Warner v. Carimi Law Firm

725 So. 2d 592, 1998 WL 876907
Louisiana Court of Appeal·Decided December 16, 1998·No. 98-CA-613·Published·Cited by 24 cases

Opinion

725 So.2d 592 (1998)

Ivan WARNER, III
v.
CARIMI LAW FIRM, A Law Corporation and Darryl J. Carimi.

No. 98-CA-613

Court of Appeal of Louisiana, Fifth Circuit.

December 16, 1998.
Rehearing Denied January 25, 1999.

*593 Louis J. Cosenza, and Thomas E. Schafer, III, New Orleans, Louisiana, Attorneys for Appellant.

William W. Hall, and Darryl J. Carimi, Metairie, Louisiana, Attorneys for Appellee.

Panel composed of Judges EDWARD DUFRESNE, Jr., SOL GOTHARD and MARION F. EDWARDS.

EDWARDS, Judge.

Plaintiff/appellant I.David Warner appeals four judgments in favor of defendants/appellees Carimi Law Firm and Darryl J. Carimi. We affirm for the reasons to follow herein.

This lawsuit originated as a dispute between two attorneys arising out of an employment contract between them. For facts and procedural history see the previous opinion of this court Warner v. Carimi, 96-55 (La.App. 5th Cir.6/25/96), 678 So.2d 561. Briefly, Warner instituted this lawsuit against Carimi, and Carimi reconvened against Warner. Warner filed suit for breach of contract involving a termination agreement, for invasion of privacy, and for an accounting. The Carimi suit requested reimbursement for outstanding costs and advances on files taken by Warner, and liquidated damages and attorney fees for breach of contract. At the conclusion of that opinion we found that the partial motions for summary judgment disclosed questions of material fact precluding the granting of summary judgment. We set aside those judgments and remanded the matter to the district court.

After remand the trial court rendered three partial summary judgments on September 8, 1997. One judgment was in favor of Carimi in the sum of $204,218.44; the second judgment was also in favor of Carimi for $366,373.07. The third judgment denied several motions by Warner (which motions are irrelevant to this appeal) and granted an exception of no cause of action on a petition *594 filed by Warner under La.R.S. 51:1409 et seq. (the Unfair Trade Practices Act).

Pursuant to a motion filed by Warner, in February of 1998 the trial court gave written reasons for the earlier partial summary judgments of September 8, 1997. Those judgments were appealed. In our second opinion on this case, Warner v. Carimi Law Firm, 97-1259 (La.App. 5th Cir. 4/1/98), 1998 WL169810, 712 So.2d 924, we found those judgments were not appealable under amended La.Code Civ.Pro. art.1915, and we remanded them to the district court for an evidentiary hearing to determine whether they should be certified as appealable judgments. On April 2, 1998, a motion was filed to designate those judgments (of September 8, 1997) as final and appealable.

In January 1998, Carimi had filed another motion for partial summary judgment asking the court to enforce the termination provisions of the contract and declare that all of the fees paid on the files taken over and concluded by Warner are owned by Warner and Carimi in proportions of 50% each and that the amount thereby owed to Carimi was $164,193.75. Carimi also requested judgment compelling Warner to pay interest on Carimi's portion of the fees which Warner refused to turn over. Warner filed exceptions of lack of jurisdiction and lis pendens. Warner alleged that one of the fees in question, on the case of Gerald Honore v. Preferred Risk Mutual Insurance Company et al., was filed in Civil District Court in Orleans Parish and that the fee was the subject of concursus proceedings invoked by Carimi.

On April 22, the trial court heard these motions and on April 27, 1998, rendered judgment in favor of Carimi for $164,193.75 in attorney fees plus interest. Regarding the Honore case fees which totaled $306,205.00, it was found that Warner and Carimi each owned 50%. The exceptions filed by Warner were denied and this judgment was designated as final and appealable.

Also on April 22, 1998, the trial court heard the motion to designate the September 8, 1997 judgments as final for appeal purposes. On May 5, 1998, the court rendered judgment certifying the September rulings as final and appealable under C.C.P. art 1915.

Warner has appealed all four of the partial summary judgments.

ASSIGNMENT OF ERROR # 1-THE COURT ERRED IN ENFORCING A CONTRACT WHICH IS AGAINST PUBLIC POLICY

On appeal, Warner alleges that the trial court erred in enforcing a contract which is against public policy as embodied in the rules of professional conduct. Warner urges that the case of Minge v. Weeks, 629 So.2d 545 (La.App. 4th Cir.1993) is applicable to the facts herein and that the present contract violates Rule 5.6 of the Rules of Professional Conduct. Appellant avers that it is now established law in Louisiana that all cases involving the discharge of counsel require the balancing of the eight factors set forth in Saucier v.Hayes Dairy Products Inc., 373 So.2d 102 (La.1978) and Rule 1.5(a). O'Rourke v. Cairns 95-3054 (La.11/25/96), 683 So.2d 697.

In our original opinion of this case, we found that the contract, insofar as the cost-reimbursement provision is concerned, was not violative of public policy. There we agreed with the trial court that:

"if any financial consequence to an attorney is enough to render all agreements with the law firm that he worked with null as against public policy, then that would mean that lawyers could not enter into valid agreements amongst themselves regarding the business aspects of the practice of law ... a party asserting public policy as a defense to the contract has the burden of clearly establishing that there is a well accepted and clearly defined public policy that makes the contract terms unenforceable. Warner has not met that burden."
The present argument concerns the division of attorney fees.

Neither O'Rourke nor Saucier involved an employment contract between two attorneys, as in the present case. In Saucier, supra, a client discharged his attorney without cause and employed a second attorney who settled the case. The Supreme Court concluded *595 that only one contingency fee should be paid by the client while also denouncing quantum meruit as a method of compensating an attorney retained under a contingency fee contract:

[T]he amount of the fee [is] to be determined according to the highest ethical contingency percentage to which the client contractually agreed in any of the contingency fee contracts which he executed. Further, that fee should in turn be allocated between or among the various attorneys involved in handling the claim in question, such fee apportionment to be on the basis of factors which are set forth in the Code of Professional Responsibility.
Saucier, supra.

In O'Rourke, supra, the question also involved an attorney who was discharged by his client and then entered into a contingency fee arrangement with a second attorney. The Supreme Court determined:

We therefore hold that in cases of discharge with cause of an attorney retained on contingency, the trial court should determine the amount of the fee according to the Saucier rule, calculating the highest ethical contingency to which the client contractually agreed in any of the contingency fee contracts executed. The court should then allocate the fee between or among discharged and subsequent counsel based upon the Saucier factors.

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Warner v. Carimi Law Firm, 725 So. 2d 592, 1998 WL 876907 (La. Ct. App. 1998).

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