Here is anarticle which discusses a class action against a Florida law firm for overbiling on contingent fees.  This is usually a tough thing to do.

"A Tampa law firm that has garnered millions of dollars in neglect and abuse settlements and lawsuits against nursing homes in Florida and around the country is now on the defense end of a suit that contends the firm knowingly violated Tennessee law regarding contingency fees.

The lawsuit against the firm, Wilkes & McHugh, was filed in December in U.S. District Court in the Western District of Tennessee.

Plaintiff Debbie Howard hired the firm several years ago to sue a Memphis nursing home in the death of her grandmother for medical negligence, according to the 38-page complaint.

The class-action claim states Wilkes & McHugh engaged in an unlawful scheme to collect 40 percent or 45 percent in contingency fees of settlement amounts, although Tennessee law caps fees to 33 and 1/3 percent in medical malpractice cases. The complaint says the law firm charged the higher and unlawful contingency fee to hundreds of clients in Tennessee.

Here is a New York Law Journal article on application of the New Rules on Depositions. 

"Most practicing attorneys in New York have experienced obstructive behavior from their adversaries during a deposition. Obstructive behavior can take the form of directing the witness not to answer or of speaking objections, where the attorney infers or influences the desired answer from his or her client.

This type of conduct threatens an attorney’s ability to take a thorough deposition and is quite often dealt with by calling judges in their chambers or motions to compel an answer resulting in further deposition and an unnecessary expenditure of resources.

The New Rule

As a result of this abusive practice, a new Part 221 of the Uniform Rules for Trial Courts was authored and took effect on Oct. 6, 2006. The new rule reads as follows:

PART 221. UNIFORM RULES FOR THE CONDUCT OF DEPOSITIONS

§221.1 Objections at Depositions

(a) Objections in general. No objections shall be made at a deposition except those which, pursuant to subdivision (b), (c) or (d) of Rule 3115 of the Civil Practice Law and Rules, would be waived if not interposed, and except in compliance with subdivision (e) of such rule. All objections made at a deposition shall be noted by the officer before whom the deposition is taken, and the answer shall be given and the deposition shall proceed subject to the objections and to the right of a person to apply for appropriate relief pursuant to Article 31 of the CPLR.

(b) Speaker objections restricted. Every objection raised during a deposition shall be stated succinctly and framed so as not to suggest an answer to the deponent and, at the request of the questioning attorney, shall include a clear statement as to any defect in form or other basis of error or irregularity. Except to the extent permitted by CPLR Rule 3115 or by this rule, during the course of the examination persons in attendance shall not make statements or comments that interfere with the questioning.

§221.2 Refusal to answer when objection is made

A deponent shall answer all questions at a deposition, except (i) to preserve a privilege or right of confidentiality, (ii) to enforce a limitation set forth in an order of a court, or (iii) when the question is plainly improper and would, if answered, cause significant prejudice to any person. An attorney shall not direct a deponent not to answer except as provided in CPLR Rule 3115 or this subdivision. Any refusal to answer or direction not to answer shall be accompanied by a succinct and clear statement of the basis therefore. If the deponent does not answer a question, the examining party shall have the right to complete the remainder of the deposition.

§221.3 Communication with the deponent

An attorney shall not interrupt the deposition for the purpose of communicating with the deponent unless all parties consent or the communication is made for the purpose of determining whether the question should not be answered on the grounds set forth in §221.2 of these rules and, in such event, the reason for the communication shall be stated for the record succinctly and clearly.

Old Law

Obstreperous conduct has never been permitted at a deposition. Courts have long held that the proper procedure during the course of an examination before trial is to permit the witness to answer all questions posed, subject to objections pursuant to subdivisions b, c and d of CPLR Rule 3115, unless a question clearly violates of the witness’s constitutional rights or of some privilege recognized in law, or is palpably irrelevant. See O’Neill v. Ho, 28 AD3d 626, 814 NYS2d 202 (2d Dept. 2006); Mora v. St. Vincent’s Hospital, 8 Misc3d 868, 800 NYS2d 298 (Sup. Ct. N.Y. Co. 2005).

Interpretation of New Rules

As stated by §221, no objections are permitted at depositions now except for those made under CPLR Rules 3115(b), (c), or (d). Objections under CPLR Rule 3115(b) pertain to the form of the question. Such an objection should be made contemporaneously with the question otherwise it will be deemed waived. The deposing attorney has an opportunity to rephrase the question or allow the witness to answer it, thus risking the granting of the objection and the striking of any testimony that resulted from an improperly phrased question. Part 221 removes certain discretion previously reserved to lawyers under the CPLR. CPLR Rules 3113(b) and 3115(a) allow the lawyer to interpose all objections at the deposition, but does not require it. Section 221.1(a) now prevents a lawyer from asserting an objection at a deposition unless it would be waived at trial under CPLR Rules 3115(b), (c) or (d). In other words, this subsection confines the type of objections that can be made under the CPLR.

CPLR Rule 3115 (c), deals with objecting to the qualification of the person taking the deposition. CPLR Rule 3115(d) addresses objecting to the competency of the witness or admissibility of testimony and provides that objections regarding the same are not waived by failure to object "unless the ground of the objection is one which might have been obviated or removed if objection had been made at that time."

Section 221.1(b) specifically precludes an attorney from making a speaking objection and suggesting an answer to the deponent. An attorney is required to make a succinct statement as to the objection and include a clear statement as to any defects with the questions. Before enactment of this rule, it was common practice for attorneys defending depositions to include colloquies with their objections in an attempt to influence the deponents answer. Section 221.1(b), by design, is drafted to prevent these types of interference. Now that the rule is in place, it will be up to the courts to enforce §221.1(b) and it will be interesting to see how the judiciary handles violations of this new provision. A strict interpretation of this provision will require many practicing attorneys to adapt their approach in defending a deposition.

Section 221.3 prohibits an attorney from interrupting the deposition to communicate with a deponent unless all parties consent or the communication is made to determine whether the question should or should not be answered under §221.2. Once again, it will be up to the courts to set the tone and effectiveness of this provision, especially because the type of behavior precluded in §221.3 is occurred more than it should before the enactment of Part 221.

Part 221 is an attempt by the Judiciary Committee to take the body of already established law and state it in one clear and unambiguous document to make the practice of taking and defending depositions uniform across the state and generally more productive. However, even with Part 221, there is potential for confusion.

Section 221.2 prohibits an attorney from directing a deponent from answering a question unless to the extent permitted by CPLR Rule 3115 or §221.2. Section 221.2 allows an attorney to direct a deponent not to answer a question under the limited circumstances: "(i) to preserve a privilege or right of confidentiality, (ii) to enforce a limitation set forth in an order of the court, or (iii) when the question is plainly improper and would, if answered, cause significant prejudice to any person.

The last part of this section leaves room for infinite interpretation. What is "plainly improper" and what does it mean if a question is answered, it would "cause significant prejudice to any person"? All examiners in an adversarial process try to illicit information that would cause significant prejudice to their opponent.

Application of New Rules

Nassau County Supreme Court Justice William R. LaMarca, in an unpublished decision dated Oct. 19, 2006, held that under the new §221, a line of questions regarding whether a plaintiff in a trip-and-fall accident had previously been treated for alcohol abuse was improper and plaintiff’s counsel was justified in directing the plaintiff not to answer these questions at the deposition. Alma v. JSC Pizzeria Corp. (Sup. Ct. Nassau County 2006, Index No. 14382/04). According to Justice LaMarca, because there was no indication that the plaintiff had consumed any alcohol for 48 hours prior to the accident, the questions were improper and otherwise protected by the physician-patient privilege.

In Adams v. Rizzo, 13 Misc3d 1235(A), 2006 WL 3298303 (Sup. Ct. Onondaga County, Nov. 13, 2006), the court directed plaintiff’s counsel to pay for all costs associated with a further deposition due to his abusive conduct and §221 violations at an initial deposition of the plaintiff. In Adams, the plaintiff’s attorney regularly instructed his witness not to answer questions and added insulting phrases such as, "Don’t answer questions about your background other than your three kids. Just because he asks a question, trust me, especially this lawyer, doesn’t mean it’s a proper question." Ms. Adams is the mother of three children who allegedly were injured by exposure to lead-based paint. Ms. Adams was not a direct plaintiff, rather the representative of the children. Id. Examination regarding her background was nonetheless deemed proper and considered an abuse by plaintiff’s counsel to direct the deponent not to respond.

As evinced by Adams and Alma, what is or is not a proper line of questioning under §221.2(iii), is still open to broad interpretation and may continue to lead to abuses by attorneys. The penalty for obstructive behavior at a deposition is also discretionary.

Striking a pleading, the most drastic penalty, and perhaps the best way to prevent obstructionist behavior is not available. O’Neill v. Ho, 28 AD3d 626, 814 NYS2d 202, (2d Dept. 2006) (holding that striking a pleading is too harsh a penalty for obstreperous conduct at a single deposition session). The Appellate Division, Second Department in O’Neill ordered the defendant to pay $1,500 to compensate the plaintiffs’ counsel for the time expended and costs incurred in connection with the aborted deposition session. In Adams, the court, similarly ordered plaintiffs’ counsel to pay all costs associated with a further deposition of including the cost of the stenographer.

Conclusion

Part 221 pertaining to the conduct of attorneys at depositions is an idealistic approach to address recurring problems. However, it is up to the New York state courts to give it "teeth." From a practical standpoint, the obstructive behavior of attorneys will not change unless the courts enforce the rules as is typically done in federal court. If the courts do not take a hard line in enforcing Part 221, nothing will change and abusive tactics will continue prevail over the concept of open discovery in the state court deposition arena. "

Living in NYC, we forget that in other places, where people live on plots of land, adverse possession is a significant area of litigation.  Here is a short blog blurb concerning how to handle an adverse possession situation.  This attorney has had 50 cases!

"As a trial lawyer, I’ve probably had 50 adverse possession cases, on one side or the other. I also used to teach real estate finance and every few years one of my students would enhance their property holdings by adversely possessing someone else’s property. The adverse possession rules are worth knowing for any serious real estate investor.

This is also a big area for legal malpractice since so many lawyers tend to do the absolute wrong thing when consulted by a client complaining of a neighbor encroaching on their property.

As the name implies, one of the things a trespasser has to show in order to acquire title by means of adverse possession is that his occupancy was adverse to that of the titled owner.

All too often, when a landowner complains to his lawyer that someone is trespassing on his property, the lawyer writes a letter telling the trespasser to get off the property or a suit will be filed. This is the wrong thing to do, as it merely helps the trespasser in establishing the required "adversity."

What the lawyer (or landowner) should do is send the trespasser a letter thanking him for taking care of the property and advising that the license to use the property is henceforth revoked (or demand payment of rent if the trespasser wishes to continue staying where he is). If done properly, such a letter is quite helpful in destroying that required element of "adversity," thereby saving the landowner’s property.

There are some exceptions to the adverse possession rules. You can’t adversely possess against public lands or land owned by a government or against certain public utilities. :   The blog blurb

"Suit blames Brasota ,Florida lawyer "Legal malpractice" alleged, but lawyer in question says he did nothing wrong and can prove it.

The first lawyer on the scene at Brasota Mortgage overlooked conflicts of interest and his own lack of expertise so he could turn the tangled Bradenton company into a cash cow, Brasota’s court-appointed trustee alleged in a lawsuit this week. "

The entire article.

Anthony Lin of the NYLJ writes:

"The former partners of defunct New York law firm Hall Dickler are facing a legal malpractice suit for failing to advise a company to file for bankruptcy earlier than it did.

The creditors’ committee of VWE Group, a Yonkers-based distributor of corporate greeting cards and human resources forms that filed for Chapter 11 protection in 2004, claims the lawyers advised the company to undertake a series of transactions in 2002 and 2003 that deprived the bankruptcy estate of $4.2 million.

John R. Sachs of Epstein, Becker & Green, who represents the Hall Dickler defendants, said the case could allow a federal court to consider the question of whether lawyers can be held liable for advising on transactions that worsen a bankruptcy situation. The Delaware Chancery Court last year ruled there was no cause of action for "deepening insolvency."

Southern District Judge Colleen McMahon last week withdrew the case from bankruptcy court on the grounds that the malpractice claims were not "core" to the Chapter 11 proceeding. The creditors had sought to keep the matter before Southern District Bankruptcy Judge Adlai S. Hardin"

Here is an interesting story.  Plaintiff successfully sues her attorney for $6.4 million.  Now she sues his father for fraud.  The Story: 

"CLEVELAND

Coffee firm owner sues

A year ago, Angela Caruso of Brecksville won a $6.4 million legal malpractice verdict against her former lawyer, David Leneghan, in Cuyahoga County Common Pleas Court. Now she’s pressing a civil fraud lawsuit against Leneghan’s father, Patrick, whom she accuses of conspiring with his son to steal her coffee company, Berardi’s Fresh Roast. In opening statements Wednesday, attorney William Wuliger said the Leneghans duped his client into selling the business to Patrick Leneghan for half its value. Defense lawyer David Bertsch told the jury Caruso was too savvy to be tricked, and accused her of scheming to boost her family’s new business, Caruso Coffee.

Sometimes its a lowly plaintiff, sometimes a big corporation and on ocassion, a city.  Here is a completely mixed up report of a city suing its attorneys in legal malpractice. Its in  Coatsville. 

"Council member Kurt Schenk and president Patsy Ray lashed out at media coverage of Coatesville at Monday night’s meeting. 

"In other council action, members approved hiring special counsel in the city’s lawsuit in Federal District Court against Siana, Bellwoar, and McAndrew for legal malpractice and related claims.
Siana, Bellwoar, and McAndrew was hired as special counsel at the city’s reorganization meeting in 2006. At that time, city solicitor Andrew Lehr was hired to replace John Carnes who was fired by council prior to Lehr’s selection.
Siana, Bellwoar, and McAndrew represented the city in labor and land acquisition matters for approximately six months. In addition, the firm specializes in municipal law.
They were terminated in a council action and subsequently, in October 2006,
Siana, Bellwoar, and McAndrew filed suit against the city, four members of council and the city solicitor.
The Chester Springs-based law firm accused the city of legal malpractice, breach of fiduciary duty, malicious prosecution and violations of the rules of professional responsibility by lawyers in the Siana law firm over the course of the firm’s representation in Coatesville.
Those allegations were answered last Friday in a filing by defense counsel Anne Myers, of the Philadelphia law firm of Marks, O’Neill, O’Brien and Courtney.
Monday night, council approved city manager Harry Walker and Lehr obtaining the services of a special counsel in the city’s defense. Council will take action on that selection at their next meeting. Eggleston voted no on the action. Council member Ed Simpson was absent from the meeting.

Malpractice is a professional’s failure to use minimally adequate levels of care, skill or diligence in the performance of the professional’s duties, causing harm to another. In New York, attorney malpractice is defined as a "deviation from good and accepted legal practice, where the client has been proximately damaged by that deviation, but for which, there would have been a different, better or more positive outcome."

Malpractice typically occurs when a professional fails to exercise his or her professional skills in an assignment at the necessary standard of care, skill and learning applied under the circumstances by the average prudent reputable member of the profession in the "community". The analysis is based upon the standard of care for the professional in the community" what other professionals in the same field do for their clients who are located in the same geographic area. In New York, courts will hold all attorneys to the same standard of professional performance.

The first necessary element is a professional relationship. In order to sue for professional malpractice, the plaintiff must have retained the attorney. There must of course be a relationship in privity, between the professional and the plaintiff such that the professional owes the plaintiff a duty. In attorney malpractice either a written retainer, proof that the attorney engaged in work or proof that the attorney appeared for the client is necessary. While in litigation often there is clear proof of representation; in transactional settings, representation may be less clear. Proof to a jury’s satisfaction of actual representation must be demonstrated. This proof may come from the correspondence of the professional, from papers authored by the attorney or from litigation documents.

 

Here is a case from Kings which illustrates difficulties in proving that the first attorney was terminated for cause.  Often the client is so fixated on getting the case to the new attorney, that promises are made, and proper evidence is not prepared.

Vallejo v. Builders for the Family Youth, 5538/00
Decided: January 2, 2007

NEW YORK COUNTY
Supreme Court

Incoming Attorney: Proner and Proner

Tobi Salottolo, Esq.

Outgoing Attorney: William J. Bendix, Esq.

Justice Schack
Click here to see Judicial Profile

This decision and order resolves a fee dispute in this matter between William J. Bendix, Esq., ("Bendix"), the outgoing counsel for plaintiffs Maria Vallejo, Carmen Reina and Maya Reina, and Proner and Proner, P.C. ("Proner"), the incoming counsel for the same plaintiffs. Proner moved by order to show cause to vacate any liens for attorneys’ fees in this action claimed by Bendix. Bendix opposed the order to show cause, claiming that he is owed one-half of the attorneys’ fees in this matter. The parties changed counsel from Bendix to Proner in May 2002.

This case was assigned to me on September 12, 2005 for a jury trial, after the jury had been selected. Three plaintiffs then remained in the action, Maria Vallejo, Carmen Reina (who reached the age of majority prior to trial) and Mayra Reina. Most of the defendants had been previously dismissed from the action. After extensive discussions and negotiations with plaintiffs’ counsel, Mitchell Proner, Esq., and respective counsels for the remaining defendants, the matter was settled on September 13, 2005, with a stipulation of settlement placed on the record for a total package of $920,000.00 ($75,000.00 for Maria Vallejo, $405,000.00 for Carmen Reina, and $440,000.00 for Mayra Reina).

At issue between Proner and Bendix is the appropriate fee, if any, for Bendix. Proner contended that plaintiffs discharged Bendix for cause and thus Bendix is not entitled to any legal fees. Bendix claimed that he is entitled to a percentage of the legal fees for his work performed prior to his 2002 discharge. In my June 20, 2006 decision and order in this fee dispute, 12 Misc3d 1171 (A), 2206 NY Slip Op 51140 (U), I ordered a hearing to determine if Bendix was discharged with or without cause, and if Bendix was discharged without cause to determine the amount of legal fees owed to Bendix.

Background

This personal injury action was the result of a May 9, 1999-motor vehicle accident. Proner’s affirmation in support of the order to show cause that resulted in my June 20, 2006 decision and its attached affidavits alleged that Bendix mishandled the case and the related no-fault claims of Mayra Reina. The plaintiffs’ affidavits in support of the order to show cause [exhibits D and G of the order to show cause] were all prepared subsequent to the September 13, 2005 settlement by stipulation and all sworn to on October 18, 2005, before the same notary public. The affidavits of Carmen Reina and Mayra Reina are almost identical. Both claimed that Bendix delayed depositions and never called them about the progress of the case. All three of these affidavits, dated about three and one-half years after Bendix’s discharge, state: "I discharged ‘WILLIAM BENDIX’ because I felt he did not provide me with proper representation in this action." Further, all three affidavits concluded with the identical assertion that "[b]ecause of his [Bendix] poor representation of us in this case, I do not think that he should be entitled to any of the legal fees in this case."

The Proner supporting papers spoke glowingly of Proner’s work. Bendix, in paragraph 3 of his affirmation in opposition to the order to show cause stated that Proner’s application "to vacate your affirmant’s lien is a layer cake of misinformation laid upon fabrication intended to deny your affirmant his rightful share of the legal fee in this matter." Proner failed to provide this Court with any documents from plaintiffs to Bendix, stating that Bendix was discharged for cause. The only documentation presented with respect to Bendix being discharged for cause are the October 18, 2005 affidavits, three and one-half years after plaintiffs discharged Bendix.

Exhibit E of the order to show cause presented various documents connected to the 2002 substitution of counsel. Attached to exhibit E are: copies of the April 30, 2002 retainer agreements by plaintiffs with Proner; copies of plaintiffs’ May 1, 2002 consents to change their attorney to Proner from Bendix; copies of May 1, 2002 letters from plaintiffs to Bendix, advising Bendix of the change of counsel to Proner, and requesting Bendix to transmit "information and documents" to Proner; and, the May 1, 2002 cover letter from Mitchell Proner to William Bendix, advising Bendix of the counsel change and the transmittal of the above-mentioned documents. Mitchell Proner, in his May 1, 2002 cover letter to William Bendix states, "[i]f you would like to discuss your disbursements and/or liens, please contact the undersigned upon receipt of this letter [emphasis added]."

Proner subsequently had problems in getting the file from Bendix. Proner submitted an order to show cause with respect to the file transfer issues, to Justice Hutcherson, who signed it on May 17, 2002, returnable on June 5, 2002. Jennifer Bailine, Esq., an associate of Proner, not only prepared the 2006 order to show cause and affirmation in support, but also prepared the May 17, 2002 order to show cause and its affirmation in support. It is interesting to note that Ms. Bailine in the 2006 order to show cause affirmation in support moved to vacate any Bendix lien, while in her May 13, 2002 affirmation in support she stated, "[o]ur office has communicated to the outgoing attorney that we would acknowledge its lien and attorneys fees to be resolved at the conclusion of the case [emphasis added]." Justice Hutcherson, in his June 5, 2002 order, instructed that "liens and Bendix’s attorneys fees to be resolved . . . by stipulation or court."

This Court conducted a hearing on August 18, 2006 to determine if Bendix has a lien on attorneys’ fees or not. At the conclusion of the hearing, the Court reserved decision to review the hearing transcript and the Kings County Clerk’s files in the instant matter.

Discussion

The Court makes the following findings. In Cohen v. Grainger, Tesoriero & Bell, 81 NY2d 655, 658 (1993), the Court of Appeals instructed that "[i]t is settled that a client may discharge an attorney at any time, with or without cause (Lai Ling Cheng v. Modansky Leasing Co., 73 NY2d 454, 457; Matter of Montgomery, 272 NY 232)." See Teichner by Teichner v. W & J Holsteins, Inc., 64 NY2d 977, 979 (1985); Campagnola v. Mulholland, Minion & Roe, 76 NY2d 38 (1990); Matter of Leopold, 244 AD2d 411 (2d Dept 1997); Papadopoulos v. Goldstein, Goldstein & Rikon, P.C., 283 AD2d 649 (2d Dept 2001); Byrne v. Leblond, 25 AD3d 640 (2d Dept 2006).

If an attorney is discharged for cause, the attorney is not entitled to any fee, notwithstanding a specific retainer agreement. Teichner by Teichner v. W & J Holsteins, Inc., supra at 979; Campagnola v. Mulholland, Minion & Roe, supra at 44; Byrne v. Leblond, supra at 641. When an attorney is discharged without cause, the attorney is entitled to compensation based upon quantum meruit. Reubenbaum v. B. & H.Exp., 6 AD2d 47, 48 (1st Dept 1958); Teichner by Teichner v. W & J Holsteins, Inc., supra at 979; Cohen v. Grainger, Tesoriero & Bell, supra at 658; Matter of Leopold, supra at 411; Papadopoulos v. Goldstein, Goldstein & Rikon, P.C., supra at 649; Byrne v. Leblond, supra at 641.

However, when the dispute is between attorneys, as in the instant matter, the Court in Cohen v. Grainger, Tesoriero & Bell, supra at 658, observed that:

the rules are somewhat different. The discharged attorney may elect to receive compensation immediately based on quantum meruit or on a contingent percentage fee based on his or her proportionate share of the work performed on the whole case (Cheng, supra, at 458 [citations omitted]).

Earlier this year, in Byrne v. Leblond, supra at 642, the Appellate Division, Second Department, instructed that:

the Supreme Court should have determined the amount of the contingency fee based upon the proportionate share of the work performed by the Rovegno firm [the outgoing firm] on the whole case taking into consideration the relative contributions of the lawyers thereto (see Lai Ling Cheng v. Modansky Leasing Co., supra at 458-459; Jones v. Birnie Bus Serv., Inc., 15 AD3d 951 [2005]; Smerda v. City of New York, 7 AD3d 511 [2000]). [Emphasis added]

In the instant case, with conflicting claims as to whether or not Bendix was discharged for cause, a hearing was necessary to resolve the fee dispute. Hawkins by Hawkins v. Lenox Hill Hosp., 138 AD2d 572 (2d Dept 1988); Klein v. Eubank, 87 NY2d 459 (1996); Byrne v. Leblond, supra at 642. Prior to the hearing, the Court had no evidence, other than plaintiffs’ October 18, 2005 affidavits, that Bendix may have been discharged for cause. In Klein v. Eubank, supra at 463, the Court noted that:

Attorney-client relationships frequently end because of personality conflicts, misunderstandings or differences of opinion having nothing to do with any impropriety by either the client or the lawyer. Others end because of unexpected conflicts of interests or changes in litigation strategy that require different lawyering skills. In some of those situations, the client may ask the attorney to withdraw. In others, it may be the attorney who initiates the termination process by offering to withdraw in order to avoid embarrassment, avert further conflict, preserve the relationship on a long-term basis or simplysave the client from the discomfort of having to fire the attorney. Importantly, in many such cases, the decision to terminate the relationship is the product of a mutual choice.

Thus, a hearing was necessary to determine the facts and circumstances relating to Bendix’s 2002 discharge. If Bendix was discharged without cause he is entitled to a portion of the attorneys’ fees in the instant matter, based upon either quantum meruit or a percentage of the contingency fee earned for his "proportionate share of the work performed." Lai Ling Cheng v. Modansky Leasing Co., supra at 458; Cohen v. Grainger, Tesoriero & Bell, supra at 658; Klein v. Eubank, supra at 464; Byrne v. Leblond, supra at 642. Further, this Court takes judicial notice of Justice Hutcherson’s June 5, 2002 order, which stated that Bendix’s "fees to be resolved . . . by stipulation or court."

Proner’s counsel, at the August 18, 2006 hearing, informed the Court, "Your Honor, I’m willing to stipulate that the initial letter sent to him [Bendix] discharging him, did not say for cause." (tr., p. 4, lines 17 – 19). Proner’s counsel then called plaintiff Mayra Reina to testify (tr., pp. 7 – 18). Ms Reina testified about her dissatisfaction with Bendix’s representation and her satisfaction with the work performed by Proner. At the conclusion of Ms. Reina’s testimony, I asked a question to clarify an issue [tr., p. 18, lines 10 – 19]:

THE COURT: I want to ask Ms. Reina a question. When you changed lawyers, going back a little more than three years, April, May of 2003 [actually 2002], you signed some documents, am I correct, for Mr. Proner?

THE WITNESS [Ms. Reina]: Yes.

THE COURT: Did you send any kind of communication to Mr. Bendix, giving a reason why he was discharged as your lawyer?

THE WITNESS [Ms. Reina]: No.

THE COURT: Thank you.

Proner’s counsel had no other witnesses to call. Bendix called Anthony Iadevaia, Esq., a personal injury lawyer with fifteen years experience (tr., p. 26), to testify. Mr. Iadevaia represented John Vallejo, Sr. , the last named plaintiff in the caption, who settled his case separately, just prior to trial. He testified that delays in trying the case were due to the dilatory tactics of defendant City of New York. The City was ultimately let out of the case. The following colloquy took place at tr., p. 21, lines 6 – 25.

THE WITNESS [Mr. Iadevaia]: That was the reason that there were so many adjournments with the depositions, because the City witnesses were not ready. The City attorneys were not ready. I went through the same frustrations [to Bendix] as you did on that particular matter.

THE COURT: This is your client, Mr. Vallejo; you were ready to have him deposed, your would get a call from the Corp. Counsel, "I need a delay?"

THE WITNESS [Mr. Iadevaia]: That’s correct, because the City was a party to the action, Judge. As you might be aware, the PC [preliminary conference order] says the EBT’s have to be done in their office [New York City Corporation Counsel] which is on Jay Street [across the street from Kings County Supreme Court].

THE COURT: You had to deal with Mr. Kalish [former head of the Corporation Counsel’s Torts Division in Kings Count], now Judge Kalish?

THE WITNESS [Mr. Iadevaia]: Now Judge Kalish.

Because there were so many plaintiffs, there was always a question of the City being ready.

I recall Mr. Bendix and I were ready pretty much every time, other than the City kind of throwing a thorn into things.

Mr. Iadevaia testified that after Proner replaced Bendix the case continued to drag on due to both the City’s delays and needless motion practice by Proner (tr., pp. 22 – 23). On cross-examination, Mr. Iadevaia testified that he never heard complaints from Mr. Vallejo, his client, about concerns of his stepdaughter, Mayra Reina about Bendix’s representation of the plaintiffs (tr., p. 32).

In his closing arguments (tr., p 34 – 35), Bendix referred to his affirmation in opposition and supplemental affirmation in opposition to the order to show cause, to demonstrate that he prepared bills of particular, secured medical authorizations, and made attempts to have his clients deposed. He stated at tr., p. 35, lines 19 -20, "I didn’t do anything wrong. The case was delayed because the City was involved." Bendix, at tr., p. 35, line 21 – p. 36, line 4, stated:

I feel I’m entitled to 50 percent of the legal fee. I did 50 percent of the work here. I brought the case to suit, did the BP’s [bills of particulars], put the case on for the PC conference. Referral gets one-third. I’m way beyond the one-third in this case, Your Honor. I think they should be entitled to something too. I don’t think I should be shafted here because they now at the end of the case come with the idea that they should have 100 percent of the legal fee.

In her closing arguments, Proner’s counsel (tr. pp. 36 -37) admitted that Bendix "put in the suit" (tr., p. 36, line 10). However, she argued that when Proner got the file, the plaintiffs still were not ready to be deposed. Further, Proner had to get medical and hospital records, prepare amended and supplemental bills of particulars, attend a preliminary conference, prepare and take depositions, and prepare for trial.

After reviewing the transcript of the August 18, 2006 hearing, and the official files for this case maintained by the Kings County Clerk, the Court makes the following findings of fact and conclusions of law. Both Ms. Reina and Mr. Iadevaia were credible witnesses. Proner’s counsel conceded that the letters sent by the three plaintiffs to Bendix about his discharge never mentioned cause. Further, Ms. Reina admitted that Bendix was never given a reason for his discharge. Several weeks after Bendix’s discharge, Ms. Bailine of Proner’s office acknowledged in her May 13, 2002 affirmation in support of an order to show cause that the Bendix lien was "to be resolved at the conclusion of the case." In his June 5, 2002 order, Justice Hutcherson instructed that ""liens and Bendix’s attorneys fees to be resolved . . . by stipulation or court." Therefore, Bendix was never discharged for cause.

The Court of Appeals noted, in Cohen v. Grainger, Tesoriero & Bell, supra at 658, that "[t]he discharged attorney may elect to receive compensation immediately based on quantum meruit or on a contingent percentage fee based on his or her proportionate share of the work performed on the whole case." The Appellate Division, Second Department, in Byrne v. Leblond, supra at 642, instructed that in determining the amount of the contingency fee earned by the outgoing firm, the trial court has to take into account the "proportionate share of the work performed . . . on the whole case taking into consideration the relative contributions of the lawyers thereto."

Bendix must be given credit for initiating the lawsuit and keeping it alive for three years. He prepared the summons and complaint, medical authorizations, bills of particulars, attended General Municipal Law §50 (h) hearings with the City, and conducted numerous other tasks necessary to prosecute the case. After, the plaintiffs exercised their right to change counsel to Proner, Proner must be given credit for continuing the case, preparing many amended and supplemental documents, preparing and attending depositions, and getting the case ready for trial. Without the efforts of the Proner firm, the plaintiffs would not have secured a total settlement package of $920,000. Therefore, in analyzing the " proportionate share of the work performed" and "the relative contributions of the lawyers," the Court finds that Bendix is entitled to forty (40 percent) percent of the legal fees in the instant action and Proner is entitled to sixty (60 percent) percent of the legal fees in the instant action.

Conclusion

Accordingly, it is

ORDERED, that William J. Bendix, Esq., serve a notice of entry of this order and decision upon the law firm of Proner and Proner, P.C., together with a detailed accounting of his costs and disbursements in this matter; and it is further

ORDERED, that within 14 days after receiving the notice of entry of this order and decision, and the detailed accounting of Mr. Bendix’s costs and disbursements, Proner and Proner, P.C. shall, after deducting Mr. Bendix’s costs and disbursements and Proner and Proners’ costs and disbursements, transmit to William J. Bendix, Esq., a check for his costs and disbursements in the instant action, and forty (40 percent) percent of the net proceeds for legal fees from the $920,000.00 settlement in the instant action, and retain sixty (60 percent) percent of the net proceeds from the $920,000.00 settlement in the instant action.

This constitutes the decision and order of this court.

Supreme CourtJusticeSchack