Meyer, Darragh, Buckler, Bebenek & Eck, P.L.L.C. v. Malone Middleman, P.C.

At issue in this case were the attorney's fees earned in a wrongful death civil litigation settlement, and two law firms' dispute over who was entitled to how much. Richard Eazor was killed and Lynn Sharp was injured in a single automobile accident in Clearfield County. Eazor’s estate and Sharp sued each other, with Sharp contending that Eazor drove the vehicle when the accident occurred and Eazor’s estate alleging that Sharp was the driver. Progressive Insurance Company, the liability carrier for Sharp, retained counsel to represent both parties as defendants in the respective actions, while Sentry Insurance, the carrier for Eazor, remained potentially liable for underinsured motorists’ coverage payable to the person deemed to be the passenger in the vehicle. Attorney William Weiler, Jr., entered his appearance on behalf of the Eazor estate. Later that year, Weiler became associated with the law firm of Meyer, Darragh, Buckler, Bebenek & Eck, P.L.L.C., (“Meyer Darragh”). Attorney Scott Millhouse of Meyer Darragh subsequently became primarily responsible for the case and drafted a proposed settlement agreement, which was sent to all counsel, but was never signed. Shortly thereafter, Weiler resigned from Meyer Darragh. Upon his departure, he agreed that Meyer Darragh would receive two-thirds of the attorney’s fees arising from the Eazor estate litigation, and that he would retain one-third of the fees. Weiler subsequently became affiliated with the law firm of Malone Middleman, P.C. (“Malone Middleman”). The Eazor estate decided to discharge Meyer Darragh and seek representation from Weiler and Malone Middleman. Malone Middleman took over the case and entered into a contingency fee agreement with the estate, providing that the firm would represent the estate in exchange for one-third of the proceeds of any settlement reached before suit was filed. The contingent fee agreement did not address the payment of attorney’s fees to Meyer Darragh. Further, Malone Middleman did not agree in writing or otherwise to protect the fee purportedly earned by Meyer Darragh. The Pennsylvania Supreme Court granted allocatur to examine the propriety of the Superior Court’s holding that a Meyer Darragh was entitled to breach of contract damages against Malone Middleman. The Supreme Court reversed, holding that under the specific facts presented here, any recovery that may have been due to Meyer Darragh would lie in quantum meruit, and not breach of contract. As such, the Court reversed and remanded. View "Meyer, Darragh, Buckler, Bebenek & Eck, P.L.L.C. v. Malone Middleman, P.C." on Justia Law