KHUDOURIE CHAACHOU, APPELLANT,
v.
FREDERICKA PHILLIPS CHAACHOU ET AL., APPELLEES

Fla. 3d DCA | 1960-06-30
No. 59-548
HORTON, C. J., and PEARSON and CARROLL, CHAS., JJ., concur.
122 So. 2d 24 Florida District Court of Appeal, Third District (1960) Negative Treatment
Cited by 34 cases

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Synopsis

The Florida District Court of Appeal reversed a trial court's summary judgment awarding attorney fees to the Cypen firm in a divorce proceeding, holding that disputed attorney fee claims cannot be tried summarily in an equity suit but must be prosecuted in a separate law action, though the court may require security pending resolution of the fee dispute.


Holding

When the amount of a fee is undetermined and the right to a fee or additional fee is in dispute, the contest between attorneys and their client cannot be tried in an equity suit in a summary proceeding, but must be decided in a separate law action. However, the court may protect outgoing attorneys as an incident of their removal by requiring bond or other security pending resolution of the fee dispute in the separate action.


Key Quotes

“it is clearly established in Florida that where no charging lien is involved a lawyer's disputed claim for fees should not be tried against his client in a summary proceeding in an equity suit out of which the claim may have arisen, but must be prosecuted by separate action at law”

Establishes the core holding that disputed attorney fee claims must be tried in separate law actions, not in summary equity proceedings

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Facts & Procedural History

Khudourie Chaachou was the defendant in a divorce suit commenced in 1952. The law firm Cypen, Salmon & Cypen represented him from February 1956 until …

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Opinion of the Court
PER CURIAM.

PER CURIAM.

The appellant is the defendant in a suit for divorce which has been pending in the circuit court in Dade County for a number of years. He has appealed from a judgment for fees, entered in the divorce suit, in favor of attorneys who had represented him during part of the progress of the case. The determination of the right of the attorneys to a fee from the defendant who was their client, and the determination of the amount to be allowed for such fee was made by the court in a summary proceeding held in the divorce suit based on a petition filed by the attorneys.

The record of the matter discloses that in the divorce suit which was commenced in 1952 Irving Cypen began to represent the defendants therein in February of 1956; that in June of 1956 he associated himself with others and formed the firm of Cypen, Salmon & Cypen. Thereafter Irving Cypen was appointed a circuit judge of the Eleventh Judicial Circuit and representation of the defendants by him or by his firm ended or was terminated in November, 1958. Without formal substitution of counsel the defendant was represented, in certain subsequent proceedings in the case for the next few months by other attorneys. Four to five months after their services were terminated, the Cypen firm filed a petition in the divorce suit, on March 30, 1959, asking that their clients, the defendants in the suit, be required to show cause why they should not pay them further fees. Their petition alleged employment for the period above mentioned; that the clients had agreed to pay them reasonable compensation for representing them in the suit; and that they had performed services which entitled them to fees above the $10,000 which they alleged had been paid.1

*26Based on' the petition the court issued a rule directing the appellant' and three corporate defendants to show cause on April 3, 1959, “why the defendants should’not pay the balance of the attorneys’’ fees due and owing to the firm of Cypen, Salmon & Cypen.” : On 'the return day, the defendants "filed a motion to quash the rule, challenging the right of the court to require the cliénts to pay fees to the attorneys in summary -proceedings in the :divorce. 'suit. Sometime after the hearing on the motion to quash an order was made reserving ruling théreon, and setting the matter for final disposition July 17, 1959. The "petition was then heard pursuant to the last mentioned order and resulted in the order appealed from, and which order determined that the firm of Cypen & Salmon (apparently the successor to the firm for which fees were sought, which was Cypen, Salmon & Cy-pen) was entitled to additional compensation, determined the amount of reasonable compensation to be paid them, granted judgment thereon, ordered the defendant Chaachou to pay such sum on or before August 24, and that in default of payment of the judgment by that date execution should issue thereon. The judgment ran against the defendant Khudourie Chaachou only, and not against the order three respondents to the rule to show cause, and this appeal therefrom is by Khudourie Cha-achou.

’The appellant filed a number of assignments of error which included contentions that the court erred in failing to grant the motion to quash and in entertaining jurisdiction, in the equity suit, of a separate fee controversy between the defendant husband and his attorneys. Based on such assignments the appellant’s brief stated the following question:

“Whether the chancellor, sitting in equity in the circuit court, may entertain petition for rule to show cause why attorney’s fees should not be paid when the payment of fees between attorney and client was agreed to be upon a reasonable fee basis.”

In seeking reversal the appellant relied on Brass v. Reed, Fla.1953, 64 So.2d 646; D’Agostino v. Peoples Water and Gas Co., Fla.1955, 78 So.2d 739, and Brasch v. Brasch, Fla.App.1959, 109 So.2d 584, and argued that under those authorities the court was in error in trying these questions as to fees between the client and the attorneys in the equity divorce rather than in a separate action between them, and particularly by the procedure of directing a rule to show cause against the client on petition of his attorneys.

Appellee argued that as Chaachou had terminated the employment of the Cypen firm and proceeded with other counsel without making a substitution in the cause, the *27matter should be treated as though he were applying for substitution of counsel and that the court could properly try the questions relating to the right to fees and their amount in the divorce suit as between attorneys and their client, and make the payment thereof a condition of substitution of counsel. Appellee cited certain federal decisions and authorities from several states which sanction a summary trial and determination of questions relating to fees incident to substitution of counsel in a case.

While there is a division of authority on that question in other jurisdictions, it is clearly established in Florida that where no charging lien is involved a lawyer’s disputed claim for fees should not be tried against his client in a summary proceeding in an equity suit out of which the claim may have arisen, but must be prosecuted by separate action at law. Brass v. Reed, supra, Fla.1953, 64 So.2d 646; Brasch v. Brasch, supra, Fla.App.1959, 109 So.2d 584; Cristiani v. Cristiani, Fla.App. 1959, 114 So.2d 726. See Gay v. McCaughan, Fla.1958, 105 So.2d 771.

The rule pronounced in Diem v. Diem, 136 Fla. 824, 187 So. 569; Vosges Syndicate v. Everglades Club Co., 122 Fla. 267, 164 So. 881, and D’Agostino v. Peoples Water and Gas Co., supra, Fla.1955, 78 So. 2d 739, opinion on rehearing, 740-741, that on substitution of counsel the court may order payment or security for the fees of the outgoing attorney must be construed, in the light of the cases cited in the preceding paragraph of this opinion, to authorize an order requiring payment of fees when the right to receive a fee is not in contest and the amount of the fee has been fixed or determined by agreement of the parties or by some prior adjudication; otherwise the alternative of requiring security for payment of the fee as it may later be determined should be used by the court to protect the outgoing attorney.2

We hold, therefore, that if the amount of the fee is undetermined, and particularly as here, where the right to a fee or additional fee as claimed is in dispute, the contest between attorneys and their client for such fee could not be tried in the divorce suit in a summary proceeding on the attorneys’ petition, but should be decided in a separate action at law;3 and while the chancellor was eminently correct in seeking to protect the outgoing attorneys, as an incident of their removal in favor of other counsel, for such additional fees as they might establish to be due them, that should have been done by an order requiring bond or other security, because the client was entitled to have the issues relating to the claim of his attorneys for additional fees tried in a separate law action, and before a jury there, if requested.

The order appealed from requiring the defendant in the divorce suit to pay fees to his attorneys and granting judgment against him for such fees is reversed and the cause is remanded with directions to enter an order requiring, as an incident to the change and substitution in attorneys which has occurred, that the defendants who employed the attorneys, or one of the said defendants, shall file a good and sufficient bond in such amount as the chancellor deems proper, or provide for other security, to secure payment to the petitioning attorneys of any judgment they may obtain in a sep*28arate law action brought to recover such fees.

Affirmed in part and reversed in part, and remanded with directions.

HORTON, C. J., and PEARSON and CARROLL, CHAS., JJ., concur.


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Citator

Cited By (17 total)

  • Litman v. Fine, 517 So. 2d 88 (Fla. 3d DCA 1987)
    …led to a jury trial. Barranco, Darlson, Daniel & Bluestein, P.A. v. Winner, 386 So. 2d 1277 (Fla. 3d DCA 1980); Worley v. Phillips, 264 So. 2d 42 (Fla. 2d DCA 1972); Riddle Airlines v. McGahey, 144 So. 2d 92 (Fla. 3d DCA 1962); Chaachou v. Chaachou, 122 So. 2d 24 (Fla. 3d DCA 1960). However, mere withdrawal or discharge of the attorney before litigation is ended does not deprive him of his right to enforce a claim of lien asserted before the close of the litigation, de La Cruz v. Brown, 338 So. 2d 245 (Fla.…
  • Lloyd Herold, P.A. v. Hunt, 327 So. 2d 240 (Fla. 4th DCA 1976)
    …ty to the other, but has no power or jurisdiction to determine the fees due from a party to his or her own attorney, particularly under a separate employment agreement. Appellant cites as authority for its position the cases of Chaachou v. Chaachou, 122 So. 2d 24 (Fla.App.3rd, 1960) and Cristiani v Cristiani, 114 So. 2d 726 (Fla.App.2nd, 1959). Mrs. Hunt, although directly affected by our decision on this point, has not filed a brief. Mr. Hunt, whose obligation under the appealed order will necessarily remai…

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