Much Shelist Freed Denenberg & Ament, P.C. v. Lison

297 Ill. App. 3d 375
CourtAppellate Court of Illinois
DecidedJune 11, 1998
Docket1-97-2792
StatusPublished
Cited by26 cases

This text of 297 Ill. App. 3d 375 (Much Shelist Freed Denenberg & Ament, P.C. v. Lison) 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
Much Shelist Freed Denenberg & Ament, P.C. v. Lison, 297 Ill. App. 3d 375 (Ill. Ct. App. 1998).

Opinion

PRESIDING JUSTICE CERDA

delivered the opinion of the court:

Plaintiff, Much Shelist Freed Denenberg & Ament, EC., a law firm, appeals from the entry of summary judgment by the circuit court of Cook County on its complaint in favor of defendants, attorney John M. Lison and Lison & Griffin, a law firm partnership (L&G), for the quantum meruit value of plaintiffs legal services representing L&G as the class representative in a class-action lawsuit that defendants abandoned.

The issue is whether, under a contingency-fee agreement, plaintiff law firm can recover the quantum meruit value for its services rendered before the client discharged it, although there was no recovery. Defendants believed there was no likelihood of success because the complaint had been dismissed once on a section 2• — 615 motion (735 ILCS 5/2 — 615 (West 1996)). L&G withdrew as class plaintiff and refused to pay for legal services because the plaintiff had not obtained any recovery in the class-action lawsuit. We reverse.

FACTS

In June 1992, Regent Advisory Corporation filed a class-action lawsuit in the circuit court of Cook County against Equitec, which was Regent’s landlord at the building located at 200 West Adams Street in Chicago. The original class-action complaint is not in the record, but the parties agree that it alleged the landlord billed its tenants for an amount of real estate taxes that the landlord did not pay. Plaintiff and L&G were both attorneys representing Regent, but L&G withdrew as attorney after the trial court suggested that L&G could not act as a class member and as co-counsel. Because Regent withdrew as plaintiff, in September 1992 the action was dismissed with prejudice only with respect to Regent but without prejudice to the other potential class members.

In September 1992, the class action was refiled with L&G, which was also a tenant in Equitec’s building, now as the plaintiff. Plaintiff had signed a written contingency-fee agreement with Regent, but plaintiff failed to obtain L&G’s signature on a contingency-fee agreement for plaintiff’s representation of L&G. The parties on appeal agree that there was a contingent-fee agreement between them.

On October 14, 1992, Equitec filed a motion to dismiss the second class action pursuant to section 2 — 615 of the Code of Civil Procedure (735 ILCS 5/2 — 615(a) (West 1996)). The trial court granted the motion on January 21, 1993. The trial court first stated that the motion would be granted with prejudice because it was doubtful that plaintiff could file an amended complaint that could withstand a motion to dismiss but, after argument of counsel, the court changed its mind and granted the motion without prejudice. The complaint was amended a third time on February 26, 1993.

On July 14, 1993, L&G signed a general release of its claims with the class-action defendants for consideration of entering into a new lease. Because L&G withdrew as class plaintiff, on July 23, 1993, Equitec moved to dismiss the class action. On September 15, 1993, the trial court granted the motion to dismiss the action with prejudice to L&G and without prejudice to other potential class members.

On September 16, 1993, plaintiff filed a complaint against defendants for attorney fees. Count I of plaintiffs complaint was for breach of contract; count II was for quantum meruit; and count III was for unjust enrichment. Count I was dismissed on July 13, 1994.

On August 13, 1996, defendants filed a motion for summary judgment, arguing in part that (1) plaintiff was not entitled to any compensation on a contingent-fee matter because there was no evidence that the underlying case had any reasonable prospect of success and no reasonable chance of success on appeal; (2) plaintiff could not recover under quantum meruit because plaintiffs services were not of any value to L&G where no cause of action could be stated in the class action; and (3) L&G did not receive any recovery or economic advantage as a result of plaintiffs activities and merely negotiated a new lease with the new management, who executed leases with other tenants at about the same rent or lower than L&G’s rent.

On January 17, 1997, the trial court granted summary judgment on the quantum meruit count in favor of defendants and denied summary judgment on the unjust-enrichment count.

On July 1, 1997, count III, the unjust-enrichment count was voluntarily dismissed without prejudice; plaintiffs motion to reconsider the ruling with respect to the quantum meruit count was denied. On July 10, 1997, the order was amended to find that there was no just reason for delaying enforcement or appeal of the order granting defendants’ motion for summary judgment on the quantum meruit count and of the order denying plaintiffs motion to reconsider.

On July 14, 1997, plaintiff appealed from the entry of summary judgment.

DISCUSSION

Plaintiff argues on appeal that it was entitled to be paid on a quantum meruit basis for the legal services it rendered to defendants because L&G abandoned the class-action lawsuit before plaintiff could file another amended complaint that could withstand a motion to dismiss. Defendants argue that plaintiff is barred from recovery because the class action had no reasonable prospect of success and because there was no value to L&G of the legal services provided by plaintiff.

A motion for summary judgment is to be granted if “the pleadings, depositions, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” 735 ILCS 5/2 — 1005(a) (West 1996). The pleadings, depositions, admissions, and affidavits on file must be construed against the movant and in favor of the opponent of the motion. Jackson Jordan, Inc. v. Leydig, Voit & Mayer, 158 Ill. 2d 240, 249, 633 N.E.2d 627 (1994). Summary judgment is a drastic means of disposing of litigation, and the right of the moving party to obtain summary judgment must be clear and free of doubt. Jackson, 158 Ill. 2d at 249. The reviewing court’s function is to determine de novo whether the judgment entered was correct as a matter of law. Cates v. Cates, 156 Ill. 2d 76, 78, 619 N.E.2d 715 (1993).

A client may discharge her attorney at any time, with or without cause. Rhodes v. Norfolk & Western Ry. Co., 78 Ill. 2d 217, 227-28, 399 N.E.2d 969 (1979). When a client terminates her attorney, the contingent-fee contract ceases to exist, and the contingency term is no longer operative. In re Estate of Callahan, 144 Ill. 2d 32, 40, 578 N.E.2d 985 (1991).

A discharged attorney may be compensated for the services rendered before the discharge on a quantum meruit basis. Rhodes, 78 Ill. 2d at 230.

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Bluebook (online)
297 Ill. App. 3d 375, Counsel Stack Legal Research, https://law.counselstack.com/opinion/much-shelist-freed-denenberg-ament-pc-v-lison-illappct-1998.