Liston v. Home Insurance Co.

Kathy Stewart was injured in a car accident. Attorney William Liston (plaintiff) agreed to represent Stewart on a contingency-fee basis in connection with Stewart’s personal-injury claim. Liston was to be paid 33 and one-third percent of the recovery if the case was settled without litigation or 40 percent after suit was filed. The other driver was insured by Home Insurance Co. (Home) (defendant). Stewart had six years from the date of injury to bring an action against Home. Jo Reynolds was handling the claim for Home. Liston did not comply with Reynolds’s repeated requests for an itemization of Stewart’s medical bills. When Stewart started receiving letters threatening wage garnishment because of overdue hospital bills, Stewart wrote to Home and requested settlement of her claim. Reynolds telephoned Stewart after Stewart’s second request. Stewart told Reynolds she could not reach Liston and had decided to handle the claim herself. According to Reynolds, Stewart said she was going to terminate Liston. Stewart did not state that Liston had been terminated or had withdrawn. Reynolds did not contact Liston or send him copies of Stewart’s letters requesting settlement. Reynolds knew that settling with Stewart would result in savings to Home and loss to Liston and was aware of Home’s policy of not dealing directly with a client represented by counsel. Stewart gave Home her medical bills and other documentation of losses. Home settled with Stewart for her medical bills, lost wages, and $1,000 in cash. Liston learned about the settlement almost two years later. Liston sued Home for interference with contractual relations.