CALVIN A. JOHNSON, APPELLANT,
v.
VELMA VIRGINIA SKARVAN, APPELLEE

Fla. 5th DCA | 2008-10-17
No. 5D07-3102
PLEUS and ORFINGER, JJ., concur.
992 So. 2d 873 Florida District Court of Appeal, Fifth District (2008) Positive Treatment
Cited by 4 cases

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Synopsis

Appellant challenges an order enforcing a settlement agreement his attorney negotiated without actual authority. The court reverses, holding that an attorney's mere employment does not confer implied or apparent authority to settle a client's claim, and rejecting an exception based on claimed emergency circumstances.


Holding

An attorney does not have implied or apparent authority to compromise or settle a client's claim based merely on employment. Although some courts have recognized an exception for true emergencies requiring immediate action when client consultation is impossible, no Florida appellate court has found this exception applicable, and it does not apply here.


Headnotes

[1] An attorney generally lacks implied or apparent authority to compromise or settle a client's cause of action without express client authorization.

[2] An attorney may settle a case without client consultation in an emergency situation requiring prompt action to protect the client's interests.

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Key Quotes

“the 'mere employment of an attorney does not give the attorney the implied or apparent authority to compromise the client's cause of action or settle the client's claim.'”

Establishes the foundational legal principle that attorney employment does not automatically confer settlement authority.

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Facts & Procedural History

Appellant retained Attorney Kirschner to handle a personal injury case from a motor vehicle accident. Days before a scheduled independent medical exam…

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Opinion of the Court
TORPY, J.

TORPY, J.

Appellant challenges the lower court’s order granting a motion to enforce a settlement agreement in this personal injury action. Because Appellant’s attorney did not have authority to settle the case on Appellant’s behalf, we reverse the lower court’s order. This action arose out of a motor vehicle accident. Appellant retained Attorney Stephen J. Kirschner to prosecute the action on his behalf. In due course, Appellant’s independent medical examination was scheduled. Several days prior to the scheduled examination, Appellant told Mr. Kirschner that he would be unable to attend the examination because he intended to be in Atlanta at the time. Mr. Kir-schner informed Appellant that his refusal to attend the examination might result in sanctions including the dismissal of the action. In response, Appellant authorized Mr. Kirschner to settle the suit for the total sum of $7,500.

Thereafter, Mr. Kirschner entered into settlement negotiations with Appellee. However, the negotiations resulted in an offer by Appellee of only $6,500, $1,000 less than the actual authority Appellant gave to his counsel. Apparently unable to contact Appellant before the scheduled independent medical examination, and believing that it was in Appellant’s best interest to accept the lesser sum to avoid the possibility of sanctions, Mr. Kirschner agreed with Appellee’s counsel to settle Appellant’s case for $6,500.

Mr. Kirschner subsequently filed a motion to withdraw, claiming entitlement to a lien on the settlement proceeds. He also filed a “Verified Motion To Enforce Settlement,” in which he acknowledged that he did not have actual authority from Appellant to settle Appellant’s ease for $6,500. Instead, Mr. Kirschner contended that he had implied or apparent authority to compromise his client’s claim because Appellant’s refusal to attend the independent medical examination constituted an “emergency,” justifying the unauthorized settlement based upon Nehleber v. Anzalone, 345 So. 2d 822 (Fla. 4th DCA 1977).

The trial court conducted a hearing on the verified motion and made two findings: (1) that the settlement was in Appellant’s best interest, and (2) that Appellant’s counsel had implied authority to settle the case due to the so-called emergency, also relying upon Nehleber. This appeal timely followed.

At the outset, we address Appel-lee’s contention that the failure of Appellant to file a transcript of the hearing compels us to affirm. Because the factual underpinning for the trial court’s findings is apparent from the face of the record, we do not agree that the absence of a transcript precludes review on the merits. Kirsch v. Kirsch, 642 So. 2d 20, 21 (Fla. 5th DCA 1994).

Turning to the merits, we start our analysis with the general rule that the “mere employment of an attorney does not give the attorney the implied or apparent authority to compromise the client’s cause of action or settle the client’s claim.” Collado v. Pavlow, 951 So. 2d 69, 71 (Fla. 5th DCA 2007). An exception to this general rule is said to exist “when an attorney is confronted with an emergency which requires immediate action to protect the client’s interests and consultation with the client is impossible.” Id. (citing Nehleber, 345 So. 2d at 823). Although several courts, including our own, have acknowledged this exception, Appellee concedes, and our research confirms, that no Florida appellate court has ever found the exception to be applicable. We conclude that it is not applicable here, even assuming that the exception is legally sound. As for the lower court’s finding that the settlement was in Appellant’s best interest, that finding does not bear on the legal issue here, which is counsel’s authority to settle the case, not the wisdom of counsel’s decision.

REVERSED and REMANDED.

PLEUS and ORFINGER, JJ., concur.


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Citator

Cited By

  • Johnson v. Skarvan, 27 So. 3d 178 (Fla. 5th DCA 2010)
    …Inc., 636 So. 2d 773 (Fla. 1st DCA 1994). We, therefore, reverse and remand for further consideration consistent with this opinion. REVERSED and REMANDED. GRIFFIN and TORPY, JJ„ concur. . We previously considered this case in Johnson v. Skarvan, 992 So. 2d 873 (Fla. 5th DCA 2008). . The order misstates the date of the pretrial conference; it was held on March 4, 2009.…
  • JAG Auto Body, Inc. v. Antoni Capone, 95 So. 3d 470 (Fla. 5th DCA 2012)
    …lado, 951 So. 2d at 71; Sharick, 891 So. 2d at 565. We also reject any contention that the desire to settle the case prior to a scheduled pretrial conference constitutes an “emergency” justifying an unauthorized settlement. See Johnson v. Skarvan, 992 So. 2d 873 (Fla. 5th DCA 2008). REVERSED and REMANDED. LAWSON, EVANDER and COHEN, JJ., concur.…

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