ILNews

Oral findings allowed in attorney fee case

Back to TopCommentsE-mailPrintBookmark and Share

A Marion Superior Court didn't err when it failed to issue written findings and conclusions pursuant to Indiana Trial Rule 52 in a dispute over attorney fees, the Indiana Court of Appeals ruled. The appellate court also affirmed the trial court's award of fees based on quantum meruit rather than a contingency fee agreement with the client.
 
The Nunn Law Office had originally represented Joseph Carpenter in a personal injury action and had an agreement that Nunn would represent him for any of his claims arising out of the motorcycle accident for "40 percent of all amounts recovered or offered." An insurance company attempted to settle, but Carpenter rejected it. Nunn initiated a lawsuit on Carpenter's behalf, but two months later, Carpenter discharged the law firm and hired Peter H. Rosenthal to represent him. Carpenter settled his case for $42,500.

After learning of the settlement, Nunn moved to determine the proper division of attorney fees. The trial court orally calculated a judgment in favor of Nunn for $1,462.88 based upon quantum meruit for Nunn's work on the case.

Ruling on a motion for special findings of fact and conclusions of law filed by Nunn, the trial court entered a judgment for the same amount in favor of Nunn without entering written findings and conclusions.

The issues in Nunn Law Office v. Peter H. Rosenthal, No. 49A05-0809-CV-523, were whether the trial court erred as a matter of law by not issuing written findings and conclusions, and whether quantum meruit or the contingency agreement in Carpenter's contract with Nunn should determine the amount of attorney fees owed to Nunn.

An Indiana Supreme Court ruling suggested that the preferred format for findings and conclusions is in the written form, but the trial court's failure to issue written findings and conclusions doesn't constitute reversible error, wrote Judge Cale Bradford. The plain language of T.R. 52(A) doesn't require the findings and conclusions to be in writing and the purpose of the rule is to provide parties and reviewing courts with the theory upon which the trial judge decided the case.

The Court of Appeals concluded oral findings and conclusions can achieve this purpose as long as they are thoroughly detailed in the record. It also ruled the basis for the $1,462.88 judgment was apparent from the trial court's oral explanation in the record. In addition, any error in the trial court's failure to justify its use of quantum meruit as the proper measure for calculating the attorney fees was a harmless one given the appellate court's conclusion it was the only proper measure for fee determination in the instant case.

Carpenter's fee agreement with Nunn expressly provided for compensation upon discharge, but was silent regarding Nunn's compensation upon pre-contingency discharge. While the 40 percent provision arguably permits payment of fees based upon settlements offered, recovered or not, a latter "no recovery, no fee" provision expressly states to the contrary that fees are not payable unless a recovery is obtained, wrote Judge Bradford.

In the absence of an applicable contractual provision, an attorney employed under a contingent fee contract and discharged before the occurrence of the contingency is limited to quantum meruit recovery for the reasonable value of services rendered, wrote the judge.

Finally, the appellate court affirmed the amount of attorney fees to Nunn based on Nunn's relatively minimal investment of time in Carpenter's case and Rosenthal's success in getting a larger settlement.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Paul Ogden doing a fine job of remembering his peer Gary Welsh with the post below and a call for an Indy gettogether to celebrate Gary .... http://www.ogdenonpolitics.com/2016/05/indiana-loses-citizen-journalist-giant.html Castaways of Indiana, unite!

  2. It's unfortunate that someone has attempted to hijack the comments to promote his own business. This is not an article discussing the means of preserving the record; no matter how it's accomplished, ethics and impartiality are paramount concerns. When a party to litigation contracts directly with a reporting firm, it creates, at the very least, the appearance of a conflict of interest. Court reporters, attorneys and judges are officers of the court and must abide by court rules as well as state and federal laws. Parties to litigation have no such ethical responsibilities. Would we accept insurance companies contracting with judges? This practice effectively shifts costs to the party who can least afford it while reducing costs for the party with the most resources. The success of our justice system depends on equal access for all, not just for those who have the deepest pockets.

  3. As a licensed court reporter in California, I have to say that I'm sure that at some point we will be replaced by speech recognition. However, from what I've seen of it so far, it's a lot farther away than three years. It doesn't sound like Mr. Hubbard has ever sat in a courtroom or a deposition room where testimony is being given. Not all procedures are the same, and often they become quite heated with the ends of question and beginning of answers overlapping. The human mind can discern the words to a certain extent in those cases, but I doubt very much that a computer can yet. There is also the issue of very heavy accents and mumbling. People speak very fast nowadays, and in order to do that, they generally slur everything together, they drop or swallow words like "the" and "and." Voice recognition might be able to produce some form of a transcript, but I'd be very surprised if it produces an accurate or verbatim transcript, as is required in the legal world.

  4. Really enjoyed the profile. Congratulations to Craig on living the dream, and kudos to the pros who got involved to help him realize the vision.

  5. Why in the world would someone need a person to correct a transcript when a realtime court reporter could provide them with a transcript (rough draft) immediately?

ADVERTISEMENT