Luther Gary v. Premier Property Management
331360
| Mich. Ct. App. | Sep 21, 2017Background
- Plaintiff Luther Gary was represented by attorney Timothy Corr (firm: 248-Lawyers) in a condominium electrocution personal-injury suit.
- 248-Lawyers notified Gary in August 2014 it was closing; Gary retrieved his file but continued to communicate with Corr.
- Corr negotiated a $10,000 settlement in September 2014; Gary contends he never authorized settlement after the attorney-client relationship ended.
- Gary filed a separate legal-malpractice action against Corr alleging unauthorized settlement; both parties accepted a $1,500 case-evaluation award in the malpractice suit.
- Judge Ryan initially enforced the $10,000 settlement and granted Corr an unspecified attorney lien; on transfer Judge Popke denied Corr’s request to set off the $1,500 award against the $10,000 and disallowed Corr’s lien, finding Corr settled after the relationship ended.
- Corr appealed; the Court of Appeals affirmed Judge Popke’s rulings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether $1,500 malpractice case-evaluation award must be set off against $10,000 PI settlement to avoid double recovery | Gary: malpractice award compensates distinct malpractice loss; should not be set off | Corr: allowing both awards yields double recovery for same injury; set off required | Court: No set off — malpractice award compensates additional loss caused by unauthorized settlement, not the underlying PI injury |
| Whether Corr is entitled to an attorney lien on the $10,000 settlement | Gary: Corr lost entitlement by terminating representation and settling without authorization | Corr: He negotiated settlement and obtained earlier lien from Judge Ryan; lien should stand | Court: Lien disallowed — Corr settled after attorney-client relationship had ended and lacked authority |
| Whether Judge Popke could revisit Judge Ryan’s earlier lien order | Gary: Transferred judge may revisit prior order | Corr: Judge Popke lacked authority or due process to revoke lien | Court: Judge Popke had authority after reassignment; she properly exercised it |
| Whether case-evaluation award represented value of underlying PI claim | Gary: award reflects malpractice damages (difference lost by unauthorized settlement) | Corr: award indicates value of underlying PI claim, supporting set off | Court: Award represented malpractice recovery, not valuation of PI claim; no basis to treat as duplicative |
Key Cases Cited
- Grace v. Grace, 253 Mich. App. 357 (discusses double-recovery/setoff where two recoveries compensate identical injury)
- Coleman v. Gurwin, 443 Mich. 59 (describes measure of recovery in legal-malpractice suits relating to an underlying claim)
- Manzo v. Petrella, 261 Mich. App. 705 (elements of legal malpractice and proximate-cause causation requirement)
- Reynolds v. Polen, 222 Mich. App. 20 (attorney lien and quantum meruit principles)
- Pub. Health Dep’t v. Rivergate Manor, 452 Mich. 495 (authority to correct or modify prior judicial orders)