Osborne v. Vulcan Foundry, Inc.

699 So. 2d 492, 1997 WL 560061
CourtLouisiana Court of Appeal
DecidedSeptember 3, 1997
Docket96-CA-1849
StatusPublished
Cited by8 cases

This text of 699 So. 2d 492 (Osborne v. Vulcan Foundry, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Osborne v. Vulcan Foundry, Inc., 699 So. 2d 492, 1997 WL 560061 (La. Ct. App. 1997).

Opinion

699 So.2d 492 (1997)

Thomas J. OSBORNE, Jr., et al.
v.
VULCAN FOUNDRY, INC., et al.

No. 96-CA-1849.

Court of Appeal of Louisiana, Fourth Circuit.

September 3, 1997.

*493 S. Michael Cashio, Kenner, for Intervenor/Appellant.

Bradford R. Roberts, II, Roberts, Katz & Baudier, New Orleans, for Plaintiff/Appellee.

ARMSTRONG, Judge.

This appeal concerns the apportionment of a contingency fee between two attorneys who represented the same plaintiff at separate times. The plaintiff-intervenor, S. Michael Cashio, appeals from a judgment awarding him $75,000.00, plus interest, from a $324,000.00 contingency fee, and defendant-in-intervention, Robert J. Caluda, $248,000.00, plus interest.[1] For the following reasons, we now amend the judgment of the trial court to increase the proportion of the fee awarded to Cashio.

S. Michael Cashio was retained by Thomas J. Osborne Jr. in late 1986 to prosecute a personal injury claim for damages incurred as a result of an October 1986 on-the-job injury. In January 1994 Osborne discharged Cashio and retained Robert J. Caluda. Cashio intervened in the personal injury action to protect his interest. Caluda settled the suit in June 1995 for $810,000.00, generating the $324,000.00 contingency fee. Following trial of the intervention, the trial court found that Osborne had discharged Cashio for "cause" and that the work Cashio had performed only entitled him to a $75,000.00 share of the fee. On appeal, Cashio claims the trial court erred in finding that he had been discharged for cause and in finding that his seven-plus years of work on the case only entitled him to 23% of the contingency fee.

In Saucier v. Hayes Dairy Products, Inc., 373 So.2d 102 (La.1978), the Louisiana Supreme Court held that in a case involving two attorneys with separate contingency fee contracts with the client, one attorney having been discharged (without "cause") and the subsequent attorney having brought the case to judgment or settlement, the contingency fee is to be apportioned according to the services performed by each attorney. The proportionate services are to be determined according to factors contained in Rule 1.5(a) of the Rules of Professional Conduct.[2] Rule 1.5(a) provides:

(a) A lawyer's fee shall be reasonable. The factors to be considered in determining *494 the reasonableness of a fee include the following:
(1) The time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly;
(2) The likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer;
(3) The fee customarily charged in the locality for similar legal services;
(4) The amount involved and the results obtained;
(5) The time limitations imposed by the client or by the circumstances;
(6) The nature and length of the professional relationship with the client;
(7) The experience, reputation, and ability of the lawyer or lawyers performing the services; and
(8) Whether the fee is fixed or contingent.

A trial court's apportionment of a contingency fee according to these factors is a factual determination and as such may not be disturbed absent manifest error. Stobart v. State, Through DOTD, 617 So.2d 880 (La. 1993).

In O'Rourke v. Cairns, 95-3054 (La.11/25/96), 683 So.2d 697, the Louisiana Supreme Court applied it's holding in Saucier to cases involving an attorney who has been discharged for cause. Once that attorney's proportionate share for services rendered has been determined according to Saucier, "the court should consider the nature and gravity of the cause which contributed to the dismissal and reduce by a percentage amount the portion discharged counsel otherwise would receive after the Saucier allocation." 95-3054 at 10-11, 683 So.2d at 704.

In the instant case, judgment apportioning the contingency fee was rendered seven months prior to O'Rourke being decided. However, it appears the trial court took into consideration Cashio's discharge for cause in determining his allocation of the contingency fee. The court did not make a finding as to the value of Cashio's services and then deduct a percentage for the discharge for cause, rather, it simply made one determination as to Cashio's deserved share of the contingency fee. O'Rourke will be applied retroactively to this case. See generally, Succession of Clivens, 426 So.2d 585 (La.1982) (new case law traditionally has prospective and retroactive effect).

Robert Caluda testified that as of the date of trial he had been practicing law for eighteen years, primarily representing plaintiffs in personal injury litigation. Caluda received Osborne's case in January 1994 and settled it in June 1995, with a final disbursement in August 1995. Cashio turned over Osborne's file to Caluda. At the time Caluda got the case Cashio had it set for trial in May 1994. Caluda obtained a continuance in March 1994 and trial had been set for June 1995 when the case settled. Caluda said the case was not ready for trial at the time he got the file. Caluda testified that he took the depositions of two liability witnesses and "developed" "roughly forty percent" of the witnesses. However, at one point, Caluda admitted that approximately two-thirds of the witnesses he listed on his witness list prepared for trial were names he got from Cashio's file. He also admitted that Cashio took "about" 92% of the depositions taken of liability witnesses. But, he stated that "a lot of [his] work product involve[d] collating and making sense of the hodge-podge of documents [Cashio] produced." Caluda said he had to obtain an expert witness to establish that the grate was a defective product; a gastroenterologist to establish Osborne's gastrointestinal problems (loss of control of his bowel and bladder); a psychologist to establish the psychological effects of Osborne's injuries and resulting complications on his life; and an economist to establish and project his future lost earnings. Caluda estimated that his obtaining the liability expert alone increased the chance of winning the liability issue at trial from 50% to 75-95%. However, Caluda indicated that this liability expert based his opinion on materials already obtained by Cashio, plus a video tape Caluda took of the scene and grounds after he got the case. Caluda said the medical records Cashio obtained from two hospitals were not certified and thus not suitable for admission *495 into evidence. Caluda settled the case through mediation for $810,000.00 and obtained a waiver of subrogation for approximately $300,000.00 in workers compensation benefits.

Thomas Buck, an attorney, represented two defendants, the Dock Board and Louisiana Insurance Guarantee Association. Buck testified that he had settlement discussions with Cashio but never reached an agreement. He said Cashio sent his firm a demand but that they never made any formal settlement offer to Cashio. Buck recalled Cashio setting a value on the case at $4.7 million and a settlement value of $2.3 million. He later said he valued the case at "anywhere between seven hundred, eight hundred and a million and a half, even two million," presumably settlement value.

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Bluebook (online)
699 So. 2d 492, 1997 WL 560061, Counsel Stack Legal Research, https://law.counselstack.com/opinion/osborne-v-vulcan-foundry-inc-lactapp-1997.