Wiggins v. Kopko

105 A.D.3d 1132, 962 N.Y.S.2d 776
Appellate Division of the Supreme Court of the State of New York·Decided April 4, 2013·Published·Cited by 235 cases

Opinion

Garry, J.

Appeal from an order of the Supreme Court (Cerio Jr., J.), entered January 17, 2012 in Tompkins County, which, among other things, granted plaintiffs motion to compel certain disclosure.

[1133] In October 2004, a client retained the law firm of Wiggins & Masson, LLfi in which plaintiff was a partner, to represent him in a legal malpractice action on a contingency fee basis. Plaintiff thereafter retained defendant Edward E. Kopko to work on this action. Kopko became the attorney with primary responsibility for the action, and eventually entered into a partnership agreement with plaintiff, forming defendant Wiggins & Kopko, LLP (hereinafter referred to as the partnership).1 Disagreements later arose and, in May 2010, plaintiff commenced this action seeking a judgment dissolving the partnership and compelling Kopko to pay certain legal fees.

Upon learning that Kopko had drafted a letter to the client advising him of the partnership’s dissolution and soliciting him as a personal client, plaintiff telephoned the client, discussed the deteriorating relationship between himself and Kopko and warned the client that fee issues might result if he signed a retainer agreement with Kopko. Angered by this call, the client wrote a letter stating that he was discharging plaintiff and the partnership and retaining Kopko, followed—apparently after consultation with Kopko—by a second letter stating that he had discharged plaintiff, the partnership and Wiggins & Masson “for cause.” Plaintiff thereafter executed a consent to withdraw himself, the partnership and Wiggins & Masson from the malpractice action and to substitute Kopko. The action was later tried before a jury, resulting in a substantial award.

Seeking a share of the legal fee in this and other actions, plaintiff served Kopko with a demand to produce documents, including the client’s complete file. Kopko objected and sought a protective order, asserting, as to the malpractice action, that plaintiff had been discharged for cause and was not entitled to a fee. Plaintiff then moved to compel disclosure. Following a hearing, Supreme Court issued an order that, as pertinent here, granted plaintiffs motion for disclosure of the client’s file upon finding that the client’s discharge of plaintiff was ineffective, that neither the partnership nor Wiggins & Masson was discharged for cause, and that plaintiff was entitled to compensation on the partnership’s behalf by quantum meruit. Kopko appeals.2

[1134] Parties in a civil action are entitled to “full disclosure of all matter material and necessary” (CPLR 3101 [a]), a discretionary determination based on “usefulness and reason” (Allen v Crowell-Collier Publ. Co., 21 NY2d 403, 406 [1968]; see Murphy v Hamilton, 90 AD3d 1294, 1295 [2011]; DG&A Mgt. Servs., LLC v Securities Indus. Assn. Compliance & Legal Div., 78 AD3d 1316, 1318 [2010]). We find no abuse of discretion here. Whether the client’s file in the malpractice action is material and necessary to plaintiffs action depends on whether plaintiff or the partnership are entitled to a share of the malpractice action fee, which in turn depends on the reason for the discharge. A client may discharge his or her attorney at any time, with or without cause, but the discharged attorney only forfeits the right to compensation for services rendered when discharged for cause (see e.g. Teichner v W & J Holsteins, 64 NY2d 977, 979 [1985]; Matter of Stevens, 252 AD2d 654, 655 [1998]). A determination that an attorney was discharged for cause may be based on negligence or misconduct, such as substantial delay in prosecuting an action or interference with a client’s attempts to settle a case; more is required than a client’s “general dissatisfaction” with the attorney’s performance (De Luccia v Village of Monroe, 180 AD2d 897, 899 [1992]; see Campagnola v Mulholland, Minion & Roe, 76 NY2d 38, 43-44 [1990]; Matter of Stevens, 252 AD2d at 656; Dagny Mgt. Corp. v Oppenheim & Meltzer, 199 AD2d 711, 712-713 [1993]). The client’s statement in the second letter that the discharge was “for cause” is not dispositive, as the determination requires an objective legal analysis of the attorney’s conduct and the client’s reasons for terminating the employment (see Dagny Mgt. Corp. v Oppenheim & Meltzer, 199 AD2d at 712-713; De Luccia v Village of Monroe, 180 AD2d at 899).

Kopko contends that plaintiff was discharged for cause due to alleged misconduct in his call to the client. However, without regard to whether the call constituted misconduct—which we do not decide—we agree with Supreme Court that the relevant inquiry is whether the partnership was discharged for cause. The client originally retained Wiggins & Masson—not plaintiff individually—and when Kopko later assumed primary responsibility for the malpractice litigation, he did so on behalf of the partnership or its predecessors, which continued to act as counsel of record in the malpractice action until Kopko was substituted shortly before the trial. Plaintiff was not counsel of [1135] record in the malpractice action, and so could not be discharged from that role (see generally Rodriguez v City of New York, 66 NY2d 825, 827-828 [1985]).3 Further, we find no reason to disturb Supreme Court’s determination that neither the partnership nor Wiggins & Masson was discharged for cause. Essentially, the client testified that he had discharged plaintiff because he was angry about plaintiffs “distasteful” telephone call. However, from the balance of the testimony, it is clear that the client was pleased with the prior services he had received from the partnership and its predecessors (see De Luccia v Village of Monroe, 180 AD2d at 899), specifically including those services rendered by Kopko prior to the substitution.

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Wiggins v. Kopko, 105 A.D.3d 1132, 962 N.Y.S.2d 776 (N.Y. Ct. App. 2013).

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