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contractsettlementattorneyappeal
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Fox & Associates Co., L.P.A. v. Purdon, 44 Ohio St.3d 69, 541 N.E.2d 448, 58 USLW 2095

Facts

Theresa Marshall Purdon hired the law firm of Fox & Associates Co., L.P.A. in 1984 to handle her personal injury claim. After nearly twenty-one months of representation, attorney Michael Ellerbrock informed Purdon that he was leaving the firm, and she expressed a desire to continue with him. However, after failing to reach the firm to terminate their employment, Purdon executed a letter of discharge, which was delivered to the firm. Shortly after, she accepted a settlement offer from the opposing party, leading Fox & Associates to file a complaint seeking the full contingency fee.

Theresa Marshall Purdon hired the law firm of Fox & Associates Co., L.P.A. in 1984 to handle her personal injury claim.

Issue

Whether an attorney is entitled to recover the reasonable value of services rendered prior to discharge on the basis of quantum meruit when discharged by a client with or without just cause.

Whether an attorney is entitled to recover the reasonable value of services rendered prior to discharge on the basis of quantum meruit when discharged by a client with or without just cause.

Rule

When an attorney is discharged by a client with or without just cause, whether the contract between the attorney and client is express or implied, the attorney is entitled to recover the reasonable value of services rendered to the client prior to discharge on the basis of quantum meruit.

When an attorney is discharged by a client with or without just cause, whether the contract between the attorney and client is express or implied, the attorney is entitled to recover the reasonable value of services rendered to the client prior to discharge on the basis of quantum meruit.

Analysis

The court applied the rule of quantum meruit to the facts by determining that the attorney's right to compensation should not be contingent upon the client's reason for discharge. The court emphasized the importance of the attorney-client relationship and the need for clients to have the freedom to discharge their attorneys without fear of being liable for the full contract price. The court found that the previous rulings that limited recovery to the full contract price were inconsistent with the principles of fairness and the unique nature of the attorney-client relationship.

The court applied the rule of quantum meruit to the facts by determining that the attorney's right to compensation should not be contingent upon the client's reason for discharge.

Conclusion

The Supreme Court reversed the Court of Appeals' decision and held that the law firm was entitled to recover the reasonable value of the legal services rendered prior to the discharge. The case was remanded for further proceedings to determine the reasonable value of those services.

The Supreme Court reversed the Court of Appeals' decision and held that the law firm was entitled to recover the reasonable value of the legal services rendered prior to the discharge.

Who won?

The law firm, Fox & Associates Co., L.P.A., prevailed because the Supreme Court ruled in their favor, establishing that they could recover the reasonable value of services rendered prior to discharge.

The law firm, Fox & Associates Co., L.P.A., prevailed because the Supreme Court ruled in their favor, establishing that they could recover the reasonable value of services rendered prior to discharge.

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