Cohen v. Gold
Filing
46
ORDER re Richard Harris Law Firm, LLP's 33 Motion to Adjudicate Attorney's Lien. The Court ORDERS RHLF to file a supplement to its motion no later than 10/30/2017. Signed by Magistrate Judge Nancy J. Koppe on 10/25/2017. (Copies have been distributed pursuant to the NEF - SLD)
1
2
3
4
5
6
7
8
UNITED STATES DISTRICT COURT
9
DISTRICT OF NEVADA
10
SANFORD COHEN,
11
12
13
14
15
)
)
Plaintiff(s),
)
)
vs.
)
)
CATHERINE ISABELLA GOLD,
)
)
Defendant(s).
)
__________________________________________)
Case No. 2:17-cv-00804-JAD-NJK
ORDER
(Docket No. 33)
16
Pending before the Court is Richard Harris Law Firm, LLP’s (“RHLF”) motion to adjudicate
17
attorney’s lien. Docket No. 33. Plaintiff filed a response in opposition. Docket No. 37. RHLF filed a
18
reply. Docket No. 41.
19
I.
BACKGROUND
20
On April 2, 2015, Plaintiff, now deceased, hired RHLF to represent him in an automobile accident.
21
Docket No. 33 at 2. Plaintiff signed a retainer agreement on a contingency fee basis and agreed, if he had
22
discharged RHLF prior to the end of the case, to pay a pro rata share of the total attorneys’ fees, 33 1/3 %
23
of the last settlement offer (40% after initiation of a lawsuit), or “$1,000 per hour for all attorney and staff
24
time, whichever is more.” Id. at 5.
25
On April 14, 2016, Plaintiff terminated RHLF’s representation. Id. at 2. On May 20, 2016, RHLF
26
served a notice of claim of attorney’s lien by certified mail on Plaintiff’s new counsel, Gerald F. Neal,
27
Ocean Harbor Casualty Insurance Company, and Progressive Insurance. Id. RHLF unsuccessfully
28
attempted to serve the notice by certified mail on Plaintiff. Docket Nos. 33-4 at 7, 33-5 at 1.
1
On November 14, 2016, Mr. Neal notified RHLF that he was no longer Plaintiff’s counsel. Docket
2
No. 33-3. On December 22, 2016, RHLF served a notice of claim of attorney’s lien by certified mail on
3
Plaintiff’s new counsel, Trevor Quirk. Docket No. 33-6. On August 2, 2017, RHLF served a notice of
4
claim of attorney’s lien by certified mail on Plaintiff’s newest counsel, Michael D. McLachlan. Docket No.
5
33-7. RHLF attempted to serve the notice by certified mail on Plaintiff but was notified by the returned
6
mailing that Plaintiff was deceased. Id. at 1; see also Docket no. 33-8.
7
During the course of RHLF’s representation of Plaintiff, RHLF obtained medical payments and
8
insurance payments from Progressive Insurance on behalf of Plaintiff. Docket No. 33 at 2. RHLF
9
continued to work on Plaintiff’s underinsured motorist claim against Ocean Harbor Casualty Insurance
10
Company and Progressive Insurance until Plaintiff terminated RHLF’s representation. Id. In April 2017,
11
RHLF sent $8,981.82 of the remaining funds from Plaintiff’s first settlement to Plaintiff’s counsel, Mr.
12
McLachlan, but was unable to resolve its outstanding attorney’s lien with Mr. McLachlan. Id. at 3.
13
Through the pending motion, RHLF seeks payment of $33,400 in fees based on quantum meruit for the
14
work it performed on Plaintiff’s underinsured motorist claim prior to its discharge. Docket Nos. 33 at 3,
15
33-9.
16
II.
ATTORNEY’S LIEN
17
Nevada recognizes two types of attorney’s liens. See, e.g., Newstar Chemicals (M) SDN BHD v.
18
Megola, Inc., 2012 U.S. Dist. LEXIS 135945, at *4 (D. Nev. Sept. 21, 2012) (citation omitted); see also
19
Figliuzzi v. Eigth Judicial Dist. Court In and For Cty. of Clark, 890 P.2d 789, 801 (Nev. 1995). The first
20
is “a special or charging lien,” which provides a lien on “the judgment or settlement [that] the attorney has
21
obtained for the client.” The second is a “retaining lien,” which allows an attorney that has been terminated
22
by the client to withhold the client’s file, documents, and other property “until the court, at the request or
23
consent of the client, adjudicates the client’s rights and obligations” and orders the attorney to return the
24
items to the client upon payment of attorneys’ fees. Newstar Chemicals (M) SDN BHD, 2012 U.S. Dist.
25
LEXIS 135945, at *4.
26
Nevada Revised Statute § 18.015 also provides guidance on the two types of attorney’s liens:
27
1. An attorney at law shall have a lien:
28
(a) Upon any claim, demand or cause of action, including any claim for unliquidated
2
1
damages, which has been placed in the attorney's hands by a client for suit or collection, or upon
which a suit or other action has been instituted.
2
(b) In any civil action, upon any file or other property properly left in the possession of the
attorney by a client.
3
4
2. A lien pursuant to subsection 1 is for the amount of any fee which has been agreed upon by the
attorney and client. In the absence of an agreement, the lien is for a reasonable fee for the services
which the attorney has rendered for the client.
5
6
7
3. An attorney perfects a lien described in subsection 1 by serving notice in writing, in person or
by certified mail, return receipt requested, upon his or her client and, if applicable, upon the party
against whom the client has a cause of action, claiming the lien and stating the amount of the lien.
8
4. A lien pursuant to:
9
(a) Paragraph (a) of subsection 1 attaches to any verdict, judgment or decree entered and
to any money or property which is recovered on account of the suit or other action; and
10
(b) Paragraph (b) of subsection 1 attaches to any file or other property properly left in the
possession of the attorney by his or her client, including, without limitation, copies of the attorney's
file if the original documents received from the client have been returned to the client, and
authorizes the attorney to retain any such file or property until such time as an adjudication is made
pursuant to subsection 6, from the time of service of the notices required by this section.
11
12
13
14
RHLF seeks to adjudicate its charging lien, as described under paragraph (a) of subsection 1, above.
15
III.
JURISDICTION
16
In accordance with NRS § 18.015, RHLF attempted to perfect its lien before the instant case was
17
settled by serving notice of its claim of attorney’s lien by certified mail on Plaintiff and his new counsel.
18
Docket Nos. 33 at 2-3, 28; see also G. Dallas Horton & Assocs. v. Harris, 2016 U.S. Dist. LEXIS 98800,
19
*8 (D. Nev. July 28, 2016) (reiterating that the notice required by NRS § 18.015(3) must be “served before
20
any funds are received” in order to perfect the lien) (citing Golightly & Vannah, PLLC v. TJ Allen, LLC,
21
373 P.3d 103, 105 (Nev. 2016) (“when an attorney does not attempt to perfect his or her lien until after
22
settlement is reached and the proceeds have been received, the lien does not attach to settlement
23
proceeds”)). The instant case was settled on July 28, 2017, and dismissed with prejudice on August 22,
24
2017. Docket Nos. 28, 32. Nonetheless, this Court retains supplemental jurisdiction over RHLF’s motion
25
to adjudicate its attorney’s lien. See 28 U.S.C. § 1367(a) (“the district courts shall have supplemental
26
jurisdiction over all other claims that are so related to claims in the action within such original jurisdiction
27
that they form part of the same case or controversy...”); see also Curry v. Guam Mem’l Hosp. Auth., 941
28
F.2d 730, 731 (9th Cir. 1991) (“Courts have long recognized that fee disputes arising from litigation
3
1
pending before a district court fall within that court's ancillary jurisdiction”); FilmKraft Prods. India PVT
2
Ltd. v. Spektrum Entm’t, Inc., 2010 U.S. Dist. LEXIS 13330, at *6 (D. Nev. Dec. 2, 2010) (“it is only in
3
the charging lien context that a court has incidental jurisdiction to resolve a fee dispute”) (citation omitted).
4
IV.
CALCULATION OF LIEN AMOUNT
5
When a client terminates an attorney’s representation, the terminated attorney’s “only valid theory
6
of payment for his services is via quantum meruit.” Hartunian v. Racusin, 120 F. App’x 689, 701 (9th Cir.
7
2005). Nonetheless, the terminated attorney can be compensated only for the reasonable value of his
8
services and bears the burden “to establish the reasonableness of the fee.” Sloan v. Country Preferred Ins.
9
Co., 2012 U.S. Dist. LEXIS 102241, at *4 (D. Nev. July 9, 2013) (quoting State Bar of Nevada Standing
10
Committee on Ethics and Professional Responsibility Formal Opinion No. 18, issued April 29, 1994 (listing
11
“the time expended, results obtained, the nature of the case and the understanding of the parties” as factors
12
to consider when determining the reasonableness of a fee)).
13
RHLF charges $1,000 an hour for work performed by either staff or an attorney as a “blended hourly
14
firm rate,” based on, inter alia, the understanding that “the attorney is ultimately responsible for the work
15
and required to review such documents.” Docket Nos. 33 at 4, 41 at 5. Attached to RHLF’s motion to
16
adjudicate attorney’s lien, RHLF provides a timesheet documenting time spent on certain tasks from April
17
2, 2015 until May 2, 2016. Docket No. 33-9. Despite RHLF’s practice of charging a “blended hourly firm
18
rate,” the timesheet does not provide sufficient information for the Court to determine the reasonableness
19
of the fees requested by the attorney’s lien. Id. Therefore, the Court ORDERS RHLF to file a supplement
20
to its motion, no later than October 30, 2017, that provides the following information:
21
1. The name and title of each timekeeper for each entry on the timesheet;
22
2. A description of the nature of each entry, indicating whether the work was performed in
23
furtherance of the UIM claim or otherwise;
24
3. Copies of relevant correspondence regarding work performed in furtherance of the UIM claim;
25
4. An affidavit with the qualifications of the attorneys who provided services to Plaintiff;1
26
27
28
1
RHLF’s motion submits a brief summary of Richard A. Harris’, the firm’s principal attorney,
qualifications. Docket No. 33 at 4. However, based on RHLF’s recent filings, attorneys Kristina R.
4
1
5. An affidavit explaining what payments and on which dates, if any, RHLF obtained for any of the
2
work performed for this case or listed in the timesheet, including settlement payments from, but not
3
limited to, any insurance company;
4
6. An affidavit explaining in detail why RHLF should be compensated for work after it was
5
terminated on April 14, 2016.
6
IT IS SO ORDERED.
7
Dated: October 25, 2017
8
9
________________________________________
NANCY J. KOPPE
UNITED STATES MAGISTRATE JUDGE
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Weller, Joshua R. Harris, and Michael I. Sandoval performed most, if not all, of the work on this case.
Docket Nos. 33 at 17, 41 at 6, 33-5, 33-4 at 4, 33-3 at 1.
5
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?