BEAR, J.
The important question raised by this appeal is whether an attorney charging lien can arise by operation of law to be applied to assets or an interest in assets assigned to a party in a dissolution of marriage action. The trial court answered that question in the negative. We disagree and, accordingly, reverse the judgment of the trial court.
In August, 2009, the court rendered a judgment dissolving the marriage of James F. Jordan III and Diane M. Jordan. James Jordan had been represented by the defendant Carlo Forzani, an attorney of the defendant law firm, Carlo Forzani, LLC, in that proceeding.
While an appeal to this court from the judgment of dissolution was pending,
The court held a hearing to determine the competing claims in the account and, subsequently, concluded that the defendants had no superior interest in the account by virtue of either an attorney
On appeal, the defendants claim that the trial court improperly held that "an attorney's charging lien is [not] applicable to a marriage dissolution action." The defendants argue that Forzani "acquired a perfected charging lien for the full amount of his fees ... when he successfully obtained a judgment for his client that included a property distribution award."
Whether an attorney has a common-law charging lien is a question of law. See D'Urso v. Lyons, 97 Conn.App. 253, 255, 903 A.2d 697, cert. denied, 280 Conn. 928, 909 A.2d 523 (2006). "When ... the trial court draws conclusions of law, our review is plenary and we must decide whether its conclusions are legally and logically correct and find support in the facts that appear in the record." (Internal quotation marks omitted.) Id., at 255-56, 903 A.2d 697.
"Although not often litigated in the courts of Connecticut, the common-law charging lien has been recognized since 1836...." Id., at 256, 903 A.2d 697. Our common-law charging lien is an equitable lien. "If an attorney has rendered services and expended money in instituting and conducting a suit and the plaintiff orally agrees that he may retain so much of the avails thereof as will pay him for his services and expenses therein and for previous services in other matters, and he thereafter conducts the suit to a favorable conclusion, he has, as against such plaintiff, an equitable lien upon the avails for the services and expenses in the suit, and for the previous services embraced in the agreement...." Cooke v. Thresher, 51 Conn. 105, 107 (1883).
"`An attorney, as against his client, has a lien upon all papers in his possession, for his fees and services performed in his professional capacity, as well as upon judgments received by him.' This quoted passage obviously refers to both retaining liens on papers and charging liens on judgments." Marsh, Day & Calhoun v. Solomon, 204 Conn. 639, 644, 529 A.2d 702 (1987). "An attorney's retaining lien is a possessory lien on a client's papers and files that the attorney holds until his fee has been paid.... A retaining lien differs from a charging lien, which is a lien placed upon any money recovery or fund due the client at the conclusion of suit." (Citations omitted.) Id., at 643, 529 A.2d 702. "[I]t has long been held that an attorney has an equitable lien upon the avails [of his actions for a client] for the services and expenses in the suit." (Internal quotation marks omitted.) D'Urso v. Lyons, supra, 97 Conn.App. at 257, 903 A.2d 697.
In the present case, although recognizing that an attorney in Connecticut may have a right to a charging lien in a civil action, the trial court concluded that such a right could not exist, as a matter of law, in a marital dissolution action. The court specifically determined that such a lien would violate rule 1.5(d)(1) of the Rules of Professional Conduct and that it would violate the public policy of Connecticut. The court further determined that before a charging lien can be recognized, the attorney must create a new asset, a previously not existing pool of funds for the client, such as occurs, for example, when the client is successful in a personal injury case, but which it determined does not occur when dividing existing marital property pursuant to General Statutes § 46b-81.
Neither of the parties to this case, nor the trial court, has cited any state statute or a case based on the Connecticut common law that holds that a charging lien may not be acquired by an attorney in a dissolution action as a matter of law. On the basis of the record before us and our independent research, we disagree with the court's analysis and can discern no viable reason why a charging lien should be absolutely prohibited as a matter of law in a marital dissolution action.
As previously set forth in this opinion, the court held that to recognize a charging lien in a dissolution of marriage action would violate rule 1.5(d) of the Rules of Professional Conduct, which provides: "A lawyer shall not enter into an arrangement for, charge, or collect: (1) Any fee in a domestic relations matter, the payment or amount of which is contingent upon the securing of a dissolution of marriage or civil union or upon the amount of alimony or support, or property settlement in lieu thereof...." (Emphasis added.) We conclude that recognizing a charging lien in a dissolution of marriage action would not implicate rule 1.5(d)(1) because a charging lien would not render the attorney's fee
After considering rule 1.5 and other rules of professional conduct, we conclude that rule 1.8(i)(1) permits a charging lien in connection with a dissolution action. Rule 1.8(i) provides: "A lawyer shall not acquire a proprietary interest in the cause of action or subject matter of litigation the lawyer is conducting for a client, except that the lawyer may: (1) Acquire a lien granted by law to secure the lawyer's fee or expenses...." This rule thus specifically recognizes that an attorney may acquire a charging lien, a lien granted by our common law, in connection with litigation, and it contains no specific prohibition against such a lien in connection with dissolution of marriage litigation.
We also disagree with the court's conclusions that to recognize a charging lien in a dissolution of marriage action would violate public policy and that such a lien could not be recognized because the attorney must create a "new" asset before a charging lien can be acquired.
A charging lien in New York "attaches at the commencement of an action or proceeding.... There is no requirement of docketing or filing in order to perfect a charging lien. Nor is it necessary for the attorney to give notice of his claim to the adverse party to protect his lien. An attorney can, however, be held to have waived the lien by his failure to assert it within a reasonable period of time." D. Freed et al., "Attorney's Liens," N.Y.L.J., Vol. 205, Issue 121, June 25, 1991, p. 8. With respect to a lien against the proceeds of a property distribution, "[a]lthough an attorney's charging lien does not attach to an award of alimony or maintenance, nothing in the Judiciary Law precludes enforcement of a charging lien upon a distributive award...." Id.
In many, if not all, of the remaining states, charging liens are recognized under the common law, but some states also protect alimony and support awards from such liens; see W. Hairston, supra, at 195-96; but not "funds which counsel has obtained for the client through litigation." Annot., Alimony or Child-Support Awards as Subject to Attorneys' Liens, 49 A.L.R.5th 595, 595 (1997). "Most jurisdictions provide attorneys with either common-law or statutory liens for fees against various interests of clients they have previously represented. These liens can attach as an encumbrance to materials left in the attorney's possession or against funds which counsel has obtained for the client through litigation. Policy considerations and, to a lesser extent, statutory construction have led many jurisdictions to exempt awards of alimony or child support from the operation of such liens. However, some jurisdictions, as in the case of Jasper v. Smith [540 N.W.2d 399 (S.D.1995)], 49 A.L.R. 5th 833, have permitted these types of liens to attach to judgments of support." Annot., 49 A.L.R.5th, supra, at p. 595.
An attorney usually is entitled to the assistance of the court to enforce a common-law charging lien. "A special, or charging, lien may ... be available to an attorney who has obtained a judgment, decree, or award for his or her clients. This lien generally gives an attorney the right to recover his taxable costs, fees, and money expended on behalf of the client from a fund recovered by his aid, and the right to have the court interfere to prevent payment by the judgment debtor to the creditor in fraud of the attorney's right to it. The lien is not dependent on possession as in the case of a retaining lien. Counsel must, instead, take affirmative action to enforce it." Id., at § 2[a], p. 603.
There is no statutory basis for an attorney's lien in Connecticut, and the defendants do not claim that an express agreement is the basis for the alleged charging lien;
Thus, according to Bassett, for an equitable lien to arise there must be an intention by the parties that specific property will secure the obligations in the contract. See id.; see also Connecticut Co. v. New York, New Haven & Hartford Railroad Co., 94 Conn. 13, 33-34, 107 A. 646 (1919) ("[i]n order ... that [an equitable] lien may arise ... the agreement must ... indicate with sufficient clearness an intent that the property so described or rendered capable of identification is to be held, given or transferred as security for the obligation" [internal quotation marks omitted]). The requisite intent does not depend on the express assertion of a security interest. "It may arise from circumstances of such nature as to require the presumption, upon general considerations of justice as between those conducting commercial transactions according to a reasonable standard of integrity, that an equitable lien was meant.... If the arrangement between the parties, interpreted in the light of the conditions in which they were placed, indicates a contemporaneous intention to adjust their rights upon a basis which can be established only by resort to the equitable principle of lien or pledge, then, in the absence of an intervening adversary interest, such an intent will be [enforced by the court]." (Internal quotation marks omitted.) Id., at 34, 107 A. 646.
An equitable charging lien will arise when the arrangement between the attorney and client intends that a lien exist on the proceeds of the action. In De Wandelaer v. Sawdey, 78 Conn. 654, 658, 63 A. 446 (1906), for example, our Supreme Court held that an equitable lien arises when an attorney "`[takes] up a case' with the understanding that he must look to the judgment to be obtained for compensation for his services and disbursements." Indeed, the court in De Wandelaer observed that such a practice is "not uncommon." Id. Under these circumstances, the arrangement between the attorney and the client, "interpreted in the
Cases from other jurisdictions similarly recognize that a charging lien arises by operation of law when the parties have agreed, explicitly or implicitly, that the attorney's fee will be secured by proceeds of the litigation. See, e.g., Recht v. Urban Redevelopment Authority, 402 Pa. 599, 608, 168 A.2d 134, 139 (1961) (charging lien will arise only when "it was agreed that counsel look to the fund rather than the client for his compensation"); Linder v. Lewis, Roca, Scoville & Beauchamp, 85 Ariz. 118, 123, 333 P.2d 286 (1958) ("it must appear that the parties looked to the fund itself for the payment of the attorney"); In re Heinsheimer, 214 N.Y. 361, 368, 108 N.E. 636 (1915) (Cardozo, J.) ("[a] charging lien cannot exist unless it is an element, express or implied, of the agreement that the lawyer is to be paid out of the fruits of the judgment"); cf. 7 Am. Jur.2d 354, Attorneys at Law § 319 (2007) ("[w]here the parties contract that the attorney will receive his or her fee from the amount recovered, the agreement creates an equitable lien").
The circumstances of each dissolution action, then, must be considered by the court in whether to find the existence of an equitable charging lien. At the outset of a marital dissolution action, it may be difficult to predict exactly how all of the parties' property will be divided between them. See Casey v. Casey, 82 Conn.App. 378, 386-87, 844 A.2d 250 (2004) ("[i]t is... well settled ... that there is no set formula the court is obligated to apply when dividing the parties' assets and that the court is vested with broad discretion in fashioning financial orders"). Under these circumstances, an agreement between an attorney and client may not specifically "deal with some specific property," to which the attorney can look to secure his or her payment. See Bassett v. City Bank & Trust Co., supra, 116 Conn. at 631, 165 A. 557. Typically, at the initiation of the representation, a party in a matrimonial action can promise, at most, to pay his or her attorney out of any assets he or she retains, but such a promise may not in all circumstances be able to include an identification of property sufficient to be the basis of an equitable lien.
Other state law is instructive. In Florida, like Connecticut, for example, common-law charging liens have been recognized
As previously set forth, in Connecticut, attorney charging liens have been recognized at least since 1836, in the case of Gager v. Watson, supra, 11 Conn. at 168. Although our courts have not developed a considerable body of law on this issue, they consistently have held that an attorney has a charging lien on any money recovered or fund due the client at the conclusion of suit, provided the recovery was secured through the attorney's efforts. See Cooke v. Thresher, supra, 51 Conn. at 107; Marsh, Day & Calhoun v. Solomon, supra, 204 Conn. at 644, 529 A.2d 702; D'Urso v. Lyons, supra, 97 Conn.App. at 257, 903 A.2d 697. Further, although the issue of a charging lien in a dissolution of marriage action does not appear to have been addressed directly by an appellate court in Connecticut, we are aware of one Superior Court case in which a charging lien was recognized in a such an action. See Hill v. Hill, Superior Court, judicial district of Fairfield, Docket No. FA-91-0374254-S, 2001 WL 179781, *5 (January 8, 2001), aff'd, 75 Conn.App. 902, 818 A.2d 901 (per curiam), cert. denied, 264 Conn. 911, 826 A.2d 1155 (2003).
With respect to the defendants' assertion of a charging lien, the trial court is in the best position to "take into account the whole contract and the manifest intention of the parties...." Connecticut Co. v. New York, New Haven & Hartford Railroad Co., supra, 94 Conn. at 32,
On the basis of the foregoing, we conclude that under some circumstances an attorney may acquire a charging lien in a dissolution of marriage action and that the trial court erred in holding otherwise as a matter of law.
The judgment is reversed and the case is remanded for further proceedings in accordance with this opinion.
In this opinion BEACH, J., concurred.
ESPINOSA, J., dissenting.
In this case of first impression, the defendants Carlo Forzani and Carlo Forzani, LLC,
Neither this court nor our Supreme Court has squarely addressed the issue of whether an attorney may acquire an equitable charging lien in a dissolution action. As a result, in concluding that such a charging lien is permissible under certain circumstances, the majority relies heavily on the law of other states, secondary sources and an analogy that it draws between dissolution actions and other general
Similarly, the majority has cited no Connecticut case with precedential value in which an equitable charging lien in a dissolution action has been upheld and, instead, analogizes to general civil actions that have recognized the validity of such liens. See, e.g., D'Urso v. Lyons, 97 Conn.App. 253, 903 A.2d 697, cert. denied, 280 Conn. 928, 909 A.2d 523 (2006); Perlmutter v. Johnson, 6 Conn.App. 292, 298, 505 A.2d 13, cert. denied, 200 Conn. 801, 509 A.2d 517 (1986), cert. denied, 479 U.S. 1035, 107 S.Ct. 886, 93 L.Ed.2d 839 (1987). I am not persuaded by the majority's analogy because frequently, as in this case, the issues and policy concerns raised in dissolution actions are inherently different from other civil actions. In particular, because of the unique issues presented in domestic relations matters, there is a heightened aversion to arrangements in which an attorney gains any pecuniary interest by virtue of the judgment rendered in a dissolution action.
Rule 1.5(d) of the Rules of Professional Conduct provides in relevant part: "A lawyer shall not enter into an arrangement for, charge, or collect: (1) Any fee in a domestic relations matter, the payment or amount of which is contingent upon the securing of a dissolution of marriage or civil union or upon the amount of alimony
In rejecting the trial court's conclusion that the recognition of a charging lien in a dissolution action would violate rule 1.5(d)(1), the majority states that "[t]he recognition of a charging lien ... would not tie the attorney's fees in a dissolution of marriage action ... to the outcome of the case...." While I agree that such a lien does not violate the express terms of the rule, I respectfully disagree with the majority's assertion as it applies to this case because the charging lien sought by the defendants, by necessity, tied the defendants' ability to obtain their fee to the outcome of the case. This court previously has described a charging lien as "a lien placed upon any money recovery or fund due the client at the conclusion of suit." (Emphasis added.) Marsh, Day & Calhoun v. Solomon, 204 Conn. 639, 643, 529 A.2d 702 (1987). The defendants claim that they obtained a perfected charging lien by operation of law when they "successfully obtained a judgment for [their] client that included a property distribution award." On the basis of their own argument, the defendants' ability to assert a charging lien was predicated on the court first rendering a judgment of dissolution accompanied by certain financial orders. Therefore, even in the absence of a contingency fee arrangement, the defendants still had a pecuniary interest in the outcome of the dissolution action. As a result, I believe that allowing the defendants to assert an equitable charging lien against the judgment in a marital dissolution action would undermine the public policy concern underlying rule 1.5(d).
Because the defendants' ability to obtain their fee by way of the equitable charging lien they assert would be dependent on the court first rendering a judgment of dissolution, this type of lien poses the same risk presented by a contingency fee arrangement. Although the interest does not directly relate to the amount of a fee, it nonetheless is significant in that it directly relates to an attorney's ability to recover his fee. Allowing attorneys to assert an equitable charging lien against judgments in marital dissolution actions presents an inherent danger of discouraging them from advocating for amicable settlements for their clients as they could not assert such a lien if the parties determined that settlement, rather than a judgment of dissolution with corresponding financial orders, was in their best interest. Accordingly, I would conclude that the same policy concern underlying the prohibition against attorneys entering into contingency fee arrangements in dissolution actions likewise should counsel against recognizing such a
For the foregoing reasons, I would affirm the judgment of the trial court.
We also are aware of another Superior Court case where the court upheld an attorney's right to place a mortgage on the marital home of his client as security for the attorney's legal fees in a dissolution of marriage action. See Kelly v. Kelly, Superior Court, judicial district of Hartford, Docket No. FA-08-4040118-S, 2009 WL 2872845 (August 12, 2009) (48 Conn. L. Rptr. 333). A mortgage, however, is not a type of charging lien.