Snyderburn v. Bantock

625 So. 2d 7, 1993 WL 331898
CourtDistrict Court of Appeal of Florida
DecidedSeptember 3, 1993
Docket91-2607
StatusPublished
Cited by3 cases

This text of 625 So. 2d 7 (Snyderburn v. Bantock) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Snyderburn v. Bantock, 625 So. 2d 7, 1993 WL 331898 (Fla. Ct. App. 1993).

Opinion

625 So.2d 7 (1993)

Philip J. SNYDERBURN, As Receiver of Sunland Mortgage Corporation and Philip J. Snyderburn, P.A., Appellants,
v.
Peter BANTOCK, et al., Appellees.

No. 91-2607.

District Court of Appeal of Florida, Fifth District.

September 3, 1993.
Rehearing and Rehearing Denied October 13, 1993.

*8 William M. Rishoi and Philip J. Snyderburn, Snyderburn, Rishoi & Swann, Winter Park, for appellants.

Frank D. Upchurch, Jr., Upchurch, Bailey & Upchurch, P.A., St. Augustine, Michael Kahn, Kahn & Kahn, P.A., Melbourne; C. Thomas Tew, Tew & Garcia-Pedrosa, and Barton S. Sacher, and Nancy J. Van Sant, Hornsby, Sacher, Zelman & Stanton, P.A., Miami, for appellees.

Rehearing and Rehearing En Banc Denied October 13, 1993.

GRIFFIN, Judge.

Philip J. Snyderburn, P.A. and Philip J. Snyderburn ("Snyderburn") appeal an order refusing enforcement of an attorney's charging lien against settlement proceeds held by Hornsby, Sacher, Zelman and Stanton, P.A.[1] and Kahn & Kahn, counsel of record for plaintiffs below. We affirm in part and reverse in part.

This fee dispute arises out of the business activities of Sunland Mortgage Corporation and its president, James B. Mimbs. In early March 1984, Sunland and Mimbs were under investigation by the state comptroller's office for alleged state and federal securities violations. In connection with this investigation, Sunland and Mimbs retained Glenn Padgett and his law firm, Kinsey, Vincent, Pyle, P.A. ("KVP"), to advise and represent them. Padgett and KVP represented both Sunland and Mimbs from March 1984 until at least April 1985.

Philip Snyderburn, a former director of the Florida Division of Securities, was an attorney in private practice in Orlando. Beginning as early as 1982, he had been consulted *9 by Padgett concerning legal matters involving securities law that affected various of Padgett's clients.[2] According to Padgett, he consulted Snyderburn concerning his representation of Sunland on as many as eight occasions between April 1984 and April 1985. Padgett also contended that in certain of these conversations he sought and obtained advice concerning his own personal conduct or that of KVP and he considered that an attorney-client relationship existed between Snyderburn and himself. Snyderburn contends that his conversations with Padgett were, at most, of a general nature. Snyderburn did bill Padgett for "consultation" on at least one occasion in April 1984 and was paid by the firm.

On April 11, 1985, Padgett contacted Snyderburn and asked him to render an opinion concerning the legality of Sunland's activities. Snyderburn consulted Tom Tew, a lawyer in the Miami office of the firm of Finley, Kumble, Wagner, Heine, Underberg, Manley, Myerson & Casey ("Finley, Kumble"), to get legal advice concerning Padgett's request. He was advised to get a specific representation agreement that would allow Snyderburn to disclose his findings to the appropriate authorities. Snyderburn prepared an engagement letter which stated:

We have been retained by the Company as special investigatory counsel to determine the assets, liabilities, expenses and revenues of the company (Sunland) and to determine what action, if any, is to be taken in order to preserve the assets of the Company for the benefit of its creditors. Such action to be taken may involve the notification of certain State and Federal regulatory agencies.

The engagement letter was reviewed by Padgett and Mimbs on behalf of Sunland on April 12, 1985. It was signed by Mimbs on behalf of Sunland.

After Snyderburn reviewed Sunland's books and records, and had discussions with Padgett, Mimbs and another Sunland attorney, Richard Whittington, Snyderburn apparently concluded that Sunland was engaged in an illegal "Ponzi" scheme and had engaged in the fraudulent sale of unregistered certificates of deposits and other securities. This opinion was conveyed to Padgett and Mimbs by a final report on April 14, 1985. Snyderburn claims Padgett asked them whether he should notify his malpractice carrier, but Snyderburn told him he could not advise Padgett because he did not represent him.

The following day, Snyderburn notified the Comptroller's office in writing of his findings and recommended the appointment of a receiver for Sunland's assets. On April 16, 1985, the Comptroller filed an injunctive action against Sunland and Mimbs in Brevard County Circuit Court and sought the appointment of Snyderburn as Sunland's receiver. Snyderburn asserts that, prior to accepting the appointment, he obtained from Mimbs a written waiver, which also advised him that civil and criminal actions could be instituted against him for the sale of the illegal securities. Apparently,[3] the waiver was prepared by Padgett but was executed only by Mimbs. The same day, Snyderburn was appointed Sunland's receiver.

Four months later, in August 1985, Snyderburn obtained the court's permission to file a malpractice action (the "corporate action") as receiver of Sunland against a number of professionals who had previously rendered legal and/or financial advice to Sunland and/or Mimbs, including Padgett and KVP. The order recited that neither Sunland nor Mimbs, nor the related entities, had sufficient funds to prosecute the malpractice action on behalf of the corporation; accordingly, a contingency fee equal to 20% of the sums recovered through trial was authorized to be paid to Snyderburn's firm.

Three months after the corporate action was filed, in November 1985, Padgett's attorneys met with Snyderburn. They advised him that because Snyderburn had previously *10 represented Padgett, he was bound to respect Padgett's attorney-client privilege, and asserted that ethically Snyderburn could not represent Sunland against Padgett. Padgett's attorneys also threatened to file a third party complaint against Snyderburn alleging that any error on Padgett's part was caused by Snyderburn's own failure to provide Padgett, KVP and Sunland with competent legal advice concerning Sunland's compliance with state and federal securities laws. Snyderburn disagreed that he had any conflict of interest and allegedly "showed (Padgett's attorneys) the door." Padgett did not thereafter seek Snyderburn's disqualification or sue him.[4] Instead, over the ensuing ten months, his attorneys filed a series of motions to dismiss Sunland's complaint for failure to state a cause of action. After Padgett obtained dismissal of the third amended complaint, Snyderburn appealed the final order. This court ultimately affirmed the dismissal of the corporate action on June 16, 1987.[5]

During the pendency of Snyderburn's appeal, a number of Sunland's individual investors engaged their own counsel, Michael Kahn ("Kahn") of Kahn and Kahn, P.A. Snyderburn claims he suggested to Kahn that the investors might consider their own action and he recommended Finley, Kumble. On or about March 16, 1987, while the appeal in the corporate action was still pending, Finley, Kumble entered into an agreement with the investors to prosecute a lawsuit on their behalf (the "Bantock litigation") and to receive a 30% contingent fee for prosecution of their claims.[6] As a part of the same fee agreement, Finley, Kumble, in turn, undertook to retain Kahn and Snyderburn. Snyderburn agreed that, in lieu of hourly receivership fees and his contingent fee in the corporate action, he would accept 12% of the Finley, Kumble contingency fee.

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Bluebook (online)
625 So. 2d 7, 1993 WL 331898, Counsel Stack Legal Research, https://law.counselstack.com/opinion/snyderburn-v-bantock-fladistctapp-1993.