Pilié & Pilié v. Metz

521 So. 2d 590, 1988 La. App. LEXIS 604, 1988 WL 15882
CourtLouisiana Court of Appeal
DecidedFebruary 23, 1988
DocketNo. CA 87 0107
StatusPublished
Cited by3 cases

This text of 521 So. 2d 590 (Pilié & Pilié v. Metz) 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
Pilié & Pilié v. Metz, 521 So. 2d 590, 1988 La. App. LEXIS 604, 1988 WL 15882 (La. Ct. App. 1988).

Opinion

LeBLANC, Judge.

This is a suit by plaintiff, Pilié and Pilié, for attorney’s fees and damages for breach of contract against defendants, Mr. and Mrs. Timothy W. Metz. Plaintiff appeals from a judgment granting defendants’ exception of res judicata and dismissing its suit.

The factual background of this suit is as follows. On April 18, 1979, Timothy Metz was injured in a helicopter crash which occurred in Newark, New Jersey. Thereafter, he retained the law firm of Pilié and Pilié (Pilié), a partnership domiciled in New Orleans, to represent him with respect to the personal injuries he sustained in the crash.1 On August 30, 1979, Mr. and Mrs. Metz entered into a contingency fee contract with Pilié providing for a contingent fee of one-third (Vs) of the first $500,000.00 recovered and forty percent (40%) of all sums recovered in excess of $500,000.00. Pilié later agreed to reduce its contingency fee to one-third (⅛) of all sums recovered. With the Metzs’ approval, Pilié associated a New York firm, Speiser & Krause, P.C., to file suit in New York Federal District Court and to act as trial counsel in this matter. According to Pilié, its agreement with Speiser & Krause (Speiser) provided that Speiser was to receive fifty percent (50%) of Pilié’s one-third contingency fee if it was necessary to try the Metz’ case on the issue of liability or thirty-five (35%) percent if the case was tried on the issue of damages alone. However, a dispute later arose between Pilié and Speiser as to how the contingency fee was to be split.

In any event, Mr. Metz subsequently executed an assignment to Whitney National Bank of his interest in his suit to the extent of his indebtedness to Whitney, i.e., $446,-323.12, plus $68.95 daily from the date of the agreement until paid. Speiser & Pilié were also parties to this agreement, which provided that sums due to assignor (Metz) as a result of his suit were to be paid to Speiser, which was to deduct the amount due to it as attorney fees, and then to pay all remaining sums to M. Amaud Pilié of Pilié and Pilié within twenty-four hours of receipt thereof. Pilié was authorized to deduct all sums due as attorney fees, after which he was directed to immediately pay all remaining money to Whitney.

The Metzs’ suit was eventually tried on the issue of damages, resulting in a judgment in their favor for $2,089,000.00. However, the trial court’s judgment was reversed on appeal and the matter remanded for a new trial. The parties subsequently agreed on a settlement in the amount of $2,350,000.00, making a new trial unnecessary. As part of the parties’ agreement, attorney fees were reduced to the amount of $650,000.00 (approximately twenty-eight (28%) percent of the total settlement). Although Speiser agreed to this reduction, Pilié allegedly did not.

Speiser subsequently filed a Rule to Show Cause why the proceeds of the settlement should not be paid in accordance with the agreement of Speiser, the defendants in that tort suit and Metz, including the provision that attorney fees be awarded in the amount of $650,000.00. In response, Pilié filed an opposition to the rule, as well as a cross-petition asserting a “first priority lien on the proceeds of this settlement under its Contingency Fee Contract” with the Metzs, as well as the Whitney assignment agreement. Pilié maintained Speiser was entitled to thirty-five (35%) percent of the designated attorney’s fees. At a hearing on Speiser’s rule, all parties, including Whitney, consented to the proposed distribution of the settlement proceeds, with the exception of Pilié. On August 2, 1985, the court entered an order distributing the settlement proceeds, which included an award to Pilié of $271,666.67 “as ... the undisputed portion of its share of the 28% contingency fee (216,666.67) plus return of disbursements ($55,000) ... ”. Speiser was awarded $216,666.67 “as .... the undisputed portion of its share of the 28% contingency fee”. The court ordered that the disputed portion of the contingency fee, i.e., $216,-666.66, be placed in a joint escrow account [592]*592subject to the mutual agreement of the parties or further order of the court. Filié subsequently reached a settlement with Speiser, pursuant to which Speiser received $64,166.67 of the amount held in the escrow account. In the district court’s August 2nd judgment, Filié was also awarded an additional amount of $100,000.00 as “its non-contingency fee for professional services”. Filié did not appeal any aspect of the district court’s judgment.

On December 6, 1985, Filié filed the present suit against the Metzs. In response, defendants filed exceptions of improper venue and res judicata. The exception of improper venue was mooted when this suit was transferred from Orleans Parish, where it was originally filed, to St. Tammany Parish, defendants’ domicile. However, the trial court granted defendants’ exception of res judicata and dismissed plaintiff's suit on this basis. Plaintiff has appealed this judgment.

The theory behind the civilian concept of res judicata is that matters actually litigated and finally adjudged in a prior suit are presumed correct and, therefore, should not be contradicted in a subsequent suit. Sewell v. Argonaut Southwest Ins. Co., 362 So.2d 758 (La.1978). Thus in Louisiana, relitigation of the object of a judgment is barred when there is: (1) identity of the thing demanded; (2) the same cause of action; and, (3) the same parties appearing in the same quality. La.R.S. 13:4231; Safeco Ins. Co. of America v. Palermo, 436 So.2d 536 (La.1983). The absence of any one of these elements is fatal to the exception. Higgins v. State, Dept. of H. & H. Resources, 451 So.2d 142 (La.App. 1st Cir.1984). As stated by the Supreme Court in Sewell, supra, at p. 760,

It is evident from a decree which expressly grants or rejects a thing demanded that the matter has been adjudged. A demand may also be impliedly rejected by the silence of a judgment which fails to grant the demand, provided that the matter has been actually litigated and finally adjudged so that it became an “object of the judgment.” La.Civ.Code art. 2286. Thus, when a litigant interposes a plea of res judicata, the court must examine not only the pleadings but also the entire record in the first suit, to determine whether the availability of the particular form of relief sought in the second suit was actually ruled upon.

Further, it is well-established that res judicata is stricti juris and a second suit is not barred when there is any doubt as to its application. Higgins, supra, at 144. Finally, the burden of proof is upon the defendant to establish the essential facts necessary to sustain an exception of res judicata. Louisiana Business College v. Crump, 474 So.2d 1366 (La.App. 2nd Cir.1985).

In the present case, plaintiff has asserted three claims against defendants. We will consider each of these separately.

COUNT I

In this claim, plaintiff seeks recovery of what it claims is the balance due to it under its one-third contingency fee contract with defendants, since the attorney fees awarded by the New York court were less than one-third of the settlement made. Specifically, plaintiff claims it is entitled to receive 65 percent (based on the alleged agreement with Speiser to split the fee 65/35) of one-third of $2,240,000.002 less the $650,000.00 in attorney’s fees already paid, i.e., $62,833.33.

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Related

Pilie & Pilie v. Metz
547 So. 2d 1305 (Supreme Court of Louisiana, 1989)
Pilié v. Graham
547 So. 2d 1305 (Supreme Court of Louisiana, 1989)
Pilié & Pilié v. Graham
523 So. 2d 219 (Supreme Court of Louisiana, 1988)

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Bluebook (online)
521 So. 2d 590, 1988 La. App. LEXIS 604, 1988 WL 15882, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pilie-pilie-v-metz-lactapp-1988.