Wagner, Vaughn, McLaughlin & Brennan, P.A. v. Kennedy Law Group

987 So. 2d 741, 2008 Fla. App. LEXIS 10296, 2008 WL 2668801
CourtDistrict Court of Appeal of Florida
DecidedJuly 9, 2008
DocketNos. 2D07-910, 2D07-941
StatusPublished
Cited by1 cases

This text of 987 So. 2d 741 (Wagner, Vaughn, McLaughlin & Brennan, P.A. v. Kennedy Law Group) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wagner, Vaughn, McLaughlin & Brennan, P.A. v. Kennedy Law Group, 987 So. 2d 741, 2008 Fla. App. LEXIS 10296, 2008 WL 2668801 (Fla. Ct. App. 2008).

Opinion

STRINGER, Judge.

In this consolidated appeal, Wagner, Vaughan, McLaughlin & Brennan, P.A. (“the Wagner firm”) seeks review of two orders of the probate court awarding the Kennedy Law Group (“KLG”) the entire contingency attorney fee amount from $1.23 million in settlement proceeds. KLG represented the personal representative in settlement negotiations for a wrongful death action, and the Wagner firm represented two of the survivors. Because the Wagner firm did not perform work on any aspect of the case in which KLG had a conflict of interest, the Wagner firm was not entitled to any portion of the contingency fee at issue. Accordingly, we affirm the attorney’s fee awards.

The rulings were entered in Hillsbor-ough County probate administrations for Robert Earl Elmore and his wife, Thelma Lavone Elmore, who died as a result of injuries suffered in an automobile accident that occurred on June 27, 2005. The Elmores were survived by three adult sons, Gary Raymond Elmore, Larry Gene Elmore, and Robert Lynn Elmore. In August 2005, Gary was appointed sole personal representative of the Elmores’ estates pursuant to a provision in their wills. Larry and Robert both signed the forms approving Gary’s appointment.

Gary retained KLG to represent him in his capacity as personal representative, and KLG negotiated a settlement for the full proceeds of the tortfeasor’s $200,000 bodily injury insurance policy. On August 15, 2005, KLG distributed the net proceeds of the settlement to Gary, who divided the proceeds equally among the three brothers on August 19, 2005.

On August 17, 2005, Mr. Brennan of the Wagner firm wrote to Mr. Malkowski of KLG to inform him that he represented Larry Elmore and to propose a fee-sharing arrangement between their law firms for the ensuing wrongful death action. Mr. Brennan proposed that the two firms participate equally in handling a wrongful death action and split the attorney’s fees earned by whatever recovery could be obtained for Gary and Larry Elmore. Mr. Malkowski did not respond to this letter.

On August 19, 2005, the day Larry received his share of the proceeds of the bodily injury . settlement, Mr. Brennan wrote to David Whigham, who represented the Elmores’ estates in the probate action. Mr. Brennan stated that Larry “does not approve of the distribution apportionment.” Mr. Brennan asserted that Larry should have been given an opportunity to object to the apportionment of the funds in the probate court and that the probate court was required to approve the disbursement of the funds from the settlement. Mr. Brennan copied the letter to Mr. Malkowski of KLG and informed Mr. Malkowski that he did not have the authority to settle on behalf of Larry. Mr. Brennan requested that Mr. Malkowski immediately stop payment on the settlement checks and take no further action regarding the claim.

The Wagner firm then filed a petition in the probate court seeking the removal of Gary as the personal representative and the return of the settlement proceeds to the trust account so that Larry’s objections could be heard. The petition was denied as proeedurally deficient, and the Wagner firm did not make any further objections to the distribution of the settlement proceeds. Larry cashed his settle-

[744]*744ment check without taking any further action in the courts.

Shortly thereafter, KLG made a demand upon the Elmores’ insurer for its $2 million UM insurance proceeds. The insurer requested pre-suit mediation. On the morning of mediation, Robert Elmore retained Mr. Brennan of the Wagner firm to represent him in the proceedings. Mr. Brennan and Mr. Malkowski accompanied the three Elmore brothers to the mediation. The mediation produced a settlement of $1.23 million.

Mr. Brennan memorialized his clients’ positions in a letter to Mr. Malkowski at the end of the day of the mediation. Mr. Brennan asserted that the case “could have and should have settled” higher than it did and that Larry and Robert’s claims were worth more than Gary’s but stated they were willing to approve the settlement in exchange for a one-third distribution to each brother. The probate court approved the UM settlement, and the parties proceeded to an evidentiary hearing on attorney’s fees. It was at this hearing that the probate court determined that the Wagner firm was not entitled to a portion of the attorney’s fee award because Larry and Robert did not have any competing claims with Gary.

The Wagner firm raises three issues on appeal. First, the Wagner firm argues that the probate court erred in awarding KLG the entire fee because the Wrongful Death Act does not provide for fees incurred if the case settles before suit is filed. Second, the Wagner firm argues that the probate court erred in awarding KLG the entire contingency fee because there was a conflict of interest between Gary and his brothers that precluded KLG from collecting attorney’s fees for work done for the brothers. Third, the Wagner firm alternatively argues that it did not have to show that Larry and Robert had a competing claim in order to be entitled to fees under the act. None of these arguments merits reversal.

The fee provision at issue is set forth in section 768.26, Florida Statutes (2005). It provides:

Litigation expenses. — Attorneys’ fees and other expenses of litigation shall be paid by the personal representative and deducted from the awards to the survivors and the estate in proportion to the amounts awarded to them, but expenses incurred for the benefit of a particular survivor or the estate shall be paid from their awards.

“The Act obviously contemplates that one lawyer, selected by the personal representative, will pursue the tort claim for the benefit of the survivors who are entitled to recover damages.” In re Estate of Cata-pane, 759 So.2d 9, 11 (Fla. 4th DCA 2000). However, when the survivors have a conflict of interest, a single attorney could not fairly represent their competing interests. Wiggins v. Estate of Wright, 850 So.2d 444, 449 (Fla.2003). In those instances, attorney’s fees from the awards to the estate should be apportioned as set forth by the Fourth District in In re Estate of Catapane. Wiggins, 850 So.2d at 447-48.

When survivors have competing claims, and are represented by separate attorneys, awarding attorneys’ fees from a wrongful death suit in a manner commensurate with the attorneys’ work properly provides for proportional payment of attorneys’ fees by all survivors, out of their respective awards. For example, if there are two competing survivors represented by separate attorneys throughout the litigation who successfully prosecute a claim to judgment, the fees should ordinarily be awarded out of the respective recoveries. This will always be subject to the caveat that where it can be demon[745]*745strated that one attorney played a greater role in securing the total award, a larger fee may be proper. In no instance, however, should a survivor be penalized for hiring separate counsel by having to pay a fee for recovery of the same amount twice.

Id. at 450.

Thus, the fees for the attorney for the personal representative will be reduced by the amount needed to compensate the other survivors’ attorneys for their efforts in representing those survivors in the proceedings. Id.

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Related

Wagner, Vaughan, McLaughlin & Brennan, P.A. v. Kennedy Law Group
64 So. 3d 1187 (Supreme Court of Florida, 2011)

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Bluebook (online)
987 So. 2d 741, 2008 Fla. App. LEXIS 10296, 2008 WL 2668801, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wagner-vaughn-mclaughlin-brennan-pa-v-kennedy-law-group-fladistctapp-2008.