Noble v. White

857 A.2d 362, 85 Conn. App. 233, 2004 Conn. App. LEXIS 413
CourtConnecticut Appellate Court
DecidedSeptember 28, 2004
DocketAC 22887
StatusPublished
Cited by3 cases

This text of 857 A.2d 362 (Noble v. White) is published on Counsel Stack Legal Research, covering Connecticut Appellate Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Noble v. White, 857 A.2d 362, 85 Conn. App. 233, 2004 Conn. App. LEXIS 413 (Colo. Ct. App. 2004).

Opinion

Opinion

McLACHLAN, J.

In this breach of contract action to collect attorney’s fees for services rendered in connection with creditors’ claims, the defendants, Carl E. White and Kathryn White, appeal from the judgment of the trial court awarding the plaintiff, Christopher C. [235]*235Noble, their former attorney, $10,665.25 in damages.1 The defendants claim that the court lacked jurisdiction to award attorney’s fees because under the circumstances of this case, the power to award such fees rested solely with the Bankruptcy Court. We affirm the judgment of the trial court.

This action commenced in November, 1997, when the plaintiff brought a breach of contract action to collect attorney’s fees for legal services he performed for the defendants between July, 1992 and October, 1997, in connection with two separate bankruptcy filings in United States Bankruptcy Court for the District of Connecticut and other creditors’ rights issues. The plaintiff sought to enforce the provisions of an installment payment agreement he entered into with the defendants that recited an array of legal services performed and provided for monthly installment payments of $350, with provisions for acceleration, attorney’s fees and interest if any installment payment was more than five days delinquent. The plaintiff alleged that the defendants made only irregular payments before defaulting on the November, 1997 payment. The plaintiff claimed a balance due of $10,789.

As a special defense, the defendants alleged that the payment agreement was void and unenforceable because of the circumstances under which it was presented to and signed by them. The defendants argued that the agreement was presented to them by the plaintiff on the day of a hearing on a renewed motion to open foreclosure proceedings at which the plaintiff stated that unless they signed the agreement immediately, he would not represent them and they would lose their home. The trial court agreed that the payment agreement was unenforceable, finding that “[w]hen an [236]*236attorney prepares a document for his benefit, presents it to his clients for the first time in a courthouse, where a motion to reopen foreclosure of their home has been scheduled, and threatens to withdraw his services if the document is not signed immediately, thereby holding over their heads the loss of their home, this amounts to duress.” See Noble v. White, 66 Conn. App. 54, 56, 783 A.2d 1145 (2001). Although the court denied recovery on the agreement, it granted relief in the amount of $6000 based on quantum meruit, in view of the significant and undisputed legal services performed by the plaintiff, including filing two chapter 13 petitions in Bankruptcy Court, the latter of which was eventually converted to a chapter 7 proceeding, helping the defendants retain their home by arranging a refinancing and helping them to discharge a substantial portion of their debt. That ruling gave rise to the plaintiffs first appeal in which he claimed that the court’s conclusion of duress was based on a clearly erroneous factual finding.

We agreed with the plaintiff and found that the court’s determination of duress was based on the court’s erroneous factual finding that the agreement was first presented to the defendants on the day of the hearing on the motion to open the foreclosure proceedings.2 We found, to the contrary, that the record clearly showed that the agreement had been presented to the defendants six days earlier. Id., 60-61. As that factual finding was the principal basis for the court’s determination of duress, we reversed the judgment in part and remanded the case for a new trial. Id., 61.

On remand, the trial court determined that the defendants failed to prove that they had signed the agreement [237]*237under duress and that the agreement, therefore, must be enforced. The court found that the defendants had breached the terms of the agreement and awarded the plaintiff $10,665.25, plus interest and attorney’s fees. From that judgment, the defendants now appeal.

The defendants claimed, for the first time on remand, that the trial court lacked subject matter jurisdiction to award attorney’s fees because under the circumstances of this case, the Bankruptcy Court had exclusive jurisdiction to award attorney’s fees. We disagree.

“A determination regarding a trial court’s subject matter jurisdiction is a question of law. When . . . the trial court draws conclusions of law, our review is plenary and we must decide whether its conclusions are legally and logically correct and find support in the facts that appear in the record.” (Internal quotation marks omitted.) Miller v. Egan, 265 Conn. 301, 313, 828 A.2d 549 (2003).

The defendants appear to predicate their claim that the trial court lacked jurisdiction on the contention that the plaintiff failed to disclose the payment agreement to the Bankruptcy Court, in apparent violation of 11 U.S.C. § 329. The disclosure requirement of 11 U.S.C. § 329 requires the debtor’s attorney to file with the Bankruptcy Court a statement of the compensation paid or agreed to be paid to the attorney for services in contemplation of and in connection with the bankruptcy case. 11 U.S.C. § 329 (a). If the Bankruptcy Court determines that the claimed attorney’s fees are unreasonable or excessive, the court is permitted to deny compensation to the attorney, cancel the agreement to pay compensation or order the return of compensation paid. 11 U.S.C. § 329 (b). The reasoning underlying the disclosure requirement is that payments to a debtor’s attorney provide serious potential for both evasion of creditor protection provisions of the bankruptcy laws [238]*238and overreaching by the debtor’s attorney. Such payments should therefore be subject to careful scrutiny. See, e.g., In re Whitman, 51 B.R. 502, 506 (Bankr. D. Mass. 1985). The authority of the Bankruptcy Court to review compensation paid to an attorney has been described as one within the traditional equity power of the court and essential to prevent overreaching by debtor’s attorneys and to protect creditors. See In re St. Pierre, 4 B.R. 184, 185 (Bankr. D.R.I. 1980). Under § 329, therefore, counsel is entitled to be paid for services only to the extent that the Bankruptcy Court determines the fees are reasonable.

Although the defendants correctly assert that the Bankruptcy Court has exclusive jurisdiction over fees rendered in connection with the administration of a bankrupt estate, they have not created a record on which it can be determined that the fees awarded by the trial court were for such services. In fact, it appears to the contrary. The trial court found that for the first chapter 11 proceeding, the plaintiff billed $8907.75 for which the Bankruptcy Court allowed fees of $2600, which the plaintiff accepted.

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Cite This Page — Counsel Stack

Bluebook (online)
857 A.2d 362, 85 Conn. App. 233, 2004 Conn. App. LEXIS 413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/noble-v-white-connappct-2004.