Susan E. Loggans & Associates v. Estate of Magid

589 N.E.2d 603, 226 Ill. App. 3d 147, 168 Ill. Dec. 203, 1992 Ill. App. LEXIS 62
CourtAppellate Court of Illinois
DecidedJanuary 17, 1992
Docket1-90-2164
StatusPublished
Cited by12 cases

This text of 589 N.E.2d 603 (Susan E. Loggans & Associates v. Estate of Magid) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Susan E. Loggans & Associates v. Estate of Magid, 589 N.E.2d 603, 226 Ill. App. 3d 147, 168 Ill. Dec. 203, 1992 Ill. App. LEXIS 62 (Ill. Ct. App. 1992).

Opinion

JUSTICE LaPORTA

delivered the opinion of the court:

This dispute involves the division of attorney fees. Susan E. Loggans & Associates was hired by the executor of Marvin Magid’s estate after Magid was killed in a helicopter crash on March 29, 1987. The Loggans firm was hired on a one-third contingency basis to prosecute the estate’s claim for damages arising out of the helicopter crash. The Loggans firm was eventually fired, and Kenneth C. Miller was hired to pursue the suit. The case was settled for $3.9 million, and the trial court approved $1.3 million in attorney fees. The Loggans firm filed a fee petition, seeking a portion of the $1.3 million in addition to the $33,333.33 it had already been paid by the estate for an earlier settlement with one defendant. The trial court denied the petition for additional fees. Loggans appeals.

On appeal we consider: (1) whether the trial court committed reversible error in making numerous evidentiary rulings during the course of the hearing which prejudiced the petitioner by unduly restricting its ability to prove its entitlement to reasonable attorney fees; (2) whether the trial court’s refusal to award the petitioner any fees whatsoever beyond the amount previously earned under its contingency fee contract was an abuse of the trial court’s discretion; and (3) whether this court should reverse or modify the decision in Johns v. Klecan (1990), 198 Ill. App. 3d 1013, 556 N.E.2d 689, to allow for a comparison/apportionment evaluation of the attorney fees portion of the client’s recovery in appropriate circumstances.

Marvin Magid was killed in a helicopter crash in Hawaii on March 29, 1987. The executor of the estate, Jerome Magid, hired Susan E. Loggans & Associates (hereinafter Loggans or the firm) to file a wrongful death suit against the owners of the Hawaii helicopter company and certain other Hawaii companies. The estate and Loggans signed a contract for Loggans to be paid on a contingency fee basis of one-third of any monies recovered.

A 15-count complaint was filed April 2, 1987, against Kona Helicopters Inc., Kona Village F & B Corporation and Bell Helicopters Textron in the circuit court of Cook County. Twelve counts in the complaint were filed on behalf of Magid’s estate and its beneficiaries. Three counts sought loss of services for Lettuce Entertain You Enterprises, Inc., JAO Inc., and Gabe’s Place Inc., corporations for which Magid was a shareholder and performed services.

Defendants removed the case to Federal court based on diversity of citizenship. Defendants then filed a motion to dismiss for lack of personal jurisdiction. Loggans was given leave and filed a 29-count amended complaint in Federal court here. The complaint added two additional defendants, Kona Operating Partnership, d/b/a Kona Village Resort, and Associated Inns & Restaurants Company of America, d/b/a Kona Village Resort. The amended complaint also sought damages for Magid’s wife, Marie, who sustained injuries in the helicopter crash.

The Federal court granted defendant’s motion to dismiss for lack of personal jurisdiction in February of 1988. Six months later, on August 1, 1988, Loggans filed a complaint in the United States District Court in Hawaii. On August 3 Loggans was fired and Kenneth Miller was hired by the executor of the estate and Marie Magid. Loggans remained the attorney for Lettuce Entertain You Enterprises, Inc., JAO Inc., Gabe’s Place and two other passengers in the helicopter. The record is silent as to the status of the litigation on behalf of these remaining plaintiffs.

On December 21, 1989, Miller settled the case for $3.9 million on behalf of estate and $600,000 for Marie Magid. Loggans sought a portion of the one-third share, $1.3 million, that represented fees to the attorney for the estate. The trial court ordered that $650,000 of the $1.3 million be set aside in an interest-bearing account until the fee dispute involving Loggans was resolved.

The trial court conducted a hearing to determine whether Loggans was entitled to fees from the estate beyond the $33,333.33 it had received out of a $100,000 settlement with Bell Helicopters Tex-tron. Two former Loggans associates, Mary Sweeney and Michael Bledsoe, and the firm’s sole owner, Susan E. Loggans, testified about time spent and the work they did on the case.

Bledsoe testified that he worked at Loggans for five months in 1987 and during that time he spent an entire day preparing a draft of the original complaint and spent time preparing a motion to spread Magid’s death of record, a summons of service and an emergency protective order and in reviewing and revising pleadings according to Loggans’ directions.

Sweeney testified that after fees became an issue in the case and under Loggans’ order she prepared a summary of the time spent on the case by all people in the Loggans office. She testified that the time sheet was a thorough and accurate account of the work done on behalf of all plaintiffs, which included the estate and four other plaintiffs. She testified that she personally spent seven hours reviewing the file the day she was assigned the case, June 15, 1987. She testified that she did substantial work on the case over the next few weeks, including preparing an amended complaint and other pleadings, appearing in court, researching issues as to damages and investigating the plane crash.

Loggans testified that she worked with Hawaii officials and aviation officials to get details of the crash investigation and arranged to have Magid’s body returned to Chicago. She testified that she helped prepare the original complaint and protective order and did research on the pleadings to determine whether there was a good-faith basis for filing the lawsuit in Cook County. She testified she made phone calls on the case and periodically made a complete review of the file and prepared a list of things “to do” on the case.

Loggans testified that she had a diary, now unavailable, of hours she worked on the case and had used that diary to add her time to the time log already prepared by Sweeney. She stated that her individual time sheet information was lost when her company computer malfunctioned but that she could determine the hours she worked by “editing” out the time estimates prepared by Sweeney from the time sheet that included Sweeney’s hours and the hours she had prepared and fed into the computer. The trial court refused to permit her during her testimony to do the editing she requested.

After hearing the rest of the testimony, the trial court denied Loggans’ request for additional fees. In an 18-page ruling, the trial court noted that Loggans was unable to produce any time records shortly after being fired when asked to do so by the estate’s new attorney. The court noted that Sweeney constructed a time log which she told the court was a “time estimate” of all the work performed by the firm on the estate’s behalf. The court stated that “the only individual capable of testifying in this court’s opinion as to the actual time spent for the awarding of fees in quantum meruit in response to this petition for fees would be the witness attorney Sweeney.”

“In Loggans[’] petition for fees (Exhibit D) a statement of Loggans time log was filed.

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Bluebook (online)
589 N.E.2d 603, 226 Ill. App. 3d 147, 168 Ill. Dec. 203, 1992 Ill. App. LEXIS 62, Counsel Stack Legal Research, https://law.counselstack.com/opinion/susan-e-loggans-associates-v-estate-of-magid-illappct-1992.