Updike, Kelly & Spellacy, P.C. v. Beckett

850 A.2d 145, 269 Conn. 613, 2004 Conn. LEXIS 232
CourtSupreme Court of Connecticut
DecidedJune 15, 2004
DocketSC 16947; SC 16948; SC 16949
StatusPublished
Cited by60 cases

This text of 850 A.2d 145 (Updike, Kelly & Spellacy, P.C. v. Beckett) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Updike, Kelly & Spellacy, P.C. v. Beckett, 850 A.2d 145, 269 Conn. 613, 2004 Conn. LEXIS 232 (Colo. 2004).

Opinion

Opinion

SULLIVAN, C. J.

These appeals arise from an action filed by the plaintiff, Updike, Kelly & Spellacy, P.C., a law firm, against the defendants,1 former airline pilots, seeking to recover legal fees incurred in representing the defendants in three cases. The plaintiffs third amended revised complaint alleged breach of contract (count one) and sought damages in quantum meruit (count two). The defendants filed a five count counterclaim seeking disgorgement of excessive legal fees (count one) and alleging legal malpractice (count two), intentional misrepresentation (count three), violations of the Connecticut Unfair Trade Practices Act (CUTPA), General Statutes § 42-110a et seq. (count four), and negligent misrepresentation (count five).2 The trial [617]*617court directed a verdict against the defendants on counts one, two, three and five of their counterclaim. The parties agreed that the fourth count of the counterclaim alleging CUTPA violations would be decided by the court. The court also directed a partial judgment for the plaintiff on count one of its third amended revised complaint alleging breach of contract. The court instructed the jury that the only issues that it was required to determine were (1) whether the plaintiff was entitled to certain fees for nonattomey time and disbursements pursuant to the contract or under a theory of quantum meruit and (2) whether the defendants owed the damages jointly and severally or severally only. The jury determined that the plaintiff was not entitled to charge fees for nonattomeys but that it was entitled to recover for disbursements. It found damages in the amount of $596,324.28. The jury also found that the damages were not owed jointly and severally, but severally only.

After granting the plaintiffs motion for award of interest in the amount of $267,447.92, the trial court rendered judgment for the plaintiff in the amount of $863,772.12. Thereafter, the court clarified that judgment had [618]*618entered against each defendant separately in the amount of $13,087.46 and rendered judgment for the plaintiff on the defendants’ CUTPA claim. The defendants then filed these appeals,3 raising numerous challenges to the trial court’s rulings. The plaintiff cross appealed claiming that the trial court improperly had: (1) submitted the issue of several liability to the jury; and (2) allowed the defendants’ expert witness to instruct the jury on the nature of fiduciary duty. We conclude that the trial court improperly directed a partial verdict for the plaintiff on the plaintiffs breach of contract claim. We also conclude that the trial court improperly directed a verdict for the plaintiff on the defendants’ claims of negligent and intentional misrepresentation and breach of fiduciary duty. Finally, we conclude that the trial court improperly rendered judgment for the plaintiff on the defendants’ counterclaim alleging a violation of CUTPA. Accordingly, we reverse the judgment.

Evidence of the following relevant facts was presented at trial. The defendants are airline pilots who formerly were employed by Pan American World Airways, Inc. (Pan Am). In 1991, Pan Am filed a bankruptcy plan under which Delta Air Lines, Inc. (Delta), was to purchase many of its assets and fund a successor entity, Pan Am II. The plan also provided that some Pan Am pilots would transfer to Delta and others would work for Pan Am II. Several pilots became concerned that their union representatives in the Air Line Pilots Association (union) were not adequately protecting their rights in the transfer process. A group of the pilots, including the defendants Stewart W. Beckett, Jr., and [619]*619Edward Spellacy, formed a Concerned Pilots Committee (committee) and authorized Beckett to retain counsel to protect their interests.

Stewart Beckett first discussed the pilots’4 concerns with his daughter, Suzann Beckett, an attorney with the law firm of Eisenberg, Anderson, Michalik and Lynch. Suzann Beckett’s firm, could not handle the case, so she referred the matter to Scott Karsten, an attorney with the law firm of Sack, Spector and Barrett. On August 29, 1991, Stewart Beckett sent a memo to the pilots stating that the committee anticipated taking legal action against the union and Pan Am and that Karsten had been retained to represent the committee in those matters. The memo also invited the pilots to join in the actions and to contribute to a legal expense fund.

On November 26, 1991, Karsten wrote to Stewart Beckett to memorialize the fee arrangements for the anticipated litigation. He informed Beckett that he anticipated bringing two actions, one against the union and one against Pan Am or Delta, or both. The letter indicated that Karsten’s firm intended “to conduct these proceedings from initiation through trial, if necessary, on behalf of all persons in your group who indicate by countersigning this letter their desire to participate.” It also stated that, “[i]n view of the uncertainties of recovery in this type of litigation, the need to devote substantial resources to its proper prosecution and the likely duration and complexity of the proceedings,” the firm would neither charge its full hourly rate nor expect a contingency fee of one third of the ultimate recovery. Instead, the firm would “reduce [Karsten’s] 1991 usual hourly rate of $175 to $100 per hour, with annual increases ... in the amount of $10 per hour.” In addi[620]*620tion, the firm would receive 20 percent of any gross recovery as a contingency fee. The letter also stated that “[i]n the event of affiliation with other counsel, as in connection with the age discrimination claim, these fee arrangements will be the objective . . . .”5 The following language appeared at the bottom of the last page of the letter: “I agree to participate in litigation against [the union], Delta Airlines and Pan American World Airways, under the terms and conditions set forth in this letter.” The language was followed by date and signature lines. Stewart Beckett testified at trial that he forwarded copies of the retainer letter to the other pilots. Karsten testified that every defendant in the present case signed a copy of the letter. Several pilots who signed copies of the letter indicated on the copies that their involvement in the litigation would be limited to a specific dollar amount.6

During late 1991, Karsten had discussions with a number of law firms about the possibility of working with him on the pilot litigation. In December, 1991, Karsten and Suzann Beckett met with Thomas Shortell, the head of the plaintiffs litigation department, to discuss the plaintiffs potential involvement in the case. Suzann Beckett testified that Shortell assured her that he and one of his partners, Debra Neubert, would be primarily responsible for handling the case and “there would not [621]*621be heavy use or really any use of associates.” She also testified that Shortell had “specifically agreed that paralegals would not be charged.”7 Karsten testified, however, that he chose the plaintiff to work on the case because the firm had a large staff of associate attorneys to handle the work. He also testified that he had informed Stewart Beckett that paralegals would be charged at a lower hourly rate than associates.

There was another meeting at the plaintiffs offices later in December, 1991. Karsten, Stewart Beckett, Spel-lacy, Shortell, Neubert and Suzann Beckett attended.

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Cite This Page — Counsel Stack

Bluebook (online)
850 A.2d 145, 269 Conn. 613, 2004 Conn. LEXIS 232, Counsel Stack Legal Research, https://law.counselstack.com/opinion/updike-kelly-spellacy-pc-v-beckett-conn-2004.