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Attorney With Fee-Sharing Agreement Lacks Claim for Fees After Being Fired

January 3, 2011 | Posted in : Fee Agreement

A recent Courthouse New Service story, “Attorney Fired by Client Lacks Valid Claim for Fees” reports that an attorney who bought in a more experienced attorney to help on a personal injury case lost his right to his attorney fees when the client fired him, a California appeals court ruled.  Kathleen Klawitter hired Christopher J. Olsen to represent her after she suffered injuries on a golf course.  Olsen enlisted the help of the more experienced Joseph F. Harbison III to assist Olsen on the case in exchange for 60 percent of the attorney fees. 

Klawitter soon fired Olsen, however, in favor of Harbison, and the case settled for $775,000.  Olsen sued Harbison for fraud and interference with a contractual relationship.  The trial court ruled in favor of Harbison, and Justice Harry Hull, ruled that Harbison is protected by the litigation privilege.  “Once Klawitter fired plaintiff as her attorney, the contract between them ceased to exist.  When the Klawitter-plaintiff contract ceased to exist, the fee-sharing agreement between plaintiff and defendant promised on that agreement also ceased to exist,” wrote Justice Hull.