Tschirn v. Secor Bank

691 So. 2d 1290, 96 La.App. 4 Cir. 1992, 1997 La. App. LEXIS 573, 1997 WL 126535
CourtLouisiana Court of Appeal
DecidedMarch 19, 1997
DocketNo. 96-CA-1992
StatusPublished
Cited by2 cases

This text of 691 So. 2d 1290 (Tschirn v. Secor Bank) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tschirn v. Secor Bank, 691 So. 2d 1290, 96 La.App. 4 Cir. 1992, 1997 La. App. LEXIS 573, 1997 WL 126535 (La. Ct. App. 1997).

Opinion

JiCIACCIO, Judge.

This case involves a fee dispute between Darryl Tschirn and the law firm of Lemle & Kelleher (hereinafter “Lemle”). Following a hearing, the trial court determined that Tsehim owed additional fees to Lemle. By judgment dated June 5, 1996 the trial court ordered the amount of $10,628.07 to be paid to Lemle, which was an amount being held in escrow pending resolution of the dispute. It is from this judgment that Tsehim now appeals. For reasons stated herein, we reverse this judgment of the trial court.

In 1991, Darryl Tschirn, an attorney, approached Edward “Ned” Kohnke, a partner with the Lemle law firm, seeking assistance with the litigation of a lawsuit Tschirn had brought against Secor Bank and others. Kohnke agreed to assist Tsehim with the litigation, although no legal fee for Kohnke’s representation was set at this time.

In December of 1994, Ned Kohnke and other members of the Lemle firm left Lemle to form a new law firm, Frilot, Patridge, Kohnke & Clements (hereinafter “Frilot”). Tschirn elected to continue his representation with Kohnke of the Frilot firm rather than remain with the Lemle firm.

On December 17,1994, the partners of the Lemle firm and the departing partners who formed the Frilot firm entered into a Separation Agreement wherein the parties set forth the terms of the withdrawal from the Lemle partnership. Appended to this agreement as Exhibit 5, there was a notation that RNed Kohnke had agreed to an oral contingency fee contract with Tschirn of one-third of recovery plus reimbursement of costs in the case against Secor Bank.

In May of 1995, Tom Benjamin of the Lemle firm forwarded a proposed Fee Sharing Agreement to Ned Kohnke at the Frilot firm in which it was proposed to split evenly between the two firms any fee obtained from the litigation of the Tschirn versus Secor matter. This agreement included a paragraph which stated that the contingency fee agreement with Tschirn in this matter was one-third of any recovery plus reimbursement of costs. By letter dated May 22,1995, Kohnke informed Benjamin that there was no contingency fee agreement between Tschirn and Kohnke at that time. The letter stated that although a one-third contingency fee agreement had been discussed, no formal agreement had been reached. Thus, Kohnke refused to endorse the Fee Sharing Agreement proposed by the Lemle firm.

The case of Tschirn v. Secor Bank, et al proceeded to a jury trial in September of 1995, and lasted for approximately two weeks. Prior to the closing arguments in the case, Tom Benjamin of the Lemle firm approached Kohnke and Tschirn with a Fee Sharing Agreement which indicated that the fee obtained as a result of any recovery obtained was to be split evenly between the two firms. This document was signed on September 29, 1995 by both Kohnke on behalf of the Frilot firm and by Tschirn acknowledging the terms of the agreement. Following the conclusion of trial, the jury [1292]*1292returned with a verdict of $1.2 million in favor of the plaintiff, Darryl Tsehim.

Subsequently, Darryl Tschirn negotiated a settlement with Secor Bank in which he waived pre-judgment interest and agreed to accept the sum of $1.2 million in fulfillment of the jury verdict. Shortly after this settlement | {¡agreement was reached, the Lemle firm filed into the trial court proceedings a Motion to Intervene, asserting that based on the terms of the Fee Sharing Agreement executed on September 29,1995, the name of the Lemle firm must be included on any settlement draft issued by defendants.

In early February, 1996, pursuant to the settlement agreement, defendants issued a draft in the amount of $1.2 million payable to Darryl Tschirn and to the members of the Frilot firm and the Lemle firm. Kohnke of the Frilot firm received the draft on February 2, and requested that Lemle endorse the draft for deposit into the Frilot Trust Account. Lemle refused to endorse the draft as they disputed the calculation of the contingency fee proposed. Tschirn, Kohnke and the Frilot firm contended that the contingency fee was to be calculated on the amount of the net recovery after deduction of expenses which had been paid by Tschirn during the proceedings. The Lemle firm contended that the fee was to be calculated on the gross recovery plus reimbursement of expenses incurred by the Lemle firm. The difference between the two calculations was $10,628.07.

Based on this dispute, the parties scheduled an immediate hearing before the trial court which was held on February 8, 1996. Tschirn, a California resident, traveled to New Orleans and attended this hearing. On the morning of the hearing, the Lemle firm agreed to endorse the settlement draft. By Consent Order executed on this date, the parties agreed to an immediate disbursement of all settlement funds, except that the disputed amount of $10,628.07 was placed in the Frilot Trust Account pending resolution of the dispute.

A hearing was then set for the resolution of the dispute regarding the calculation of the attorney’s fees. At this hearing, Tschirn and Kohnke both testified that there existed no written contingency fee agreement for Kohnke’s | ¿representation in the Secor Bank litigation. Both Tschirn and Kohnke testified that there was an oral contingency fee agreement and that Tsehim and Kohnke were the only two individuals who had been parties to this agreement. According to the testimony of both Tsehim and Kohnke, the oral agreement provided that Darryl Tschirn would be required to pay all costs and expenses incurred in the litigation, and that the contingency fee would be calculated as one-third of the net recovery after the costs advanced by Tschirn was deducted from the gross amount. Tsehim testified that he had paid costs during the proceedings of approximately $60,000.00, and introduced statements to support this amount.

In response to this testimony, the Lemle firm offered into evidence the December, 1994 Separation Agreement executed between the partners of the Lemle firm and the Frilot firm which contained the notation regarding the oral contingency fee agreement in this case. Lemle also offered into evidence the Fee Sharing Agreement which was signed by Benjamin, Kohnke and Tschirn on September 29, 1995. The Lemle firm contended that these documents proved that the contingency fee agreement entered into by Tsehim and Kohnke provided for a fee of one-third of gross recovery plus reimbursement of costs.

Following this hearing, the trial court rendered judgment in favor of the Lemle firm and against Tsehim, ordering that Lemle was entitled to the full amount of the disputed funds which were held in escrow. The trial court stated in oral reasons for judgment that the testimony of Tsehim and Kohnke regarding the existence of a contingency fee contract was inconsistent with evidence introduced at the hearing. The trial court was apparently referring to the 1994 Separation Agreement in which Kohnke admitted to having an agreement with Tsehim and the correspondence between Benjamin and Kohnke | sin May of 1995 in which Kohnke stated that there was no formal contingency fee agreement between himself and Tsehim.

[1293]*1293We have carefully reviewed the record in this case and fail to find the testimony of Tschim and Kohnke to be inconsistent with the evidence introduced at the hearing. Both Tschim and Kohnke testified that there were numerous conversations and meetings between them concerning the terms of the contingency fee agreement.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Culpepper & Carroll, PLLC v. Cole
896 So. 2d 341 (Louisiana Court of Appeal, 2005)
Classic Imports, Inc. v. Singleton
765 So. 2d 455 (Louisiana Court of Appeal, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
691 So. 2d 1290, 96 La.App. 4 Cir. 1992, 1997 La. App. LEXIS 573, 1997 WL 126535, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tschirn-v-secor-bank-lactapp-1997.