Shields v. Carbone, 952 N.Y.2d 649

Defendant Carbone posted $50,000 bail, partly via an $18,500 credit card charge.
Defendant retained O&A to represent him under a retainer agreement setting a minimum fee.
After a guilty plea, bail was exonerated and the county treasurer (plaintiff) was asked to determine who should receive the funds.
Interpleader action filed; cross-claims and counterclaims followed; court directed plaintiff to remit $18,500 to O&A, net of statutory fees.
On appeal, the court held the bail should be released to the defendant, not to O&A, absent a written assignment; plaintiff was discharged after interpleading.
Supreme Court later ordered plaintiff to pay bail proceeds to defendant, but the decision did not require O&A to return funds already paid to plaintiff; issue arose whether O&A must reimburse plaintiff and how disputes between defendant and O&A are to be resolved.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Who is entitled to the bail proceeds?	Plaintiff should follow prior appellate modification directing release to defendant and discharge.	Proceeds belong to defendant; prior order directing release to O&A must be overridden.	O&A must return proceeds to plaintiff; defendant to receive funds only after reconciliation.
Should O&A return funds received from plaintiff pursuant to prior order?	Funds paid to O&A under the initial order must be recovered by plaintiff.	Once funds were released to O&A, they retain entitlement pending disputes.	O&A must return the bail proceeds to plaintiff; disputes between defendant and O&A proceed separately.
Is plaintiff entitled to counsel fees under 42 U.S.C. § 1988?	Plaintiff sought fees for successful § 1983 dismissals.	Fees are rarely awarded to victorious civil-rights defendants; claims were weak.	Plaintiff not entitled to § 1988 counsel fees.
Should sanctions be imposed against plaintiff or counsel?	Not specified; focus on fee entitlement.	Sanctions possible for frivolous or vexatious conduct.	Sanctions denied.
What is the proper disposition on remand/modification regarding the bail proceeds?	Proceedings should align with appellate modification.	Dispositions should be consistent with prior and current rulings.	Order modified to require O&A return bail proceeds to plaintiff with interest; affirmed as modified.

Shields v Carbone, 78 AD3d 1440 (N.Y. App. Div. 2010) (control of bail proceeds requires written assignment; funds to depositor when reallocated)
Sista v CDC Ixis N. Am., Inc., 445 F.3d 161 (2d Cir. 2006) (rare for prevailing civil rights defendants to recover fees)
Christiansburg Garment Co. v. EEOC, 434 U.S. 412 (Supreme Court 1978) (standard for awarding fees to prevailing defendants)
Fox v. Vice, 131 S. Ct. 2205 (U.S. Supreme Court 2011) (fee-shifting considerations in civil rights actions)