Musikoff v. Jay Parrino's the Mint, L.L.C.

796 A.2d 866, 172 N.J. 133, 2002 N.J. LEXIS 566
CourtSupreme Court of New Jersey
DecidedMay 16, 2002
StatusPublished
Cited by24 cases

This text of 796 A.2d 866 (Musikoff v. Jay Parrino's the Mint, L.L.C.) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Musikoff v. Jay Parrino's the Mint, L.L.C., 796 A.2d 866, 172 N.J. 133, 2002 N.J. LEXIS 566 (N.J. 2002).

Opinion

The opinion of the Court was delivered by

VERNIERO, J.

We are called on to answer a question of law certified and submitted by the United States Court of Appeals for the Third Circuit. This is the first time that this Court will answer such a question pursuant to the procedures set forth under Rule 2:12A. The inquiry involves N.J.S.A. 2A:13-5, known as the Attorney’s Lien Act (the Act). As certified, the question is:

Whether under New Jersey law, in order to enforce a lien under [N./.S.A] 2A:13-5, an attorney must file a petition to acknowledge and enforce the lien prior to any settlement or final judgment in the underlying matter in which the attorney provided services giving rise to the lien? In other words, is the last sentence of [N.J.S.A 2A:13-5] (“The court in which the action or other proceeding is pending, upon the petition of the attorney or [counsellor] at law, may determine and enforce the lien”) intended to control the forum where the petition is brought or the timing of the petition?

Our answer is that the Act’s last sentence controls the forum in which a petition is brought, not the timing of the petition. Stated differently, we conclude that the Act does not require an attorney to file a petition to acknowledge and enforce an attorney’s lien prior to settlement or judgment in the matter that has given rise to the lien itself.

I.

The parties do not dispute the essential facts. In June 1998, Harvey Musikoff (respondent) retained the services of the Stark & Stark law firm (appellant) to represent him in a then-pending civil matter before the United States District Court for the District of New Jersey. (Appellant had replaced respondent’s prior attorney, David L. Ganz.) The matter consisted of a lawsuit filed against Jay Parrino’s The Mint, L.L.C. and Jaspar Panino (collectively, defendant), in which respondent alleged that defendant had defrauded *137 him in a commercial transaction. Appellant and respondent entered into a written fee agreement that included a $10,000 retainer. Subsequent to that agreement, respondent elected to change attorneys. In February 2000, respondent’s new attorney, Seth Josephson, informed appellant of the substitution. A month later, appellant informed Josephson by letter that it had a lien for unpaid legal services and expenses stemming from its prior representation of respondent.

The litigation between respondent and defendant was settled. Accordingly, the District Court dismissed respondent’s action without costs and without prejudice on April 26, 2000.

On May 10, 2000, appellant sent a second letter to Josephson inquiring about the status of respondent’s case. A week later, appellant received a response from a different attorney, Armen R. Vartian, a member of the California bar. Vartian did not reveal that the case had been settled but instead stated that respondent had terminated Josephson’s services and had authorized him (Vartian) “to direct the litigation going forward.” Vartian’s letter to appellant also stated that “[t]he status of the case is that it is pending, although the May trial date has been adjourned.”

Only after appellant contacted defendant’s attorney did it learn that the matter had been settled and that a check for an undisclosed amount had been sent to Vartian. Appellant and Vartian exchanged several letters, but, ultimately, respondent refused to recognize appellant’s lien.

On June 2, 2000, appellant sent respondent a letter informing him of his right to pursue arbitration of their fee dispute as provided under the New Jersey Rules of Court. The letter also informed respondent that if he failed to pursue fee arbitration within thirty days, appellant would bring suit against him and his attorney to recover the disputed fees. Respondent did not pursue arbitration.

On June 14, 2000, appellant moved before the District Court seeking an acknowledgement of an attorney’s lien under the Act *138 and an order to compel respondent or his attorney to deposit the settlement proceeds into a trust pending the outcome of the fee dispute. The District Court denied that motion. Relying on recent New Jersey case law, the court reasoned that under the Act an attorney must file a petition to enforce a lien while the underlying proceeding is still pending. The court concluded that appellant did not have a valid and enforceable lien because it had failed to file its petition prior to April 26, 2000, the date on which respondent’s action was dismissed. (The court also concluded that appellant, in filing its petition, had failed to comply with certain requirements found in Rule l:20A-6. That issue is beyond the scope of the certified question.)

Appellant sought relief before the Third Circuit. That court, in turn, certified the question noted above, and we accepted the question as certified. 170 N.J. 203, 785 A.2d 432 (2001).

II.

An attorney’s right to impress a lien on client property derives from the common law. Kevin H. Michels, New Jersey Attorney Ethics § 37:2-2a at 831 (2002). Generally, our courts have recognized “two forms of liens for the collection of fees, the charging (or special) lien and the retaining lien.” Ibid. We have explained:

The common law retaining lien attaches to all papers, books, documents, securities, moneys, and property of the client which come into the possession of the attorney in the course of, and with reference to, his professional employment. It is a general lien which gives an attorney the right to retain possession of his client’s property until the entire balance due him for legal services, as well as for costs and disbursements, is paid____The retaining lien is distinguishable from the common-law special or charging hen which an attorney may have for services rendered in a particular cause of action and which attaches to the judgment in the cause for which the services were rendered. The charging lien may be actively enforced and does not rest upon possession.
[Brauer v. Hotel Assocs., Inc., 40 N.J. 415, 419-20, 192 A.2d 831 (1963) (internal citations omitted).]

Except for some slight revisions, the Attorney’s Lien Act is virtually identical to prior legislation, L. 1914, c. 201, enacted almost a century ago. The Act currently provides:

*139 After the filing of a complaint or third-party complaint or the service of a pleading containing a counterclaim or cross-claim, the attorney or counsellor at law, who shall appear in the cause for the party instituting the action or maintaining the third-party claim or counterclaim or cross-claim, shall have a lien for compensation, upon his client’s action, cause of action, claim or counterclaim or cross-claim, which shall contain and attach to a verdict, report, decision, award, judgment or final order in his client’s favor, and the proceeds thereof in whosesoever hands they may come.

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Cite This Page — Counsel Stack

Bluebook (online)
796 A.2d 866, 172 N.J. 133, 2002 N.J. LEXIS 566, Counsel Stack Legal Research, https://law.counselstack.com/opinion/musikoff-v-jay-parrinos-the-mint-llc-nj-2002.