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Judge v. Parker McCay

United States District Court for the Eastern District of Pennsylvania
500 F. Supp. 2d 521 (2007)

Written by Sharon Feldman, JD

Facts

Glenn Judge (plaintiff) was an insurance adjuster and a lawyer but was not an active member of any state’s bar. Judge worked regularly on insurance-defense cases with law firm Parker McCay, P.A. (Parker) (defendant). Judge’s neighbor Timothy Carroll was injured in a construction-site accident and inquired whether Parker would be interested in representing Carroll and his wife. Parker faxed Judge a retainer agreement that Carroll signed in the hospital and his wife signed later. Judge did not tell the Carrolls he would be receiving a referral fee from Parker, and the Carrolls did not consent to a referral-fee agreement. Parker filed an action on behalf of the Carrolls and obtained a verdict of nearly $1.9 million. After the verdict, Judge called the Carrolls and, for the first time, asked about receiving a fee. Parker received legal fees for the civil suit and for Carroll’s workers’-compensation claim. Parker refused Judge’s demand for a referral fee. Judge sued Parker for breach of contract, claiming that Parker had orally agreed to pay him a referral fee of one-third of the fee Parker received in the civil suit and one-fifth of Parker’s fee in connection with the workers’-compensation claim. Judge and Parker cross-moved for summary judgment.

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Holding and Reasoning (Dalzell, J.)

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