Cummins Law Office, P.A. v. Norman Graphic Printing Co.
2011 U.S. Dist. LEXIS 134036
D. Minnesota2011Background
- Cummins is a Minnesota law firm; Norman is a Hong Kong company that hired Cummins to collect a debt from Gartner Studios.
- Fee Agreement: fixed fee of $80,000 plus a 5% contingency on amounts Norman recovered from Gartner.
- Cummins represented Norman in Minnesota Washington County action against Gartner and in mediation and settlement negotiations.
- Settlement: Gartner agreed to pay Norman $2,452,000, with initial $252,000 and $50,000 monthly installments until $2.2 million remained.
- Cummins claims Norman paid the $80,000 fixed fee but has not paid any contingency fees tied to Gartner’s settlement payments.
- Cummins brought claims in state court, Norman removed to federal court, and Norman moved to dismiss under Rule 12(b)(6).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Cummins plausibly pleaded breach of contract | Cummins performed and is owed contingent and fixed fees per the Fee Agreement. | Plaintiff failed to plead conditions precedent and terms/records; contingency not tied to post-judgment collection. | Claim survives; pleading of performance and contract terms suffices. |
| Whether unjust enrichment/quantum meruit/constructive trust claims are barred by an available statutory remedy | Alternative claims may be pleaded notwithstanding an express contract; should not be barred. | Attorney’s lien under Minn. Stat. § 481.13 provides an adequate remedy; equitable claims barred after choosing statutory remedy. | Counts II, III, and V are dismissed; statutory lien precludes equitable claims. |
| Whether conversion claim survives | Funds payable under Gartner settlement (5% of the proceeds) are property Cummins seeks to recover. | Money cannot be converted; funds owed are not identified as personal property. | Conversion claim survives; money can be the subject of conversion in Minnesota. |
Key Cases Cited
- Southtown Plumbing, Inc. v. Har-Ned Lumber Co., 493 N.W.2d 137 (Minn. Ct. App. 1992) (equitable relief unavailable where statutory remedy exists and was not pursued)
- ServiceMaster of St. Cloud v. GAB Bus. Servs., Inc., 544 N.W.2d 302 (Minn. 1996) (unjust-enrichment barred where statutory remedy exists)
- Mon-Ray, Inc. v. Granite Re, Inc., 677 N.W.2d 434 (Minn. Ct. App. 2004) (equitable relief not available where adequate legal remedy exists)
- Williams v. Dow Chemical Co., 415 N.W.2d 20 (Minn. Ct. App. 1987) (availability of statutory or legal remedies affects equitable claims)
- O'Neal v. State Farm Fire & Cas. Co., 630 F.3d 1075 (8th Cir. 2011) (pleading standard and evidence requirements; pleading sufficiency at early stage)
- Brown v. Medtronic, Inc., 628 F.3d 451 (8th Cir. 2010) (pleading standards and liberal construction of complaints)
