Olszewski v. Jordan

CourtSupreme Court of Connecticut
DecidedMarch 3, 2015
DocketSC19215
StatusPublished

This text of Olszewski v. Jordan (Olszewski v. Jordan) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Olszewski v. Jordan, (Colo. 2015).

Opinion

****************************************************** The ‘‘officially released’’ date that appears near the beginning of each opinion is the date the opinion will be published in the Connecticut Law Journal or the date it was released as a slip opinion. The operative date for the beginning of all time periods for filing postopinion motions and petitions for certification is the ‘‘officially released’’ date appearing in the opinion. In no event will any such motions be accepted before the ‘‘officially released’’ date. All opinions are subject to modification and technical correction prior to official publication in the Connecti- cut Reports and Connecticut Appellate Reports. In the event of discrepancies between the electronic version of an opinion and the print version appearing in the Connecticut Law Journal and subsequently in the Con- necticut Reports or Connecticut Appellate Reports, the latest print version is to be considered authoritative. The syllabus and procedural history accompanying the opinion as it appears on the Commission on Official Legal Publications Electronic Bulletin Board Service and in the Connecticut Law Journal and bound volumes of official reports are copyrighted by the Secretary of the State, State of Connecticut, and may not be repro- duced and distributed without the express written per- mission of the Commission on Official Legal Publications, Judicial Branch, State of Connecticut. ****************************************************** RALPH OLSZEWSKI v. JAMES F. JORDAN III ET AL. (SC 19215) Rogers, C. J., and Palmer, Zarella, Eveleigh, McDonald, Robinson and Vertefeuille, Js. Argued December 2, 2014—officially released March 3, 2015

Stephen F. McEleney, with whom were David J. Tay- lor and Emily Peterson, for the appellant (plaintiff). Eric H. Rothauser, with whom, on the brief, were John L. Bonee III and Lee B. Ross, for the appellees (defendant Carlo Forzani et al.). Opinion

ZARELLA, J. The principal issue in this appeal is whether attorneys are entitled by operation of law to equitable charging liens against marital assets for fees and expenses incurred in obtaining judgments for their clients in marital dissolution actions. The plaintiff, Ralph Olszewski, challenges the Appellate Court’s con- clusion that equitable charging liens are permissible in marital dissolution actions in Connecticut. He claims that they are barred by the Rules of Professional Con- duct, they are not supported by Connecticut precedent, and the public policy considerations that justify equita- ble charging liens in other contexts do not apply in marital dissolution actions. The defendants Carlo For- zani and Carlo Forzani, LLC,1 respond that equitable charging liens against marital assets are permissible in Connecticut because the Rules of Professional Conduct specifically provide for charging liens, the rules do not preclude the use of charging liens in marital dissolution actions, and public policy considerations support their use in domestic relations matters. We agree with the plaintiff and reverse the judgment of the Appellate Court. The following facts and procedural history are set forth in the Appellate Court’s opinion. ‘‘In August, 2009, the [dissolution] court rendered a judgment dissolving the marriage of [James Jordan and Diana Jordan]. James Jordan had been represented by . . . Carlos Forzani, an attorney of the . . . law firm, Carlo For- zani, LLC, in that proceeding. At the time of the dissolu- tion of marriage judgment, James Jordan and Diana Jordan jointly owned, among other assets, an account at Northwestern Mutual (account), from which the dis- solution court ordered that 50 percent of the attorney’s fees (fees) of the defendants be paid and, after payment of certain other obligations, that the balance remaining in that account be divided equally between James Jor- dan and Diana Jordan. ‘‘While an appeal to this court from the judgment of dissolution was pending, in October, 2009, [the plain- tiff], who is the father of Diana Jordan, brought this action against James Jordan to collect the outstanding balance on James Jordan’s promissory note to him. In November, 2009, the plaintiff obtained a prejudgment remedy, which authorized the attachment of the pro- ceeds of the account. In April, 2011, the [trial] court [found] in favor of the plaintiff in the amount of $128,135.04. The plaintiff, thereafter, applied for a prop- erty execution. Subsequently, pursuant to General Stat- utes § 52-356c, James Jordan filed a claim for a determination of interests in the account. He asserted that by virtue of the 2009 dissolution judgment, he had a claim to proceeds in that account that was prior in right to that of the plaintiff. The defendants filed a separate claim for [a] determination of interests in the account, alleging that ‘Carlo Forzani, LLC ha[d] a claim prior in right’ to the plaintiff’s claim by virtue of the dissolution judgment and the ‘charging lien arising by operation of law’ in the dissolution of marriage action. ‘‘The court held a hearing to determine the competing claims in the account and, subsequently, concluded that the defendants had no superior interest in the account by virtue of either an [attorney’s] charging lien or the dissolution judgment. Specifically, the court held, inter alia, that a charging lien in connection with a dissolution action would be prohibited by rule 1.5 (d) (1) of the Rules of Professional Conduct, that an attorney must create a new asset for the client before a charging lien can be recognized and that the recognition of a charging lien in a dissolution action would violate public policy.’’ (Footnotes omitted.) Olszewski v. Jordan, 144 Conn. App. 144, 146–48, 71 A.3d 1276 (2013). The defendants appealed to the Appellate Court, which reversed the trial court’s judgment. Id., 148, 160. The Appellate Court explained that it could ‘‘discern no viable reason why a charging lien should be abso- lutely prohibited as a matter of law in a marital dissolu- tion action.’’ Id., 151. The court stated that ‘‘recognizing a charging lien in a dissolution of marriage action would not implicate rule 1.5 (d) (1)’’; id.; and ‘‘that rule 1.8 (i) (1) permits a charging lien in connection with a dissolution action.’’ Id., 152. The court further stated that an attorney need not create a new asset before a charging lien can be acquired; id.; and that this state’s equitable lien jurisprudence supports the view that equi- table charging liens may arise by operation of law in marital dissolution actions ‘‘when the arrangement between the attorney and client intends that a lien exist on the proceeds of the action.’’ Id., 156. The court thus concluded that, ‘‘under some circumstances an attorney may acquire a charging lien in a dissolution of marriage action and that the trial court erred in holding otherwise as a matter of law.’’ Id., 160. The court thereafter remanded the case to the trial court to consider whether the agreement between James Jordan and the defen- dants established that the defendants intended to look specifically to the funds in the jointly owned account as the source of future payment of their fees. Id., 160. In a dissenting opinion, Judge Espinosa concluded that an attorney may not acquire an equitable charging lien in a marital dissolution action and that the trial court’s judgment should be affirmed. Id., 161, 165 (Espinosa, J., dissenting). This appeal followed.2 We begin by setting forth the applicable standard of review. ‘‘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.) D’Urso v. Lyons, 97 Conn. App. 253, 255–56, 903 A.2d 697

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Olszewski v. Jordan, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olszewski-v-jordan-conn-2015.