Frank v. Tewinkle
45 A.3d 434
Pa. Super. Ct.2012Background
- Appellant Alan Frank, a former Pennsylvania attorney with suspended license, appeals from trial court orders sustaining preliminary objections by TeWinkle and Sciarrino and by Bernard and Stuczynski.
- Frank solicited assignments of injury-claim proceeds from Voorhis and the Plonskis through Overcharge Recovery Co. and filed breach-of-contract suits against their attorneys based on alleged unauthorized disbursements.
- Appellees alleged Frank engaged in unauthorized practice of law and that the assignments and disbursement agreements show champerty.
- Trial court granted both sets of preliminary objections in the nature of a demurrer, dismissing the complaints, and Frank timely appealed.
- On appeal, the court held that the assignments were champertous, invalid, and thus Frank was not a real party in interest, affirming the dismissal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether champerty remains a viable defense against assignments to sue attorneys | Frank argued assignments are legally permissible under Hedlund. | Appellees urged champerty invalidates assignments as against policy. | Champerty remains valid defense; assignments champertous and invalid. |
| Does assignee become real party in interest when paying consideration for exclusive ownership | Frank contends exclusive ownership transfers real interest. | Defendants argue no real interest due to lack of legitimate stake. | Assignee is not a real party where no legitimate interest and exclusive ownership are shown; champerty invalidates claim. |
| Are revenue-sharing provisions within assignments void under champerty | Frank likens to revenue-sharing; argues not champertous. | Defendants emphasize three-part champerty test remains applicable. | Three-part champerty test satisfied; agreements champertous. |
| Do the amended complaints describe champertous activity as a matter of law | Frank maintains claims meritorious despite assignment form. | Defendants contend champerty bars relief as a matter of law. | Yes, champerty bars relief; demurrers properly sustained. |
| Should venue be changed on remand due to delay in ruling on objections | Frank challenges delay and seeks venue change. | Defendants maintain no reversible error on delay. | Issue deemed nonessential after champerty ruling; not remanded for venue change. |
Key Cases Cited
- Belfonte v. Miller, 243 A.2d 150 (Pa. 1968) (three-part test for champerty; invalidates champertous assignments)
- Hedlund Mfg. v. Weiser, Stapler & Spivak, 539 A.2d 357 (Pa. 1988) (assignment of legal malpractice claims permissible when not champertous)
- Westmoreland County v. RTA Group, Inc., 767 A.2d 1144 (Pa.Cmwlth.2001) (champerty/maintenance considerations in contract claims)
- Richette v. Pennsylvania R.R., 187 A.2d 910 (Pa. 1963) (definition of champertous agreement as financing litigation for share of proceeds)
- Mazur v. Trinity Area Sch. Dist., 961 A.2d 96 (Pa. 2008) (de novo review standard for preliminary objections; factual sufficiency)
