George C. Papageorge v. Jonathan Zucker & Patricia Daus
169 A.3d 861
| D.C. | 2017Background
- Banks, a tenant, assigned TOPA rights to Papageorge; Papageorge financed litigation and signed an agreement with Banks and cotenant entitling him to reimbursement of costs and 75% of wrongful-eviction proceeds.
- Banks settled his wrongful-eviction claim with the foreclosing bank for $100,000; Banks retained lawyers Zucker and Daus who received and disbursed the settlement to Banks.
- Papageorge notified Zucker and Daus of his contract and claimed $88,740.86 in costs and an ownership interest in the settlement; lawyers refused to withhold or disburse funds to him.
- Papageorge sued Banks (breach of contract); after appellate proceedings and a post-remand settlement with Banks, Papageorge sued Zucker and Daus for negligence and conversion (alternatively). The trial court dismissed the lawyers; Papageorge appealed.
- On appeal the court treated alleged facts as true and considered whether the lawyers owed Papageorge a duty (negligence) or whether Papageorge had a property right in the settlement funds (conversion).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether attorneys owed a tort duty of care to Papageorge (negligence) | Papageorge: Rule 1.15/"just claim" doctrine creates duty to third parties with a claim to funds in lawyer's possession | Zucker & Daus: Attorneys owe duties to clients; ethics rules do not create private tort duties | Court: No enforceable tort duty to nonclient absent separate "applicable law" creating duty; dismissal affirmed |
| Whether attorneys committed conversion by disbursing funds despite Papageorge's claim | Papageorge: Contract gave him lien/right to settlement; demand was made, so wrongful interference supports conversion | Zucker & Daus: They received funds lawfully; contractual rights are in personam and do not create property rights against third-party possessors | Court: Papageorge had only contractual (in personam) rights, not an in rem property interest in the funds when he demanded; conversion claim fails |
Key Cases Cited
- Banks v. E. Sav. Bank, 8 A.3d 1239 (D.C. 2010) (background appellate decision on eviction)
- Papageorge v. Banks, 81 A.3d 311 (D.C. 2013) (prior appeal reversing summary judgment in Papageorge's suit against Banks)
- In re Bailey, 883 A.2d 106 (D.C. 2005) (discusses Rule 1.15 and third-party "just claim" to settlement funds)
- Solers, Inc. v. Doe, 977 A.2d 941 (D.C. 2009) (standard for accepting factual allegations on motion to dismiss)
- Waldman v. Levine, 544 A.2d 683 (D.C. 1988) (ethical rules may inform standard of care but do not create tort duties)
- Shea v. Fridley, 123 A.2d 358 (D.C. 1956) (possession lawful until demand and refusal in conversion context)
- Washington Gas Light Co. v. Pub. Serv. Comm’n, 61 A.3d 662 (D.C. 2013) (definition of conversion)
- Wolf v. Sherman, 682 A.2d 194 (D.C. 1996) (equitable liens and when equity may impose a lien)
- Travelers Ins. Co. v. Haden, 418 A.2d 1078 (D.C. 1980) (attorney may be liable for failing to protect a lien where lawyer agreed to do so)