Sourignavong v. Methodist Healthcare System of San Antonio, Ltd.

977 S.W.2d 382, 1998 WL 159927
CourtCourt of Appeals of Texas
DecidedMay 19, 1998
Docket07-97-0270-CV
StatusPublished
Cited by13 cases

This text of 977 S.W.2d 382 (Sourignavong v. Methodist Healthcare System of San Antonio, Ltd.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sourignavong v. Methodist Healthcare System of San Antonio, Ltd., 977 S.W.2d 382, 1998 WL 159927 (Tex. Ct. App. 1998).

Opinion

*384 BOYD, Chief Justice.

This appeal grows out of a dispute between two attorneys about a division of attorney fees. The attorney fees stem from a personal injury claim Monica and John Sourigna-vong, individually and as next friends of Angelica Sourignavong (the Sourignavongs), made against the Methodist Healthcare System of San Antonio, Ltd., d/b/a Women’s and Children’s Hospital. From a judgment in favor of George J. Hanko (Hanko), Michael A. Wash (Wash) presents two issues which, he claims, demonstrate the trial court erred in its judgment. In presenting his issues, Wash asserts the trial court erred by denying him his assigned fee interest in the personal injury claim because 1) the evidence established his right to recover as a matter of law, and 2) the trial court findings supporting its decision are against the great weight and preponderance of the evidence. Disagreeing that the trial court erred, we affirm its judgment.

On March 22, 1996, the Sourignavongs signed a written contract employing “[t]he Law Office of George J. Hanko, III” and the “[L]aw Offices of Michael A. Wash,” collectively referred to in the contract as “Attorney” to pursue their personal injury claim. In the agreement, the attorneys were assigned a 45 percent interest in any recovery after suit was filed plus any expenses incurred in the representation. 1

It is undisputed that Wash provided office space and supplies for Hanko and advanced $3,271.64 in expenses. It is also undisputed that Wash never met with the Sourigna-vongs, never participated in discovery, never prepared or filed any documents in the cases, and never participated in any settlement negotiations. Wash did discuss the case with Hanko for approximately 30 minutes. Wash terminated his connection with Hanko in late October 1995. As a result of mediation, the Sourignavongs, Hanko and Methodist Hospital reached an agreement settling the Sourignavongs’s claims for $27,-000. The agreement also provided for a reduction in attorney fees to one-third of the settlement amount.

Hanko filed a motion 2 in the suit reciting the above facts and showing that a referral fee of $3,000 had been paid to Spinks, the attorney who referred the case to Hanko. In the motion, Hanko asked the court to divide the remaining $6,000 in attorney fees between Hanko and Wash “in proportion to the amount of time each of them spent working on the case.” On March 12, 1996, subsequent to the filing of Hanko’s motion, Wash filed a plea in intervention in which he asserted his contractual right to reimbursement for expenses and the 45 percent contingent fee on “any recovery [pjlaintiffs may make by settlement or judgment.”

The underlying suit was heard on March 13, 1996. Hanko sought approval of the settlement agreement, including a reduction in attorney fees from 45 percent to one-third and division of the fees as requested in his motion. In his intervention, Wash sought an award of one-half of the 45 percent fee provided for in the contract. Each attorney testified in support of his position. Relevant portions of the testimony will be referred to as may be necessary to a proper discussion of the issues before us.

On March 21, 1997, the trial court rendered its judgment approving the settlement agreement. In the judgment, the court found that after funding an annuity for Angela Sourignavong, there remained $13,429.15. Of that amount, it directed Wash would be reimbursed $3,271.64 for expenses advanced. The remaining $10,157.51 was to be paid to Hanko, $9,000 of which was for attorney fees. The order does not recite the reason why the additional $1,157.51 was awarded. The order further directed that the entire $13,157.51 be deposited into the registry of the court pending its further order.

In response to Wash’s request, the trial court entered findings of fact and conclusions of law. In its findings of fact, the trial court found Wash had agreed to a reduction in attorney fees to the one-third figure, that *385 Hanko did all the legal work on the case and expended over 60 hours of time in doing so, and that Wash did no legal work on the case nor did he ever meet with, or talk to, the Sourignavongs. It also found that there was no agreement between Hanko and Wash regarding a division of the attorney fees. As a conclusion of law, the court determined that because there was no valid agreement between the attorneys regarding a division of the fees, they “should be awarded on a quantum meruit basis and in proportion to the time and effort each [attorney] spent working on this case.” On that basis, the court awarded all the attorney fees to Hanko.

In support of his challenge, Wash initially argues that there was an express agreement between himself and Hanko “that the attorneys’ fees in the case would be divided between the two firms.” However, at the March 13 hearing there was a conflict between Wash’s testimony and that of Hanko concerning how the fees should be divided.

It is a fundamental tenet of contract law that creation of a valid contract requires a meeting of the minds between the parties to the contract. Williford Energy Co. v. Submergible Cable Services, Inc., 895 S.W.2d 379, 384 (Tex.App.—Amarillo 1994, no writ). In the instant proceeding, the trial court was the finder of fact and its determinations with regard to the credibility of the witnesses are entitled to the same deference given jury verdicts. Medlin v. Medlin, 830 S.W.2d 353, 354-55 (Tex.App.—Amarillo 1992, writ denied). Because of the conflicting testimony about the division of the fees, the trial court’s conclusion that there was no meeting of the minds between the two as to a discussion of the fees and, therefore no valid division agreement, is binding upon us.

Wash advances two arguments in support of his contention that the trial court erred in applying the doctrine of quantum meruit in dividing the amount in controversy. He first cites cases applying the rule that a transfer of property to more than one grantee without stating their respective interests creates a presumption that each has an equal undivided interest in the property. He also asserts that the quantum meruit doctrine does not apply in instances where the parties have an express contract. Wash then reasons that there was an express contract between himself, the Sourignavongs, and Hanko which prevented the application of the quantum meruit doctrine.

Wash correctly observes that quantum meruit is an equitable remedy which is independent of, and does not arise from, a contract. Vortt Exploration Co., Inc. v. Chevron U.S.A., Inc., 787 S.W.2d 942, 944 (Tex.1990). Classically, quantum meruit is a remedy based upon an implied promise to pay for beneficial services rendered and knowingly accepted. Campbell v. Northwestern National Life Insurance Co., 573 S.W.2d 496, 498 (Tex.1978).

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977 S.W.2d 382, 1998 WL 159927, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sourignavong-v-methodist-healthcare-system-of-san-antonio-ltd-texapp-1998.