Nagarajan v. Terry

151 S.W.3d 166, 2003 Tenn. App. LEXIS 928
CourtCourt of Appeals of Tennessee
DecidedDecember 30, 2003
StatusPublished
Cited by54 cases

This text of 151 S.W.3d 166 (Nagarajan v. Terry) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nagarajan v. Terry, 151 S.W.3d 166, 2003 Tenn. App. LEXIS 928 (Tenn. Ct. App. 2003).

Opinion

WILLIAM C. KOCH, JR., J.,

delivered the opinion of the court,

in which BEN H. CANTRELL, P.J., M.S., and WILLIAM B. CAIN, J., joined.

*169 OPINION

This appeal involves a dispute between a lawyer and his former client regarding unpaid fees. After the client sued the lawyer for malpractice in the Circuit Court for Davidson County, the lawyer counterclaimed for unpaid fees. The trial court granted the lawyer’s summary judgment motion and dismissed the malpractice claims. Thereafter, the trial court conducted a bench trial on the lawyer’s counterclaim and awarded the lawyer a $53,884.86 judgment. The former client asserts on this appeal that the trial court erred by denying his request for a continuance, granting a judgment by default on the question of liability, denying his request for a jury trial, and considering expert evidence regarding the reasonableness of the lawyer’s fee without affording him the opportunity for cross-examination. We affirm the judgment.

I.

Govindaswamy Nagarajan was terminated as an associate professor of physics at Tennessee State University (“TSU”) in the fall of 1989. He retained David E. Mead and, on January 24, 1990, filed a Title VII action in the United States District Court for the Middle District of Tennessee against the president of TSU and others seeking reinstatement, tenure, and monetary damages. Approximately three months later, he filed a second complaint seeking essentially the same relief in the Chancery Court for Davidson County.

At some point after these lawsuits were filed, Dr. Nagarajan, who is apparently quite a demanding client, fired Mr. Mead and retained Walter T. Searcy, III to represent him in the federal Title VII proceeding. In May 1992, the chancery court notified Mr. Mead, who was still Dr. Naga-rajan’s lawyer of record, that Dr. Nagara-jan’s complaint would be dismissed for failure to prosecute unless some action was taken. Mr. Mead informed Dr. Nagarajan of this development. He also reminded Dr. Nagarajan that he had filed this complaint as a tactic to preserve remedies and recommended filing a voluntary nonsuit in the case. The notice of voluntary dismissal was filed on June 16,1992, and an order of dismissal was entered in the chancery court on June 17, 1992. At the same time, Mr. Mead took steps to formally withdraw as Dr. Nagarajan’s lawyer in the chancery court.

Mr. Searcy later withdrew from representing Dr. Nagarajan and was replaced by Thomas K. Bowers in August 1992. Mr. Bowers eventually withdrew, and in November 1993, Dr. Nagarajan retained Michael E. Terry to represent him in the pending Title VII action that was set for trial in March 1994. Mr. Terry agreed to represent Dr. Nagarajan and requested a $10,000 retainer to be paid in installments. Dr. Nagarajan also informed Mr. Terry that he had another suit pending in the chancery court. After Mr. Terry ascertained that the chancery court suit had been dismissed on June 17, 1992, Dr. Na-garajan insisted that it should be placed back on the docket despite Mr. Terry’s advice that his remedies in the federal proceeding were adequate.

The trial in the United States District Court was later continued. On August 8, 1994, Mr. Terry, at Dr. Nagarajan’s insistence, requested the chancery court to restore Dr. Nagarajan’s complaint to the docket and to set a trial date. Thereafter, Mr. Terry tried Dr. Nagarajan’s Title VII claim in the United States District Court for several weeks, and the District Court took the case under advisement. At a hearing on September 9, 1994, the chancery court granted the motion to reinstate Dr. Nagarajan’s state case to the docket *170 and directed the parties to contact the calendar clerk to set a trial date. 1

The parties in the chancery court suit took no action to advance the case because they were awaiting the outcome of the August 1994 trial in the United States District Court. On June 5, 1997, the District Court filed an order and memorandum concluding that TSU had discriminated against Dr. Nagarajan in violation of Title VII and that Dr. Nagarajan was entitled to reinstatement as a non-tenured professor and back pay. The court directed the parties to submit their “accounting” of damages for the court’s consideration.

On June 13, 1997, approximately one week after the District Court filed its order and memorandum, Mr. Terry received an order dismissing the pending chancery court case for failure to prosecute. 2 When Mr. Terry and Dr. Nagarajan met on June 16, 1997, Mr. Terry informed him that the chancery court case had again been dismissed and advised him that the suit was no longer necessary because he would obtain sufficient relief in the federal proceeding in light of the District Court’s June 5, 1997 memorandum. Nonetheless, Dr. Na-garajan insisted that another effort should be made to reinstate his state lawsuit. Mr. Terry thereafter filed a motion to set aside the chancery court’s May 12, 1997 order of dismissal. 3 On December 24, 1997, the District Court entered an order awarding Dr. Nagarajan (1) $356,310.22 in back pay plus interest, (2) $61,037.35 in back Social Security contributions, (3) $33,053.00 in back health insurance contributions, (4) $49,818.53 in back retirement contributions, (5) $10,800.00 in back longevity pay, and (6) 540 hours of sick leave. In addition, the District Court directed Dr. Nagarajan to submit his application for the payment of attorney’s fees.

TSU appealed the District Court’s decision to the United States Court of Appeals for the Sixth Circuit. After the Court of Appeals referred the case to its mandatory settlement process, the State and Dr. Na-garajan engaged in lengthy settlement negotiations. Eventually, the State offered to withdraw its appeal if Dr. Nagarajan would accept its offer to pay $525,000 in damages. On June 2, 1998, Mr. Terry recommended that Dr. Nagarajan accept this offer. Dr. Nagarajan responded on June 5, 1998 instructing Mr. Terry to decline the State’s offer because he believed that he might somehow get a better result on appeal even though he had not appealed the District Court’s decision. On June 8, 1998, Mr. Terry advised Dr. Nagarajan that his instructions were unreasonable and requested an opportunity to “discuss the future of [his] representation.” On June 15, 1998, Dr. Nagarajan delivered a letter to Mr. Terry’s office terminating his employment. In August 1998, Dr. Naga-rajan hired Richard H. Batson II to represent him in the pending federal appeal and also directed him to undertake to reinstate the state complaint that had been dis *171 missed by the chancery court on May 5, 1997.

On July 19, 1999, the United States Court of Appeals affirmed the District Court’s judgment for Dr. Nagarajan. On March 20, 2000, the District Court awarded Dr. Nagarajan $167,460.00 in attorneys fees relating to his Title VII case. In April 2000, following negotiations among the five lawyers who had represented Dr. Nagarajan in the federal proceedings, Mr. Terry received $83,000.00 for his work in the case. Two months later, he received an additional $15,742.49.

On April 27, 2000, Dr. Nagarajan filed a pro se malpractice complaint against Mr.

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Bluebook (online)
151 S.W.3d 166, 2003 Tenn. App. LEXIS 928, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nagarajan-v-terry-tennctapp-2003.