JONES & GRANGER, Appellant,
v.
Basil JOHNSON, Jr., Appellee.
District Court of Appeal of Florida, First District.
John R. Lowery of Pursley, Howell, Lowery & Meeks, LLP, Atlanta, and Robert A. Cole of Cole, Stone, Stoudemire, Morgan & Dore, P.A., Jacksonville, for Appellant.
C. Michael Hardman, Atlanta, for Appellee.
VAN NORTWICK, J.
The law firm of Jones & Granger appeals a final order awarding attorney's fees pursuant to the law firm's charging lien filed in a lawsuit brought by its former client, Basil Johnson, Jr., appellee ("Johnson"). Appellant argues that the trial court erred in calculating the amount of the awarded fees because the court failed to consider relevant factors, including the time and effort the firm dedicated to the case and the contingency fee arrangement. Finding no abuse of discretion, we affirm.
In June 1998, Jones & Granger began representing Johnson in a Federal Employer's Liability Act (FELA) claim against CSX Transportation, Inc. (CSX), pursuant to a contingency fee agreement under which Jones & Granger would be entitled to attorney's fees of 25% of the recovery, plus repayment of costs. Johnson's claim was handled by Michael Hardman, *382 an attorney employed by the firm. In January 2000, Hardman terminated his employment with Jones & Granger. Subsequently, Johnson discharged Jones & Granger without cause and, in February 2000, entered into a new contingency fee agreement with Hardman under which Hardman would receive attorney's fees of 25% of Johnson's recovery of the FELA claim against CSX, plus costs.
On May 2, 2000, Jones & Granger filed a notice of attorney's fee lien. After mediation, on June 22, 2000, Johnson's FELA claim against CSX was settled for $282,963.71. Of the settlement proceeds, $200,000 was distributed to Johnson, with the balance held in trust pending the trial court's order on the attorney's fees due Jones & Granger.
In the order on appeal, the trial court ruled that "the proper basis for compensating an attorney discharged without cause under a valid contingent fee agreement is on the basis of quantum meruit," citing Rosenberg v. Levin,
that a fee of $200.00 per hour for Jones and Granger is reasonable which based on 18.1 hours as proposed by Mr. Hardman would result in an attorney's fee of $3,620.00. Nevertheless, the Court recognizes that a significant amount of work was performed by Mr. Hardman while at Jones and Granger, most likely in excess of 18.1 hours. That work did bring the case to a posture where Mr. Hardman could concentrate his efforts on the medical evidence. Taking all of the above into consideration, the Court finds that the quantum meruit value of the Jones and Granger lien is $7,500.00.
On appeal, appellant correctly acknowledges that our standard of review in reviewing an award of attorney's fees is whether the trial court abused its discretion. See Afrazeh v. Miami Elevator Co. of Am.,
[A]n attorney employed under a valid contract who is discharged without cause before the contingency has occurred or before the client's matters have concluded can recover only the reasonable value of his services rendered prior to discharge, limited by the maximum contract fee....
[I]n contingency fee cases, the cause of action for quantum meruit arises only upon the successful occurrence of the contingency. If the client fails in his recovery, the discharged attorney will similarly fail and recover nothing.... In computing the reasonable value of the discharged attorney's services, the trial court can consider the totality of the circumstances surrounding the professional *383 relationship between the attorney and client. Factors such as time, the recovery sought, the skill demanded, the results obtained, and the attorney-client contract itself will necessarily be relevant considerations.
We conclude that this approach creates the best balance between the desirable right of the client to discharge his attorney and the right of an attorney to reasonable compensation for his services.
Id. at 1021-22; see also Searcy, Denney, Scarola, Barnhart & Shipley v. Poletz,
Jones & Granger contends that the trial court erred in computing the fee awarded under the Rosenberg standard. The firm argues that the trial court should have divided the 25% contingent fee between it and Hardman in proportion to the services each provided in obtaining the settlement and, because Jones & Granger controlled the case for 18 of the approximately 24 months between the date of the first fee agreement and date of the settlement, Jones & Granger should have been awarded 75% of the total fee. We cannot agree.
Jones & Granger has no claim against the contingent fee owed Hardman. See Adams v. Fisher,
In so holding, the court explained:
[T]he trial judge should have required Mr. Adams to pay Mr. Myrick his full contingent fee in accordance with their contract, and Mr. Adams should be required to pay Mr. McGraw for the quantum meruit value of his services. Such a rule insures the right of a client to discharge an attorney at any time with or without cause, but it also makes the client responsible for his actions. A client may end up paying fees in excess of the original contingent fee, once to the discharged attorney in quantum meruit and again to the substituted attorney on a new contingent fee contract.
Id. at 1251; see also Carman v. Guardianship of Alan Potter,
Appellant argues that Adams is inconsistent with Rosenberg and conflicts with the Third District's decision in Afrazeh and the Fifth District's decision in Miller v. Jacobs & Goodman, P.A.,
Adams and Rosenberg are not in conflict. In Rosenberg, the supreme court was addressing "the proper basis for compensating an attorney discharged without cause by his client after he has performed substantial legal services under a valid contract of employment." Rosenberg,
The first is the need for the client to have confidence in the integrity and ability of his attorney and, therefore, the need for the client to have the ability to discharge his attorney when he loses that necessary confidence in the attorney. The second is the attorney's right to adequate compensation for work performed.
Rosenberg,
In Adams, this court addressed an issue not before the court in Rosenbergthe appropriate manner to determine fees as between the discharged attorney and the substituted attorney. The Adams court held that it was error to award the fee of the discharged attorney out of the fee recovered by the substituted attorney. Adams,
We also find Afrazeh and Miller distinguishable from Adams and the instant case. While Miller did approve the division of an attorney's fee between the discharged attorney and substituted attorney, Miller,
Jones & Granger also argues that the totality of the circumstances test adopted in Rosenberg,
AFFIRMED.
ALLEN and POLSTON, JJ., CONCUR.
