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Chambers v. Kay

29 Cal. 4th 142 (2002)

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Chambers v. Kay

California Supreme Court
29 Cal. 4th 142 (2002)

  • Written by Rose VanHofwegen, JD

Facts

Attorney Arthur Chambers (plaintiff) sued attorney Philip Kay (defendant) to recover a share of a contingent fee the two agreed to split without the client’s consent. The two had separate law practices, with separate addresses, clients, expenses, and liabilities, although Chambers rented space in Kay’s office. Kay asked Chambers to serve as co-counsel on a case for Kay’s client Rena Weeks and agreed to give Chambers about one-sixth of the contingency fee Kay recovered. Kay wrote Weeks advising her of that arrangement, but Weeks did not sign anything indicating consent. Chambers worked as co-counsel and advanced some costs and expenses in the case. Disputes followed. Kay removed Chambers as co-counsel but sent a letter saying Chambers would still receive the agreed fee and copied Weeks. The jury returned a multimillion-dollar verdict, resulting in a significant award of attorney fees. Kay refused to split the fee, and Chambers sued for breach of contract and quantum meruit. The trial court granted Kay summary judgment as to both claims. The appellate court affirmed but held Chambers could still recover based on the value of his services only, not fee splitting. The California Supreme Court granted Chambers’s request for review.

Rule of Law

Issue

Holding and Reasoning (Baxter, J.)

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