MORRIS B. CHAPMAN & ASSOCIATES v. Kitzman

706 N.E.2d 1065, 302 Ill. App. 3d 780
CourtAppellate Court of Illinois
DecidedFebruary 2, 1999
Docket5-97-1005
StatusPublished
Cited by1 cases

This text of 706 N.E.2d 1065 (MORRIS B. CHAPMAN & ASSOCIATES v. Kitzman) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MORRIS B. CHAPMAN & ASSOCIATES v. Kitzman, 706 N.E.2d 1065, 302 Ill. App. 3d 780 (Ill. Ct. App. 1999).

Opinion

706 N.E.2d 1065 (1999)

MORRIS B. CHAPMAN & ASSOCIATES, LTD., Plaintiff-Appellant and Cross-Appellee,
v.
John KITZMAN and Edna Kitzman, Defendants-Appellees and Cross-Appellants.

No. 5-97-1005.

Appellate Court of Illinois, Fifth District.

February 2, 1999.

*1068 Morris B. Chapman, Clarence W. Harrison II, Morris B. Chapman & Associates, Ltd., Granite City, for Appellant.

William J. Knapp, Robert J. Evola, Burroughs, Hepler, Broom, MacDonald & Hebrank, Edwardsville, for Appellee.

Justice KUEHN delivered the opinion of the court:

John W. Kitzman III died in an industrial accident. His wife, Karen, hired Morris B. Chapman & Associates, Ltd. (Chapman), to *1069 pursue a wrongful death action. Karen agreed to pay Chapman one-third of any recovery. Chapman recovered $800,000 but was only paid $227,040. This action ensued.

The lawsuit filed on behalf of Karen Kitzman in Missouri named Karen Kitzman and decedent's parents, John and Edna Kitzman, as his heirs. Chapman obtained an $800,000 settlement for the benefit of those heirs, prepared a petition for settlement approval, and noticed a hearing.

A few days prior to the Missouri trial court's hearing on the petition, John and Edna Kitzman retained separate counsel, attorney John A. Kilo. They agreed to pay Kilo one-third of their recovery in excess of $100,-000. John and Edna Kitzman intervened and participated in the settlement approval and apportionment hearing.

After the apportionment hearing, the Missouri trial court entered an order distributing 86% of the settlement ($688,000) to Karen Kitzman and 7% ($56,000) each to John and Edna Kitzman. It further ordered that Chapman's fee would consist of one-third of Karen Kitzman's share ($227,040) only, while Kilo would receive one-third of John and Edna Kitzman's share over $100,000 ($4,000). The Missouri trial court based its fee apportionment on section 537.095(4)(2) of the Missouri Revised Statutes, which requires a trial court to order the claimant:

"To deduct and pay the expenses of recovery and collection of the judgment and the attorneys' fees as contracted, or if there is no contract, or if the party sharing in the proceeds has no attorney representing him before the rendition of any judgment or settlement, then the court may award the attorney who represents the original plaintiff such fee for his services, from such persons sharing in the proceeds, as the court deems fair and equitable under the circumstances." Mo.Rev.Stat § 537.095.4(2) (1986).

The Missouri trial court stated that this provision required it to apportion attorney fees according to the existing contingency contracts for the following reason: "Once separate counsel appear for competing claimants, the statutory language directing payment of attorney's fees `as contracted' must be given full effect."

Chapman filed the instant action in Madison County Circuit Court, seeking additional attorney fees from defendants, John and Edna Kitzman. Chapman's complaint originally consisted of a single quantum meruit count but was later amended to include a second count based upon the common-fund doctrine. The circuit court disposed of the action in an order that:

• granted Chapman's oral motion to dismiss count I.
• granted defendants' motion to dismiss count II of Chapman's complaint grounded on the common-fund doctrine's inapplicability to this case.
• denied defendants' summary judgment motion based upon the full faith and credit clause of the United States Constitution (U.S. Const., art. IV, § 1).
• denied defendants' motion for sanctions seeking attorney fees pursuant to Supreme Court Rule 137 (155 Ill.2d R. 137).
• denied Chapman's summary judgment motion, including Chapman's argument that a judge, rather than a jury, must determine the proper fee award.

On appeal, Chapman attacks the circuit court's dismissal of count II and its denial of summary judgment on the question of how a common-fund-doctrine fee award is determined. Defendants cross-appeal the circuit court's denial of their summary judgment motion and motion for sanctions.

We first address defendants' argument that the circuit court erred in denying their summary judgment motion. Specifically, defendants contend that the full faith and credit clause of the United States Constitution bars this action because the Missouri trial court's fee-apportionment order is res judicata as to Chapman's claim. This contention presents a disputed question of law that we review de novo. Statler v. Catalano, 293 Ill.App.3d 483, 485-86, 229 Ill.Dec. 274, 691 N.E.2d 384, 386 (1997).

"The full faith and credit clause of the United States Constitution [citation] generally *1070 requires every State to give a foreign judgment at least the res judicata effect which the judgment would be accorded in the State which rendered it." Pfaff v. Chrysler Corp., 208 Ill.App.3d 910, 922, 153 Ill.Dec. 337, 567 N.E.2d 52, 60 (1991), aff'd, 155 Ill.2d 35, 182 Ill.Dec. 627, 610 N.E.2d 51 (1992). Therefore, we must apply Missouri law in determining whether the Missouri trial court's order is res judicata as to the claim before us.

In Missouri, the res judicata doctrine bars a claim only if the following elements are satisfied: (1) the identity of the thing sued for, (2) the identity of the cause of action, (3) the identity of the parties to the action, and (4) the identity of the quality of the person for or against whom the claim is made. State of Missouri ex rel. Sanders v. Martin, 945 S.W.2d 641, 642 (1997). Our res judicata analysis need not go beyond the third element. Facing an attorney-fees dispute arising from a wrongful death action, the Missouri appellate court explained that attorneys seeking fees are not parties to a suit:

"The problem with the trial court's ruling is that the attorneys were not parties to the underlying litigation. Res judicata bars only claims by parties and privies. Attorneys claiming a portion of a party's fee have not previously been held to be in privity with their clients. The concept of privity for purposes of res judicata connotes interests so closely related that the party sought to be barred may be said to have had a day in court. The interest of an attorney with regard to a fee claim is not of this character." Floyd v. Shaw, 830 S.W.2d 564, 565 (Mo.App.1992).

Consequently, the case before us lacks an identity of parties with the underlying Missouri wrongful death action.

Defendants nevertheless claim that, though technically a nonparty in the underlying litigation, Chapman was an "actual interested party" with respect to the attorneyfees issue. Chapman was the petitioner for fees and had an opportunity to be heard. Thus, defendants argue, Chapman could have assailed the fee apportionment in the Missouri appellate court but may not attack it in an independent Illinois action. This contention is unsupported.

Missouri law does not allow a law firm to independently appeal the amount of an attorney-fees award:

"The right to appeal is purely statutory. [Citations.] Section 512.020 provides that any `party to a suit aggrieved by any judgment of any trial court in any civil case ... may take his appeal to a court having appellate jurisdiction.' By its express terms, the statute limits appeals; only a `party to a suit' may appeal.

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Bluebook (online)
706 N.E.2d 1065, 302 Ill. App. 3d 780, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morris-b-chapman-associates-v-kitzman-illappct-1999.