United States of America v. One Rural Lot Identifide As Finca #5,991 Located In Barrio Pueblo, Hatillo, Puerto Rico et al

Filing 232

ORDER re 221 MOTION Requesting Ruling on Dockets 189 and 190 re 112 - 117 , filed by Northland International, Inc. Previous counsel shall not recover any attorney's fees under the professional services contract upon which they have established a claim for legal fees, for the reasons contained in our expanded Order attached hereto. Signed by Chief Judge Jose A Fuste on 12/19/08.(mrj)

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UNITED STATES DISTRICT COURT DISTRICT OF PUERTO RICO UNITED STATES OF AMERICA Plaintiff, v. ONE RURAL LOT IDENTIFIED AS FINCA #5,991, LOCATED IN BARRIO PUEBLO, HATILLO, PUERTO RICO, et al., Defendants. Civil No. 06-1960 JAF) (Related to Crim. No. 03-361)

12 13 14 15 16 17 18 19 20 21 22 23 24 25 There disposition attorney's is pending

ORDER before a the court the entry of a a formal for

regarding fees by

legal

dispute for

involving

claim See

previous

counsel

claimants.

Docket

Document Nos. 112-117, 189-190, and 205-206. On April 23, 2007, we held a hearing and received evidence. See Minutes of Proceedings for the date April 23, 2007, Docket Document No. 59. Today we reiterate our finding of April 23, 2007. Previous

counsel shall not recover any legal fees, because they entered into a settlement agreement without proper authorization, misrepresenting to the court the facts surrounding that settlement. of Proceedings, Docket Document No. 88. On that occasion, starting at page 22 of the transcript, we found that the settlement reached by counsel was not valid. It was See Transcript

Civil No. 06-1960 (JAF) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 under

-2-

not authorized. We further found that the intervention of counsel in the settlement process as depicted in the transcript was, to say the least, questionable from an ethical point of view. Rules of Professional The Conduct, Rule Group that 1: See ABA Model Client-Lawyer counsel's

Relationship.

transcript

confirms

previous

dealings with their clients and representations to not only their clients but also to the court do not merit any quantum meruit consideration. Therefore, previous counsel shall not recover any legal fees the professional services contract upon which they have

established a claim for legal fees.

The history of this case after

the original settlement was vacated by this court confirms that new counsel had to start the process toward case disposition anew, devoting substantial time and effort to eventually reach a settlement of the various competing claims. The Notices of Liens for Attorney's Fees contained in Docket Document Nos. 112 to 117, inclusive, are DENIED. The content of Docket Document Nos. 189-190 and 205-206 is NOTED. IT IS SO ORDERED. San Juan, Puerto Rico, this 19th day of December, 2008. S/José Antonio Fusté JOSE ANTONIO FUSTE Chief U. S. District Judge