Robison v. Katz

717 P.2d 586, 104 N.M. 133
CourtNew Mexico Supreme Court
DecidedApril 11, 1986
DocketNo. 15730
StatusPublished
Cited by3 cases

This text of 717 P.2d 586 (Robison v. Katz) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robison v. Katz, 717 P.2d 586, 104 N.M. 133 (N.M. 1986).

Opinion

OPINION

SOSA, Senior Justice.

This case began in 1977 when Robison, a real estate broker, brought a declaratory judgment action to determine his liability, if any, for misrepresentations made in connection with the sale of the Green Valley Mobile Home Park (Park) by defendants Campbell to defendant-appellant Beverly Katz (Katz). Three times the case came up to the court of appeals. The only issue now before this Court is whether the trial court, after the remand, erred in assigning all of the proceeds from the judgment against Robison to the first law firm to have represented Katz. We reverse, and remand the matter to the trial court for an equitable apportionment among the two firms who jointly contributed to the judgment in favor of Katz.

At the first trial, Katz was represented by the firm of appellee, Sutin, Thayer and Browne (Sutin). Katz counterclaimed for rescission of the contract for sale of the Park. The trial court determined that rescission was barred because Katz could not restore the vendor Campbells to the status quo ante. Instead, the court awarded damages to Katz with set-offs to Camp-bells. The net award to Katz came to $26,789.00 plus costs. In addition, the court granted to Sutin an attorney's charging lien on the proceeds of the judgment, in the sum of $49,099.26. This amount was subsequently amended to $61,270.06.

Katz appealed. Evidently the Sutin firm declined to represent Katz on appeal, which she was permitted to pursue in forma pauperis. One of the issues Katz raised was that the attorneys’ fees granted in the charging lien were excessive. The court of appeals reversed the trial court and remanded to permit rescission and an accounting between the parties, Robison v. Katz, 94 N.M. 314, 610 P.2d 201 (Ct.App.), cert. denied 94 N.M. 675, 615 P.2d 992 (1980) (Robison I). The remand also directed the trial court to hear evidence of any special damages resulting from Katz’s reliance on Robison’s misrepresentations. If Katz could prove special damages, the court of appeals held that she could also claim punitive damages against Robison for breach of his fiduciary duty as her broker. Finally, the court remanded for a hearing on Katz’s claim that the fees charged by Sutin were excessive.

At the second trial, Katz was represented by the firm of appellant, Marchiondo & Berry (Marchiondo). The court granted rescission and further found that Katz had proved special medical damages against Robison in the amount of $219.13. On this foundation, the court also awarded punitive damages of $10,000 (the amount of Robison’s brokerage commission). From the judgment in her favor Katz was ordered to pay the sum of $3,028.74 for the cost of the transcript on appeal, and $1,286.97 for reimbursement of the court clerk. Finally, Sutin was awarded a charging lien on the proceeds of the judgment, in the amount of $25,000.

Both Katz and Sutin appealed. Katz attacked the validity of the charging lien as applied to the second judgment; Sutin contended that the lien was not only valid, but also that the trial court abused its discretion in awarding only $25,000, when its fee was in excess of $61,000. In addition, both Robison and Campbell challenged the terms and calculations of the judgment on the contract issue. Finally, Robison and Katz both sought review of the punitive damages award: Robison wanting it decreased, Katz wanting it increased.

In Robison v. Campbell, 99 N.M. 579, 661 P.2d 479 (Ct.App.) cert. denied, 99 N.M. 578, 661 P.2d 478 (1983) (Robison II), the court of appeals vacated the awa,rd of punitive damages in light of its opinion that the contract damages had been improperly calculated. Significantly, there was no challenge to the finding of $219.13 in actual medical expenses as special damages for Katz against Robison.

As for the charging lien, the court of appeals enunciated the underlying equitable principles in upholding the validity of the award. See Northern Pueblos Enterprises v. Montgomery, 98 N.M. 47, 644 P.2d 1036 (1982). The court clearly held that Katz’ relief of rescission granted at the second trial was based upon evidence introduced by Sutin at the first trial. The court went on to hold, however, that:

The rescission ultimately obtained by Katz involved attorneys other than the Sutin firm in the prior appeal and the trial after remand. The trial court could properly consider the part palyed by the Sutin firm in the ultimate recovery and determine that “equitable relief for a reasonable fee” should be the $25,000.00. See Northern Pueblos, supra. There was no abuse of discretion.

Robison II, 99 N.M. at 585, 661 P.2d at 485.

Again the cause was remanded. Again the trial court awarded Katz $10,000 in punitive damages against Robison. Again Robison appealed, arguing that the punitive damage award was so disproportionate to the $219.13 in actual damages as to plainly manifest passion and prejudice, citing Galindo v. Western States Collection Company, 82 N.M. 149, 477 P.2d 325 (Ct.App.1970).

The court of appeals affirmed the judgment. Robison v. Campbell, 101 N.M. 393, 683 P.2d 510 (Ct.App.), cert. denied, 101 N.M. 362, 683 P.2d 44 (1984) (Robison III). Specifically, the court upheld the punitive damage award, under the circumstances of the case and in light of the relationship between the parties, as “based on reason and justice.” Robison III, 101 N.M. at 397, 683 P.2d at 514.

After the third appeal, Robison paid into the registry of the trial court the amount of the judgment he owed to Katz on September 24, 1984. The trial court held a hearing to determine the priority of attorneys’ charging liens between Sutin and Marchiondo. By letter decision of October 12, 1984, confirmed in an order issued on November 7, 1984, the court awarded the entire fund to Sutin, after subtracting the reimbursement to the court for the costs of the first appeal. From this order Marchiondo appeals.

Both parties agree that an attorney’s charging lien “has its origin in the common law, and is governed by equitable principles.” Northern Pueblos, 98 N.M. at 49, 644 P.2d at 1038. It is an attorney’s right “to recover his fees and money expended on behalf of his client from a fund recovered by his efforts. ” Prichard v. Fulmer, 22 N.M. 134, 140, 159 P.39, 41 (1916) (emphasis added).

Sutin argues here, as below, that the validity and priority of its lien were established by the prior appellate decisions in Robison I and Robison II. The court of appeals was never asked to rule on Machiondo’s charging lien. (Indeed it is not clear yet how much Marchiondo’s lien is for; presumably it exceeds $10,000.) That court did conclude, however, in reducing the amount of Sutin’s lien, that the judgment in favor of Katz resulted in part from the efforts of attorneys other than Sutin.

Nonetheless, Sutin contends that its lien has priority because:

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Cite This Page — Counsel Stack

Bluebook (online)
717 P.2d 586, 104 N.M. 133, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robison-v-katz-nm-1986.