State Farm Mutual Automobile Insurance Company v. Ken Nunn Law Office

977 N.E.2d 971, 2012 Ind. App. LEXIS 537, 2012 WL 5265722
CourtIndiana Court of Appeals
DecidedOctober 25, 2012
Docket49A02-1202-CT-68
StatusPublished
Cited by4 cases

This text of 977 N.E.2d 971 (State Farm Mutual Automobile Insurance Company v. Ken Nunn Law Office) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Farm Mutual Automobile Insurance Company v. Ken Nunn Law Office, 977 N.E.2d 971, 2012 Ind. App. LEXIS 537, 2012 WL 5265722 (Ind. Ct. App. 2012).

Opinion

OPINION

BROWN, Judge.

State Farm Mutual Automobile Insurance Company (“State Farm”) appeals the trial court’s order denying its motion for summary judgment against the Ken Nunn Law Office (“Nunn”). State Farm raises one issue, which we restate as whether the court erred in denying its motion for summary judgment. We reverse and remand.

The relevant facts follow. In May 2009, Kenneth Henderson was a passenger in a vehicle involved in an accident or chain reaction collision involving a vehicle driven by Joshua Beal. 1 Henderson entered into a Fee Agreement with Nunn pursuant to which Nunn would represent Henderson “for any claims [he had] against: The insurance company for the person or persons at fault” in connection with the accident. 2 Appellant’s Appendix at 35.

On May 21, 2009, State Farm, Beal’s insurer, received a letter from Nunn giving State Farm notice of Nunn’s representation of Henderson. State Farm received a *973 settlement demand from Nunn on November 16, 2009.

Nunn initiated a lawsuit on behalf of Henderson against Beal on or about March 2, 2010. Henderson sent a letter to Nunn dated March 22, 2010 stating that he was not satisfied with the way the case had been handled by Nunn and that he no longer needed Nunn’s services.

On April 12, 2010, Nunn filed a “Notice of Lien for Attorney’s Fees” (the “Notice of Lien”) with the court and sent copies to Henderson and State Farm. Id. at 41. The Notice of Lien provided in part:

Comes now [Nunn] and hereby files their claim and lien against [Henderson] in regards to any settlements or judgments rendered in favor of [Henderson]. The claim is as follows:
For legal services rendered to [Henderson] in regards to this lawsuit in the amount to be determined based upon quantum meruit, statutory and case law; and for expenses in the sum of $541.62 advanced on behalf of [Henderson] in regards to his claim and this lawsuit.

Id. at 41-42. State Farm received a copy of the Notice of Lien on April 16, 2010.

On April 19, 2010, upon a motion to withdraw appearance by Nunn, the court entered an order that the appearance of Nunn be withdrawn.

On or about April 27, 2010, State Farm and Henderson reached an agreement in settlement of Henderson’s claim for the amount of $12,146.15. State Farm issued payment to Henderson in the amount of $11,604.53 and issued separate payment to Nunn in the amount of $541.62 for expenses advanced on behalf of Henderson.

On December 28, 2010, Nunn filed a Complaint for Damages against State Farm and Henderson alleging that Henderson failed to compensate Nunn for the legal services it provided and that State Farm and Henderson had a duty and failed to protect the “Quantum Meruit Attorney’s Fee Lien” of Nunn. Id. at 7-8.

On August 16, 2011, State Farm filed a motion for summary judgment arguing that Nunn did not allege any facts which would support a claim in equity or contract against State Farm for liability for attorney fees for services rendered to Henderson. On October 14, 2011, Nunn filed a response to State Farm’s motion arguing that State Farm had notice of Nunn’s attorney fee lien and failed to hon- or the lien, that State Farm had a duty to notify Nunn and the court of its intent to settle Henderson’s claim, that even though a client has a right to discharge an attorney the attorney is entitled to compensation for the attorney’s work as a proportion of the contingency fee or for the reasonable value of services rendered, and that Nunn relied on State Farm’s past practice of voluntarily paying attorney fee liens. On October 31, 2011, State Farm filed a reply arguing that it had no duty to inform Nunn of the settlement of Henderson’s claim because Nunn was no longer Henderson’s attorney of record or representing Henderson’s interests at the time of settlement, that Nunn may not recover against State Farm under a theory of quantum meruit because the theory only permits recovery when some benefit has been incurred by the party against whom recovery is sought, and that Nunn failed to produce any evidence that State Farm was unjustly enriched by the legal services Nunn provided or that State Farm had a regular practice of voluntarily paying attorney fee liens.

In an order dated November 28, 2011, and file-stamped November 30, 2011, the court denied State Farm’s summary judgment motion. On December 26, 2011, Nunn filed a motion for default judgment *974 against Henderson. On December 27, 2011, State Farm requested the trial court to certify the November 28, 2011 order for interlocutory appeal. On January 4, 2010, the court entered an order granting default judgment against Henderson in the amount of $3,818.72 plus costs of $289 and an order certifying the November 28, 2011 order for interlocutory appeal. This court accepted jurisdiction of the interlocutory appeal.

The issue is whether the trial court erred in denying State Farm’s motion for summary judgment against Nunn. Summary judgment is appropriate only where there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Ind. Trial Rule 56(c); Mangold ex rel. Mangold v. Ind. Dep’t of Natural Res., 756 N.E.2d 970, 973 (Ind.2001). All facts and reasonable inferences drawn from those facts are construed in favor of the nonmovant. Man-gold, 756 N.E.2d at 973. Our review of a summary judgment motion is limited to those materials designated to the trial court. Id. We must carefully review a decision on summary judgment to ensure that a party was not improperly denied its day in court. Id. at 974. Any doubt as to the existence of an issue of material fact, or an inference to be drawn from the facts, must be resolved in favor of the nonmov-ing party. Cowe v. Forum Grp., Inc., 575 N.E.2d 630, 633 (Ind.1991).

A party moving for summary judgment bears the initial burden of showing no genuine issue of material fact and the appropriateness of judgment as a matter of law. Monroe Guar. Ins. Co. v. Magwerks Corp., 829 N.E.2d 968, 975 (Ind.2005). If the movant fails to make this prima facie showing, then summary judgment is precluded regardless of whether the non-mov-ant designates facts and evidence in response to the movant’s motion. Id. In reviewing a trial court’s ruling on a motion for summary judgment, we may affirm on any grounds supported by the Indiana Trial Rule 56 materials. Catt v. Bd. of Commr’s of Knox Cnty., 779 N.E.2d 1, 3 (Ind.2002).

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Cite This Page — Counsel Stack

Bluebook (online)
977 N.E.2d 971, 2012 Ind. App. LEXIS 537, 2012 WL 5265722, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-farm-mutual-automobile-insurance-company-v-ken-nunn-law-office-indctapp-2012.