Bedin v. Mueller , 2024 IL App (1st) 221000-U ( 2024 )


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    2024 IL App (1st) 221000-U
    FIFTH DIVISION
    July 12, 2024
    No. 1-22-1000
    NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the
    limited circumstances allowed under Rule 23(e)(1).
    IN THE
    APPELLATE COURT OF ILLINOIS
    FIRST JUDICIAL DISTRICT
    JANET BEDIN, Individually and as Special                      )
    Administrator of the Estate of Dolores Bedin, Deceased,       )
    )      Appeal from the
    Plaintiff-Appellant,                                   )      Circuit Court of
    )      Cook County.
    v.                                                            )
    )      No. 13 L 13639
    KYLE MUELLER, NORTHWESTERN SURGICAL                           )
    ASSOCIATES, ELISABETH WALLNER, and                            )      Honorable
    NORTHWESTERN MEMORIAL HOSPITAL,                               )      Allen Walker,
    )      Judge Presiding.
    Defendants,                                            )
    )
    (O’Connor Law Group, LLC, Appellee).                          )
    JUSTICE MIKVA delivered the judgment of the court.
    Presiding Justice Mitchell and Justice Lyle concurred in the judgment.
    ORDER
    ¶1     Held: Order granting appellee attorney fees and costs pursuant to a theory of
    quantum meruit is affirmed where the circuit court found appellee’s failure to
    comply with Rule 1.5(c) of the Illinois Rules of Professional Conduct of 2010 (Ill.
    R. Prof’l Conduct R. 1.5(c) (eff. Jan. 1, 2010)) is not an adequate bar to
    compensation; the circuit court further did not abuse its discretion in calculating
    fees or costs.
    ¶2     Plaintiff Janet Bedin (Ms. Bedin) appeals the decision of the circuit court awarding attorney
    No. 1-22-1000
    fees and expenses to O’Connor Law Group, LLC (OLG), arising from the settlement of an
    underlying medical malpractice case. In that case, OLG represented Ms. Bedin in her capacity as
    special administrator of her mother’s estate. OLG neglected to have Ms. Bedin sign a written
    retainer agreement. The circuit court awarded both fees, which totaled 30% of the total settlement,
    and costs pursuant to a theory of quantum meruit. For the reasons that follow, we affirm.
    ¶3                                      I. BACKGROUND
    ¶4     Dolores Bedin (Dolores) died in August 2011 from pancreatic cancer. The Circuit Court of
    Winnebago County appointed her daughter, Ms. Bedin, as the executor of Dolores’s estate. Ms.
    Bedin has one brother, Alexander Bedin (Alexander).
    ¶5     Between December 2010 and August 2012, Ms. Bedin (or her mother initially) retained
    three separate law firms, one after the other, to file a medical malpractice case in relation to the
    diagnosis and treatment of Dolores’s illness. In each agreement, Ms. Bedin or Dolores agreed to
    pay a one-third contingent fee and expenses.
    ¶6     In August 2012, the third firm filed a complaint in the Circuit Court of Cook County. The
    complaint alleged that Kyle Mueller, M.D., Northwestern Surgical Associates, Elisabeth Wallner
    M.D., and Northwestern Memorial hospital (collectively, defendants) were responsible both for
    Dolores’s wrongful death and for negligence under the Illinois Survival Act (755 ILCS 5/27-6
    (West 2012)).
    ¶7     In June 2015, the fourth firm, OLG, the appellee in this case, filed an appearance. In July,
    it substituted for the previous firm.
    ¶8     In litigating the underlying action, OLG filed two amended complaints, partially defeated
    a motion to strike portions of the second amended complaint, and defended against at least three
    motions for partial summary judgment. It retained five experts, deposed over 20 witnesses, and
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    No. 1-22-1000
    participated in mediation. According to a table of litigation expenses submitted by OLG, litigation
    costs totaled $90,283.90, primarily arising from expert depositions and expert retainer fees.
    ¶9     In October 2017, an attorney from OLG sent Ms. Bedin a letter to an address in Rockford,
    Illinois. The letter begins, “Because it is so difficult to get ahold of you, and because it is almost
    impossible to set a meeting with you so that you actually show up, I am notifying you of several
    things.” The letter goes on, “Of course, you never paid any of my expenses which you promised
    on so many occasions, but at this point, I have given up on that, so we will just work on the 1/3
    contingent fee.” The letter concludes, “We also need your New York City address for client contact
    purposes.”
    ¶ 10   On October 31, 2017, the case was assigned to Judge Allen Price Walker. Judge Walker’s
    award of fees and costs became enmeshed in the parties’ settlement of the medical malpractice
    claims, so we set out these events together
    ¶ 11   On December 27, 2017, the parties participated in a mediation. Following the mediation,
    defendants offered to settle the malpractice case for $550,000. OLG agreed to this amount on Ms.
    Bedin’s behalf via email, though she was not part of the email thread. It then sent notice of its
    attorney’s lien to Dr. Mueller’s and Dr. Wallner’s insurer’s attorney.
    ¶ 12   On January 22, 2018, OLG sent Ms. Bedin an email advising her to set up a trust to protect
    funds from the settlement that would be distributed to Ms. Bedin’s brother, Alexander, who,
    according to the email, was disabled and would, absent a trust, lose much of the proceeds to
    Medicare. In the email, OLG also asked Ms. Bedin to “[c]all [OLG] to discuss all this sometime
    TODAY.” Ms. Bedin responded saying she would call in 30 minutes.
    ¶ 13   Near the end of the workday, OLG emailed Ms. Bedin again saying,
    “Jan, I haven’t heard from you as promised. I don’t know what your intentions are.
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    No. 1-22-1000
    *** And, so we are clear, if you are balking at my fees, I need to know that also. If I charge
    you by the hour, which I can do, the fees would be greater than the reduced amount I am
    proposing.”
    ¶ 14   After the workday, Ms. Bedin responded saying she would call in 15 minutes. In its brief,
    OLG states that Ms. Bedin did not call.
    ¶ 15   On January 24, 2018, individual defendant Elisabeth Wallner, M.D., filed a motion to
    enforce the previously agreed settlement and obtain dismissal.
    ¶ 16   At the hearing to review the reported settlement, Judge Walker considered both Dr.
    Wallner’s motion and a separate motion, filed by OLG, titled “Plaintiff’s Petition To Approve
    Wrongful Death Settlement and Proposed Distribution.” The motion included a request for fees
    and costs. There is no transcript in the record of this hearing, but in its brief, OLG represents that
    it orally advised the circuit court that Ms. Bedin objected to the payment of expenses and that she
    wanted to consult another attorney. The circuit court continued the matter.
    ¶ 17   On January 29, 2018, Judge Walker dismissed the case with prejudice in light of the
    settlement. According to OLG’s brief, the court also contacted OLG and told it to remove a few
    minor expenses from a list of costs. OLG then submitted an amended petition with the requested
    expenses removed. OLG also added language to the amended petition noting that Ms. Bedin “will
    no longer cooperate in final resolution, [and OLG therefore] requests [the] Court to approve
    settlement and proposed distribution as set forth.” OLG further stated that it agreed with Ms. Bedin
    to reduce its contingent award from one-third to 30%.
    ¶ 18   On January 31, the circuit court granted an order approving the settlement and finding that
    OLG and Ms. Bedin “entered into an agreement” for a 30% contingent fee in the amount of
    $165,000. The court also approved the distribution of $90,283.90 for fair and reasonable expenses.
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    No. 1-22-1000
    It retained jurisdiction for purposes of enforcing the settlement and adjudicating any liens. Lastly,
    the settlement was made subject to approval of the probate division of the Circuit Court of
    Winnebago County.
    ¶ 19   A hearing for status on the execution of the settlement release and enforcement was
    continued three times until it was finally held on March 23, 2018. According to the transcript of
    that hearing, Ms. Bedin arrived late. Before her arrival, an OLG attorney stated, “Judge, I feel
    awful that we’re wasting the Court’s time I apologize to counsel here, as well. And if we continue
    this until Monday, [Ms. Bedin] might not be on time *** again. So I just want to put that out there.”
    ¶ 20   The court delayed the hearing until Ms. Bedin arrived. When the hearing began, Ms. Bedin
    expressed concern over whether the settlement would release defendants from liability in a
    separate action. She also stated that she was concerned about “the distribution of fees and
    expenses.” She requested a continuance to have time to consult with a separate attorney. The court
    admonished Ms. Bedin, stating that she already had time to consult a separate attorney during the
    previous continuances.
    ¶ 21   OLG then articulated its position that the complaint was filed on behalf of Dolores’s estate,
    of which Ms. Bedin was only an administrator and agent of the court. As such, and considering
    Ms. Bedin’s brother who stood to benefit, the court had authority to act in the best interest of the
    estate and enforce the settlement whether Ms. Bedin signed the release or not. Ms. Bedin asserted
    that concern for her brother was the reason that she wanted time to consult with an attorney.
    ¶ 22   At that hearing, OLG conceded that it did not have a written agreement with Ms. Bedin. It
    argued that it was instead “essentially [a] third-party beneficiary” of the agreements between Ms.
    Bedin and the previous firms. Ms. Bedin protested, asserting that she did not know that the costs
    had reached over $90,000. OLG contended that it had sent Ms. Bedin numerous emails and oral
    5
    No. 1-22-1000
    communications keeping her informed of the costs.
    ¶ 23    During the hearing, the court allowed Ms. Bedin to call Darlene Soderberg, an attorney
    who, over the phone, represented to the court that she was licensed to practice law in Illinois. The
    court explained the background of the dispute between OLG and Ms. Bedin and told Ms.
    Soderberg that, in the absence of an agreement, reasonable fees could still accrue to OLG based
    on quantum meruit. The court added that it did not believe the fees would be “substantially
    different” based on quantum meruit rather than a written agreement. The two would “come out to
    be pretty close.” The court did not, therefore, see a reason it would not sign the release on behalf
    of Dolores’s estate.
    ¶ 24    The transcript records that a conversation between Ms. Bedin and Ms. Soderberg was had
    off record, after which the court asked Ms. Bedin if she was going to sign the release. Ms. Bedin
    did not respond affirmatively. At that point, the court announced that it would sign the release on
    behalf of the estate.
    ¶ 25    On March 28, 2018, Ms. Bedin filed an unsigned pro se “Emergency Motion In Opposition
    To The Proposed Distribution ***” and a separate “Emergency Motion In Opposition To The Full
    Release ***.” In these, Ms. Bedin argued that costs should be deducted from OLG’s fees. She
    stated “[T]he only dispute that exists between Janet Bedin and Attorney O’Connor is in regard to
    whether expenses are to be paid out of the contingency fee of $165,000.” She further argued that
    the settlement contained multiple inaccuracies including that the release asserted that it was signed
    on behalf of Ms. Bedin.
    ¶ 26    The circuit court denied both of Ms. Bedin’s motions. It instead directed the parties to
    revise the release to add language specifying that the court would sign pursuant to Will v.
    Northwestern University, 
    378 Ill. App. 3d 280
     (2007), a case in which we affirmed the circuit
    6
    No. 1-22-1000
    court’s actions preventing a plaintiff from rejecting a settlement in a wrongful death suit that
    benefited the estate.
    ¶ 27      On April 6, 2018, OLG filed a motion titled “Plaintiff’s Motion To Execute Settlement
    Release And Enforce Settlement.” In the motion, OLG stated that it “believe[d] that Janet Bedin
    [would] never execute the Settlement Release,” she was “simply not capable of making reasoned
    decisions about this litigation,” and the interests of Alexander and Ms. Bedin were “at odds at this
    point.”
    ¶ 28      On April 9, 2018, the circuit court, defendants, and OLG executed the settlement. On April
    25, 2018, the probate court in Winnebago County approved the settlement. It later entered an order
    directing distribution of funds to OLG for partial reimbursement of litigation expenses
    (Distribution Order).
    ¶ 29      Ms. Bedin filed a motion in Winnebago County to reconsider the Distribution Order. Ms.
    Bedin also filed a motion in the Circuit Court of Cook County to reconsider the court’s April 9
    order approving execution of the settlement agreement. She argued in that motion that OLG should
    receive roughly half of the original amount of calculated expenses, $45,000, as reimbursement for
    costs, in addition to its $165,000 contingent fee. The Cook County circuit court denied the motion.
    ¶ 30      On June 4, 2018, OLG filed a motion in Cook County to enforce an attorney’s lien. It
    sought an order directing defendants to issue three checks—one to Ms. Bedin, one to Dolores’s
    estate, and one to OLG directly. The circuit court granted the motion.
    ¶ 31      On July 20, 2018, Ms. Bedin filed a notice of appeal in Cook County objecting to the
    following six circuit court orders: (1) the January 31 order approving settlement; (2) the March 23
    order granting motions to enforce the settlement and finding that OLG’s proposed attorney fees
    and litigation expenses were reasonable; (3) the March 28 order denying Ms. Bedin’s emergency
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    No. 1-22-1000
    motions in opposition to the full release and settlement; (4) the April 9 order approving execution
    of the settlement agreement; (5) the May 30 order denying Ms. Bedin’s motion to reconsider; and
    (6) the June 20 order directing defendants to re-issue settlement drafts in the name of OLG and
    enforce OLG’s attorney’s lien.
    ¶ 32   In a summary order, we dismissed Ms. Bedin’s July 20 appeal as premature on the basis
    that Ms. Bedin’s motion to reconsider the Winnebago County court’s Distribution Order rendered
    the Circuit Court of Cook County’s ruling—which was subject to approval by the Winnebago
    County probate court—neither final nor appealable. Bedin v. Mueller, No. 1-18-1556 (2019)
    (unpublished summary order under Illinois Supreme Court Rule 23(c)).
    ¶ 33   The probate court in Winnebago County entered a final order on June 2, 2022. Ms. Bedin
    then filed a new notice of appeal.
    ¶ 34                                    II. JURISDICTION
    ¶ 35   Ms. Bedin appeals the circuit court’s award of fees and expenses initially entered on
    January 31, 2018, and made contingent upon approval by the probate court of Winnebago County
    administering Delores’s estate. The action in Winnebago County was not finalized until June 2,
    2022. Ms. Bedin filed a timely notice of appeal on July 5, 2022. This court has jurisdiction over
    the appeal pursuant to Illinois Supreme Court Rule 301 (eff. Feb. 1, 1994) and Rule 303 (eff. July
    1, 2017), governing appeals from final judgments entered by the circuit court in civil cases.
    ¶ 36                                      III. ANALYSIS
    ¶ 37   On appeal, Ms. Bedin argues we should reverse the circuit court’s award of both costs and
    fees because (1) no enforceable agreement exists between herself and OLG, (2) OLG is not a
    third-party beneficiary of Ms. Bedin’s prior agreements with other firms, (3) the circuit court erred
    in raising quantum meruit as an alternative basis to support its award, and (4) the circuit court
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    No. 1-22-1000
    failed to consider necessary factors when calculating fees based on quantum meruit.
    ¶ 38   OLG acknowledges that it had no written agreement with Ms. Bedin and has abandoned
    its argument that it was a beneficiary of earlier written agreements. Instead, OLG argues that the
    award of both fees and costs was appropriate under quantum meruit, the Attorneys Lien Act (730
    ILCS 5/1 (West 2016)), and the common fund doctrine. OLG further argues that Ms. Bedin’s
    concession in the circuit court that the only dispute that existed between her and the firm was “in
    regard to whether expenses are to be paid out of the contingency fee of $165,000” bars her from
    raising any objection as to the amount of the fee award. OLG lastly contends in its brief and in a
    separate motion to dismiss that Ms. Bedin’s claims are barred by res judicata—based on the
    dismissal of a case that she and her brother initiated against OLG in Cook County and objections
    that she filed in the Winnebago County probate action.
    ¶ 39   Ms. Bedin did not file a reply brief and thus does not respond to several of these arguments.
    Because we find that the circuit court neither erred in awarding fees and costs based on a theory
    of quantum meruit nor abused its discretion in the amount that it calculated, we have no need to
    address OLG’s remaining arguments.
    ¶ 40       A. Fees and Costs Were Properly Awarded on the Basis of Quantum Meruit
    ¶ 41   We agree with Ms. Bedin, and indeed there is no dispute, that the award of fees and costs
    in this case cannot be based on an enforceable agreement between the parties. Rule 1.5(c) of the
    Illinois Rules of Professional Conduct of 2010 (ethics code)—now Rule 1.5(d)(2) (Ill. R. Prof’l
    Conduct R. 1.5(d)(2) (eff. July 1, 2023)—requires attorneys to reduce contingent fee agreements
    to a writing “signed by the client.” Ill. R. Prof’l Conduct R. 1.5(c) (eff. Jan. 1, 2010). The rule is
    “mandatory” and “contains no exception.” In re Spak, 
    188 Ill. 2d 53
    , 67 (1999).
    ¶ 42   As the March 23 transcript makes clear, however, the existence of a purported agreement
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    No. 1-22-1000
    was not the final basis on which fees were awarded. Rather, the award was based on the equitable
    doctrine of quantum meruit.
    ¶ 43   It is well established that a party may bring a quantum meruit claim where, as here, there
    is no valid or enforceable contract. Seiden Law Group, P.C. v. Segal, 
    2021 IL App (1st) 200877
    , ¶ 24. The term quantum meruit “literally means ‘as much as he deserves.’ ” Much Shelist
    Freed Denenberg & Ament, P.C. v. Lison, 
    297 Ill. App. 3d 375
    , 379 (1998) (citing First National
    Bank v. Malpractice Research, Inc., 
    179 Ill. 2d 353
    , 365 (1997)). “In a quantum meruit action, the
    measure of recovery is the reasonable value of work and material provided.” (Internal quotation
    marks omitted.) Seiden, 
    2021 IL App (1st) 200877
    , ¶ 31.
    ¶ 44   Ms. Bedin argues the circuit court erred in finding quantum meruit provided a basis for the
    award of fees and costs because OLG never made a claim for quantum meruit. Rather, the idea
    was initially posed by the court. She offers no support and we have found none that suggests a
    party must make a formal claim for quantum meruit to be entitled to such an award.
    ¶ 45   Ms. Bedin also argues that OLG is barred from such an award by its own conduct including
    violating the ethics code by not obtaining a signed contingency agreement, failing to disclose the
    lack of a signed agreement, and its poor treatment of Ms. Bedin as the client.
    ¶ 46   As Ms. Bedin points out, where the underlying contract is unenforceable as a matter of
    public policy, “the plaintiff will not be aided in circumventing the contract by recovering under
    the equitable theory of quantum meruit.” (Internal quotation mark omitted.) Seiden, 
    2021 IL App (1st) 200877
    , ¶ 26. Thus, we must determine whether, in this case, OLG’s conduct precludes any
    award of fees and costs based on quantum meruit.
    ¶ 47   There is a split of authority as to the standard of review we should apply to this question.
    In Andrew W. Levenfeld & Associates, Ltd. v. O’Brien, 
    2023 IL App (1st) 211638
    , ¶ 34, appeal
    10
    No. 1-22-1000
    allowed, No. 129599 (Ill. Sep. 27, 2023), we held that “[w]hether a particular remedy is precluded
    as a matter of law is an issue we review de novo.” In Anderson v. Anchor Organization for Health
    Maintenance, 
    274 Ill. App. 3d 1001
    , 1006-07 (1995), we applied an abuse of discretion standard,
    reasoning that certain factors such as an assessment of the integrity of the law firm’s actions in the
    underlying suit may require increased deference. In this case, the standard of review does not affect
    the outcome. Even under a de novo standard, we hold that an award based on quantum meruit is
    appropriate.
    ¶ 48      As support for her argument that quantum meruit should not apply because of OLG’s
    violation of Rule 1.5, Ms. Bedin cites Leoris v. Dicks, 
    150 Ill. App. 3d 350
     (1986), Licciardi v.
    Collins, 
    180 Ill. App. 3d 1051
     (1989), American Home Assurance Co. v. Golomb, 
    239 Ill. App. 3d 37
     (1992), and First National Bank of Springfield v. Malpractice Research, Inc., 
    179 Ill. 2d 353
    (1997).
    ¶ 49      These cases recognize that forming illegal, unethical, and unenforceable contracts may bar
    a firm from obtaining attorney fees on a theory of quantum meruit. In Leoris, 
    150 Ill. App. 3d at 354
    , we held that quantum meruit was barred where a discharged attorney sought payment from a
    succeeding firm based on the percentage of the final recovery rather than the value of the work
    contributed. In Licciardi, 
    180 Ill. App. 3d at 1061
    , we denied an attorney compensation where the
    lawyer sought to obtain a contingent financial interest in a case involving the domestic division of
    marital property. In American Home Assurance Co., 293 Ill. App. 3d at 44, we denied recovery in
    quantum meruit where the lawyer attempted to contract for fees exceeding statutory caps. In First
    National Bank of Springfield, 
    179 Ill. 2d at 366
    , our supreme court barred recovery based on
    quantum meruit for a witness finder firm that contracted to obtain a contingent fee for securing
    expert witnesses in a medical malpractice case. The supreme court held that quantum meruit could
    11
    No. 1-22-1000
    not apply both because the company failed to show its activities conferred any benefit on the
    plaintiffs and because the underlying contract was illegal. 
    Id.
    ¶ 50    While unethical conduct may bar recovery in quantum meruit, “[w]hether quantum meruit
    recovery is barred *** depend[s] on the egregiousness of the particular conduct involved.” Much
    Shelist Freed Denenberg & Ament, P.C., 
    297 Ill. App. 3d at 381
    . As we noted in American Home
    Assurance Co., 239 Ill. Ap. 3d at 43-44, there is a difference between applying quantum meruit
    where recovery on the original contract fails due to “unintentional” errors or “minor technical
    deficiencies,” as opposed to conduct that is best described as “[not] innocent.”
    ¶ 51    In each of Ms. Bedin’s cited cases, the attorneys entered into illegal and unethical contracts.
    Here, OLG’s ethical violation is of a different kind. The original agreement, had it been reduced
    to writing, would have been enforceable. Nothing about it would have been illegal, unethical, or
    unusual. There is nothing in the substance of the agreement between Ms. Bedin and OLG that
    violates the rules of ethics.
    ¶ 52    The situation is similar to Levenfeld, 
    2023 IL App (1st) 211638
     and Seiden, 
    2021 IL App (1st) 200877
    . In Levenfeld, two law firms violated Rule 1.5(e) of the ethics code (Ill. R. Prof’l
    Conduct R. 1.5(e) (eff. Jan. 1, 2010)) by failing to specify how the firms would split the
    contingency fee (Levenfeld, 
    2023 IL App (1st) 211638
    , ¶ 1). On appeal, we held that the ethical
    violation rendered the underlying retainer agreement unenforceable, but the firms were still
    entitled to an award in quantum meruit. Id. ¶ 57.
    ¶ 53    Seiden, 
    2021 IL App (1st) 200877
    , addressed whether compensation based on
    quantum meruit was appropriate where an attorney neglected to enter the number of the contingent
    percentage fee owed in the underlying retainer. 
    Id. ¶ 4
    . The omission violated Rule 1.5(c) of the
    ethics code (id. ¶ 22) and rendered the agreement unenforceable (id. ¶ 20). The firm, however, was
    12
    No. 1-22-1000
    able to recover in quantum meruit because the underlying contract’s failure was more of a function
    of “carelessness and sloppy contract formation” rather than the type of unethical conduct that
    would foreclose compensation. 
    Id. ¶ 28
    . We further noted that “courts generally find an implied
    promise to pay reasonable compensation for services rendered by [an] attorney” and “an attorney
    who renders professional services has a right to be compensated for such services.” (Internal
    quotation marks omitted.) 
    Id. ¶ 25
    .
    ¶ 54   Here, OLG’s conduct is akin to that of the attorneys in Levenfeld and Seiden rather than
    Leoris, Licciardi, American Home Assurance Co., or First National Bank of Springfield. Like the
    former cases, OLG failed to comply with Rule 1.5 of the ethics code. Both Ms. Bedin and OLG,
    however, operated with the understanding that OLG would be paid for its work. In failing to reduce
    this understanding to a signed written agreement that made it clear that Ms. Bedin would remain
    responsible for costs incurred, OLG’s behavior violated Rule 1.5. This violation is most accurately
    described as careless, not duplicitous. As both Levenfeld and Seiden make clear, a violation of this
    sort does not rise to the level of misconduct that will foreclose remuneration.
    ¶ 55   Ms. Bedin argues that OLG engaged in duplicitous behavior by failing to fulfil its
    obligation of candor to the court. But the record does not support this claim. While OLG’s initial
    petition to approve settlement did state that fees were owed on the basis of an agreement between
    Ms. Bedin and OLG, OLG readily conceded at the March 23 hearing, and in the only transcript
    available to us on appeal, that no agreement was ever reduced to writing.
    ¶ 56   There are no transcripts for most of the interim court hearings. So we are not sure what
    representations were made. It was Ms. Bedin’s burden to present a sufficiently complete record to
    support her claim. Chicago Title & Trust Co., Trustee Under Trust No. 89-044884 v. Chicago
    Tittle & Trust Co., Trustee Under Trust No. 1092636, 
    248 Ill. App. 3d 1065
    , 1075 (1993) (citing
    13
    No. 1-22-1000
    Foutch v. O’Bryant, 
    99 Ill. 2d 389
    , 391-92 (1984)). Thus, “any doubts which may arise from the
    incompleteness of the record [are] resolved against the appellant.” 
    Id.
    ¶ 57   Ms. Bedin devotes significant portions of her brief describing OLG’s “belittling” attitude
    toward her. She notes multiple interactions between herself and OLG, including the tone of OLG’s
    October letter, its email pressuring her to accept the settlement, its colloquy with the court before
    her arrival on March 23, and the fact that OLG sent multiple communications to Ms. Bedin at a
    Rockford address, even though OLG had her email address and stated in one of its letters that it
    understood that she lived in New York.
    ¶ 58   It is clear in the record that there was a serious breakdown in the attorney-client relationship
    between OLG and Ms. Bedin. Nothing in OLG’s conduct, however, rises to the level of unethical
    behavior that would support a conclusion that OLG does not deserve compensation for the benefit
    it undoubtedly conferred on Dolores’s estate.
    ¶ 59   Ms. Bedin argues that, if we affirm the circuit court’s decision, we will contravene In re
    Spak, 188 Ill 2d at 67. That was the case in which our supreme court held that contingent fee
    agreements must be put in writing, without exception, lest a client be put in the unenviable position
    of disagreeing with an attorney’s “recollection of the fee agreement” and thereby occupy a position
    of unequal “bargaining power.” 
    Id.
     Our decision here follows In re Spak and recognizes that the
    unsigned fee agreement is not enforceable. In re Spak, however, says nothing about awarding fees
    in quantum meruit where no written agreement exists. As we recognized in both Levenfeld and
    Seiden, the fact that the agreement was not enforceable and violated Rule 1.5 is not a bar to an
    award of fees based on quantum meruit.
    ¶ 60   B. Ms. Bedin Has Forfeited Any Claim that The Circuit Court’s Calculation of Fees Was
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    No. 1-22-1000
    an Abuse of Discretion
    ¶ 61   On appeal, Ms. Bedin argues the circuit court did not have evidence upon which to
    calculate an award of fees based in quantum meruit. It instead engaged in what she describes as a
    “casual valuation of services to overwhelm the objection of [Attorney Soderberg] that no
    enforceable contract existed.” She contends that the burden was on OLG to prove the value of its
    services based on a number of factors. See In re Estate of Callahan, 144 Ill. 2d. 32, 44 (1991)
    (citing Mireles v. Indiana Harbor Belt R.R. Corp., 
    154 Ill. App. 3d 547
    , 551 (1987)) (listing
    relevant factors including “the skill and standing of the attorney employed, the nature of the case
    and the difficulty of the questions at issue, the amount and importance of the subject matter, the
    degree of responsibility involved in the management of the case, the time and labor required, the
    usual and customary fee in the community, and the benefit resulting to the client.”).
    ¶ 62   We review a circuit court’s calculation of attorney fees and costs for an abuse of discretion.
    See DeLapaz v. SelectBuild Construction., Inc., 
    394 Ill. App. 3d 969
    , 972 (2009) (on fees);
    Guerrant v. Roth, 
    334 Ill. App. 3d 259
    , 272 (2002) (on costs). “A trial court abuses its discretion
    if ‘no reasonable person would take the view adopted by the trial court.’ ” DeLapaz, 
    394 Ill. App. 3d at
    972 (citing In re Marriage of Heroy, 
    385 Ill. App. 3d 640
    , 651 (2008)).
    ¶ 63   We agree with OLG that Ms. Bedin has forfeited any right to contest the amount of fees
    awarded by her failure to raise this issue below. As the firm notes, Ms. Bedin advised the circuit
    court that the only issue between the parties was the amount of costs that OLG sought to have the
    estate pay out of the settlement. It is well settled that arguments not raised in the circuit court are
    forfeited on appeal. Bonner v. City of Chicago, 
    334 Ill. App. 3d 481
    , 487 (2002) (citing In re
    Liquidations of Reserve Insurance Co., 
    122 Ill. 2d 555
    , 568 (1988)).
    ¶ 64   Ms. Bedin’s conduct may also amount to an invited error. Under the invited error doctrine,
    15
    No. 1-22-1000
    “a party cannot complain of [an] error which that party induced the court to make or to which that
    party consented.” In re Detention of Swope, 
    213 Ill. 2d 210
    , 217 (2004). In this case, Ms. Bedin’s
    advised the court that there was no dispute as to the amount of fees and certainty signaled to the
    circuit court that a detailed showing of the various factors that courts will consider in making a
    quantum meruit award was not necessary.
    ¶ 65   As OLG points out, there have also been cases in which we have upheld a quantum meruit
    award based on a percentage of recovery, rather than a calculation based on the factors listed in
    Callahan. See Wegner v. Arnold, 
    305 Ill. App. 3d 689
    , 693 (1999); Will, 
    378 Ill. App. 3d at 304
    ;
    DeLapaz, 
    394 Ill. App. 3d at 976
    .
    ¶ 66   However, in Levenfeld, 
    2023 Il App (1st) 211638
    , ¶¶ 34-45, we held that a quantum meruit
    award that was the equivalent to the contingency amount of the unenforceable agreement was
    improper since it was indirectly enforcing an unlawful agreement. This case, however, is
    distinguishable from Levenfeld.
    ¶ 67   In Levenfeld, the parties fully litigated the issue of what amount of fees should be awarded
    based on quantum meruit. Id. ¶¶ 19-24. The circuit court ultimately calculated the quantum meruit
    award based on the parties’ contingent fee agreement (id. ¶ 29) despite having evidence before it
    on “each of the seven factors courts consider in awarding quantum meruit fees” (id.).
    ¶ 68   In this case, in contrast, Ms. Bedin made no arguments in the circuit court as to the amount
    of fees that should be awarded. On the contrary, she advised the court that the only issue was as to
    the award of costs. Thus, the circuit court had no reason to elicit the kind of evidence the court had
    before it in Levenfeld and that our supreme court listed as relevant factors for an award based on
    quantum meruit in Callahan.
    ¶ 69   We also note that the fee awarded appears reasonable based on the factors listed in
    16
    No. 1-22-1000
    Callahan. Indeed, Ms. Bedin makes no argument to the contrary, other than to point out that Judge
    Walker had only been assigned to the case after four years of litigation and three months before it
    had been set for trial. This does not, of course, suggest that Judge Walker was unaware of the
    history of the case or of OLG’s work on it. The record includes detailed information as to OLG’s
    efforts litigating over a roughly three-year period. As described above (see supra ¶ 8), those efforts
    were extensive. The court concluded that the percentage amount was very close to the amount that
    would be appropriate if the factors that are generally considered were used to calculate the fee.
    ¶ 70   In sum, the record fully supports the circuit court’s conclusion that this was a reasonable
    fee and Ms. Bedin has forfeited any claim that OLG needed to further document the amount to
    which they would be entitled in an award based on quantum meruit.
    ¶ 71                 C. The Costs Awarded Were Not an Abuse of Discretion
    ¶ 72   As to the costs awarded, the circuit court had ample evidence before it. OLG represents in
    its brief that the circuit court contacted the firm to request that it remove several minor expenses
    from an initial list submitted as part of its petition to approve settlement. The record reflects that
    OLG then removed $44.02 in expenses as part of its amended petition. The court had before it a
    detailed inventory of litigation costs that began in August 2015 and extended through January
    2018. During the March 23 hearing, the court stated that it “reviewed” and later “re-reviewed the
    [costs] and [did] not find the[m] *** to be unreasonable in light that the bulk of them go to the
    expert.” Where costs are concerned, the circuit court engaged in a thorough evidence-based
    evaluation.
    ¶ 73   On appeal, Ms. Bedin does not list any specific costs that she contends were unreasonable
    or should not have been awarded. Because Ms. Bedin does not contest any of the line items for
    which OLG seeks reimbursement, we have no basis upon which to conclude that no reasonable
    17
    No. 1-22-1000
    person would agree with the circuit court’s calculation.
    ¶ 74   Because we affirm on the basis of quantum meruit, we have no need to reach OLG’s
    additional theories—whether compensation is owed based on its attorney’s lien or the common
    fund doctrine. We also have no need to address that this appeal is barred by res judicata.
    ¶ 75                                   IV. CONCLUSION
    ¶ 76    For the foregoing reasons, we affirm the circuit court’s orders granting an award of both
    fees and costs to OLG as part of its order approving settlement in the underlying medical
    malpractice case.
    ¶ 77   Affirmed.
    18
    

Document Info

Docket Number: 1-22-1000

Citation Numbers: 2024 IL App (1st) 221000-U

Filed Date: 7/12/2024

Precedential Status: Non-Precedential

Modified Date: 7/12/2024