DocketNumber: No. CV 97 0571163 S
Citation Numbers: 2002 Conn. Super. Ct. 15933
Judges: SHAPIRO, JUDGE OF THE SUPERIOR COURT.
Filed Date: 12/12/2002
Status: Non-Precedential
Modified Date: 4/18/2021
The plaintiff, William J. Bumster, filed a four count complaint, dated August 6, 1997. In the first count, he alleges that on July 26, 1994, the defendant, Winston Davis, a.k.a. Winston G. Davis, executed a promissory note, payable to Bumster, in the amount of $600.00. The plaintiff also alleges that the note remains unpaid despite Bumster's demand for payment, which was made on May 19, 1997.
In the second count, Bumster alleges that Davis executed another promissory note, payable to Bumster, on August 20, 1993, in the amount of $2,000.00, which similarly remains unpaid despite the plaintiffs demand for payment, which also was made on May 19, 1997. Bumster alleges that each note provides that if it becomes necessary to retain an attorney to pursue collection, Davis agreed to pay to the plaintiff reasonable attorney's fees and costs of collection.
In the third count, the plaintiff, an attorney, contends that Davis retained him, in a written agreement, to represent Davis in connection with a personal injury claim which stemmed from a March 14, 1992 automobile accident. According to the retainer agreement, copies of which were annexed to the complaint and presented as Plaintiff's Exhibit 3 at the trial, Davis agreed to pay Bumster a fee of "25% of any and all damages I may recover, whether by settlement or otherwise, in the above matter, plus necessary expenses." Bumster asserts that Davis owes to him the amount due for services rendered according to the retainer agreement.
Finally, in the fourth count, Bumster alleges that Davis requested representation in the accident case and agreed to pay a reasonable sum for services rendered, plus costs and expenses incurred in bringing suit CT Page 15934 in that matter. He seeks to recover from Davis the fair value of the work and services performed, plus costs and disbursements. Bumster also seeks prejudgment interest.
In response to the complaint, Davis filed his answer, dated September 23, 1997 (#117). As to the promissory notes, Davis admits that he executed them, that the demands for payment were made, and that they remain unpaid. He also admits that Bumster rendered services to Davis pursuant to the retainer agreement. As to Bumster's other allegations, Davis has left him to his proof.
Bumster and Davis were the only witnesses who testified at trial. Documentary evidence was also presented. The court makes the following findings and credits the following evidence, except as noted.
Plaintiff's Exhibit 4 is a copy of letter, dated May 19, 1997, from Bumster to Davis, in which Bumster made demand on Davis for payment of $2,600.00, the total principal amount due under the notes. As discussed above, in his answer, Davis admitted that demand was made on that date. The court finds that Davis is liable to Bumster for the principal sums due on the promissory notes, $2,600.00.
In addition, pursuant to the terms of the promissory notes, Bumster claims attorney's fees, in the amount of $520.00, based on what he claims to be the "customary 20% award." See plaintiffs post-trial memorandum of law, p. 2.
"Where a contract expressly provides for the recovery of attorney's fees, an award under such a clause requires an evidentiary showing of reasonableness. . . . A trial court may rely on its own general knowledge CT Page 15935 of the trial itself to supply evidence in support of an award of attorney's fees. . . . Because the trial court is in a more advantageous position to evaluate the services of counsel than a reviewing court, [tlhe amount of attorney's fees to be awarded rests in the sound discretion of the trial court and will not be disturbed on appeal unless the trial court has abused its discretion." (Citations omitted and internal quotation marks omitted.) Rizzo Pool Co. v. Del Grosso,
As our Supreme Court recently noted, the amount of time and labor spent is one factor which the court may consider in awarding a reasonable attorney's fee. See Shapero v. Mercede,
While the plaintiff has not itemized the services performed by his attorney in the pursuit of collection of the amounts due on the promissory notes, the court has before it the file. From that and its knowledge of the trial, it can estimate the number of attorney hours devoted thereto. See Appliances, Inc. v. Yost,
Here, at the close of the evidentiary presentation at trial, the parties agreed to submit posttrial briefs in lieu of oral argument. As noted, in his brief, the plaintiff contends that the current customary fee is twenty per cent of the debt. The court may consider a contention in a brief as evidence in determining an attorney's fee award. SeeAppliances, Inc. v. Yost, supra,
Based on the evidence, including the file, the trial, and the post-trial memorandum submitted by the plaintiff, the court concludes that the amount requested as attorney's fees, $520.00, represents a reasonable attorney's fee in connection with the claims made on the promissory notes. Thus, this amount is found to be due to Bumster from Davis, in addition to the amounts due on the first and second counts, $600.00 and $2,000.00.
In addition, in view of the confidential relationship which exists between attorney and client, agreements between them are subject to special scrutiny. "Contracts between attorney and client fall naturally into at least two categories: (1) those made before the relationship of attorney and client has commenced or after the relationship has terminated; and (2) those made during the relationship. . . . Courts of equity scrutinize transactions made between attorney and client during the existence of the relationship with great care and if there are doubts they will be resolved in favor of the client. . . . Nevertheless, an attorney is not prohibited from contracting with his client respecting his fees, and a contract thus made after the commencement of the relationship of attorney and client is not per se void but will by reason of the confidential nature of the relationship be closely scrutinized by the court. No undue advantage can be taken of the relationship of attorney and client in order to procure such a contract; but where the parties are free to contract, their agreement should not be set aside or the agreed compensation withheld unless fraud has been perpetrated, undue influence exerted, material facts affecting the subject matter misrepresented or suppressed, or advantage taken of a position of confidence and trust to obtain an unconscionable advantage over the party, in which case a court of equity may grant relief from such oppression, and the attorney will be confined to a reasonable charge for compensation without regard to the attempted fixation of the value of his services." (Citations omitted and internal quotation marks omitted.)Noble v. White,
Bumster has known Davis and members of his family for over twenty years. Bumster had represented Davis on other matters prior to the signing of the retainer agreement in March, 1992. After entering into the retainer agreement, under which Bumster agreed to pursue the personal injury claim for Davis, he filed a civil action, Davis v. McBride, Docket No. CV-94-0460588S, in the Superior Court at New Britain, in which he sought to recover damages for Davis. Eventually, he claimed the case to the trial list. Afterwards, he attended a pre-trial conference at the court house, at which an offer to settle Davis' claim for a total amount of $15,872.52 was presented. Bumster then communicated this proposal to Davis.1
Davis was not satisfied with the amount and requested Bumster to pursue lost earnings as part of the damages claims. Bumster declined to do, for ethical reasons. Bumster did not pursue the issue since he knew that CT Page 15937 Davis was not employed and was conducting his television repair business "under the table," without filing tax returns. Previously, in response to a discovery request, Davis had stated that he had no lost wages claim. Bumster was also concerned that, if a lost wages claim was presented, Davis would face exposure for income tax evasion.2 In addition, the settlement value of the case was reduced by the fact that Davis' post-incident medical history included treatment unrelated to the March, 1992 accident.
The trial of Davis v. McBride, which had been scheduled, was postponed in order for Davis to retain a new attorney. Davis consulted with another attorney, who did not take the case. At the time of the new trial date, Davis did not have another attorney. In view of the conflict which had developed between Bumster and Davis, Bumster moved the court for permission to withdraw as Davis' attorney on the personal injury action. His motion to withdraw was granted. See partial transcript of proceedings of May 8, 1997, p. 25, annexed to Davis' memorandum of law.3 Thereafter, Davis accepted the previously made settlement offer and received the proceeds thereof. Bumster sent his demand letter of May 19, 1997 after his motion to withdraw was granted. Thereafter, on June 6, 1997, he filed in this court an application for a prejudgment remedy.4
"The fundamental purpose of a special defense, like other pleadings, is to apprise the court and opposing counsel of the issues to be tried, so that basic issues are not concealed until the trial is underway." Bennettv. Automobile Ins. Co. of Hartford,
However, at trial, no objection was made to Davis' testimony on the CT Page 15938 ground that no special defense alleging duress was filed. Accordingly, the court treats the failure to file a special defense as having been waived. See Statewide Grievance Committee v. Presnick,
"For a party to demonstrate duress, it ``must prove [1] a wrongful act or threat [2] that left the victim no reasonable alternative, and [3] to which the victim in fact acceded, and that [4] the resulting transaction was unfair to the victim.' Barbara Weisman. Trustee v. Kaspar,
The court does not credit Davis' testimony to the effect that he was somehow compelled to settle Davis v. McBride because Bumster refused to take the case to trial. Davis testified that he had the opportunity to seek other counsel. As noted, the attorney whom he consulted declined to represent him on the matter. In his testimony, Davis acknowledged that the court permitted Bumster to withdraw as his counsel. This is confirmed by the transcript of the proceedings of May 8, 1997, cited above. Davis has not proved that Bumster committed a wrongful act. He has not shown that he had no reasonable alternative. He also has not shown that the resulting transaction, the settlement of Davis v. McBride, was unfair to Davis, in that the settlement which Davis agreed to and received the benefits of was for an amount less than his claim was actually worth. SeeBourquin v. Vuto, Superior Court, judicial district of Windham at Putnam, Docket No. CV97-0056274 (April 25, 2000, Potter, J.) (settlement not the product of duress).
Bumster did not breach the retainer agreement. "[T]he relationship between an attorney and client must involve personal integrity and responsibility on the part of the lawyer and an equal confidence and trust on the part of the client. . . . The relationship between an attorney and his client is highly fiduciary in its nature and of a very delicate, exacting, and confidential character, requiring a high degree of fidelity and good faith." (Citations omitted; footnote omitted; and internal quotation marks omitted.) Matza v. Matza,
As our Supreme Court has stated, in certain situations an attorney has an ethical duty to seek the court's permission to be relieved of his obligation to represent a client. "Trial counsel. had an ethical obligation to seek to withdraw from their representation of the defendant if they perceived any breach in their duty of undivided loyalty to their client or if any ethical rule would be violated by their continued representation. If an unforeseen conflict arises after representation has been undertaken, an attorney should withdraw from the representation of the client. [Rules of Professional Conduct, Rule 1.7, comment]; see also Rules of Professional Conduct, Rule 1.16." (Internal quotation marks omitted.) State v. Webb,
Rule of Professional Conduct 1.16(a), concerning declining or terminating representation, provides, in pertinent part, "Except as stated in subsection (c) [concerning an order by a tribunal], a lawyer shall not represent a client or, where representation has commenced, shall withdraw from the representation of a client if: (1) The representation will result in violation of the Rules of Professional Conduct or other law. . . ." Also, the rule further provides that an attorney may withdraw if "[t]he client persists in a course of action involving the lawyer's services that the lawyer reasonably believes is criminal or fraudulent. . . ." Rule of Professional Conduct 1.16(b) (1).
The Rules of Professional conduct do not permit an attorney to advance a frivolous issue. Rule of Professional Conduct 3.1 provides, in pertinent part, "[a] lawyer shall not bring or defend a proceeding, or assert or controvert an issue therein, unless there is a basis for doing so that is not frivolous, which includes a good faith argument for an extension, modification or reversal of existing law." The commentary to the rule explains the meaning of "frivolous" in this context. An action is frivolous "if the lawyer is unable either to make a good faith argument on the merits of the action taken or to support the action taken by a good faith argument for an extension, modification or reversal of existing law." Commentary, Rule of Professional Conduct 3.1.
Here, Bumster reasonably concluded that he would be violating the Rules of Professional Conduct if he pursued the lost wages claim sought by Davis. Accordingly, when Davis persisted in seeking him to pursue the claim, he sought permission to withdraw, which was granted.
While an attorney who withdraws without good cause may forfeit a claim to a fee, that is not the situation before the court. See Beck Eldergill, P.C. v. Nevins, Superior Court, judicial district of Hartford-New Britain at Hartford, Docket No. CV95-0551057 (May 20, 1997, Wagner, J.). There should be no penalty meted out to an attorney for CT Page 15940 compliance with the ethical obligations prescribed by the rules.
In addition, there is no evidence in the record to show that, after the conflict between Bumster and Davis developed, Davis did any work on his own to prepare the case. Rather, it was Bumster's preparation and pursuit of the case as Davis' attorney which resulted in the presentation of the settlement offer by the defense in Davis v. McBride. Where an attorney has represented a client in accordance with a contingent fee agreement, such as the retainer agreement in evidence here, resulting in a settlement accepted by the client, the attorney is entitled to be compensated. See Gagne v. Vaccaro,
Certain special defenses are enumerated in Practice Book §
As noted, the argument that Bumster agreed to forego his fee was presented in Davis' post-trial memorandum of law. This brief was submitted, according to the schedule established at trial, after the submission of Bumster's memorandum. The court has not received an objection from Bumster to the raising of this contention in Davis' memorandum. Accordingly, the court treats the failure to file a special defense as having been waived. See Statewide Grievance Committee v.Presnick, supra,
"Waiver is the intentional relinquishment of a known right." WadiaEnterprises, Inc. v. Hirschfeld,
Waiver "need not be express, but may consist of acts or conduct from which a waiver may be implied. . . . In other words, waiver may be inferred from the circumstances if it is reasonable to do so." (Internal quotation marks omitted.) Wadia Enterprises, Inc. v. Hirschfeld, supra,
With those principles in mind, the court again refers to the transcript of May 8, 1997 in Davis v. McBride. After discussion of the settlement of Davis' claim against McBride, in which Davis agreed to sign a withdrawal and a release (see p. 24 of the transcript), the following colloquy with the court (Keller, J.) occurred:
"Mr. Bumster: May I ask the Court a question?
The Court: Yes.
Mr. Bumster: What about the time that I have worked on this file and what about my costs and so forth and so on?
The Court: Attorney Bumster, you can't have it both ways. You asked to get out, I let you out.
Mr. Bumster: All right, but I certainly am entitled to get my costs back for all the medical reports, the sheriffs fees, the entry fees.
The Court: All right. Then you take that up with Mr. Davis, Attorney Bumster. All right? (Whereupon, Court recessed.)" Transcript of May 8, CT Page 15942 1997, pp. 24-25.
Davis claims, based on this dialogue, that Bumster agreed that he was not entitled to a fee. "Examination of the transcripts is not dispositive of the issue. We were not there and the flavor of the court's remarks cannot be appreciated from reading the cold black and white lines of a transcript. The nuances of voice inflection, gestures and body English are invisible on the pages of a printed transcript." Hill v. Hill,
The fact that Bumster did not intend, by his statements before the court, to agree that he was not entitled to a fee, is borne out by the fact that, less than one month after the court appearance before Judge Keller in New Britain, he filed his application for a prejudgment remedy in this court, in which he sought payment of the fee and reimbursement of costs. His affidavit, dated June 6, 1997, paragraphs
Based on this record, Davis has not proved that Bumster agreed that he was not entitled to a fee. See Pomarico v. Gary Construction, Inc.,
Under the terms of the retainer agreement, Bumster is entitled to receive a fee amounting to 25% of the settlement amount, $15,872.52. Plaintiffs Exhibit 5 provides a summary of the settlement agreement, prepared by Bumster, which includes a calculation of Bumster's fee as resulting in the sum of $3,220.26, exclusive of expenses. This appears to be a compromised fee, somewhat below and not based on 25% of the settlement total, the acceptance of which by Davis would have meant that he would have received a net amount of $8,000.00 from the settlement.5 The sum of $3,220.26 is the amount which Bumster claims, in his post-trial memorandum, p. 2, is due. Accordingly, the court awards this lesser sum. In addition, the agreement provides that Davis also agreed to pay Bumster for the necessary expenses involved. Plaintiffs Exhibit 5 details these expenses, which amounted to $262.74.6 Thus, the total amount due to Bumster from Davis as to the third count of the complaint, which pertains to the retainer agreement, is $3,483.00, representing the total of $3,220.26 plus $262.74.
"The determination is one to be made in view of the demands of justice rather than through the application of an arbitrary rule. . . . A trial court must make two determinations when awarding compensatory interest under §
"The real question in each case is whether the detention of the money is or is not wrongful under the circumstances. . . . Although bad faith is one factor that the court may look at when deciding whether to award interest under §
As to the promissory notes, Davis has conceded that he borrowed the funds memorialized in them and that repayment was not made. Davis' detention of the funds due on the notes had no legal basis and was wrongful. Accordingly, Bumster is entitled to an award of interest as to the money due under the notes. Such interest runs from the date of the demand for payment, May 19, 1997. See Goldman v. Coppola,
"[C]ourts have upheld a trial court's refusal to award such damages where the trial court found that the party who had detained moneys had made good faith arguments in defense of its actions; Maluszewski v.Allstate Ins. Co.,
As of May 19, 1997, the principal debt on the promissory notes was $2,600.00. Through May 18, 2002, the interest on this sum, at the rate of 10% per year is $1,300.00 ($2600.00 x .10 $260.00 x 5 years $1,300.00). Per diem interest of $147.68 ($260.00 divided by 365 days equals $0.71 per day x 208 days $147.68) has accumulated from May 19, 2002 through the date of this memorandum of decision, for a total interest award of $1,447.68.8
BY THE COURT
___________________ ROBERT B. SHAPIRO JUDGE OF THE SUPERIOR COURT
DelVecchio v. DelVecchio , 146 Conn. 188 ( 1959 )
DuBose v. Carabetta , 161 Conn. 254 ( 1971 )
Kozienieski v. Whitcomb , 29 Conn. Super. Ct. 110 ( 1970 )
Jenkins v. Indemnity Insurance Co. of North America , 152 Conn. 249 ( 1964 )
Marcus v. Marcus , 175 Conn. 138 ( 1978 )
Appliances, Inc. v. Yost , 186 Conn. 673 ( 1982 )