Shimrak v. Garcia-Mendoza

912 P.2d 822, 112 Nev. 246
CourtNevada Supreme Court
DecidedMarch 5, 1996
Docket25100, 25101
StatusPublished
Cited by13 cases

This text of 912 P.2d 822 (Shimrak v. Garcia-Mendoza) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shimrak v. Garcia-Mendoza, 912 P.2d 822, 112 Nev. 246 (Neb. 1996).

Opinions

OPINION

By the Court,

Springer, J.;

Two cases have been consolidated for appeal. The first, Case No. 25100, is an appeal from an order dismissing Thomas D. Shimrak’s suit for money due for his services as a private investigator. The issue in this first appeal is whether the notation “Lau-Balance pd off” endorsed on the check issued by the Garcia-Mendoza law firm constitutes an accord and satisfaction as a matter of law. The second case, Case No. 25101, is also an [248]*248appeal from an order dismissing Shimrak’s claim for compensation for services rendered to the Garcia-Mendoza firm. The second case presents a more complicated but still easy-to-decide issue, namely, whether, after professional services have been provided to Garcia-Mendoza by Shimrak, Garcia-Mendoza can defeat Shimrak’s claim for compensation on the ground that Shimrak is not permitted to enforce a fee-splitting contract with Garcia-Mendoza because he is in pari delicto with the Garcia-Mendoza firm.

We reverse the dismissals in both cases and remand to the district court for trial.

CASE NO. 25100

Garcia-Mendoza owed Shimrak $9,056.94 for services rendered in the “Lau” case. Garcia-Mendoza paid $4,000.00 on account and Eva Garcia-Mendoza of that firm told Shimrak that Mr. Lau was interested in paying Shimrak an amount less than the $5,056.94 that was owing to Shimrak. The Garcia-Mendoza firm sent a check to Shimrak for $2,083.00, with the notation on the check, “Lau-Balance pd off.”

Shimrak claims that his understanding of the transaction was that the notation was simply a statement that the Garcia-Mendoza firm would pay no more than the stated $2,083.00 out of its Law Client Trust Account. Shimrak claims to have negotiated the check in the assumption that the law firm would pay him no more money out of the Lau trust account but would itself be responsible for paying the balance due.

“[Accord and satisfaction] can never be implied from language of doubtful meaning. It must clearly appear from the evidence that there was in fact and in reality a meeting of the minds before we will consider an agreement an accord and satisfaction.” DeLee v. Cost Reduction Engineering, 101 Nev. 484, 486, 705 P.2d, 161, 163 (1985). “[The] complaint will not be dismissed for failure to state a claim unless it appears beyond a doubt that the plaintiff could prove no set of facts which, if accepted by the trier of fact, would entitle him [or her] to relief.” Breliant v. Preferred Equities Corp., 109 Nev. 842, 845, 858 P.2d 1258, 1260 (1993) (quoting Edgar v. Wagner, 101 Nev. 226, 228, 699 P.2d 110, 112 (1985)).

Shimrak is entitled to present his version of the transaction to a factfinder; and, certainly, it does not appear beyond a doubt that no set of facts would entitle him to recover the full amount owing to him.

The order of dismissal is reversed, and the matter is remanded to the district court for trial.

[249]*249 CASE NO. 25101

Shimrak handled a number of cases for the Garcia-Mendoza firm and claims that a member of the firm agreed in this case to pay a flat rate of $45.00 to $50.00 per hour, plus ten percent of the attorney’s fees paid to the firm on each case. Shimrak claims that under these contracts he is entitled to a payment of $139,293.19 plus money owing in the future on fees to be paid to the Garcia-Mendoza firm in installments. Garcia-Mendoza’s position is that the contract is void and that Shimrak is not entitled to payment for either his hourly rate or for the ten percent contingency fee.

The Garcia-Mendoza firm claims in its brief that it does not have to pay Shimrak for his services because “the parties stand in pari delicto,” a Latin expression which means “equal in guilt.” The Garcia-Mendoza brief claims that it would offend the firm’s conscience if it were to pay Shimrak the money it promised him.1 The Garcia-Mendoza brief also claims that since the fee-splitting attorney in this case only received a “private reprimand” from the Bar, “no action can be predicated upon such matters.” The Garcia-Mendoza argument seems to be that Garcia-Mendoza does not have to pay Shimrak because “no action may be predicated upon” a private reprimand.2 According to the Garcia-Mendoza brief, Shimrak, by entering into a fee-splitting contract, “violated a rule of court that is the same as law” and such conduct “would constitute a misdemeanor.” Garcia-Mendoza is in pari delicto with Shimrak; but, according to Garcia-Mendoza, SCR 106 prevents Shimrak from suing on the contract.

SCR 106 does not grant immunity to an attorney from criminal [250]*250or civil action related to lawyer disciplinary proceedings. The rule reads, in pertinent part: “A complaint filed in good faith and any investigations, testimony, hearing, or reprimand related to it are absolutely privileged, and no action may be predicated on such matters.” Although the rule could be somewhat more explicit, i. e., by stating exactly to whom the privilege applies, the rule is merely a codification of the long-standing privilege associated with judicial proceedings. “A statement made in a judicial proceeding enjoys an absolute privilege against a defamation action as long as the allegedly defamatory statement is reasonably related to the proceeding in which it appears.” Hecht v. Levin, 613 N.E.2d 585, 587 (Ohio 1993). An absolute privilege is defined as one which “protects the speaker or publisher without reference to his motives or the truth or falsity of the statement.” Black’s Law Dictionary 1077 (5th ed. 1979). SCR 106 states that the complaint, investigations, testimony, hearing and reprimand are all absolutely privileged, but such privilege is predicated on the good faith of the complainant. This dependence on the good motive of the complainant creates something more akin to a conditional privilege, which “will protect the speaker or publisher unless actual malice and knowledge of the falsity of the statement is shown.” Black’s Law Dictionary 1077 (5th ed. 1979).

Regardless of whether the privilege created by SCR 106 is absolute or conditional (a question which is not before us at this time), there are good policy reasons for granting privilege to statements made in relation to bar complaints.

This privilege is necessary to encourage the cooperation of witnesses and is based upon public policy that a witness’ testimony be privileged in order that the witness feel free to perform a public duty with knowledge that he or she will be insulated from harassment and financial burdens resulting from subsequent litigation.

Klapper v. Guria, 582 N.Y.S.2d 892, 896 (N.Y. Sup. Ct. 1992). The Supreme Court of New Jersey has noted that

the strong public policy in favor of maintaining strict adherence to the rules of discipline required the removal of any impediment to the effective functioning of the disciplinary system; allowing complainants to be potentially vulnerable to lawsuits brought by attorneys against whom they complained was deemed to be such an impediment.

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Shimrak v. Garcia-Mendoza
912 P.2d 822 (Nevada Supreme Court, 1996)

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Bluebook (online)
912 P.2d 822, 112 Nev. 246, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shimrak-v-garcia-mendoza-nev-1996.