Attorney Fee disputes can be a landmine, a source of big problems, and a constant source of legal malpractice litigation. Here is yet another report of a Texas Case.
"For nearly six years, a prominent Dallas plaintiffs firm has battled a former client in an attempt to recover a contingent fee. But after a three-day trial, it was the former client who won the war. On Aug. 21, a Tarrant County jury awarded $1.4 million in damages to defendant Robert L. French.
In its 2001 petition in Law Offices of Windle Turley v. Robert L. French, et al., the firm alleged that a former client took his medical-malpractice case to another lawyer without paying the Turley firm for the legal work it already had done on his case. Under the Texas Supreme Court’s 1969 opinion in Mandell & Wright v. Thomas, when a client discharges an attorney without good cause before work has been completed, the attorney may recover on the fee contract for the amount owed.
Windle Turley says his firm sued its former client because it was a matter of principal. In its petition in French, the firm asserted a quantum meruit claim to recover for the work performed in the med-mal suit.
In 2005, French countersued the firm alleging intentional infliction of emotional distress. While the jury awarded zero dollars on the Turley firm’s suit, it awarded $1.4 million to French on his countersuit.
Three professional liability attorneys say the jury’s award in French is an example of why firms that sue clients over fees need to be careful — a sentiment with which Turley agrees.
"It is risky to ever bring an action against a client," says Turley, who is asking Judge Len Wade of the 141st District Court of Tarrant County to set aside the verdict. "And I don’t ever like to go the judicial route to enforce a contract. However, having said that, there are occasions in which the circumstances compel an attorney seeking judicial assistance."
Turley still believes the fee dispute in French justified the firm’s suit. His firm sued French to prevent clients from taking away cases and not paying for the work. Turley believes the verdict — if it stands — will weaken the contingent-fee contracts plaintiffs attorneys sign with their clients.
"It’s very, very unfortunate," says Turley of the verdict. "And I think it’s a distressing sign of the times."