midpage
Projects
Sign in to see your projects.
2020 Ohio 3985
Ohio Ct. App.
2020
Read the full case

Background:

  • John D. Smith Co., LPA (the Smith Firm) agreed to represent both Daniel S. Lipsky (individually) and his company, Nationwide Biweekly Administration, Inc. (NBA), in California litigation under a July 8, 2016 engagement letter setting hourly rates and billing practices.
  • Lipsky signed the engagement letter without a corporate-designation next to his signature; earlier, he had signed a different, more explicit corporate engagement for another matter.
  • NBA paid most invoices through January 2017; disputes over large February–March 2017 invoices followed Lipsky’s disclosure that his assets were dwindling and his proposal to alter payment terms.
  • After demands for a $125,000 retainer and unpaid invoices, Smith and co-counsel moved to withdraw from the California case in March 2017; they were permitted to withdraw and Smith billed for work through withdrawal.
  • The Smith Firm sued Lipsky (and NBA) for unpaid fees; Lipsky later represented himself at trial on the claim against him personally. A jury awarded the firm $66,427.74; the trial court denied a new-trial motion and the appellate court affirmed.

Issues:

Issue Plaintiff's Argument Defendant's Argument Held
1) Whether Lipsky is individually liable for unpaid fees under the engagement letter Smith Firm: Lipsky signed the engagement that covered his individual representation and thus is personally liable. Lipsky: Contract language and billing to the company show NBA alone agreed to pay; he signed only as corporate officer. Court: Affirmed individual liability — Lipsky signed without corporate designation and contract language did not unambiguously negate personal liability; parol evidence supported that Lipsky expected to fund fees personally.
2) Whether the trial court erred by instructing the jury on quantum meruit Smith Firm: Quantum meruit is an appropriate alternate remedy if contract was repudiated and the firm conferred a benefit before withdrawal. Lipsky: Quantum meruit should not be submitted because an express contract governed payment and the firm never pleaded quasi-contract. Court: Instruction proper under these facts because Lipsky’s breach/repudiation defense put contract existence at issue; quantum meruit could apply if jury found the contract was repudiated and the firm’s services were nevertheless accepted.

Key Cases Cited

  • Eastley v. Volkman, 132 Ohio St.3d 328 (2012) (standard for sufficiency and manifest-weight review)
  • State v. Thompkins, 78 Ohio St.3d 380 (1997) (manifest-weight analysis)
  • DeHass v. Atty. Gen., 10 Ohio St.2d 230 (1967) (defers to factfinder on witness credibility)
  • Spicer v. James, 21 Ohio App.3d 222 (1985) (officer’s signature without corporate designation can create personal liability)
  • Aungst v. Creque, 72 Ohio St. 551 (1905) (contract construed to bind principal not agent when intent is clear)
  • Fox & Assocs. Co., L.P.A. v. Purdon, 44 Ohio St.3d 69 (1989) (discharged attorney may recover reasonable value via quantum meruit)
  • Kostelnik v. Helper, 96 Ohio St.3d 1 (2002) (elements required to form a contract)
  • Paugh & Farmer, Inc. v. Menorah Home for Jewish Aged, 15 Ohio St.3d 44 (1984) (explains quasi-contract/quantum meruit remedy)
Read the full case

Case Details

Case Name: John D. Smith Co., LPA v. Lipsky
Court Name: Ohio Court of Appeals
Date Published: Aug 7, 2020
Citations: 2020 Ohio 3985; 2019-CA-65
Docket Number: 2019-CA-65
Court Abbreviation: Ohio Ct. App.
Log In
    John D. Smith Co., LPA v. Lipsky, 2020 Ohio 3985