Jones v. MacKey Price Thompson & Ostler
2015 UT 60
Utah2015Background
- Gregory N. Jones, a Mackey Price attorney, worked on Fen‑Phen contingency cases (2002–May 26, 2005); he developed dissociative amnesia on May 26, 2005 and stopped working.
- Mackey Price received $1,060,869.20 in fees from the Fen‑Phen program; Jones was paid $165,000 (≈15%) and later received an additional $50,000 from Thompson & Skousen; other distributions went to Thompson & Skousen and Mackey Price shareholders.
- Jones sued asserting (1) breach of an alleged agreement to apply his firm’s 80/20 Compensation Agreement to the Fen‑Phen fees; (2) quantum meruit/unjust enrichment for the unpaid share; and (3) fraudulent transfer claims against fee recipients.
- On summary judgment the district court dismissed the contract claim (finding no meeting of the minds), dismissed quantum meruit and fraudulent transfer claims against most individual and Thompson & Skousen defendants, and reserved quantum meruit against Mackey Price.
- The district court denied Jones a jury trial on quantum meruit, treating it as equitable, and at bench trial measured restitution by the reasonable value of Jones’s services (focusing on hours), awarding no additional recovery.
- The Utah Supreme Court affirmed summary dismissal of the contract claim and most claims against individual/Thompson & Skousen defendants, but reversed the denial of a jury trial for Jones’s unjust enrichment claim and clarified the proper damages measure for restitution.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| 1. Did an enforceable contract require applying the firm’s Compensation Agreement (80/20) to Fen‑Phen fees? | Jones: his February 2005 memorandum and office testimony create a triable issue that the Compensation Agreement applied. | Mackey Price: no meeting of the minds; no express agreement; supportive testimony negating an agreement. | Affirmed dismissal: no genuine factual dispute; memorandum ambiguous and supporting testimony properly excluded or harmless. |
| 2. Is quantum meruit (contract‑implied‑in‑law / unjust enrichment) a legal claim entitling Jones to a jury trial? | Jones: his unjust enrichment claim seeks money damages and historically was a legal action (assumpsit); he is entitled to a jury. | Mackey Price: quantum meruit is an equitable remedy and thus triable to the court. | Reversed: unjust enrichment seeking money was a claim at law at Utah Constitution ratification; Jones is entitled to a jury trial. |
| 3. What is the correct measure of damages for unjust enrichment in this context? | Jones: damages should be measured by the benefit conferred on defendants (not solely by hours). | District court: measured by reasonable value of services using hours and concluded no shortfall. | Clarified: restitution is measured by the defendant’s gain (benefit conferred); for professional/contingency work, that is usually the reasonable value of the services, which may require factors beyond hours (risk, client origination, financing, role, etc.). |
| 4. Are the Thompson & Skousen defendants and individual shareholders liable under quantum meruit or the Fraudulent Transfer Act? | Jones: they received fee distributions and had notice of his claim, so they are liable or received transfers in bad faith. | Defendants: they were paid pursuant to arm’s‑length contracts and acted in good faith; any benefit was not direct but incidental. | Affirmed dismissals: uncontroverted facts show the other defendants were not direct beneficiaries and Thompson & Skousen received payments in good faith under a negotiated contract; Jones raised no issue that they received excess value. |
Key Cases Cited
- Prince, Yeates & Geldzahler v. Young, 94 P.3d 179 (Utah 2004) (summary judgment standard and burden allocation)
- Emergency Physicians Integrated Care v. Salt Lake County, 167 P.3d 1080 (Utah 2007) (elements of quantum meruit and direct‑benefit analysis)
- International Harvester Credit Corp. v. Pioneer Tractor & Implement, Inc., 626 P.2d 418 (Utah 1981) (classification of legal v. equitable claims for jury right analysis)
- Butler v. Wilkinson, 740 P.2d 1244 (Utah 1987) (Fraudulent Transfer Act / good‑faith transferee analysis)
- Volker‑Scrowcroft Lumber Co. v. Vance, 103 P. 970 (Utah 1909) (historical treatment of assumpsit as an action at law)
- Short v. Bullion‑Beck & Champion Mining Co., 57 P. 720 (Utah 1899) (discussion of implied assumpsit / unjust enrichment)
- Chapman v. Forbes, 26 N.E. 3 (N.Y. 1890) (contemporaneous authority treating money‑had‑and‑received as an action at law)
- Steuerwald v. Richter, 149 N.W. 692 (Wis. 1914) (historical discussion of money had and received as legal in form though equitable in nature)
