Quinn, Emanuel Urquhart & Sullivan v. Kurtin CA2/5

CourtCalifornia Court of Appeal
DecidedJuly 28, 2014
DocketB250245
StatusUnpublished

This text of Quinn, Emanuel Urquhart & Sullivan v. Kurtin CA2/5 (Quinn, Emanuel Urquhart & Sullivan v. Kurtin CA2/5) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Quinn, Emanuel Urquhart & Sullivan v. Kurtin CA2/5, (Cal. Ct. App. 2014).

Opinion

Filed 7/28/14 Quinn, Emanuel Urquhart & Sullivan v. Kurtin CA2/5 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION FIVE

QUINN EMANUEL URQUHART & B250245 SULLIVAN, (Los Angeles County Plaintiff and Respondent, Super. Ct. No. BS141596)

v.

TODD KURTIN,

Defendant and Appellant.

APPEAL from orders of the Superior Court of Los Angeles County, William F. Fahey, Judge. Affirmed. Weintraub Tobin, Gary A. Waldron and Sherry S. Bragg for Defendant and Appellant. Quinn Emanuel Urquhart & Sullivan, Christopher Tayback, Joseph Sarles and David Pennington for Plaintiff and Respondent. I. INTRODUCTION

Defendant, Todd Kurtin, appeals from an arbitration and judicial award of attorney’s fees in favor of plaintiff, the law firm of Quinn Emanuel Urquhart & Sullivan, LLP. Plaintiff represented defendant, a sophisticated businessperson, in litigation against a former business partner. Plaintiff and defendant entered into a contingency agreement concerning that representation. The agreement required binding arbitration if a dispute arose from the parties’ relationship. The agreement also provided that plaintiff, if it prevailed, could recover compensation for the work by its employees in defending or prosecuting that dispute in arbitration or litigation. The dispute resulted in an arbitration award in favor of plaintiff which included attorney’s fees incurred by its attorneys. The trial court confirmed the award. And the trial court granted plaintiff’s request for fees incurred while litigating the confirmation proceedings. Defendant only challenges the attorney fee awards returned by the arbitrator and the trial court. Defendant contends the arbitration award violates a fundamental public policy against pro se lawyers recovering their fees. In a similar vein, defendant contends the trial court could not award plaintiff its attorney fees litigating the confirmation proceedings. Given the broad language appearing in the attorney fee clause, defendant’s contentions are unpersuasive. We affirm the orders under review in their entirety.

II. BACKGROUND

A. Plaintiff’s And Defendant’s Former Legal Relationship

Defendant and Bruce Elieff were equal business partners in a real estate development business. In October 2003, defendant retained plaintiff as counsel. Defendant sought to terminate the existing partnership with Mr. Elieff. Defendant initially retained plaintiff on an hourly basis. In April 2005, plaintiff requested the hourly

2 agreement be converted to a contingency basis. We will detail the pertinent provisions of the arbitration and attorney fee clauses later in our discussion. On August 15, 2005, defendant and Mr. Elieff entered into a settlement agreement. The agreement called for payments to defendant in the amount of $48.8 million with a specific payment schedule. The agreement provided for defendant to seek a default if payment was not timely made. Defendant timely received approximately $22.8 million. However, Mr. Elieff failed to timely make his subsequent payments. In December 2007, plaintiff ceased representing defendant. Defendant, through different counsel, filed suit against Mr. Elieff for breach of the settlement agreement. On December 5, 2008, defendant served an arbitration demand on plaintiff for legal malpractice and contract breach.

B. Arbitration Proceedings And Awards

The arbitration agreement provides, “Any dispute regarding or arising out of our representation . . . will be resolved by binding arbitration under the Commercial Rules of the American Arbitration Association . . . before a single arbitrator appointed from the [American Arbitration Association’s] Large Complex Commercial Case Panel.” The arbitration was governed by both the procedural and substantive provisions of the Federal Arbitration Act. California law would govern any dispute or claim. The arbitration was bifurcated into two phases. Phase I concerned adjudication of the legal malpractice claim. Phase II concerned unconscionability, causation and damages. The hearing for phase I of the arbitration occurred on March 5 to March 8 and May 3 of 2012. Plaintiff represented itself using its own attorneys. On June 8, 2012, the arbitrator issued a partial award in favor of plaintiff which denied all of defendant’s malpractice and contract breach claims. On March 4, 2013, the parties argued the phase II issues of the arbitration. The April 2005 contingency agreement contains the following provision: “The prevailing party in any arbitration or litigation will be entitled to recover all attorneys’ fees

3 (including if the firm is the prevailing party, the value of the time of all professionals in our firm who perform legal services in connection with the dispute, computed at their normal billing rates), all experts’ fees and expenses and all costs (whether or not these costs would be recoverable under the California Code of Civil Procedure) that may be incurred in obtaining or collecting any judgment and/or arbitration award, in addition to any other relief to which that party may be entitled.” Defendant argued the fee clause was unconscionable. Defendant contended that it was against public policy for attorneys appearing in propria persona to recover their fees. On March 31, 2013, the arbitrator issued his phase II award. The arbitrator rejected defendant’s unconscionability argument. Pursuant to the fee clause, the arbitrator awarded plaintiff $2,190,047.65 as reasonable attorney’s fees for its successful defense against defendant’s malpractice claim during phase I. The arbitrator rejected plaintiff’s claims for fees and costs incurred during its defense in phase II of the arbitration. The arbitrator concluded the phase II defense was based on a contract and precluded recovery under Civil Code section 1717, subdivision (a) (section 1717).

C. Judicial Proceedings Confirming The Arbitration Award

On April 22, 2013, plaintiff filed a petition to confirm both phase I and phase II arbitration awards. Plaintiff represented itself in the matter. On May 6, 2013, defendant filed his opposition to the petition. Defendant separately filed a petition to vacate the phase II award. Defendant argued the phase II award was contrary to public policy for the reasons specified during the arbitration. No issue was raised concerning the merits of the malpractice and contract breach claims. On May 29, 2013, the trial court denied defendant’s petition to vacate and granted plaintiff’s petition to confirm both arbitration awards. On July 29, 2013, plaintiff filed a motion for attorney’s fees for successfully confirming the arbitration awards. On September 6, 2013, defendant opposed the motion, again arguing it was against public policy to permit an attorney proceeding in propria

4 persona to recover attorney’s fees. On October 7, 2013, the trial court granted plaintiff’s motion for fees and entered judgment for $66,688. Defendant appeals from the confirmation of the phase II arbitration award and the judicial proceedings award of attorney’s fees.

III. DISCUSSION

A. Failure To Provide Report’s Transcripts Of Trial Court Proceedings

No reporter’s transcripts of any trial court proceedings have been provided by defendant.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Maynard v. BTI Group, Inc.
216 Cal. App. 4th 984 (California Court of Appeal, 2013)
Brown Bark III v. Haver CA4/3
219 Cal. App. 4th 809 (California Court of Appeal, 2013)
Moncharsh v. Heily & Blase
832 P.2d 899 (California Supreme Court, 1992)
Wetsel v. Garibaldi
323 P.2d 524 (California Court of Appeal, 1958)
Ballard v. Uribe
715 P.2d 624 (California Supreme Court, 1986)
People v. Kathy P.
599 P.2d 65 (California Supreme Court, 1979)
Walker v. Superior Court
807 P.2d 418 (California Supreme Court, 1991)
Buckhart v. San Francisco Residential Rent Stabilization & Arbitration Board
197 Cal. App. 3d 1032 (California Court of Appeal, 1988)
Null v. City of Los Angeles
206 Cal. App. 3d 1528 (California Court of Appeal, 1988)
Sui v. Landi
163 Cal. App. 3d 383 (California Court of Appeal, 1985)
Rossiter v. Benoit
88 Cal. App. 3d 706 (California Court of Appeal, 1979)
Calhoun v. Hildebrandt
230 Cal. App. 2d 70 (California Court of Appeal, 1964)
Ehman v. Moore
221 Cal. App. 2d 460 (California Court of Appeal, 1963)
Ramon v. County of Santa Clara
173 Cal. App. 4th 915 (California Court of Appeal, 2009)
Interinsurance Exchange of the Automobile Club v. Collins
30 Cal. App. 4th 1445 (California Court of Appeal, 1994)
Hodges v. Mark
49 Cal. App. 4th 651 (California Court of Appeal, 1996)
Lockton v. O'ROURKE
184 Cal. App. 4th 1051 (California Court of Appeal, 2010)
Jordan v. Department of Motor Vehicles
123 Cal. Rptr. 2d 122 (California Court of Appeal, 2002)
Boeken v. Philip Morris Inc.
26 Cal. Rptr. 3d 638 (California Court of Appeal, 2005)
Jonathan Vo v. Las Virgenes Municipal Water District
94 Cal. Rptr. 2d 143 (California Court of Appeal, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
Quinn, Emanuel Urquhart & Sullivan v. Kurtin CA2/5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quinn-emanuel-urquhart-sullivan-v-kurtin-ca25-calctapp-2014.