TOLSON Et Al. v. SISTRUNK Et Al.
332 Ga. App. 324
Ga. Ct. App.2015Background
- Quincy Bryant hired the Cochran Firm in Oct. 2009 on a 45% contingency to investigate his wife’s death; the firm performed extensive pre-suit work (medical records, expert contacts, complaint draft) and incurred $8,805.50 in expenses.
- Audrey Tolson was an associate at the Cochran Firm who handled much of the pre-suit work; she resigned in May 2011, solicited several clients (including Bryant), and Bryant thereafter discharged the Cochran Firm and retained Tolson (and later associated Fredericks Firm).
- Tolson and Fredericks filed suit in Oct. 2011; Fredericks did most of the litigation work and incurred the bulk of expenses; Tolson and Fredericks split the contingency fee 40/60 (Tolson 40%).
- Cochran Firm filed an attorney’s lien in Nov. 2012 for its expenses and for a quantum meruit portion of fees; after a $2,000,000 settlement in May 2014, $800,000 in attorney fees was held in trust pending resolution.
- Trial court found the lien valid, awarded Cochran Firm $8,805.50 expenses plus 30% of fees (25% for originating the case; 5% for pre-suit work), allocating remaining fees to Fredericks and Tolson; Tolson appealed.
Issues
| Issue | Plaintiff's Argument (Tolson) | Defendant's Argument (Cochran Firm) | Held |
|---|---|---|---|
| Validity of attorney’s charging lien under OCGA § 15-19-14(b) where predecessor did only pre-suit work and successor filed the suit | Lien invalid because Cochran Firm was discharged before suit was filed and only did pre-suit work | §15-19-14(b) covers attorneys who performed legal work in anticipation of suit; lien may attach when suit is later filed | Lien valid; predecessor counsel may file a charging lien under §15-19-14(b) even if successor counsel later filed the suit |
| Whether origination/rainmaking supports quantum meruit recovery (25% awarded for origination) | Origination confers no value to client and should not factor into quantum meruit fee apportionment | Origination is a basis for compensation | Origination is not a service rendered to benefit the client; trial court erred in awarding 25% for origination — reversed and those fees remanded to Tolson |
| Whether there was evidence to support 5% quantum meruit award for Cochran Firm’s pre-suit legal work | Insufficient evidence to value pre-suit work at 5% | Cochran Firm’s investigation, expert work, complaint drafting, and Tolson’s use of that work in litigation gave lasting value | Affirmed: evidence supported a 5% ($40,000) award for pre-suit legal services |
Key Cases Cited
- Woods v. Jones, 305 Ga. App. 349 (discussing trial-court factfinding on attorney’s lien enforcement)
- McRae v. Ga. Farm Bureau Mut. Ins. Co., 316 Ga. App. 526 (standard of review; charging-lien principles)
- Howe & Assoc. v. Daniels, 280 Ga. 803 (lien attaches when suit filed)
- Steele v. Cincinnati Ins. Co., 171 Ga. App. 499 (statute in derogation of common law; strict construction principle)
- Recoba v. State, 167 Ga. App. 447 (liens protect fruits of attorney’s labor)
- Amoena Corp. v. Strickland, 248 Ga. 496 (statutory construction; avoid interpretation defeating legislative intent)
- First Nat. Bank of Ames v. Innovative Clinical & Consulting Svcs., 280 Ga. App. 337 (courts may not engraft limitations on statute)
- Kirschner & Venker, P.C. v. Taylor & Martino, P.C., 277 Ga. App. 512 (quantum meruit recovery tied to services rendered to client)
- Eichholz Law Firm v. Tate Law Group, 310 Ga. App. 848 (former counsel may recover for services provided for mutual benefit of client)
- Haldi v. Watson, 240 Ga. App. 801 (discharged attorney may seek quantum meruit)
- Amstead v. McFarland, 287 Ga. App. 135 (reasonable value of services determines quantum meruit award)
- Mullis v. Sikes, 244 Ga. App. 368 (appellate review of valuation of attorney services)
- Babb v. Potts, 183 Ga. App. 785 (questions of value are for factfinder)
- Griner v. Foskey, 158 Ga. App. 769 (bench trial valuation in quantum meruit context)
- King v. Lessinger, 276 Ga. App. 145 (general rule re: contingency-discharge quantum meruit recovery)
