Rojas v. Two/Morrow Ideas Enterprises, Inc.

53 V.I. 684, 2010 WL 4962913, 2010 V.I. Supreme LEXIS 31
CourtSupreme Court of The Virgin Islands
DecidedJuly 30, 2010
DocketS. Ct. Civ. Nos. 2008-0071, 2008-0089
StatusPublished
Cited by25 cases

This text of 53 V.I. 684 (Rojas v. Two/Morrow Ideas Enterprises, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of The Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rojas v. Two/Morrow Ideas Enterprises, Inc., 53 V.I. 684, 2010 WL 4962913, 2010 V.I. Supreme LEXIS 31 (virginislands 2010).

Opinion

OPINION OF THE COURT

(July 30, 2010)

HODGE, CJ.

Appellant A. Jeffrey Weiss, Esq., (hereafter “Weiss”) appeals from an August 5, 2008 Superior Court Order modifying his attorney’s fees and costs in the underlying personal injury action, as well as an October 22, 2008 Order further reducing his fees and costs.2 For the reasons that follow, we shall vacate in part and reverse in part the Superior Court’s August 5, 2008 Order, vacate its October 22, 2008 Order as moot, lift the stay ordered by this Court on January 22, 2009, and remand the matter to the Superior Court for further proceedings consistent with this decision.

I. FACTUAL AND PROCEDURAL BACKGROUND

On May 30, 1999, Horaciana J. Rojas (hereafter “Rojas”), Nancy N. Greene (hereafter “Greene”), and five minor children were injured when a truck driven by Lander G. Alfred (hereafter “Alfred”) struck their vehicle. Shortly after the incident, Rojas, Greene, and Elena Salomon (hereafter “Salomon”) — the mother of one of the injured minors — retained Weiss to represent all seven accident victims in a personal injury action against Alfred and his employer, Chuck Kline Water Services (hereafter “Chuck Kline”). Pursuant to their respective retainer agreements — which Rojas and Greene executed on June 29, 1999, and Salomon signed on July 23, 1999 — Weiss agreed to jointly represent Rojas and Greene (collectively “adult plaintiffs”) as well as the five minors (collectively “minor plaintiffs”) on a contingency fee basis, in [688]*688which Weiss would receive thirty-three and one-third percent of any settlement or other recovery in the litigation, as well as obtain reimbursement for all costs and expenses incurred during the course of his representation. (App. at 1, 4, 7.)

The adult and minor plaintiffs, represented by Weiss, initiated civil proceedings against Alfred and Chuck Kline in the Superior Court on September 7, 1999. As the litigation progressed, Weiss discovered that Alfred possessed few assets and Chuck Kline had been operating at a loss and appeared “on the verge of bankruptcy with little to nothing in the way of unencumbered assets.” (Appellant’s Br. at 2 (citing App. at 10-22.).) Significantly, Chuck Kline’s insurance policy only provided coverage up to $25,000.00, with Alfred lacking any insurance independent of Chuck Kline.

On October 26, 2004, the parties, with the assistance of a mediator, attempted to settle the dispute. At the conclusion of the mediation session, Chuck Kline’s insurer agreed to not only pay the adult and minor plaintiffs the maximum $25,000.00 authorized by Chuck Kline’s policy, but also offered to provide an additional $12,000.00 in monetary compensation. Moreover, Chuck Kline agreed to pay the plaintiffs an additional $19,200.00 in monthly installments over the course of five years, representing a total potential recovery of $56,200.00. After the plaintiffs accepted this offer, the parties memorialized the mediated settlement in a written agreement. (App. at 28-30.) The mediated settlement, however, was silent as to how the settlement proceeds would be apportioned between the two adult and five minor plaintiffs.

Rojas, Greene, and Salomon met with Weiss on November 15, 2004 to discuss how to allocate the recovery among the plaintiffs. At this meeting, the three adults agreed to divide the settlement proceeds based on the amount of each plaintiff’s medical expenses. Under this arrangement, Rojas and Greene would respectively receive $32,466.66 and $16,233.34, while each of the five minors would obtain a $1,500.00 recovery. Moreover, Weiss agreed to not assess costs against the minor plaintiffs’ portion of the settlement, although he would still charge the minors his thirty-three and one third percent contingent fee and deduct fees owed to Dr. James Nelson (hereafter “Dr. Nelson”), their treating physician, for medical expenses.

On December 14, 2004, the adult and minor plaintiffs petitioned the Superior Court to approve, on behalf of the minor plaintiffs, the October [689]*68926, 2004 mediated settlement agreement and the distribution plan, as mandated by the former 15 V.I.C. § 801 et seq, which was in effect at the time the parties agreed to the settlement.3 After the Superior Court expressed concern about the amount of attorney’s fees Weiss charged the minor plaintiffs, Weiss agreed to reduce the minors’ contingency fee to fifteen percent. The Superior Court subsequently appointed a guardian ad litem to represent the minors’ interests, and held a status conference on February 13, 2006. At this status conference, the guardian ad litem informed the Superior Court that the adult plaintiffs were concerned about the $19,200.00 recovery that Chuck Kline had agreed to pay in installments, and the Superior Court indicated to Weiss that it felt the attorney’s fees charged to the adult plaintiffs may also be excessive.

After numerous meetings with the adult plaintiffs, Weiss filed a motion to withdraw as counsel on June 16, 2006 on the basis that the statements by the guardian ad litem and the Superior Court at the February 13, 2006 status conference had led his clients to believe that they were entitled to more money than provided for in the settlement. The Superior Court denied Weiss’s motion in a July 30, 2007 Order, and required Weiss to submit a new distribution plan for the adult and minor plaintiffs. Weiss submitted a revised plan on August 7, 2007, which allocated $3,000.00 to each of the minor plaintiffs instead of the prior $1,500.00, and correspondingly reduced Rojas and Greene’s shares to, respectively, $27,466.66 and $13,733.34.4 However, the revised distribution plan charged each minor $450.00 in attorney’s fees — representing fifteen percent of the total expected recovery — and $500.00 for medical expenses payable to Dr. Nelson.

The Superior Court, in an August 5, 2008 Order, rejected Weiss’s revised plan on the grounds that the requested attorney’s fees and costs were not reasonable for an award of costs to a prevailing party pursuant to 5 V.I.C. § 541 and that his contingent fee was unconscionable. In its August 5, 2008 Order, the Superior Court further adopted its own distribution plan for the settlement proceeds, which reduced Weiss’s total [690]*690attorney’s fees from $19,066.27 to $7,728.49, increased each minor’s share of the settlement proceeds that had already been deposited in the Superior Court’s Registry to $4,424.76, and ordered that Rojas and Greene would each receive $22,123.83 of the already-deposited funds. Moreover, the Superior Court held that, of the installment portion of the settlement that had not yet been deposited into the Superior Court’s Registry, Rojas and Greene would each receive $1,021.00 while each minor plaintiff would receive $204.20. Furthermore, the August 5, 2008 Order seemingly disallowed any payments to Dr. Nelson.

Weiss filed a notice of appeal on August 8, 2008, which this Court docketed as S. Ct. Civ. No. 2008-0071. While Weiss’s appeal was pending in this Court, the Superior Court, noting “that an error occurred in calculating the total funds currently deposited in the Registry of the Court,” (App. at 89), issued an October 22, 2008 Order further reducing Weiss’s attorney’s fees to $6,246.00, reducing each minors’ immediate recovery to $2,150.26, and ordering immediate payments of $10,751.33 to both Rojas and Greene.

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Bluebook (online)
53 V.I. 684, 2010 WL 4962913, 2010 V.I. Supreme LEXIS 31, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rojas-v-twomorrow-ideas-enterprises-inc-virginislands-2010.