sunEthics

 

Court erred in striking law firm’s charging lien after firm withdrew without cause from part-hourly, part-contingent fee matter.  [Added 5/24/13]

    The Ruden McClosky law firm was retained to represent a client in a suit on an hourly fee basis.  Sometime later the client fell behind in paying the hourly fees, and the firm and the client executed an amended retainer agreement.  The amended agreement provided for a contingent fee for fees incurred after execution of that amended agreement, but specifically provided that the previously billed but unpaid hourly fees were to be paid by the client upon the conclusion of the case.  About a year later the law firm withdrew as counsel and filed a claim of charging lien for the unpaid hourly fees.

    The client’s new counsel moved to strike Ruden McClosky’s charging lien, arguing that the firm “was not entitled to an attorney’s lien because it voluntarily withdrew without cause prior to the occurrence of the contingency and Ruden McClosky did not produce any positive judgment or contribute to the settlement.  The court granted the motion.

    Greenspoon Marder, which had purchased the assets of the bankrupt Ruden McClosky, appealed.  The Third DCA reversed, agreeing with Greenspoon Marder that “even though Ruden McClosky withdrew without cause, the trial court erred by striking the charging lien filed by Ruden McClosky where the charging lien was for hourly fees billed prior to the execution of the amended retainer agreement, and where the amended retainer agreement provides that these previously billed, but unpaid, hourly fees were payable upon conclusion of” the underlying litigation.  The law firm was not seeking payment of a contingent fee (see Faro v. Romani, 641 So.2d 69 (Fla. 1994), but of the unpaid hourly fees.  Greenspoon Marder, P.A. v. Moscoso, __ So.3d __ (Fla. 3d DCA, No. 3D12-1628, 5/15/2013).

 

sunEthics is produced by Tim Chinaris, and hosted by Faulkner University, Thomas Goode Jones School of Law.  Please read our disclaimersSearch our site, or view previously posted summaries using our SUBJECT INDEX.  © 2013