Vaccaro v. Estate of Gorovoy

696 A.2d 724, 303 N.J. Super. 201, 1997 N.J. Super. LEXIS 309
New Jersey Superior Court Appellate Division·Decided July 2, 1997·Published·Cited by 4 cases

Opinion

STERN, J.A.D.

This is an appeal from the grant of summary judgment dismissing plaintiffs’ complaint seeking the recovery of attorney’s fees. Because defendants’ cross motion for summary judgment was granted, we must accept plaintiffs’ contentions that they were retained by defendants to file a zoning application designed to obtain approval for higher density residential construction on Quad Associates’ sixty-two acre property and that the parties orally agreed that a contingency fee would be paid in the amount of “five percent of any increase in the value of the land that would result from a change in the zoning designation.”1

It is undisputed that after plaintiffs worked on the project for about six years, they were advised by defendant Solomon Turetsky (who assumed the management of Quad following the death of his partner Charles Gorovoy) to discontinue their efforts on Quad’s behalf. Plaintiffs thereafter submitted a bill for 265 hours [203] of work at $225 an hour,for a total of $59,625, which defendants declined to pay because Turetsky was “in a state of shock by the amount.” Plaintiffs claim that defendants thereafter retained another attorney and that the rezoning application was ultimately granted.

In their complaint, plaintiffs sought recovery for breach of an oral contract, quantum meruit, and unjust enrichment. In their affirmative defenses, defendants asserted that the “contingencies never occurred” and that any increased value of the property was not attributable to plaintiffs.

The trial judge granted defendants’ motion for summary judgment and dismissed the complaint because he felt bound by our opinion in Estate of Pinter v. McGee, 293 N.J.Super. 119, 679 A.2d 728 (App.Div.1996). Plaintiffs contend, however, that they are entitled to quantum meruit recovery and that Pinter does not preclude recovery in this case because “Pinter does not overrule the years of precedent that allow an attorney the right to recover the reasonable value of services under a quantum meruit theory, when that attorney has been discharged in the midst of performing services pursuant to a contingency fee agreement.” We agree and reverse the grant of summary judgment for defendants.

The plaintiffs properly read Pinter narrowly. It involved a dispute regarding whether any fee was to be paid for representation of the estate of the mother of an associate’s fiancee. The trial judge found as a matter of fact that the dispute was in good faith; the plaintiffs’ managing partner had testified that his expectation of a fee was limited to a percentage of the recovery to be determined at the time of disposition; the associate left plaintiff firm; its representation was not terminated to avoid payment of the contingent fee; and there was no compliance with the requirements of either R. 1:21-7 or RPC 1.5(c).

Recently, in Glick v. Barclays De Zoete Wedd, Inc., 300 N.J.Super. 299, 307, 692 A.2d 1004 (App.Div.1997), another panel of this court disagreed with Pinter and held that “quantum meruit recovery is available in a situation [there involving an employment [204] discrimination case] ... which does not involve fraud or other wrongdoing on the attorney’s part,” even though the attorney failed to comply with the requirements of R. 1:21-7 and RPC 1.5(c). In Glick, there was a writing evidencing the contingency fee arrangement acknowledged by one of the two plaintiffs who had approved the agreement with one modification. Id. at 302, 692 A.2d 1004. In any event, we need not further explore any factual differences between Pinter and Glick nor express any views as to whether they can be reconciled. This is because Glick and Pinter are distinguishable as they both involved tort actions controlled by R. 1:21-7(c) and (g).2

Here the case involves a retainer to pursue a zoning application, and we find no policy reasons for barring, as a matter of law, recovery for reasonable compensation in quantum meruit in a commercial setting merely because there was no written retainer, [205] as required by RPC 1.5. The clients were sophisticated business persons who by Turetsky’s admission expected to pay counsel for their labors over several years. If the zoning application was granted as a result of the fruits of plaintiffs’ work product, defendants cannot obtain a windfall at the expense of their attorneys merely because plaintiffs failed to comply with the requirements of RPC 1.5.3

A lawyer is not required to enter into a contingent fee agreement even in tort cases. R. l:21-7(b) expressly provides that no contingent fee agreement shall be entered before the attorney “afford[s] the client an opportunity to retain the attorney under an arrangement for compensation on the basis of the reasonable value of the services.” R. l:21-7(c) limits the amount of a contingent fee in tort litigation where the attorney’s fee is contingent upon the amount of the recovery. R. l:21-7(g) also provides that “[wjhere the amount of the contingent fee is limited by the provisions of paragraph (c) of this rule, the contingent fee arrangement shall be in writing, signed both by the attorney and the client, and a signed duplicate shall be given to the client.”

However, as noted, paragraph (c) of the rule expressly relates only to “any matter where a client’s claim for damages is based upon the alleged tortious conduct of another____” R. l:21-7(c). [206] This is not such a matter. Although B. l:21-7(e) provides that “[i]n all cases contingent fees charged or collected must conform to RPC 1.5(a) [requiring fee to be reasonable],” there is no reference in R. 1:21-7 to the requirement of a writing except with respect to a tort action.

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

Vaccaro v. Estate of Gorovoy, 696 A.2d 724, 303 N.J. Super. 201, 1997 N.J. Super. LEXIS 309 (N.J. Ct. App. 1997).

696 A.2d 724 (Vaccaro v. Estate of Gorovoy) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Starkey v. Estate of Nicolaysen
796 A.2d 238 (Supreme Court of New Jersey, 2002)
In Re Safety Components, Inc. Securities Litigation
166 F. Supp. 2d 72 (D. New Jersey, 2001)
Starkey, Kelly, Blaney & White v. Estate of Nicolaysen
773 A.2d 1176 (New Jersey Superior Court App Division, 2001)
United States v. 36.06 Acres of Land
70 F. Supp. 2d 1272 (D. New Mexico, 1999)