the jury verdict,7 but were done in lieu of things Gupta specifically asked him to do, such as serving subpoenas. And while Sellers had pointed to his experience when Gupta hired him, Sellers had

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