Attorney Makes Bad Fee Deal

Attorney entered into a contingency fee arrangement with Client to contest Mother’s will.  The agreement provided that Attorney would receive one-third of “whatever additional property or money we can get you.”

Attorney negotiated a settlement which would have increased Client’s share of Mother’s estate by over $20,000.  However, Client rejected the settlement and fired Attorney. 

Client proceeded on his own with the will contest but did not recover anything.

Attorney then sued Client for 1/3 of the rejected settlement, a bit under $7,000.  Both the trial and intermediate appellate courts ruled in favor of Attorney.

In Culpepper & Carroll, PLLC v. Cole, No. 05-C-1136 (April 4, 2006), the Louisiana Supreme Court reversed.  The court explained that Client received “no additional property or money as a result of the litigation against his mother’s estate.”  Accordingly, Attorney is entitled to one-third of nothing which is zero.

For a discussion of this case, see Richard Acello, One-Third x 0 = No Fee, ABA J. eReport (April 14, 2006).