Plaza Shoe Store, Inc. v. Hermel, Inc.

636 S.W.2d 53, 1982 Mo. LEXIS 389
CourtSupreme Court of Missouri
DecidedJuly 6, 1982
Docket62623
StatusPublished
Cited by47 cases

This text of 636 S.W.2d 53 (Plaza Shoe Store, Inc. v. Hermel, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Plaza Shoe Store, Inc. v. Hermel, Inc., 636 S.W.2d 53, 1982 Mo. LEXIS 389 (Mo. 1982).

Opinion

MORGAN, Judge.

The appellants, Plaza Shoe Store, et al., brought the underlying suit against Her-mel, Inc., apparently for alleged negligence *54 in the design and construction of a building which appellants leased. This action was eventually settled with appellants receiving approximately $58,000, which was placed in escrow by the court. Greene, Cassity, Car-nahan, Freemont & Greene, respondents, had been employed originally by appellants under a contingent fee contract to handle the action against Hermel, Inc., but they had been discharged prior to any judgment or settlement. Respondents filed their Notice of Attorneys’ Lien, and then moved the court to distribute a certain amount of the funds in connection therewith. The case at bar involves the trial, held without a jury, on the attorneys’ lien issue.

The facts necessary for resolution of this case were ably set out in a detailed “findings of fact” by the Hon. J. Powell. The findings, without benefit of quotation marks, are:

1.Plaintiffs and movants entered into a contingent fee contract whereby plaintiffs were to pay movants one-third (⅛) of any and all amounts received by way of settlement in the above-captioned law suit, plus all out-of-pocket expenses.

2. At the time movants received this case, it had minimal settlement value for the following reasons:

a. The named plaintiff was neither the occupant nor the tenant of the premise and had sustained no damages.

b. The Statute of Limitations was about to lapse as to the Plaza Mall, Inc., the proper party of this action, and defendant was aware the wrong party was named as plaintiff.

c. Plaintiff had withheld rents without placing same into escrow, and a Motion for Summary Judgment was pending wherein defendants allege breach of the lease and sought termination of same.

d. The lease in question specifically prohibited recovery for damaged merchandise due to negligence on the part of defendant Hermel, Inc.

e. No offers of settlement or compromise had been made prior to movants’ entry into this case.

3. The time expended and charges assessed by the various attorneys for movants in this case were as follows:

Attorney Time (Hours) In Office Charges Per Hour Out Office Charges Per Hour
Douglas W. Greene 115 — ¾ (per stipulation) $50.00 $60.00
J. Douglas Cassity 40 40.00 50.00
James P. Ferguson 158-¾ 40.00 40.00
Robert W. Freeman 2 40.00 40.00
Douglas W. Greene III 10-¾ 40.00 40.00
John M. Carnaham III ¼ 40.00 40.00
William D. Shepard 6 40.00 40.00

4. This case was a very complex case involving numerous issues, and expenditures of time and charges as set out above were reasonable.

5. Movants provided excellent representation to plaintiffs and obtained good results in the following respects:

a. Movants took a three-year-old case with no settlement offers and a total prayer for damages of $43,441.40 and obtained an offer of settlement of $50,000.00 cash, plus the possibility of a reduction of rent for the remaining fifteen years on plaintiffs’ lease with defendant.

b. Movants amended the original petition to'add the proper plaintiffs who actually suffered the damages set out in the original petition.

*55 c. Movants conducted extensive discovery which disclosed knowledge on the part of the architect and builder of the Battlefield Mall that a dangerous condition existed, but that said architect and builder failed to take steps to correct same.

d. Movants added as defendants the architect and builder of said Battlefield Mall and obtained contributions from them to the final settlement in this case.

6. Movants received and conveyed to plaintiffs offers of $25,000.00, $32,500.00, and $47,500.00, but in each instance advised plaintiffs to refuse same.

7. Movants received an offer of settlement from defendants for a $50,000.00 cash payment plus a possibility of a reduction of rent in the remaining fifteen years on plaintiffs’ lease with defendant Hermel, Inc.

8. Movants relayed that offer of $50,-000.00 cash plus a possibility of a reduction of rent payments to plaintiffs and recommended the same be accepted.

9. Plaintiffs, upon being advised of said offer, accused movants of being crooks and selling them out to defendants. Said allegations by plaintiffs wére unfounded and without merit.

10. Upon being accused by plaintiffs of being crooks and selling plaintiffs out to defendants, movants could no longer adequately represent plaintiffs and terminated their employment contract with plaintiffs.

11. Movants duly filed notice of attorneys’ lien and subsequently entered into a stipulation with plaintiffs agreeing movants would release all papers to plaintiffs and no waiver of attorneys’ lien would be construed or raised by plaintiffs.

12. On October 22, 1976, movants submitted a bill to plaintiffs seeking a fee of $16,470.00, plus costs. The Memorandum of Agreement, which is movants’ Exhibit 13, and the lien filed in this cause, was based upon a fee of $16,470.00, plus costs. Said amount does not represent one-third of $50,000.00, and movants now seek $16,-666.66, plus out-of-pocket expense. The court finds that movants are committed to the original] amount claimed as a fee, i.e., $16,470.00, ¡

13. The I court finds that movants charged plaintiffs for costs and expenses in the amount of $1,258.07. The court further finds that movants did not credit plaintiffs with two payments of $116.55 as shown by plaintiff’s evidence. The court further finds that one of the out-of-pocket expenses is investigator fees totaling $252.12. Mov-ants were unable to produce the name of such investigator, nor did they produce any time slips of such investigator. The court concludes that such expense is not supported by the evidence.

14. The court finds that movants are entitled to a fee of $16,470.00, plus out-of-pocket expense of $772.85, or a total of $17,242.85.

15. In the event it shall be determined that this court erred in upholding the contingency fee contract, the court finds from the evidence that the reasonable value of the services rendered by the attorneys is: Ferguson, $6,390.00; Greene, $5,787.50; Cassity, $1,600.00; Others, $640.00; or $14,-417.50.

All hours other than the hours of attorney Greene have been computed at $40.00 per hour. Attorney Greene’s 115¾ hours has been figured at $50.00 per hour. Therefore, a judgment based upon reasonable value of services rendered would be $15,190.35, which includes the out-of-pocket expenses heretofore found to be proper.

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Bluebook (online)
636 S.W.2d 53, 1982 Mo. LEXIS 389, Counsel Stack Legal Research, https://law.counselstack.com/opinion/plaza-shoe-store-inc-v-hermel-inc-mo-1982.