Betty Dameron v. Hon Samuel Todd Spalding Judge, Taylor Circuit Court
2016 SC 000463
| Ky. | Jun 13, 2017Background
- Paul Dameron died when a rock thrown from a Bush Hog mower struck his windshield; suit was filed for wrongful death.
- Betty Dameron (executrix) initially retained attorney Dawn McCauley; McCauley filed suit and was later discharged; Mike Breen substituted as counsel and negotiated settlements totaling $1,100,000 with significant attorney fees to Breen.
- McCauley moved to intervene asserting a quantum meruit claim for fees and filed an attorney lien; the trial court ordered settlement proceeds and fees held pending resolution.
- Dameron filed a Kentucky Bar Association complaint against McCauley; discovery showed Breen’s office assisted with the complaint, prompting McCauley to seek production of communications between Breen and Dameron.
- The trial court compelled production, concluding privilege was waived or inapplicable because communications related to an alleged breach of McCauley’s duty; the court also ordered Breen’s fees withheld pending resolution.
- Cross petitions for writs of prohibition were denied by the Court of Appeals; both parties appealed to the Kentucky Supreme Court, which consolidated the cases and affirmed the denial.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether attorney-client communications between Breen and Dameron are privileged or must be produced | McCauley: communications are privileged and protected | Breen/Dameron: communications privileged; production would violate attorney-client privilege | Privilege did not apply or was waived because communications concerned alleged breach of lawyer’s duty and were not for rendition of legal services; production order affirmed |
| Whether court may withhold Breen’s fees pending resolution (prejudgment attachment) | Breen/Dameron: withholding is unconstitutional taking/irreparable harm | Court/Intervenor: prejudgment attachments can be reviewed on appeal; withholding is permissible | No writ: appeal is adequate remedy for attachment issue; no irreparable harm shown |
| Whether quantum meruit claim (attorney fee recovery) is equitable and therefore not triable to a jury | McCauley: quantum meruit is equitable; jury trial order exceeds jurisdiction | Trial court/Breen/Dameron: jury trial acceptable | Quantum meruit is equitable; trial court erred in ordering jury trial, but writ denied because adequate remedy by appeal exists; jury may only serve as advisory fact-finder |
| Whether issuance of writ of prohibition was warranted given alleged privilege violation and jury error | Petitioners: writ required because privilege violation is irreparable and jury order causes irreparable harm | Respondents: adequate remedies on appeal and no "great and irreparable" injury shown | Writs denied; privilege issue properly before trial court and appellate remedy exists for prejudgment attachment and jury order errors |
Key Cases Cited
- Baker v. Shapero, 203 S.W.3d 697 (Ky. 2006) (quantum meruit recovery for discharged contingency-fee attorneys)
- 3M Co. v. Engle, 328 S.W.3d 184 (Ky. 2010) (waiver of attorney-client privilege by voluntary disclosure)
- Collins v. Braden, 384 S.W.3d 154 (Ky. 2012) (privilege loss and irretrievable harm justify writ review)
- St. Luke Hospitals, Inc. v. Kopowski, 160 S.W.3d 771 (Ky. 2005) (privileged information cannot be recalled once disclosed)
- Bender v. Eaton, 343 S.W.2d 799 (Ky. 1961) (definition of adequate remedy by appeal and irreparable injury for writ relief)
- Steelvest, Inc. v. Scansteel Service Ctr., Inc., 908 S.W.2d 104 (Ky. 1995) (equitable causes of action bar jury trial)
- Daniels v. CDB Bell, LLC, 300 S.W.3d 204 (Ky. App. 2009) (analysis of equitable versus legal claims and jury right)
- Barrier v. Brewster, 349 S.W.3d 823 (Ky. 2011) (advisory jury use in equity matters)