Rhoads v. Sommer

931 A.2d 508, 401 Md. 131, 2007 Md. LEXIS 496
Court of Appeals of Maryland·Decided August 27, 2007·No. 127 September Term, 2006·Published·Cited by 38 cases

Opinion

RAKER, J.

Respondents Fred S. Sommer, an attorney, and Shulman, Rogers, Gandal, Pordy & Ecker, P.A., his law firm, (collectively referred to in the singular as “Sommer”) filed a complaint to enforce an attorney’s lien against Lori D. Rhoads, petitioner. We granted certiorari to consider three questions. Rhoads v. Sommer, 396 Md. 524, 914 A.2d 768 (2007). First, we consider whether respondents’ right to a statutory attorney’s hen, as set forth in Md.Code (1999, 2006 Cum.Supp.), § 10-501 of the Business Occupations & Professions Article, was waived by the language of the parties’ retainer agreement. 1 We shall hold that the retainer agreement did not waive respondents’ right to a statutory attorney’s lien under § 10-501. Second, we consider whether a § 10-501 attorney’s lien survives a bankruptcy discharge even if no notice of the intent to claim a lien was given prior to the bankruptcy. We shall hold that the § 10-501 lien survives the bankruptcy discharge and that Sommer properly gave notice of the lien under Maryland Rule 2-652. Finally, we consider whether petitioner’s constitutional due process rights were violated. *137 We shall hold that petitioner did not suffer any due process violations.

I.

Rhoads, a financial analyst, began work for Standard Federal Savings Bank (SFSB) in September of 1987. 2 Rhoads was terminated from her position as Director of Financial Analysis at Standard Federal Savings Association (SFSA), the successor to SFSB, on September 15, 1993. In December 1993, Rhoads initiated a charge of discrimination with the Federal Equal Employment Opportunity Commission (EEOC) and the Maryland Commission on Human Rights, asserting that she was wrongfully discharged.

In January 1994, Rhoads retained Sommer 3 to file an employment discrimination lawsuit against her former employers, SFSB and its successor SFSA. 4 Sommer filed a federal suit on behalf of Rhoads alleging violations of the Family and Medical Leave Act, 29 U.S.C. §§ 2601-2654 (2000) (FMLA), the employment provisions of the Americans with Disabilities Act, 42 U.S.C. §§ 12101-12117, 12203 (2000) (ADA), the common-law duty to provide a safe workplace, and the county human rights law arising from Rhoads’ exposure to secondhand smoke in her workplace and her employer’s allegedly retaliatory termination after she threatened to file an ADA discrimination claim. See Rhoads v. F.D.I.C., 257 F.3d 373, 377-79 (4th Cir.2001).

*138 In February 1997, the United States District Court for the District of Maryland granted summary judgment to the former employer on nine of Rhoads’ ten claims including Rhoads’ ADA claims—for failure to make reasonable accommodations, discriminatory termination, and retaliation—as well as the state law claims. See Rhoads v. FDIC, 956 F.Supp. 1239 (D.Md.1997). A jury subsequently found in the employer’s favor on the remaining FMLA claim. See Rhoads v. F.D.I.C., 257 F.3d at 376. Sommer filed various post-trial motions on Rhoads’ behalf, including a motion for judgment as a matter of law or alternatively for a new trial. 5

On March 27, 1998, Rhoads filed a voluntary petition for Chapter 7 bankruptcy. In her bankruptcy schedules, Rhoads listed Fred S. Sommer, Esq. as a creditor holding an unsecured nonpriority claim in the amount of $190,000 for legal services. 6 Sommer was individually identified as a creditor and was served with Rhoads’ petition, but he did not file any response or other claim in the bankruptcy proceedings. Rhoads also disclosed on her petition’s statement of financial affairs that she was party to a “[cjivil claim for damages,” which had resulted in a “judgment for defendant 3/4/96, time for appeal has not expired.” Any action on the civil case, however, was automatically stayed when Rhoads filed the Chapter 7 bankruptcy petition. 7 See 11 U.S.C. § 362 (2000).

*139 After reviewing Rhoads’ petition, the bankruptcy trustee concluded there was “no property available for distribution from the estate.” Based on this conclusion, the trustee filed a report of no distribution on May 8, 1998, releasing to Rhoads any interest she might have in the stayed litigation. On July 2, 1998, the bankruptcy court granted Rhoads a discharge under 11 U.S.C. § 727 (2000).

From April to August 1998, Rhoads and Sommer exchanged several letters concerning whether Sommer would continue to represent Rhoads. The correspondence began with Sommer asking whether Rhoads wanted him to file a reply brief or take some other action on her behalf regarding her motion for judgment as a matter of law and her motion for new trial, originally filed in March 1998 and now active again because the bankruptcy trustee relinquished her claim. Sommer stated that he was “willing to file a reply brief on the motion for new trial (and if the motion is granted, try the case),” but that he was “not willing to incorporate into the reply brief [Rhoads’] suggested revisions.” In response, Rhoads asserted that the reply brief should “include all relevant arguments available to us” but that “it is preferable to have some response rather than no response at all.” Thus, Sommer filed the reply brief on May 27, 1998. On August 12, 1998, the motions for judgment as a matter of law and motion for a new trial were denied. See Rhoads v. F.D.I.C., 257 F.3d at 376.

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Rhoads v. Sommer, 931 A.2d 508, 401 Md. 131, 2007 Md. LEXIS 496 (Md. 2007).

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