Buckley Towers Condominium, Inc. v. Katzman Garfinkel Rosenbaum, LLP
519 F. App'x 657
11th Cir.2013Background
- Contingency-fee distribution when an equity partner exits and client follows to subsequent firms is at issue.
- KGR appeals a district court order enforcing charging liens and limits its fee at $894,897.
- Buckley Towers suffered hurricane damages; Buckley initially hired B&P, then switched to contingency for the Buckley case.
- Rosenbaum left B&P for KGR; Buckley followed to KGR with a contingency fee; later Rosenbaum formed RMJS and Buckley followed.
- Litigation produced final judgments and post-trial/appeal activities; charging liens were filed by B&P, KGR, and RMJS; district court adopted a magistrate's R&R allocating quantum meruit.
- Court analyzes whether Frates v. Nichols controls, whether Frates applies to professional corporations, and how to compute the quantum meruit/fee split; remand ordered.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Frates governs fee distribution after a partner exits. | KGR argues Frates applies to determine the fee split. | RMJS argues Frates is outdated or not controlling. | Frates applies; governs distribution. |
| Whether Frates applies to professional corporations, not just partnerships. | KGR contends fiduciary duties apply regardless of entity. | RMJS asserts entities may alter duties. | Frates applies to both entities. |
| Whether the district court properly applied Frates/Poletz to set KGR's quantum meruit. | KGR asserts proper factors and client benefit were ignored. | RMJS contends the court did not err. | Remand for proper Frates/Poletz analysis. |
| Whether RMJS should receive a share after KGR is compensated. | KGR seeks quantum meruit first; RMJS share follows. | RMJS entitled to remaining after KGR. | On remand, determine KGR amount; allocate RMJS 2.34% of remainder. |
Key Cases Cited
- Frates v. Nichols, 167 So.2d 77 (Fla. 3d DCA 1964) (contingent-fee issues; withdrawing partner duties; partnership assets)
- Rosenberg v. Levin, 409 So.2d 1016 (Fla. 1982) (limited contract fee vs. quantum meruit; wind-up principle)
- Poletz, 652 So.2d 366 (Fla. 1995) (Poletz factors; benefit conferred; not standard lodestar)
- Moransais v. Heathman, 744 So.2d 973 (Fla. 1999) (fiduciary duty irrespective of business form)
- Santalucia v. Sebright Transp. Inc., 232 F.3d 293 (2d Cir. 2000) (professional corporation fiduciary duties)