Thompson v. Hiter

826 N.E.2d 503, 356 Ill. App. 3d 574, 292 Ill. Dec. 362, 2005 Ill. App. LEXIS 228
CourtAppellate Court of Illinois
DecidedMarch 14, 2005
Docket1-03-2918
StatusPublished
Cited by27 cases

This text of 826 N.E.2d 503 (Thompson v. Hiter) 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
Thompson v. Hiter, 826 N.E.2d 503, 356 Ill. App. 3d 574, 292 Ill. Dec. 362, 2005 Ill. App. LEXIS 228 (Ill. Ct. App. 2005).

Opinion

JUSTICE GORDON

delivered the opinion of the court:

This matter arises out of a claim for attorney fees resulting from the settlement of a wrongful death case. On June 9, 2003, Robert E Reske filed a verified petition to adjudicate an attorney lien claimed by respondent, Ambrose & Cushing, EC. (the Firm). Reske claimed the Firm was entitled only to quantum meruit fees for the work Reske performed on the case while an employee of the Firm. The Firm claimed it was entitled to two-thirds of the entire attorney fee based on an oral joint venture agreement between the Firm and Reske. After an evidentiary hearing, the trial court found that the evidence was insufficient to support the Firm’s contention that a joint venture existed between the Firm and Reske and awarded the Firm quantum meruit fees in the amount of $6,990. The Firm now appeals. The issue before the court on appeal is whether the trial court was correct in holding that the discharge of the Firm prior to settlement relieved Reske of his fee-sharing obligation under his agreement with the Firm. For the reasons that follow, we affirm.

STATEMENT OF FACTS

In a verified petition filed on June 9, 2003, Reske alleged the following. From September 1997 until December 2001, Reske was employed by the Firm under an oral employment contract. For all new business Reske brought to the Firm, Reske received one-third of the attorney fees generated on those files and the Firm received two-thirds. The Firm provided Reske with malpractice insurance, secretarial and clerking services, and covered Reske’s files if needed. In 2001, Reske was paid a base salary of $66,000 to work on the Firm’s cases.

Reske further alleged that, on June 26, 2001, Christine Thompson, as administrator of the estate of Sean Thompson (plaintiff), entered into a contingent fee contract with the Firm and Reske to represent her in her claim against Richard Hiter for the wrongful death and survival action of her minor son, Sean Thompson (the Thompson wrongful death case). Reske was the only attorney who did any work on the Thompson wrongful death case from June 26, 2001, through December 6, 2001, and Reske made all legal decisions regarding the handling of the case. By letter dated January 13, 2002, plaintiff discharged the Firm. Reske continued his representation of plaintiff. By letter dated January 22, 2002, the Firm demanded payment from Reske of $4,204.50 for its costs before turning over plaintiffs file. On January 22, 2002, Reske paid the Firm $4,204.50 for the release of plaintiffs file. On February 6, 2002, the trial court entered an order granting the Firm leave to withdraw its appearance and granting Reske leave to substitute as counsel.

Reske further alleged that, by letter dated May 30, 2003, he asked the Firm to produce the costs paid on the Thompson file and to calculate the hours spent on the file which would entitle the Firm to compensation on a quantum meruit basis. By letter dated June 2, 2003, the Firm demanded $155,556 in fees, which represents two-thirds of the entire fee earned on the Thompson wrongful death case.

On June 27, 2003, after filing his verified petition, Reske submitted a distribution and settlement order for the Thompson wrongful death case to the trial court. The trial court approved the settlement in the amount of $700,000 and found that Reske was entitled to $233,333.33 in fees. Nevertheless, the trial court ordered that those fees be held in trust by Reske pending the trial court’s resolution of Reske’s petition to adjudicate the Firm’s attorney hen.

On July 7, 2003, the Firm filed a response to Reske’s petition. The Firm requested that the trial court deny Reske’s request that the Firm receive only a quantum meruit award and asserted that the trial court should instead determine that a joint venture existed between Reske and the Firm.

In August 2003, the trial court held evidentiary hearings on Reske’s petition and the following relevant testimony was presented. Laura Kohniak, formerly a legal secretary with the Firm, testified that while at the Firm she was assigned by John Cushing to work on the Thompson wrongful death case. Kohniak stated that there were two Thompson files: one file related to a bicycle accident that Sean Thompson had in May 2001 (the Thompson bicycle case) and the other file related to Sean’s electrocution and death (the Thompson wrongful death case). Kohniak stated that she was the only secretary who worked on the Thompson files and Reske was the only attorney who worked on the Thompson files. Kohniak’s workstation was located directly outside of Reske’s office.

The Thompson bicycle case was settled by Reske in November 2001. According to Kohniak, when Christine Thompson arrived at the Firm to pick up the settlement check, she went into Reske’s office. Less than a minute later, Cushing interrupted Thompson and Reske and escorted Thompson to his office for a meeting, excluding Reske. When the meeting ended, Thompson, who appeared to be upset, walked back into Reske’s office and told him the content of her conversation with Cushing. Kohniak heard Thompson tell Reske that Cushing told her he had taken over the wrongful death case and that Reske would no longer be working on the case. Kohniak also heard Thompson tell Reske that she informed Cushing that if Reske was not going to be doing the work on the wrongful death case, she was going to fire the Firm and hire a different firm to represent her.

Kohniak was later told by Cushing that he was now handling the Thompson wrongful death, that Reske was not to do any further work on the file, and that all phone calls regarding the case were to be forwarded to Cushing. Cushing also told Kohniak that Reske was not to receive fees on either Thompson case. Reske was subsequently fired. Kohniak was instructed that in the event anyone phoned regarding the Thompson cases, or any of the cases Reske handled, she was to tell them that Reske left the firm and that they should talk to Cushing.

Kohniak also testified that Reske told her about his agreement with the Firm. Specifically, Reske told her that the Firm provided him with secretarial services and that he agreed to split the fees on cases involving his clients. She was also told by Reske that in the event he left the Firm, he was entitled to take his cases with him and had to pay the Firm only the court fees owed.

Christine Thompson testified that she was referred to Reske when her son Sean had a bicycle accident in May 2001. Thompson signed a contract which provided, in pertinent part: “I hereby retain and employ AMBROSE & CUSHING, EC., and Robert E Reske, attorneys with offices at 221 North LaSalle Street, Suite 1748, Chicago, Illinois 60601 to represent me ***.” Prior to signing the contract, Thompson asked Reske whether she would have to pay the attorney fee twice because Ambrose & Cushing was included on the form. Reske explained to her that the Firm was included on the contract because he was the Firm’s employee. Thompson told Reske that she wanted him to handle the case. Thompson was agreeable, however, to an attorney from the Firm stepping in if needed. Thompson believed that if Reske left the Firm, he could take the case with him and he would still be her attorney.

Thompson further testified that after Sean had his electrocution accident, she hired Reske to handle the wrongful death case.

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Cite This Page — Counsel Stack

Bluebook (online)
826 N.E.2d 503, 356 Ill. App. 3d 574, 292 Ill. Dec. 362, 2005 Ill. App. LEXIS 228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thompson-v-hiter-illappct-2005.