Halstrom v. Dube
Halstrom v. Dube
Opinion
**480 This is a contract action by a law firm to collect an outstanding legal fee from a former client. The plaintiff, Frederic N. Halstrom, as assignee of Halstrom Law Offices, P.C. (HLO), brought this action for legal fees against Michael J. Grace, a former HLO employee, and Marilyn P. Dube, as representative of the estate of David O. Hicks, a former HLO client, for the payment of certain legal fees allegedly owed by Hicks to HLO under a contingent **481 fee agreement. A Superior Court judge allowed the defendants' motion for summary judgment, concluding that Halstrom's claim for fees was time barred by the statute of limitations applicable to contract actions set forth in G. L. c. 260, § 2. 4 We affirm.
Background . We summarize the facts found by the motion judge, supplementing them where necessary with undisputed facts in the record.
In 2007, Hicks retained HLO to serve as counsel in a medical malpractice action in the Superior Court. The contingent fee *629 agreement between Hicks and HLO regarding that litigation, executed on December 7, 2007, included the following discharge provision:
"If the client wishes to discharge the Law Firm, the client shall, in this event, be liable to the Law Firm for a fee at the hourly rate of Three Hundred Fifty Dollars ($ 350.00) per hour, as substantiated by a Notarized Statement of Hours, provided by the Law Firm to the client."
Grace, then an employee of HLO, performed most, if not all, of the legal work on the case, but neither he nor HLO recorded Grace's hours contemporaneously.
HLO terminated Grace on June 25, 2010, while Hicks's medical malpractice case was pending. Hicks, notified of Grace's departure, elected to have Grace continue to represent him in the medical malpractice action. Grace and HLO were notified of Hicks's election in writing on July 1, 2010. On July 2, HLO transferred Hicks's file to Grace at his new firm, Denner Pellegrino, LLP (Pellegrino), and shortly thereafter Hicks entered into a second contingent fee agreement regarding his medical malpractice action with Pellegrino. 5 In August 2013 and July 2015, HLO asked Grace to provide it a statement of the hours he spent on Hicks's medical malpractice action while in HLO's employ; Grace was not cooperative. On August 17, 2015, Halstrom, as assignee of HLO, brought suit against Grace in the Superior Court in an effort **482 to compel Grace's cooperation. 6 In his complaint in that action, Halstrom noted that "the statutes of limitations are running on Halstrom's rights" against numerous former clients for legal fees owed in accordance with HLO's contingent fee agreement.
Halstrom commenced the present contract action in the Superior Court on July 7, 2016, seeking "an amount exceeding $ 30,000.00 for legal services rendered" from Hicks's estate (count I) and stating that because Hicks's attorney's fees for the underlying medical malpractice action are capped by statute, Hicks's estate has a cause of action against Grace "and anyone else who has already received payment for legal fees" in connection with the underlying action (count II). Thereafter, the defendants moved for summary judgment on the ground that Halstrom commenced the action beyond the six-year statute of limitations applicable to contract actions. Halstrom opposed the motion, arguing that his 2015 action against Grace tolled the limitations period because the action "made it abundantly clear that it was a lawsuit to begin vindicating HLO's right to attorneys' fees" and "formally served as the commencement of its claim against [Hicks] for attorneys' fees." 7 Halstrom argued in the *630 alternative that the defendants (1) are estopped from asserting the statute of limitations as a defense because they waited too long to act on the defense, (2) are barred from asserting the defense by the equitable doctrine of laches, or (3) waived the statute of limitations defense.
After a hearing, the judge issued a written decision concluding that HLO's contract claim was in fact time barred and that Halstrom's various equitable arguments lacked merit. On appeal, Halstrom argues that the statute of limitations began to run either on July 6, 2015, when Grace ignored HLO's second request for a statement of hours, or on November 13, 2012, when Hicks, Grace, and Pellegrino settled the underlying medical malpractice action, received the settlement check, and failed to **483 pay HLO its outstanding legal fees. 8 He also restates his tolling, estoppel, waiver, and laches arguments.
Discussion
. We review a grant of summary judgment de novo to determine whether, viewing the evidence in the light most favorable to the nonmoving party, the moving party is entitled to judgment as a matter of law. Mass. R. Civ. P. 56 (c), as amended,
1.
Statute of limitations
. Ordinarily an attorney's cause of action for legal fees accrues no later than the date his or her services are terminated unless the parties enter into a new, enforceable agreement concerning the payment of outstanding fees.
Jenney
v.
Airtek Corp.
,
The plain language of HLO's fee agreement compels the same
**484
result. The pertinent discharge provision unmistakably
*631
provides that if the client discharges HLO, then the client will be liable to HLO for work performed by HLO at a prescribed rate. Therefore, whether we apply the usual rule restated in
Jenney
,
We are not persuaded by Halstrom's argument that the statute of limitations began to run either on July 6, 2015, when Grace ignored HLO's final request for a statement of hours, or on November 13, 2012, when Hicks, Grace, and Pellegrino settled the underlying medical malpractice action, received the settlement check, and failed to pay HLO its outstanding legal fees.
As to the first argument, Grace's refusal to cooperate with HLO has no bearing on when HLO's cause of action for legal fees against Hicks accrued. Grace was not a party to HLO's contingent fee agreement with Hicks, and despite Halstrom's protestations to the contrary, Grace's cooperation was not required for Halstrom to initiate an action against Hicks within the applicable statute of limitations. As the motion judge pointed out, Mass. R. Civ. P. 11 (a), as amended,
As to the second argument, the fact that a contingency contemplated in HLO's fee agreement with Hicks -- settlement -- eventually came to pass also has no bearing on when HLO's cause of action for legal fees against Hicks accrued, because Hicks's discharge of HLO terminated HLO's right to recover on the contingent fee agreement. See
Malonis
v.
Harrington
,
In short, in accordance G. L. c. 260, § 2, Halstrom had until July 1, 2016, to bring his contract action against Hicks. That Halstrom missed the deadline "by a few days" is inconsequential -- his claim is time barred nevertheless.
2.
Halstrom's equitable arguments
. Halstrom's remaining arguments do not require lengthy comment. Halstrom's contention that his August 2015 action against Grace "in pursuit of [attorney's] fees" tolled the six-year limitations period on his contract action against Hicks
*632
is patently devoid of merit. Equitable tolling is to be "used sparingly," and the circumstances where tolling is available are exceedingly limited.
Shafnacker
v.
Raymond James & Assocs., Inc.
,
Halstrom also argues that the defendants should be estopped from asserting the statute of limitations defense because they "knew, or at least believed, all along" that the applicable statute of limitations would run out on or before July 1, 2016, and still they "let more than two years of intense litigation go by utterly unnecessarily." He argues in the alternative that the defendants possibly waived the statute of limitations defense by failing to assert it before moving for summary judgment and that the motion judge could not have concluded that they had not waived the defense as a matter of law because the record was not developed on that point.
Neither argument is persuasive. Halstrom does not contest that the defendants timely asserted the statute of limitations as an affirmative defense in their answer. Cf.
Merrimack College
v.
KPMG LLP
,
Conclusion . We agree with the motion judge that Halstrom's **487 claim for fees was time barred by the statute of limitations applicable to contract actions set forth in G. L. c. 260, § 2. The judgment of the Superior Court is affirmed.
So ordered .
Frederic N. Halstrom timely appealed, and we granted his application for direct appellate review.
Both contingent fee agreements were executed before Mass. R. Prof. C. 1.5 was revised to require that a client's fee agreement with successor counsel state whether the client or successor counsel is to be responsible for payment of former counsel's fees and expenses, if any such payment is due. See Mass. R. Prof. C. 1.5 (c), as amended,
Therein, Halstrom alleged breach of contract and breach of fiduciary duties, and sought equitable relief in the form of a court order compelling Grace to submit to a deposition concerning the time he expended on Hicks's medical malpractice case and others.
In his motion papers, Halstrom suggested that the statute of limitations began to run "on the date of the breach of contract," i.e., the date of HLO's final letter to Grace requesting Grace's cooperation. At the motion hearing Halstrom also argued that, notwithstanding the discharge provision language to the contrary, Hicks did not owe HLO any legal fees until Hicks recovered on his medical malpractice claim.
Halstrom also suggests, in a cursory fashion without citation to supporting legal authority, that "[b]y its terms the contingent fee agreement made presentation of a notarized statement of hours expended a condition precedent to rendering [Hicks] liable for attorney's fees converted to an hourly rate as opposed to the contingent fee basis for the payment of attorney's fees to his attorney." This contention was not presented either to the motion judge or this court in any meaningful way, and as a result, we are not obligated to consider it here. See
Carey
v.
New England Organ Bank
,
Halstrom also posits, with little explanation, that the equitable doctrine of laches should preclude the defendants from asserting a statute of limitations defense. We agree with the motion judge that it does not, because Halstrom has failed to show how the defendants' delay in asserting the statute of limitations defense has disadvantaged Halstrom in mounting his opposition to the defense. See, e.g.,
A.W. Chesterton Co
. v.
Massachusetts Insurers Insolvency Fund
,
Reference
- Full Case Name
- Frederic N. HALSTROM v. Marilyn P. DUBE, Administratrix,& Another.
- Cited By
- 20 cases
- Status
- Published