Notable Items:
Appellant: Joy Salmon
Appellee: Virginia Atkinson
Venue: Supreme Court of Arkansas
Material Facts:
- June 19, 2000, Appellees took the case on a contingency basis: fifty percent of the award plus costs and expenses.
- "it is understood that in the event of no recovery, no fee shall be charged by Atkinson Law Offices"
- Appellees began work and in late July presented a petition for the Appellant to file in the probate case.
- Appellant sent Appellees a letter dated August 1, 2000, discharging the Apellees.
- Appellees sent Appellant a letter dated August 21, 2000, alleging abrogation of contract without justification and claiming a fee for work of $7,200.
- Appellant file a [the?] petition, pro se, against the estate on September 1, 2000.
- Appellees sued the Appellant on May 10, 2001, in circuit court to recover the quantum meriut.
- A full recounting of the facts is available below
Procedural History:
- Appellees suit the Appellant on May 10, 2001, in circuit court to recover a quantum meriut.
- Jury found for the Appellees at trial on December 3, 2002.
- Appellant filed a motion for judgement notwithstanding the verdict stating that due to the condition in the contract, verdict was not support by substantial evidence.
- JNOV motion denied December 17, 2002.
- Appellant filed for a new trial and nenewed JNOV motion on January 2, 2002.
- Trial court denied these motions on February 4, 2003.
- Appellant file notice of appeal on February 28, 2003.
Appellant's Claim(s):
Appellant contends that the discharged attorney's cause of action does not accure unless and until the client is successful in recovering an award.
Appellant contends that award of fees would impair her absolute right to discharge Appellees and terminate their services.
Issues:
May an attorney who enters into a contingent-fee contract with a client and is later discharged by the client may bring an action for a quantum meriut fee prior to the resolution of the former client's lawsuit?
Holding(s) and Disposition:
Held:Yes. The trial court did not err i awarding a quantum meriut fee to the Appellees.
Disposition: Trial coprt judgement is affirmed.
Rationale
Majority Opinion
- Case of first impression.
- This court has consistently held that a discharged attorney may be paid for the reasonable value of his or her services notwithstanding that the parties entered into a contingent-fee contract ....
- The question is whether recovery of such a fee is dependent upon the contingency originally agreed to in the contract.
- "California rule": discharged attorney's cause of action does not accure unless and until the occurrance of the stated contingency....
- "New York rule": discharged attorney's cause of action accures immediately upon discharge and is not dependent upon the former client's recovery....
- "New York rule": either contract wholly stands or totally fails.
- "New York rule": ... cannot not terminate the contract and resurrect the contingency term ....
- "New York rule": forcing the attorney to wait is unfair in making recovery contingent upon the success or failure of another member of the bar.
- "New York rule": recipent [of services] would be unjustly enriched if he were able to retain the services without paying for them.
- We belive that the "New York rule" is the better rule.
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- A full description of the rationale is available below
?? concur in part, dissent in part (??)
?? dissent (??)
Full Recounting of Facts
- Appellant Joy Salmon hired Appellee Virginia Atkinson to pursue a claim against the estate of George Brown.
- Appellant lived with and cared for Brown for some time prior to his death, believing that she was married to Brown, and become his widow upon his death.
- June 19, 2000, Appellees took the case on a contingency basis: fifty percent of the award plus costs and expenses.
- "it is understood that in the event of no recovery, no fee shall be charged by Atkinson Law Offices"
- Appellees began work and in late July presented a petition for the Appellant to file in the probate case.
- Appellant declined to sign the petition and delayed acting.
- Appellant sent Appellees a letter dated August 1, 2000, discharging the Apellees.
- Appellees sent Appellant a letter dated August 21, 2000, alleging abrogation of contract without justification and claiming a fee for work of $7,200.
- Appellant file a [the?] petition, pro se, against the estate on September 1, 2000.
- Appellees sued the Appellant on May 10, 2001, in circuit court to recover the quantum meriut.
- Jury found for the Appellees at trial on December 3, 2002.
- Appellant filed a motion for judgement notwithstanding the verdict stating that due to the condition in the contract, verdict was not support by substantial evidence.
- JNOV motion denied December 17, 2002.
- Appellant filed for a new trial and nenewed JNOV motion on January 2, 2002.
- Trial court denied these motions on February 4, 2003.
- Appellant file notice of appeal on February 28, 2003.
- A list of the material facts is available above
Majority Full Argument
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- The core of the rationale is available above