Phillips v. Adams, Jordan & Herrington, P.C.
350 Ga. App. 184
Ga. Ct. App.2019Background
- Phillips, a former physician turned attorney, clerked then joined Adams, Jordan & Herrington, P.C. as a contract associate on a contingency-fee malpractice practice under a December 16, 2013 letter agreement.
- The letter provided Phillips would be paid a "portion of the fee" on a case-by-case basis based on the "extent" of his work; the firm would pay expenses and the agreement allowed 30 days' written notice to terminate.
- Phillips received a $10,000 advance and worked roughly 11–12 months with no regular pay; late 2014 the firm began paying him a semi-monthly salary ($80,600/yr) after a conversation with partner Jordan, without written termination of the 2013 letter.
- Several cases on which Phillips had worked settled in early 2015; Phillips requested his share under the 2013 agreement but the firm did not provide a clear accounting; he resigned July 31, 2015 and sued for breach of contract and quantum meruit.
- The trial court granted summary judgment for the firm, holding the 2013 agreement unenforceable as too indefinite and barring quantum meruit because an express contract existed; Phillips appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Enforceability of the 2013 agreement | The letter provided a workable method (case-by-case portion based on extent of work) and thus is enforceable | Agreement left compensation to firm discretion and lacked a definite formula | Agreement is unenforceable as an executory obligation because it leaves essential terms to the firm's discretion |
| Effect of salary payments on original agreement | Salary was an advance on fees under the 2013 agreement; original agreement persisted | Salary converted employment to a straight salary and terminated the 2013 agreement | Fact dispute remains; trial needed to determine whether original agreement was terminated |
| Quantum meruit recovery | Even if the written agreement is void, Phillips is entitled to restitution for valuable services rendered | Quantum meruit barred because parties had an express contract | Where a contract is void for vagueness, quantum meruit is available; summary judgment on this claim was erroneous |
| Availability of relief when contract void or repudiated | N/A (same as above) | N/A | Quantum meruit may be awarded for benefits conferred under a void agreement, less amounts already paid |
Key Cases Cited
- Arby's, Inc. v. Cooper, 265 Ga. 240 (unenforceable executory obligations where compensation depends on future discretion)
- Jackson v. Ford, 252 Ga. App. 304 (agreement to pay bonus percentage was too indefinite without a method to measure "substantial" work)
- Dye v. Mechanical Enterprises, 308 Ga. App. 311 (contract enforceable where commission calculation left no discretionary element)
- Cochran v. Ogletree, 244 Ga. App. 537 (quantum meruit appropriate when a vague contract fails but services were rendered in good faith)
- Watson v. Sierra Contracting Corp., 226 Ga. App. 21 (quantum meruit available if contract is void, repudiated, or only implied and services had value to recipient)
- Sapp v. Davids, 176 Ga. 265 (express illegal or denounced agreements cannot be converted into implied contracts via quantum meruit)
