Mitchell v. Bradford

961 So. 2d 1288, 2007 WL 1953601
CourtLouisiana Court of Appeal
DecidedJune 20, 2007
Docket2006-CA-1496, 2006-CA-1497, 2006-CA-1519
StatusPublished
Cited by2 cases

This text of 961 So. 2d 1288 (Mitchell v. Bradford) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mitchell v. Bradford, 961 So. 2d 1288, 2007 WL 1953601 (La. Ct. App. 2007).

Opinion

961 So.2d 1288 (2007)

Rejohnna Brown MITCHELL
v.
Harolyn BRADFORD, Jackie Blouin, Annastasia Harden, Yvonne White, Carla Campbell, Sharon Morton.
Rejohnna Brown Mitchell
v.
Gretchen Bradford.
Rejohnna Brown Mitchell
v.
Marian Madison.

Nos. 2006-CA-1496, 2006-CA-1497, 2006-CA-1519.

Court of Appeal of Louisiana, Fourth Circuit.

June 20, 2007.

Rejohnna B. Mitchell, Jackson, MS, for Plaintiff/Appellee.

Rickey R. Hudson, Monroe, LA, for Defendants/Appellants.

*1289 (Court composed of Chief Judge JOAN BERNARD ARMSTRONG, Judge MICHAEL E. KIRBY, Judge ROLAND L. BELSOME).

MICHAEL E. KIRBY, Judge.

The Defendants/Appellants appeal the granting of a default judgment in appellee's favor concerning attorney's fees. We vacate the Default Judgment for failure to make a prima facie case and remand.

STATEMENT OF THE FACTS

On or about March 29, 2000, appellants made an initial office visit to appellee regarding their personal injury claims against the makers of the diet drug Phen-fen, manufactured by American Home Products. Appellants subsequently signed a Contingency Agreement with appellee on November 2, 2000, which in paragraph one states: "In the event that attorney is able to affect a settlement or the claim and/or claims without the necessity of filing suit, the attorney is to receive as compensation for his services . . . 40% of whatever amount is collected." Paragraph five states: "Expenses are to be the responsibility of the client and are to be deducted from the client's portion of any and all monies recovered." While nine clients signed the retainer agreement, only the eight named clients have filed this appeal. The eight named clients hereinafter will be collectively referred to as the "Phen-fen clients."

From October 27, 2000 until December 5, 2000, appellee secured medical records and prescription records for the Phen-fen clients, which indicated their ingestion of the diet drug and the resulting medical damages. In January 2001, appellee associated with the law firm of Grenfell, Sledge & Stevens, L.L.C. (hereinafter referred to as "Grenfell") located in Jackson, Mississippi. The record indicates that Grenfell sent a letter to appellee requesting her to have the Phen-fen clients sign and return a confidential release, indemnity, assignment and settlement disclosure forms. Appellee subsequently met with all of the Phen-fen clients and had them sign the Fen-Phen releases which she returned to Grenfell in Mississippi. The Phen-fen releases show the clients' choice to waive their right to pursue their cases before a judge or jury in favor of allowing the outcome to be determined by a court-appointed Special Master. The signed Phen-fen releases were then forwarded by Grenfell to the law firms of Michael T. Gallagher and Tim K. Goss, both located in Dallas, Texas. The signed Phen-fen releases were then submitted to the Special Master on behalf of appellee and the Phen-fen clients.

From January through July 2001 appellee made arrangements for each client to have an echocardiogram test. Appellee forwarded the test results to the Special Master.

In response to the signed Phen-fen releases, a settlement offer and check from the Settlement Fund made out to Marian Madison for $322,000 was mailed to Grenfell. Grenfell then forwarded the settlement offer to appellee on August 16, 2001. This offer was rejected by Mrs. Madison after consultation with the appellee. Appellee also informed Grenfell at the same time that she was rejecting all of the settlements for her clients which had been obtained by Grenfell. There were disagreements that ensued between appellee and Grenfell in August and September 2001. Each of the Phen-fen clients had been offered a settlement of $72,264, with the exception of Mrs. Madison, who was to receive $322,000. Grenfell returned a letter to appellee confirming the rejection of the settlement offers and cited Mississippi case law which entitled them to an attorney fees lien. This was done following a *1290 letter that appellee sent to Grenfell on September 6, 2001 instructing them that appellee was terminating her association with them.

Approximately 18 months later, appellee communicated with Dan Homolka, an attorney from Minnesota, who then filed a civil suit on behalf of the Phen-fen clients in Minnesota's 4th Judicial District Court for Hennepin County (Case No. 03-4147) in March 2003. The case was dismissed without prejudice when American Home Products Corp. produced evidence of the releases from appellants and proof that their claims were still pending in the Diet Drug Settlement Fund.

The professional relationship between appellee and Grenfell continued to deteriorate, resulting in appellee filing a lawsuit against Grenfell in First Judicial District Court of Hinds County, Mississippi on March 31, 2004. Appellee sued for release of her clients' claims and alleged conversion and breach of contract. In response to this lawsuit, Grenfell filed a complaint for declaratory judgment against the appellee in Hinds County (No. G-2004-531) on April 2, 2004. In this suit, Grenfell requested that the court enter an order finding the Phen-fen contractual agreement and settlement/releases signed by the Phen-fen clients be enforced and requiring payment of damages and the disbursement of the settlement proceedings. As a result, a consent order was entered interpleading One Hundred, Thirty-Five Thousand and Eighty-Six Dollars ($135,086) with the funds being held in the registry of the Mississippi Chancery Court until further orders of that court.

On November 9, 2004 the eight Phen-fen clients who are parties to this appeal filed a motion to intervene in the Mississippi declaratory judgment action, alleging their contingency fee contract agreement with appellee was unenforceable. The Phen-fen clients allege that their relationship with appellee terminated on August 6, 2003 due to appellee's breach of the contingency fee contract and/or appellee's failure to notify them in a timely manner when their settlement proceeds became available. To this date, appellee appears to be representing appellants in the aforementioned litigation against Grenfell that is still pending in the Hinds County, Mississippi First Judicial District Circuit Court. With respect to the still-pending declaratory judgment/interpleader action, the appellee subsequently urged a successful motion which resulted in the Mississippi Chancery Court granting a Motion to Dismiss for Lack of Subject Matter Jurisdiction. The Mississippi Court ordered the transfer of the entire file of Civil Action No. G-2004-531 to the Civil District Court for the Parish of Orleans, Louisiana on November 26, 2006.

PROCEDURAL HISTORY

Appellee filed a petition on July 16, 2004 in Civil District Court for the Parish of Orleans (No. 2004-10350, Division "F") for debt owed on her contingency fee contracts with the Phen-fen clients. Appellee filed a motion for preliminary default judgment against the Phen-fen clients on April 25, 2006. The Orleans Parish Civil District Court granted the preliminary default judgment against the Phen-fen clients on September 6, 2006, due to their failure to file an answer or other responsive pleadings in a timely manner. The default judgments were as follows: Harolyn M. Bradforde, $131,000.00; Jackie Blun, $30,905.60; Yvonne White, $131,000.00; Sharon Morton, $30,905.60; Annastasia Harden, $148,000.00; Carla Campbell, $30,905.60; Gretchen Bradford, $131,000.00; Marian B. Madison, $131,00.00.

Pursuant to Louisiana Code of Civil Procedure articles 2083 and 2121, appellants *1291

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Cite This Page — Counsel Stack

Bluebook (online)
961 So. 2d 1288, 2007 WL 1953601, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mitchell-v-bradford-lactapp-2007.