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Keywords

lawsuitlitigationattorneyappeal

defendantlitigationattorneyappeal

Related Cases

Universal Acupuncture Pain Services, P.C. v. Quadrino & Schwartz, P.C., 370 F.3d 259

Facts

In May 2001, Universal Acupuncture retained Quadrino & Schwartz under a contingent-fee agreement to represent them in a lawsuit against State Farm Mutual Automobile Insurance Company. The clients discharged Q & S on August 19, 2002, before the litigation concluded, and Q & S sought compensation for its services in quantum meruit. The district court postponed the determination of fees until the underlying litigation was resolved, ultimately denying the request after the clients settled without monetary recovery.

In May 2001, Universal retained Q & S to represent it in an action to be brought in the United States District Court for the Southern District of New York against defendant-counter-claimant State Farm Mutual Automobile Insurance Company.

Issue

Whether a discharged attorney is entitled to recover quantum meruit fees when the attorney was retained under a contingent-fee agreement and the client ultimately did not recover any money in the underlying litigation.

Rule

Under New York law, a discharged attorney may recover quantum meruit fees if discharged without cause, regardless of whether the client ultimately recovers money in the underlying litigation.

Analysis

The Court of Appeals found that the district court erred in denying Q & S's request for quantum meruit fees solely based on the clients' lack of monetary recovery. The court emphasized that the right to quantum meruit fees accrues immediately upon discharge and is not contingent upon the client's ultimate recovery. The court also noted that the determination of quantum meruit fees should typically occur at the time of discharge, not after the conclusion of the underlying litigation.

The Court of Appeals found that the district court erred in denying Q & S's request for quantum meruit fees solely based on the clients' lack of monetary recovery.

Conclusion

The Court of Appeals reversed the district court's decision and remanded the case for a determination of whether Q & S was discharged for cause and, if not, for an appropriate award of attorney's fees in quantum meruit.

Who won?

Quadrino & Schwartz, P.C. prevailed in the appeal because the court recognized their right to seek quantum meruit fees despite the clients' lack of recovery in the underlying litigation.

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