A lawyer who terminates representation of a client without just cause is not entitled to any fee if the client later settles her claim the Kentucky Court of Appeals has ruled in Lofton v Fairmont Specialty, 2009-CA-001631 (October 15, 2010).
Attorney Rodger Lofton was hired to represent Denise Maxey on her personal injury claim on a contingent fee basis. Maxey disregarded Lofton's advice to accept a $25,000 settlement offer and, as a result, terminated his representation of her. Maxey hired another lawyer and then settled her claim for the same $25,000 that she had earlier rejected.
Lofton sought to enforce an attorney's fee lien. The trial court allowed him to recover his expenses (about $3600) but denied any fee.
The Kentucky Court of Appeals framed the issue as whether Lofton was entitled to any fee on a quantum meruit basis. The court ruled that Lofton was not because the attorney-client agreement between he and Maxey provided that Maxey and Maxey alone could decide whether to accept a settlement offer and further explained:
Lofton was contractually bound to accept Maxey’s decision as to any possible settlement offer. It is simply incongruous for Lofton to agree to such contractual provision and then to withdraw when Maxey exercised her right under the contract. Lofton could easily have included language reserving his right to withdraw if the client refused to accept a reasonable offer.
Robert L. Abell
www.RobertAbellLaw.com