Olszewski v. Jordan

71 A.3d 1276, 144 Conn. App. 144, 2013 WL 3378825, 2013 Conn. App. LEXIS 351
CourtConnecticut Appellate Court
DecidedJuly 16, 2013
DocketAC 34584
StatusPublished
Cited by2 cases

This text of 71 A.3d 1276 (Olszewski v. Jordan) 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
Olszewski v. Jordan, 71 A.3d 1276, 144 Conn. App. 144, 2013 WL 3378825, 2013 Conn. App. LEXIS 351 (Colo. Ct. App. 2013).

Opinions

Opinion

BEAR, J.

The important question raised by this appeal is whether an attorney charging lien can arise by operation of law to be applied to assets or an interest in assets assigned to a party in a dissolution of marriage action. The trial court answered that question in the negative. We disagree and, accordingly, reverse the judgment of the trial court.

In August, 2009, the court rendered a judgment dissolving the marriage of James F. Jordan III and Diana M. Jordan. James Jordan had been represented by the defendant Carlo Forzani, an attorney of the defendant law firm, Carlo Forzani, LLC, in that proceeding.1 At the time of the dissolution of marriage judgment, James Jordan and Diana Jordan jointly owned, among other assets, an account at Northwestern Mutual (account), [147]*147from which the dissolution 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 Jordan and Diana Jordan.

While an appeal to this court from the judgment of dissolution was pending,2 in October, 2009, Ralph Ols-zewski, the plaintiff in the present case, 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.3 In November, 2009, the plaintiff obtained a prejudgment remedy, which authorized the attachment of the proceeds of the account. In April, 2011, the court rendered judgment in favor of the plaintiff in the amount of $128,135.04. The plaintiff, thereafter, applied for a property execution. Subsequently, pursuant to General Statutes § 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.4 The defendants filed a separate claim for determination of interests in the account, alleging that “Carlo Forzani, LLC has a claim prior in right” to the plaintiffs claim by virtue of the dissolution judgment and the “charging hen 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 [148]*148the defendants had no superior interest in the account by virtue of either an attorney charging hen or the dissolution judgment.5 Specifically, the court held, inter aha, that a charging hen 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 hen can be recognized and that the recognition of a charging hen in a dissolution action would violate public pohcy. The defendants then filed this appeal.6

On appeal, the defendants claim that the trial court improperly held that “an attorney’s charging hen is [not] applicable to a marriage dissolution action.” The defendants argue that Forzani “acquired a perfected charging hen for the full amount of his fees . . . when he successfully obtained a judgment for his chent that included a property distribution award.”

Whether an attorney has a common-law charging hen is a question of law. See D’Urso v. Lyons, 97 Conn. App. 253, 255, 903 A.2d 697, cert. denied, 280 Conn. 928, 909 A.2d 523 (2006). “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.) Id., 255-56.

“Although not often htigated in the courts of Connecticut, the common-law charging lien has been recognized since 1836 . . . .’’Id., 256. Our common-law charging hen is an equitable hen. “If an attorney has rendered [149]*149services and expended money in instituting and conducting a suit and the plaintiff orally agrees that he may retain so much of the avails thereof as will pay him for his services and expenses therein and for previous services in other matters, and he thereafter conducts the suit to a favorable conclusion, he has, as against such plaintiff, an equitable hen upon the avails for the services and expenses in the suit, and for the previous services embraced in the agreement . . . Cooke v. Thresher, 51 Conn. 105, 107 (1883).

“ ‘An attorney, as against his chent, has a hen upon ah papers in his possession, for his fees and services performed in his professional capacity, as well as upon judgments received by him.’ This quoted passage obviously refers to both retaining hens on papers and charging hens on judgments.” Marsh, Day & Calhoun v. Solomon, 204 Conn. 639, 644, 529 A.2d 702 (1987). “An attorney’s retaining hen is a possessory hen on a chent’s papers and files that the attorney holds until his fee has been paid. ... A retaining hen differs from a charging hen, which is a hen placed upon any money recovery or fund due the chent at the conclusion of suit.” (Citations omitted.) Id., 643. “[I]t has long been held that an attorney has an equitable hen upon the avails [of his actions for a chent] for the services and expenses in the suit.” (Internal quotation marks omitted.) D’Urso v. Lyons, supra, 97 Conn. App. 257.

Although a charging hen has not been recorded or otherwise been made known to third parties, in some circumstances, such charging hen can have priority over a prejudgment remedy or property execution. “Conflicts between an attorney claiming a charging hen for his fees on a judgment recovered through his efforts and a third-party creditor seeking to satisfy a debt owed by the attorney’s chent by impressing a hen on the same judgment have usually been resolved by determining which hen first attached to the judgment or its proceeds. [150]*150. . . Since an attorney’s lien generally attaches to a judgment as of the date the attorney commenced to represent the client in the action which terminates in the judgment, the courts have generally recognized the priority of the attorney’s lien over competing liens which were perfected after he commenced his services . . . while upholding the priority of the competing hen which was perfected before the commencement of the attorney’s services.” (Citations omitted.) Annot., Priority Between Attorney’s Lien for Fees Against a Judgment and Lien of Creditor Against Same Judgment, 34 A.L.R.4& 665, § 2 (1984).7

In the present case, although recognizing that an attorney in Connecticut may have a right to a charging lien in a civil action, the trial court concluded that such a right could not exist, as a matter of law, in a marital dissolution action. The court specifically determined that such a hen would violate rule 1.5 (d) (1) of the Rules of Professional Conduct and that it would violate the pubhc pohcy of Connecticut.

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Related

Hill v. OSJ of Bloomfield, LLC
200 Conn. App. 149 (Connecticut Appellate Court, 2020)
Olszewski v. Jordan
Supreme Court of Connecticut, 2015

Cite This Page — Counsel Stack

Bluebook (online)
71 A.3d 1276, 144 Conn. App. 144, 2013 WL 3378825, 2013 Conn. App. LEXIS 351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olszewski-v-jordan-connappct-2013.