Mulcahy v. Sullivan

2013 Mass. App. Div. 141, 2013 WL 5970973, 2013 Mass. App. Div. LEXIS 37
CourtMassachusetts District Court, Appellate Division
DecidedNovember 6, 2013
StatusPublished

This text of 2013 Mass. App. Div. 141 (Mulcahy v. Sullivan) is published on Counsel Stack Legal Research, covering Massachusetts District Court, Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mulcahy v. Sullivan, 2013 Mass. App. Div. 141, 2013 WL 5970973, 2013 Mass. App. Div. LEXIS 37 (Mass. Ct. App. 2013).

Opinion

Hadley, EJ.

This is an action to recover damages arising from a claim of legal malpractice. The trial judge allowed the defendant’s motion for a directed verdict at the close of the plaintiffs case. The plaintiff has appealed that ruling.

The facts presented to the jury, viewed in the light most favorable to the plaintiff, Providence & Worcester R.R. Co. v. Chevron U.S.A. Inc., 416 Mass. 319, 321 (1993), are as follows. In September, 2006, the plaintiff, Karlene A. Mulcahy (“Mulcahy’), was a passenger on a motorcycle operated by Kenneth Brimley (“Brimley”). Brimley died as a result of the accident and Mulcahy was injured. In December, 2006, Sentry Insurance Company (“Sentry”), the insurer of the motorcycle operated by the late Brimley, offered to pay Mulcahy $20,000.00 in settlement of her bodily injury claim. Sentry provided Mulcahy with a release for her signature with instructions to return the signed release to the insurance company in exchange for payment. This offer represented all the insurance available to Mulcahy for her injuries. Unsure how to respond, Mulcahy sought the advice of Attorney Anthony M. Salerno (“Salerno”). Salerno provided Mulcahy with a contingent fee agreement (the “Agreement”) for her signature. She signed the Agreement without any discussion of the significance of the fact that before engaging Salerno, she had already received an offer from Sentry for the policy limit. Based on Mulcahy’s discussions with Salerno, however, she believed that he would investigate the prospects for a legal action against a bar that had served alcohol to Brimley before the accident occurred. It was Mulcahy’s understanding that Salerno would be paid a one-third contingency fee based on any recovery obtained from the bar owner.

In September, 2007, after Mulcahy had not heard from Salerno for several months, she spoke to the defendant in this case, Attorney Nicole Duca Sullivan (“Sullivan”), who was representing Mulcahy in a pending disability claim. Mulcahy was having substantial financial difficulties at the time, and sought assistance from Sullivan in expediting recovery on her personal injury claim. Like Salerno, Sullivan had her sign a contingent fee agreement.

With Sullivan’s assistance, Mulcahy sent a letter to Salerno notifying him that she was discharging him as her attorney with regard to the 2006 motorcycle accident. In the letter, she asked Salerno to forward her file to Sullivan. Sullivan faxed this letter to Salerno with a written request that he deliver Mulcahy’s file the next day along with an accounting of any expenses he had incurred and any time he had spent on Mulcahy’s claim. Sullivan also sent a letter to Sentry advising it that she would be [142]*142representing Mulcahy.

Minutes after Sullivan faxed these materials to Salerno, he faxed the release that Mulcahy had previously signed to Sentry and directed the insurer to send him a check for $20,000.00 payable to Salerno as attorney for Mulcahy. He later faxed a letter to Sentry. Citing G.L.c. 221, §50, Salerno stated in the letter that he was asserting “an attorney’s lien for legal fees and expenses.” He also insisted that any settlement check that Sentry issued must include his name as a payee.

Sentry, however, sent Sullivan a check for $20,000.00 payable to Sullivan’s law firm, to Salerno, to Mulcahy, and to a lienholder that had asserted a lien for unpaid medical bills. Salerno refused to endorse the insurer’s settlement check unless he was paid $6,666.67, one-third of the $20,000.00 settlement.

In October, 2007, Sullivan wrote to Salerno notifying him that she had received the settlement check and asking Salerno to sign a form authorizing Sentry to issue separate checks to Mulcahy’s health care providers in order to resolve liens they had asserted. She proposed that Sentry be asked to issue a check payable to Sullivan and Salerno for one-third of the settlement, as well as a final check for the balance payable to Mulcahy in order to expedite the payment of some money to Mulcahy. Sullivan stated Mulcahy’s position that the contingent fee agreement she had entered into with Salerno was no longer valid and that he was “only entitled to Quantum Meruit.” Sullivan again requested a breakdown of any time that Salerno had expended on Mulcahy’s behalf, and proposed that Salerno accept one-third of the $6,666.67 fee he was seeking. Finally, she suggested that if this figure were not acceptable, the parties could proceed to binding fee arbitration, as provided in the contingent fee agreement entered into between Mulcahy and Salerno. Salerno, however, continued to insist on payment of the full $6,666.67.

Once again, viewing the relevant facts that were presented to the jury in the light most favorable to Mulcahy, sometime before proceeding to fee arbitration, Sullivan advised Mulcahy that she could simply pay Salerno the contingent fee he was demanding and sue him at a later date. In November, 2007, rather than pursuing fee arbitration, Sullivan, on behalf of Mulcahy, issued a check for $6,666.67 payable to Salerno. Sullivan also paid $4,912.36 to satisfy a lien. A check for the balance of the $20,000.00 settlement was issued to Mulcahy.

In March, 2009, Mulcahy commenced a civil action against Salerno, alleging he had charged an excessive fee, had violated the implied covenant of good faith and fair dealing, and had committed unfair and deceptive acts or practices in violation of G.L.c. 93A. The trial judge, however, allowed Salerno’s motion to dismiss Mulcahy’s claim, determining that Mulcahy, with the advice of counsel, had resolved her dispute with Salerno and thereafter was not entitled to pursue the relief she sought. In Mulcahy v. Salerno, 2010 Mass. App. Div. 225, this Appellate Division affirmed the trial judge’s decision, finding the defendant, Salerno, had proved an accord and satisfaction and that Mulcahy could not thereafter maintain an action against him. Id. at 227, aff’d, 80 Mass. App. Ct. 1109 (2011), rev. den., 460 Mass. 1116 (2011).

In 2011, Mulcahy brought this second civil action for legal malpractice, this time alleging that Sullivan had acted negligently in failing to advise her to pay Salerno without also preserving her legal right to pursue an action against Salerno at a later time.

At that trial, the jury heard evidence in the form of expert opinion from an expe[143]*143rienced personal injury attorney. He opined that Salerno breached his ethical duty owed to Mulcahy by executing a contingent fee agreement and by demanding one-third of the $20,000.00 offer of settlement that Mulcahy had received. He also opined that it was improper for Salerno to send a letter to Sentry asserting a statutory attorney’s lien when he had no right to do so; and that Salerno acted unethically in collecting a fee which was clearly excessive and unreasonable under the circumstances.

With regard to Sullivan, the expert witness testified that she had breached her duty of care to Mulcahy by not protecting her rights and incorrectly advising Mulcahy that she could forego fee arbitration and pay Salerno and still pursue a legal action against him at a later date.

With regard to damages, the expert testified that Salerno was not entitled to receive a contingent fee after his employment was terminated by Mulcahy. He noted, however, that if it were determined that Salerno performed legal services for Mulcahy prior to the termination of their attorney-client relationship, he would have been entitled to payment for the reasonable value of his work.

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Cite This Page — Counsel Stack

Bluebook (online)
2013 Mass. App. Div. 141, 2013 WL 5970973, 2013 Mass. App. Div. LEXIS 37, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mulcahy-v-sullivan-massdistctapp-2013.