PER CURIAM.
This appeal arises from a law firm's suit to collect fees for legal work performed for a client (the collection action), and the client's counterclaim for legal malpractice. Defendants Winberry Realty Partnership (the partnership) and the individual members of the partnership appeal from two orders dated October 24, 2011, granting summary judgment in favor of plaintiff Ragan & Ragan, P.C., and dismissing defendants' counterclaim, and from a January 6, 2012 order denying defendants' motion for reconsideration.
Plaintiff represented defendants in a tax foreclosure action and convinced the court to vacate a default judgment against the partnership.
When defendants failed to pay plaintiff's bill for its legal services, plaintiff sent defendants a letter dated October 9, 2009, demanding the fees, and offering defendants the opportunity to engage in fee arbitration, as required by
When defendants failed to request fee arbitration, or arbitration of any kind, plaintiff filed suit on November 12, 2009 to collect the fees. Default judgment was entered in May 2010, but plaintiff consented to the court vacating the judgment and agreed to dismiss the collection action without prejudice.
On June 29, 2010, plaintiff sent defendants a demand letter and offered to try to resolve the dispute through mediation conducted by the "local fee arbitration committee." On December 16, 2010, plaintiff sent defendants another pre-action notice, as required by
On March 31, 2011, defendants filed an answer and a counterclaim alleging legal malpractice. Plaintiff filed an answer to the counterclaim on April 29, 2011, thereby triggering the time limit for defendants to file an Affidavit of Merit.
In opposition to the motion, defendants submitted a certification from defendant John J. Winberry, Jr. (Winberry). His certification alleged a long list of disagreements with the legal strategy the Ragan firm pursued while representing defendants in the tax foreclosure litigation. He claimed that "Mr. Ragan's conduct fell far short of adequate representation" in various ways, including Ragan's refusal to present, in briefs and oral arguments, points that Winberry thought were meritorious and Ragan did not. Winberry did not deny that defendants failed to file an Affidavit of Merit.
Winberry also asserted in general terms that the firm billed defendants "for typing expenses charged at the rate of an associate of Mr. Ragan's." Apparently Winberry believed that if the firm's associates were typing legal documents, he should not be billed for that time. He did not question any specific hours or services listed on the firm's extensive billing records.
Late on Friday afternoon, October 20, 2011, four days before the October 24 motion hearing, defendants faxed a letter to plaintiff and the court demanding arbitration pursuant to the retainer agreement. Plaintiff opposed the request as being untimely.
In an oral opinion issued on October 24, 2011, the motion judge concluded that the counterclaim was based on a claim of legal malpractice and therefore required an Affidavit of Merit. She also found that defendants had failed to specify any discovery they might have needed to prepare the Affidavit. The judge rejected defendants' argument that "this is a common knowledge malpractice type of case," concluding that "[c]learly the jury would require the assistance of an expert." She therefore granted the motion to dismiss the malpractice counterclaim.
With regard to the collection action, she found that defendants had neither specified any billed hours that they claimed were excessive nor submitted any other legally competent evidence that the fees were unreasonable. The judge also stated that she had reviewed the bills herself and found nothing excessive in the number of hours billed. However, the judge disallowed the eighteen percent interest provided by the fee agreement, and awarded only the rate permitted by the
Defendants filed a motion for reconsideration, arguing, among other things, that plaintiff was not entitled to collect fees for its pro se representation. They also argued that the malpractice claim did not require an Affidavit of Merit.
In a lengthy oral opinion issued on January 6, 2012, the motion judge reaffirmed her earlier ruling that the counterclaim required an Affidavit of Merit. After reciting plaintiff's extensive efforts to obtain defendants' agreement to go to arbitration, the judge rejected defendants' untimely contention that the matter should now be dismissed in favor of arbitration. She reasoned that the collection action was ripe for summary judgment because defendants did not specify any additional discovery they needed. Nor did they raise any material dispute of fact as to the reasonableness of the fees. She denied the reconsideration motion. However, she also denied plaintiff's application for counsel fees as a sanction for frivolous litigation.
On this appeal, we review the judge's grant of summary judgment de novo, employing the same standard used by the trial judge.
Likewise, we review de novo a trial court's legal interpretations and its construction of arbitration clauses.
Viewing the record in light of those legal standards, we find that the motion judge properly granted plaintiff summary judgment with respect to its fees for the
Plaintiff submitted legally competent evidence, including detailed billing records, concerning the legal services that it rendered. Defendants raised no objection to any specific time entry or to the overall number of hours billed. Their contention that firm associates should not have billed for typing documents was frivolous. Even if defendants suggested some of the language contained in the documents, the firm's attorneys were still ultimately responsible for composing the documents that would be submitted to the court. Because defendants failed to raise a material dispute of fact over the bills, no hearing was required as to the reasonableness of the fees, and summary judgment was properly granted.
Defendants' arguments concerning the Affidavit of Merit are also insubstantial. Winberry's certification set forth a litany of criticisms, all directed at his prior attorney's litigation strategy in the tax foreclosure action. Apparently, at every turn in that lawsuit, Winberry sought to second-guess his attorney and micro-manage the litigation. Although defendants attempt to characterize their counterclaim as a "breach of contract" action, the certification can only be described as setting forth a malpractice claim focused on legal strategy issues.
Defendants' appellate arguments concerning their entitlement to arbitration are equally unpersuasive.
Defendants argue that the arbitration clause is ambiguous, as it relates to the scope of the issues subject to arbitration. They urge that the clause, having been drafted by plaintiff, should be construed favorably to defendants. However, we need not decide whether the arbitration clause is narrowly limited to fee arbitration pursuant to
Regardless of its scope, the clause unambiguously required defendants "to initiate the arbitration," failing which plaintiff was "free to initiate a civil action" to collect its fees. In the face of repeated pre-litigation correspondence from plaintiff offering the opportunity for arbitration, defendants failed to seek arbitration. Accordingly, pursuant to the express terms of the retainer agreement, plaintiff was entitled to pursue its claims in court. Further, no reasonable construction of the clause would permit defendants to then bifurcate the dispute by requiring separate arbitration of their defenses and counterclaims.
Moreover, even if the agreement had not clearly permitted plaintiff to file suit under these circumstances, we would conclude that defendants waived the right to arbitrate their counterclaims by their unreasonable delay. Defendants filed an answer and a counterclaim without mentioning an asserted right to arbitration. Defendants waited until plaintiff had incurred the expense of discovery and motion practice, and served their arbitration demand just before the summary judgment motion was to be heard. The judge properly rejected defendant's eleventh-hour litigation tactic.
Lastly, we must agree with defendants on the issue of counsel fees for plaintiff's self-representation in the collection action. After the motion judge decided this case, the Supreme Court issued its opinion in
Accordingly, we reverse the fee award of $13,318 to plaintiff for litigating the collection action. In all other respects, the orders on appeal are affirmed. We remand for the limited purpose of entering an amended judgment consistent with this opinion.
Affirmed in part, reversed and remanded in part.