Risjord v. Lewis

987 S.W.2d 403, 1999 Mo. App. LEXIS 75, 1999 WL 17847
CourtMissouri Court of Appeals
DecidedJanuary 19, 1999
DocketWD 55286
StatusPublished
Cited by5 cases

This text of 987 S.W.2d 403 (Risjord v. Lewis) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Risjord v. Lewis, 987 S.W.2d 403, 1999 Mo. App. LEXIS 75, 1999 WL 17847 (Mo. Ct. App. 1999).

Opinion

LOWENSTEIN, Judge.

The matter central to this appeal is the question as to the legal relationship, vis-a-vis the division of the fee from a contingent fee contract, between attorneys from different offices who represented a client where the client has, with eourt approval, dismissed one of the attorneys prior to obtaining a settlement.

This appeal is taken by attorney Jack Lewis (Lewis) from a declaratory judgment filed by attorneys Risjord and James (Ris-jord). The trial judge ruled in favor of the respondent Risjord. The standard of review is under Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976), and Rule 73.01.

An exploding tire rim left John Rousseau with catastrophic physical and mental injuries. Rousseau’s wife was appointed the guardian of his estate in Christian County. Lewis was referred to Janice Rousseau by her brother-in-law. Lewis, who did not have a contract to represent Rousseau in the potential suit against the manufacturer, contacted Risjord to see if Risjord would act as lead counsel in prosecuting the case. While Lewis had little or no experience in trying this type of case, Risjord had handled many similar cases. They then met with the client and their agreement with the client called for a forty percent fee of gross proceeds after *405 expenses, and as between the attorneys, Lewis was to assist in the case and advance forty per cent of the expenses while sharing in forty percent of any fee.

Risjord filed suit on behalf of Mr. Rousseau’s estate and for Ms. Rousseau’s loss of consortium and then conducted discovery. Lewis failed to assist in the case and to advance his share of the expense money. Risjord brought in an expert to evaluate Mr. Rousseau’s condition, get him better care, and to figure how much future life care would cost. The expert’s bill was presented to Lewis, but he failed to pay his share. Ms. Rousseau became dissatisfied with Lewis’ efforts and in December 1994, after a hearing, which Lewis did not attend, had him removed as attorney by the Christian County Probate Court. The probate court approved a forty percent contingent attorney contract with Risjord.

In September, 1995, Risjord took the Rousseau’s case to trial in Jackson County and a week into trial, the case was settled. The circuit judge in Jackson County approved a settlement of $12,999,807, with attorney’s fees of $5,160,813 plus expenses to Risjord. A year later an attorney representing Lewis wrote a letter to Risjord demanding a third of the fee or $1,600,000.

Risjord filed this case for declaratory relief. On the day of trial, Lewis filed a counterclaim which sought a “dissolution of partnership & accounting” and additionally sought punitive damages for constructive fraud. Lewis declares Risjord got to the client and “ran him off the case.” At the trial of this case, Ms. Rousseau testified she asked the probate court to terminate the contract with Lewis, and did so without prompting from Risjord.

Lewis did not, and has not, made any claim or presented any evidence for quantum me-ruit. The trial court found for Risjord, determining no partnership existed between Lewis and Risjord and no fee was owed Lewis.

Attorneys from different law firms are not prohibited from working together on a single case. In Robert v. Davis, 235 Mo.App. 974, 142 S.W.2d 1111, 1116 (Mo.App.1940), the court stated that, “as regards the division of the fee,” such a relationship “constitutes a joint adventure or special partnership between them.” Such agreements are acceptable based only on a sharing of services or responsibility, and the agreement must provide “that the division of fees be based” upon the respective percentages of “services rendered or responsibility assumed” between the two parties. McFarland v. George, 316 S.W.2d 662, 669 (Mo.App.1958). The McFarland court also stated that “it makes little difference by what name the association of the two lawyers is called, the agreement to associate must comply with Supreme Court Rule 4.34, 42 V.A.M.S ...,” which states, “No division of fees for legal services is proper, except with another lawyer, based upon a division of service or responsibility.” Id. at 669-670. Merely recommending another lawyer or referring a case to another lawyer, and failing to do anything further in the “handling of the case cannot be construed as performing service or discharging responsibility in the case.” Id. at 670.

Regardless of the existence of any special partnership, or agreement amongst the parties under some other name, if the client becomes dissatisfied with his attorney, he has the right to discharge the attorney subject to the attorney’s right, under certain conditions, to be paid his fee. Turpin v. Anderson, 957 S.W.2d 421, 426 (Mo.App.1997); Plaza Shoe Store, Inc. v. Hermel, Inc., 636 S.W.2d 53, 58 (Mo.1982); International Materials Corp. v. Sun Corp., 824 S.W.2d 890, 894 (Mo.1992). However, the attorney’s “right to compensation is always limited to the extent necessary to protect the client’s freedom to change counsel.” Id. In the case of contingent fee contracts, where the attorney fails to fulfill the terms of the contract, “contract recovery is not proper ... Once termination of the lawyer-client relationship has occurred before completion of a contingent fee contract, the lawyers’ only recovery could be in quantum meruit for benefits conferred.” Id. at 895. The reason for this is, “requiring payment of the contracted contingent fee regardless of the posture of the case at the time of discharge, *406 [would be] patently unfair to clients, particularly where the client truly has lost faith in the attorney.” Plaza Shoe Store, Inc. v. Hermel, Inc., 636 S.W.2d at 58. “The economics of paying a discharged attorney the full contract price, and then hiring another attorney to continue his work, may be prohibitive. This danger is especially apparent in contingency fee situations, where “each” attorney may receive a large percentage of the client’s final recovery.” Id.

In Appellant’s brief, he states that the Rousseaus’ claims are “business” or an “enterprise for commercial profit,” thus supporting the claim that this was somehow a partnership or joint venture. He further states, “the Rousseaus’ claims are the assets of this association between Appellant and Respondents_” These conclusions are incorrect. As pointed out by the International Materials Court, “‘The cause of action or claim which is the subject of the contract between lawyer and client is the property of the client and not the attorney5.” 824 S.W.2d at 894 (emphasis added); see also Plaza Shoe Store, Inc. v. Hermel, Inc., 636 S.W.2d at 57.

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Cite This Page — Counsel Stack

Bluebook (online)
987 S.W.2d 403, 1999 Mo. App. LEXIS 75, 1999 WL 17847, Counsel Stack Legal Research, https://law.counselstack.com/opinion/risjord-v-lewis-moctapp-1999.