Todd & Weld, LLP v. Arcidi

17 Mass. L. Rptr. 385
Massachusetts Superior Court·Decided March 19, 2004·No. No. 034219BLS·Published

Opinion

van Gestel, J.

This matter is before the Court on the Plaintiff s Motion for Summary Judgment (Paper #12) and its related Motion to Stay Litigation Pending Arbitration (Paper #14). The facts which follow are undisputed.

BACKGROUND

In December of 2000, the defendant, Alfred L. Arcidi (“Arcidi”), retained the law firm of Todd & Weld, LLP (“Todd & Weld”) to represent himself, Angelo Marotta and Louise Marotta in connection with a lawsuit in the Essex County Superior Court (the “Essex case”) filed against Arcidi and the Marottas on December 13, 2000, by Joseph Caruso, Jr., John Caruso and Frank Caruso, Jr. (collectively, “the Carusos”). The Essex case centered on the purchase and management of Caruso Music, Inc. and Foods, Inc. of Saugus by Arcidi and the Marottas. The suit was for money damages from the defendants, the appointment of a receiver for Foods, Inc. and Caruso Music, Inc., an injunction preventing the defendants from selling or transferring their interests in theses businesses, and a full and complete accounting.

Arcidi signed an engagement letter with Todd & Weld in connection with its representation of him and the Marottas. This engagement letter provided that the charges for legal services were based on hourly rates that Todd & Weld generally billed monthly, and that “bills are due and payable within fifteen (15) days.”

The engagement letter further provided that “(t]he engagement may be terminated by either parly subject to the payment of all final billings ... Withdrawal from this agreement will be effective upon delivery of written notice of withdrawal by either party."

The engagement letter contained a provision calling for arbitration in the event of a disagreement over fees. That provision reads in its entirety:

In the event any disagreement arises between the firm and you as to any amounts owed for legal services performed or expenses incurred by the firm, both you and the firm agree that we will submit any such disputes to the Fee Arbitration Board of the Massachusetts Bar Association for resolution.

As described in greater detail below, Arcidi contends that the engagement letter was rescinded or modified into a contingent fee agreement about a year after it was executed.

From the time of its engagement until February 14, 2003, Todd & Weld provided legal services to Arcidi and the Marottas. Over the course of its representation of Arcidi and the Marottas, Todd & Weld billed for services provided, as well as for expenses incurred.

No written contact, other than the engagement letter, was ever entered into between Todd & Weld and Arcidi or the Marottas regarding this representation.

In his deposition, Arcidi testified that there was a meeting at Todd & Weld sometime in 2001, at which his dissatisfaction with the representation he and the Marottas were receiving and the continued representation by Todd & Weld was under consideration. Arcidi expressed his intention to terminate Todd & Weld because he claimed the firm was not representing them zealously enough. Arcidi claims that Attorney J. Owen Todd asked him to step outside the meeting room and told him: “I know you, relax, you’re on a contingency basis, don’t worry about the dough, and I’m going to get on it.”

In describing the “contingency,” Arcidi also testified in his deposition as follows.

We didn’t define contingency. We didn’t — I know contingency means if you win, you get paid. But, he was keeping — and he was billing me every month, so I made assumptions that I would — once we win, I would just pay him. You know, I was going to sell [the property that was subject to dispute], and give him the dough. That was it.
In other words, he [Mr. Todd] says, don’t pay me, if you don’t win, you don’t pay nothing. If we win, you just pay me the fees that I am billing you. That’s the contingency . . . My definition of contingency is what I just told you. That you get... paid only this, and all they have to do is pay expenses. That’s what a contingency is. Did he send me a letter, no. Did he sign it, no. His word was good enough for me ... The fact that he was billing me meant just this, when we win he gets his pay. If we don’t win, I’ll take care of his expenses ... When I say that I sent him $100,000, and it wasn’t for the outstanding bill, they sent it to him for expenses and to keep him quiet and keep going. If you notice, when did I send him the $100,000? I mean, let’s put things in the right order. Why did I — did I respond, yea, here’s 100 grand. But I still thought I was in a contingency. And I thought he had this list of expenses and costs.

[386]*386There was no discussion about reducing such an arrangement to writing, and the agreement was not reduced to writing.

Todd & Weld, because it disagrees that there was ever a modification to a contingent fee agreement, continued to send Arcidi bills.

On May 3, 2002, Mr. Todd wrote to Arcidi, informing him that the balance for “Caruso related matters” was $165,521.50 and that Todd & Weld would be forced to withdraw from representing Arcidi unless he immediately was paid $50,000 towards the outstanding bill.

On May 17, 2002, Mr. Todd again wrote Arcidi, asking Arcidi to follow through on a promise that he and Angie Marotta would both pay $50,000 towards the outstanding bill.

On or about May 28, 2002, Arcidi made payment to Todd & Weld in the amount of $100,000. Arcidi now claims that “this payment was for costs and expenses within the context of the contingent fee arrangement.”

On September 9, 2002, Attorney Howard M. Cooper of Todd & Weld wrote to Arcidi, informing him that Todd & Weld would withdraw as counsel if his account was not paid by the end of that week. Mr. Cooper pointed out that the balance had grown to $233,499. The payments were not made and are outstanding today.

The parties remain in disagreement as to whether there ever was a contingent fee agreement, or even an agreement to enter into such an agreement. There is, however, no disagreement that the engagement letter was the original agreement between Todd & Weld and Arcidi.

On March 6, 2003, Todd & Weld made an arbitration demand with the Fee Arbitration Board of the Massachusetts Bar Association. Through counsel, Arcidi has refused to participate in arbitration.

DISCUSSION

Summaiy judgment is granted where there are no issues of genuine material fact, and the moving party is entitled to judgment as a matter of law. Lindsay v. Romano, 427 Mass. 771, 773 (1998); Hakim v. Massachusetts Insurers’ Insolvency Fund, 424 Mass. 275, 281 (1997); Kourouvacilis v. General Motors Corp., 410 Mass. 706, 716 (1991); Cassesso v. Commissioner of Correction, 390 Mass. 419, 422 (1983); Mass.R.Civ.P. 56(c). The moving party bears the burden of affirmatively demonstrating that there is no triable issue of fact. Pederson v. Time, Inc., 404 Mass. 14, 17 (1989).

In assessing the motion before it, the Court first reflects upon the stated purpose of the Massachusetts Rules of Civil Procedure. The Rules are to “be construed to secure the just, speedy, and inexpensive determination of every action.” Rule 1. When applying the Rules, judges must exercise their powers to make them “instruments for the promotion of justice ... not the exaltation of mere technicalities.” Beaupre v.

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Todd & Weld, LLP v. Arcidi, 17 Mass. L. Rptr. 385 (Mass. Ct. App. 2004).

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