A Judge’s $1 Ruling
Does Your Lawyer Keep Proper Records?
The North Carolina Court of Appeals recently gave a law firm, which I will call “MDM,” a fee of $1 after the firm was fired by an unhappy client. This is the story of why — and why it’s an important lesson for lawyers and the people who hire them. The client who fired MDM hired a new law firm, which I will call “SLF,” and they settled his case for $100,000. According to the court, MDM’s fee agreement provided that in the event the injured client terminated his contract with MDM after an insurance carrier had made an offer of settlement, the client “would be responsible for 95 percent of plaintiff’s award had a settlement been reached.” MDM apparently received a settlement offer of $85,000 from the insurance company, but the client rejected the offer. Shortly thereafter, he fired MDM and hired SLF. Approximately nine months later, SLF obtained a settlement offer of $100,000 from the insurance company, which the client accepted. After learning that the client had accepted, MDM notified SLF that it had a claim for attorney’s fees and, according to the Court of Appeals, MDM demanded “95 percent of the $85,000 settlement offer” that was presented when MDM was representing the client.
However, SLF refused to pay MDM any amount of the attorney’s fees.
MDM then sued SLF in Mecklenburg County Superior Court, seeking a portion of the fee earned by SLF using a legal theory of “quantum meruit,” or reasonable value of the services rendered. A trial was held before Superior Court Judge Tanya Wallace, who awarded MDM a legal fee of $1. Yes, one single dollar! The trial judge had found the MDM firm had made no accounting of the time spent working on the case and had no notes to prove it had performed the work. Lesson for Lawyers and Potential Clients The lesson for lawyers is that we should document, in our files, the work that we do for a client, so that if a client becomes dissatisfied and fires us, we have some basis on which a court can award us part of the attorney fee that the client’s second lawyer obtains. But this case tells a consumer that some law firms may not keep any notes or records of the work that it is doing for the client. Why would a law firm not document the work that it was doing for a client? That question in this particular case is not answered by the Court of Appeals, but the question is certainly worth asking if you are looking for a lawyer.
You can find the actual decision at appellate.nccourts. org/opinions by looking for case #COA16-899, filed on April 4, 2017.
Summer Crab Roll
Photo of the Month Sit a Spell by the River I started taking photographs when I was 12 years old. I love to take photos of scenic views and nature. I took this photo of these adirondack chairs on Water Street at the Old Wilmington City Market by the Cape Fear on July 24, 2012. If you would like a copy of this photo, suitable for framing, let me know, and I will send you a free copy of it — up to an 8-by-10.
Ingredients
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8 ounces fresh or canned crabmeat
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2 soft rolls, split down the center like hot dog buns Green leaf lettuce leaves (for serving)
2 tablespoons mayonnaise
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Kosher salt
2 tablespoons unsalted butter, room temperature
Freshly ground white pepper
Instructions
1. Mix crab and mayonnaise in a small bowl and season with salt. 2. Heat a large skillet over medium heat. 3. Butter opening of buns and cook until golden, about 2 minutes per side. 4. Place a large leaf of lettuce in each bun. 5. Add crabmeat mixture and season with pepper. 6. Enjoy!
– Bob Bollinger
Recipe inspired by BonAppetit.com.
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