Title: Alan E. Rothfeder v. Kaufman Gilpin McKenzie Thomas Weiss, P.C.
Citation: N/A
Docket Number: 1090639
State: Alabama
Issuer: Alabama Supreme Court
Date: January 14, 2011

RELEASED: 01/14/2011 
Notice: T h i s o p i n i o n i s s u b j e c t t o f o r m a l 
r e v i s i o n b e f o r e p u b l i c a t i o n i n t h e advance 
s h e e t s o f Southern Reporter. 
R e a d e r s a r e 
r e q u e s t e d t o n o t i f y t h e 
Reporter of Decisions, 
Alabama A p p e l l a t e C o u r t s , 300 D e x t e r Avenue, Montgomery, Alabama 36104-3741 
((334) 229¬
0 6 4 9 ) , o f 
any t y p o g r a p h i c a l o r o t h e r e r r o r s , i n 
o r d e r t h a t c o r r e c t i o n s 
may be made b e f o r e 
t h e o p i n i o n i s 
p r i n t e d i n 
Southern Reporter. 
SUPREME COURT OF ALABAMA 
OCTOBER TERM, 2010-2011 
1090639 
A l a n E. Rothfeder 
v. 
Kaufman G i l p i n McKenzie Thomas Weiss, P.C. 
1090671 
Jo Karen P a r r 
v. 
Kaufman G i l p i n McKenzie Thomas Weiss, P.C. 
1090723 
Kaufman G i l p i n McKenzie Thomas Weiss, P.C. 
v. 
Jo Karen P a r r 
1090724 
Kaufman G i l p i n McKenzie Thomas Weiss, P.C. 
v. 
A l a n E. Rothfeder 
Appeals from Montgomery C i r c u i t 
Court 
(CV-07-1394) 
WOODALL, 
J u s t i c e . 
Kaufman 
G i l p i n McKenzie Thomas Weiss, P.C., an Alabama 
law 
f i r m ("the 
f i r m " ) , sued A l a n E. R o t h f e d e r and Jo Karen 
P a r r , 
s e e k i n g , 
among 
o t h e r 
t h i n g s , a judgment d e c l a r i n g 
c e r t a i n 
l e g a l 
f e e s 
t o be t h e p r o p e r t y 
o f t h e 
f i r m . 
U l t i m a t e l y , t h e l e g a l f e e s were i n t e r p l e a d e d , and t h e f i r m 
c l a i m e d t o 
be e n t i t l e d t o a l l t h e i n t e r p l e a d e d funds. 
The 
t r i a l 
c o u r t p u r p o r t e d t o r e n d e r a judgment i n f a v o r o f t h e 
f i r m , b u t i t 
awarded R o t h f e d e r and P a r r p o r t i o n s o f 
t h e 
2 
1090639, 1090671, 1090723, 1090724 
i n t e r p l e a d e d 
funds. 
We 
f i n d 
the 
t r i a l 
c o u r t ' s 
o r d e r 
i n t e r n a l l y i n c o n s i s t e n t ; 
t h e r e f o r e , we r e v e r s e and remand. 
F a c t s and P r o c e d u r a l H i s t o r y 
A t 
the 
time 
o f 
the 
e v e n t s 
u n d e r l y i n g 
t h i s 
a c t i o n , 
R o t h f e d e r 
and 
P a r r were a t t o r n e y s 
and 
s h a r e h o l d e r s 
i n 
the 
f i r m . 
The bylaws of the f i r m p r o v i d e t h a t " [ t ] h e b u s i n e s s , 
a f f a i r s and p r o p e r t y o f [the f i r m ] s h a l l be managed by a B o a r d 
o f D i r e c t o r s ... who 
s h a l l be e l e c t e d a t the annual m e e t i n g o f 
the s h a r e h o l d e r s . " 
The bylaws f u r t h e r p r o v i d e t h a t " [ t ] h e 
B o a r d of D i r e c t o r s s h a l l have one E x e c u t i v e Committee made up 
o f 
the 
f o l l o w i n g 
f u n c t i o n a l areas 
o f 
f i r m 
management: 
A d m i n i s t r a t i o n , 
L e g a l O p e r a t i o n s , 
F i n a n c e 
and 
F a c i l i t i e s . " 
A c c o r d i n g 
t o 
the 
b y l a w s , 
the 
e x e c u t i v e 
committee 
i s 
" r e s p o n s i b l e f o r the management and day-to-day o p e r a t i o n 
o f 
[the 
f i r m . ] " 
The e x e c u t i v e committee has 
r e s p o n s i b i l i t y f o r 
" e v a l u a t [ i n g ] 
and 
recommend[ing] 
g u i d e l i n e s 
f o r 
the 
compensation of b o t h 
l e g a l and n o n - l e g a l p e r s o n n e l " and 
f o r 
" p r e p a r [ i n g ] an a n n u a l budget and s e t [ t i n g ] budget p o l i c y . " 
The 
e x e c u t i v e committee a l s o d e t e r m i n e s " a t the end o f each 
f i s c a l year ... the amount of funds a v a i l a b l e f o r d i s t r i b u t i o n 
t o 
the 
S h a r e h o l d e r s , 
and 
... 
c a l c u l a t e [ s ] the 
p r o p o s e d 
3 
1090639, 1090671, 1090723, 1090724 
a l l o c a t i o n o f funds a v a i l a b l e f o r d i s t r i b u t i o n . 
The 
p r o p o s e d 
d i s t r i b u t i o n 
o f funds 
s h a l l 
be 
s u b m i t t e d t o the B o a r d 
o f 
D i r e c t o r s f o r a p p r o v a l . " 
I n F e b r u a r y 2003, R o t h f e d e r met 
w i t h Derek Warren, 
an 
a c c o u n t a n t 
p r a c t i c i n g 
i n Geneva, Alabama, 
t o d i s c u s s 
the 
r e f e r r a l o f one o f Warren's c l i e n t s , Ruth K. Baucom, t o the 
f i r m f o r a s s i s t a n c e w i t h t a x and e s t a t e - p l a n n i n g m a t t e r s . 
On 
b e h a l f o f the f i r m , R o t h f e d e r a g r e e d t o r e p r e s e n t Baucom. 
On 
F e b r u a r y 
23, 2003, P a r r s e n t Baucom an engagement 
l e t t e r c o n f i r m i n g the f i r m ' s r e p r e s e n t a t i o n . The engagement 
l e t t e r 
p r o v i d e d , 
among 
o t h e r 
t h i n g s , 
t h a t 
Baucom 
was 
" r e p r e s e n t e d by [the] e n t i r e law f i r m , " a l t h o u g h " R o t h f e d e r , 
R i c h a r d s o n B. McKenzie I I I , and 
[ P a r r ] [would] have p r i m a r y 
r e s p o n s i b i l i t y f o r [Baucom's] r e p r e s e n t a t i o n . " The engagement 
l e t t e r a l s o p r o v i d e d t h a t the f i r m would r e p r e s e n t Baucom on 
a c o n t i n g e n c y - f e e b a s i s , r e c e i v i n g 33 1/3% o f the d i f f e r e n c e 
between $5 
m i l l i o n 
and 
the 
f e d e r a l and 
s t a t e e s t a t e t a x e s 
f i n a l l y 
d e t e r m i n e d 
t o 
be 
due 
from 
Baucom's 
e s t a t e . 
The 
engagement l e t t e r p r o v i d e d t h a t the c o n t i n g e n c y fee would be 
p a y a b l e 
w i t h i n 
30 
days 
f o l l o w i n g 
the 
e a r l i e s t 
o f 
c e r t a i n 
4 
1090639, 1090671, 1090723, 1090724 
e v e n t s , one o f w h i c h was t h e r e c e i p t o f an e s t a t e - t a x c l o s i n g 
document from t h e I n t e r n a l Revenue S e r v i c e 
("IRS"). 
Baucom 
d i e d 
i n March 
2003. 
The 
f i r m 
c o n t i n u e d 
t o 
r e p r e s e n t h e r e s t a t e i n a c c o r d a n c e w i t h t h e terms o f t h e 
engagement l e t t e r . 
I n J a n u a r y 2007, Baucom's e s t a t e r e c e i v e d 
an e s t a t e - t a x 
c l o s i n g document from t h e IRS c o n f i r m i n g t h e 
e s t a t e ' s 
t o t a l t a x l i a b i l i t y . 
P u r s u a n t t o t h e terms o f 
t h e 
engagement 
l e t t e r , 
t h e f i r m was then 
e n t i t l e d t o a $1.6 
m i l l i o n 
c o n t i n g e n c y 
f e e 
("the Baucom 
f e e " ) f o r 
i t s 
r e p r e s e n t a t i o n o f t h e e s t a t e . 
R o t h f e d e r and P a r r met w i t h Warren t o make arrangements 
f o r payment o f t h e 
Baucom f e e . 
D u r i n g t h e 
m e e t i n g , R o t h f e d e r 
a r r a n g e d w i t h Warren t o have t h e 
Baucom f e e 
d e p o s i t e d i n t o an 
i n t e r e s t - b e a r i n g a c c o u n t i n Warren's name, where i t would 
remain i n escrow 
u n t i l 
such time as any r e m a i n i n g 
p r o b a t e 
d i s t r i b u t i o n s were made and 
t h e 
a p p r o p r i a t e o r d e r s were i s s u e d 
by t h e p r o b a t e c o u r t . 
I n a l e t t e r w r i t t e n by P a r r t o Warren 
t o c o n f i r m t h e arrangements w i t h 
r e g a r d t o t h e Baucom 
f e e , 
P a r r s t a t e d : 
" [ I ] t i s 
a c c e p t a b l e t o [ R o t h f e d e r ] and 
me f o r you 
t o 
h o l d t h e funds, as agent, i n such i n t e r e s t b e a r i n g 
a c c o u n t s as you d e t e r m i n e 
a p p r o p r i a t e so l o n g as 
w r i t t e n i n s t r u c t i o n s a r e d e l i v e r e d t o t h e f i n a n c i a l 
5 
1090639, 1090671, 1090723, 1090724 
i n s t i t u t i o n s r e q u i r i n g t h a t funds can be withdrawn 
o n l y 
on 
the 
r e c e i p t of w r i t t e n i n s t r u c t i o n s g i v e n 
j o i n t l y by 
you 
and 
[Rothfeder] 
o r me. 
In 
a d d i t i o n 
f o r 
h a n d l i n g 
the 
r e c e i p t and 
d i s b u r s e m e n t 
of 
the 
funds and 
s e r v i n g 
as 
the escrow agent, we 
a g r e e d 
t h a t you 
w i l l be e n t i t l e d t o any i n t e r e s t e a r n e d on 
the d e p o s i t o r y 
a c c o u n t s . " 
R o t h f e d e r 
a l s o 
a g r e e d 
t o 
pay 
Warren 
an 
a d d i t i o n a l 
$200,000 f o r h i s h e l p w i t h the Baucom e s t a t e . 
T h i s fee was 
t o 
be 
p a i d from the 
$1.6 
m i l l i o n Warren h e l d as escrow agent. 
R o t h f e d e r and 
P a r r argue t h a t " R o t h f e d e r a g r e e d t o enhance 
Warren's 
f e e s 
because 
he 
wanted 
t o 
f o s t e r 
and 
b u i l d 
a 
r e l a t i o n s h i p w i t h Warren, who 
was 
p e r c e i v e d by R o t h f e d e r 
and 
P a r r 
as 
h a v i n g 
a 
g r o w i n g 
p r a c t i c e 
r e p r e s e n t i n g 
w e a l t h y 
landowners 
i n s o u t h Alabama." 
R o t h f e d e r ' s 
b r i e f , 
a t 
2 2 ; 
P a r r ' s b r i e f , a t 21. 
A c c o r d i n g 
t o R o t h f e d e r and 
P a r r , 
t h i s 
a c t i o n was 
c o n s i s t e n t w i t h the f i r m ' s g e n e r a l p r a c t i c e . 
A f t e r 
t h e i r 
m e e t i n g 
w i t h 
Warren, 
R o t h f e d e r 
met 
w i t h 
R i c h a r d s o n McKenzie and George Thomas, two 
a t t o r n e y s 
a t 
the 
f i r m , t o d i s c u s s the Baucom f e e . 
A t t h a t t i m e , McKenzie 
and 
Thomas c o n s t i t u t e d the f i r m ' s e x e c u t i v e committee. 
The 
f i r m 
a r g u e s : 
"On March 1, 2007, R o t h f e d e r met w i t h Thomas and 
McKenzie and i n f o r m e d them f o r the 
f i r s t time 
t h a t 
the 
f i r m 
had 
e a r n e d 
a 
fee 
from 
i t s 
Baucom 
r e p r e s e n t a t i o n , w h i c h he 
r e p r e s e n t e d 
was 
o n l y 
$1.2 
6 
1090639, 1090671, 1090723, 1090724 
m i l l i o n d o l l a r s . 
R o t h f e d e r d i d not t e l l Thomas and 
McKenzie t h a t the fee was 
a c t u a l l y $1.6 
m i l l i o n or 
t h a t he and P a r r had 
agreed 
t o g i v e Derek Warren 
over $200,000 out 
o f t h e 
f e e , p l u s a l l i n t e r e s t 
e a r n e d on the f e e . 
R o t h f e d e r a l s o i n f o r m e d Thomas 
and McKenzie t h a t he wanted t o r e s o l v e how 
t h e f e e 
would be 
s p l i t b e f o r e t h e money came i n t o t h e 
f i r m , 
and r e q u e s t e d a memorandum e x p l a i n i n g t o him how 
the 
Baucom fee would be 
s p l i t . " 
The 
f i r m ' s b r i e f , a t 16 
(emphasis 
i n o r i g i n a l ) . 
R o t h f e d e r 
t e s t i f i e d t h a t he t o l d Thomas and McKenzie t h a t the Baucom fee 
would be 
about 
$1.2 
m i l l i o n because he 
" d i d not want 
t o 
' o v e r e s t i m a t e 
f e e s net 
t o the 
f i r m . ' 
He 
s a i d , 
'... 
I'm 
c o n s e r v a t i v e and never o v e r e s t i m a t e my f e e s , and never have.'" 
R o t h f e d e r ' s b r i e f , a t 3 0 ; P a r r ' s b r i e f , a t 29. 
Upon R o t h f e d e r ' s r e q u e s t , McKenzie p r e p a r e d a memorandum 
o u t l i n i n g 
the 
p r o p o s e d 
a l l o c a t i o n 
o f 
the 
Baucom 
f e e . 
R o t h f e d e r 
and 
P a r r 
argue 
t h a t 
the 
p r o p o s e d 
a l l o c a t i o n 
" d i f f e r e d 
g r e a t l y 
from 
the law 
f i r m ' s p a s t p r a c t i c e s 
w i t h 
r e s p e c t t o the a l l o c a t i o n o f c o n t i n g e n c y f e e s . " 
R o t h f e d e r ' s 
b r i e f , a t 3 1 ; P a r r ' s b r i e f , a t 29. 
A c c o r d i n g t o R o t h f e d e r and 
P a r r , p r i o r c o n t i n g e n c y f e e s had been a l l o c a t e d based on the 
f i v e - p e r c e n t r u l e .
1 However, the f i r m argues t h a t i n May 2003 
1 I t appears t h a t b e f o r e 2003 the f i r m had compensated i t s 
a t t o r n e y s a c c o r d i n g t o a " f i v e - p e r c e n t r u l e , " i n which 5% o f 
the 
c o n t i n g e n c y 
fee was 
d i s t r i b u t e d 
t o the 
f i r m 
and 
the 
7 
1090639, 1090671, 1090723, 1090724 
the b o a r d of d i r e c t o r s u n a n i m o u s l y adopted a new 
compensation 
system, known as the H i l d e b r a n d t p l a n . 
Under the H i l d e b r a n d t 
p l a n , a t t o r n e y s f o r the 
f i r m 
"would each p r e s e n t an a n n u a l p l a n , w h i c h i n c l u d e d 
t h e i r 
a c t i v e 
f i l e s 
and 
e x p e c t e d 
income from same, 
and 
o t h e r 
f a c t o r s 
the 
f i r m 
s h o u l d 
c o n s i d e r 
i n 
d e t e r m i n i n g 
the 
a t t o r n e y ' s 
compensation 
f o r 
the 
y e a r . 
An E x e c u t i v e Committee was 
a p p o i n t e d by 
the 
B o a r d o f D i r e c t o r s t o r e v i e w the p l a n and, 
a t 
y e a r 
end, recommend i n d i v i d u a l a t t o r n e y compensation t o 
the B o a r d [ o f D i r e c t o r s ] . 
The B o a r d [ o f D i r e c t o r s ] 
would then 
adopt, m o d i f y or 
r e j e c t 
the 
E x e c u t i v e 
Committee's recommendations." 
The 
f i r m ' s b r i e f , 
a t 12. 
The 
f i r m argues t h a t McKenzie's 
memorandum " r e i t e r a t e d t h a t the H i l d e b r a n d t p l a n adopted by 
the 
B o a r d 
o f 
D i r e c t o r s 
i n 2003 
e x p r e s s l y 
a d d r e s s e d 
how 
c o n t i n g e n c y 
f e e s are t o be h a n d l e d by the f i r m , and t h a t the 
E x e c u t i v e Committee would a l s o , as p r o v i d e d by the H i l d e b r a n d t 
p l a n , make a recommendation r e g a r d i n g the f e e ' s 
a l l o c a t i o n . " 
The 
f i r m ' s b r i e f , a t 
16. 
R o t h f e d e r 
and 
P a r r 
acknowledge 
t h a t 
the 
b o a r d 
o f 
d i r e c t o r s adopted the H i l d e b r a n d t p l a n i n 2003, b u t t h e y argue 
t h a t the H i l d e b r a n d t p l a n was "adopted o n l y ' f o r c a l e n d a r y e a r 
r e m a i n i n g 
95% was 
d i v i d e d among the a t t o r n e y s who 
had worked 
on the case and the a t t o r n e y t h a t o r i g i n a t e d the 
case. 
8 
1090639, 1090671, 1090723, 1090724 
2003.'" R o t h f e d e r ' s b r i e f , a t 33; P a r r ' s b r i e f , a t 31. 
P a r r 
t e s t i f i e d t h a t 
" [ i ] t 
was 
her 
b e l i e f 
t h a t the 
f i v e - p e r c e n t r u l e 
w o u l d 
a p p l y 
t o 
any 
c o n t i n g e n c y 
fee p a i d by 
the 
Baucom e s t a t e p u r s u a n t 
t o the F e b r u a r y 
27, 
2003 
engagement l e t t e r e x e c u t e d p r i o r t o a d o p t i o n o f t h e 
H i l d e b r a n d t compensation 
p r o p o s a l . 
P a r r t e s t i f i e d 
t h a t she was not aware o f any change i n the method 
of a l l o c a t i o n o f c o n t i n g e n c y f e e s : 
"'No 
I am 
n o t . 
In 2003, when 
the 
H i l d e b r a n d t 
P r o p o s a l was 
b r o u g h t 
t o 
the 
f i r m by the E x e c u t i v e Committee, I remember 
d i s t i n c t l y 
a 
d i a l o g u e 
between 
A l a n 
R o t h f e d e r 
and 
R o b e r t 
G i l p i n 
w h e r e i n 
[ R o t h f e d e r ] asked, "What happens i f I h i t 
a n o t h e r b i g f e e [ ? ] " 
R o b e r t ' s response 
was, 
"We 
haven't worked t h a t out y e t . 
We 
don't 
know how t h a t ' s g o i n g t o be 
h a n d l e d . " 
" ' T h i s was 
o f prime i m p o r t a n c e 
t o 
me 
because i n F e b r u a r y , 
b e f o r e 
t h i s , 
I 
had 
a g r e e d t o a c c e p t r e s p o n s i b i l i t y 
f o r d o i n g 
a l l the work i n what would be a major case 
i n the Baucom m a t t e r . 
And 
I 
a n t i c i p a t e d 
t h a t 
I 
was 
g o i n g 
t o 
have 
t o 
expend 
s u b s t a n t i a l hours 
i f I were t o reap 
the 
rewards o f t h a t case. 
"'So 
had Mr. 
R o t h f e d e r 
not r e c e i v e d 
t h a t response 
from R o b e r t G i l p i n , I would 
have 
i n q u i r e d 
f u r t h e r , 
but 
I , you know, 
a c c e p t e d 
R o b e r t ' s 
word 
t h a t , 
hey, 
t h i s 
h a s n ' t been worked out, and t h i s was 
g o i n g 
t o be d e a l t w i t h I thought as a s e p a r a t e 
m a t t e r . ' " 
R o t h f e d e r ' s b r i e f , a t 34-35; P a r r ' s b r i e f , a t 32-33. 
9 
1090639, 1090671, 1090723, 1090724 
R o t h f e d e r 
and 
P a r r 
met 
a g a i n 
w i t h Thomas 
t o 
t r y 
t o 
r e s o l v e the d i s p u t e over d i s b u r s e m e n t o f the Baucom f e e . 
The 
f i r m 
says 
t h a t 
R o t h f e d e r 
and 
P a r r p r o p o s e d 
t h a t 
the 
f i r m 
r e c e i v e 15% and the a t t o r n e y s who worked on the m a t t e r r e c e i v e 
85%. 
The 
f i r m r e j e c t e d the 
o f f e r . 
On May 
23, 2007, the f i r m , a c t i n g t h r o u g h i t s e x e c u t i v e 
committee, s e n t R o t h f e d e r and 
P a r r a l e t t e r , 
s t a t i n g , among 
o t h e r t h i n g s , t h a t i t found R o t h f e d e r and P a r r ' s arrangement 
w i t h Warren and 
t h e i r a c t i o n s w i t h r e g a r d 
t o the Baucom 
fee 
q u e s t i o n a b l e . 
The 
f i r m a l s o s t a t e d t h a t p l a c i n g the 
e n t i r e 
Baucom 
fee 
i n escrow 
and 
o u t s i d e 
the 
f i r m ' s 
c o n t r o l 
was 
u n a c c e p t a b l e . 
The 
f i r m t h e n demanded t h a t R o t h f e d e r and 
P a r r 
e x e c u t e an "Acknowledgment and Power of A t t o r n e y , " 
g i v i n g the 
f i r m c o n t r o l o f the escrow a c c o u n t c o n t a i n i n g the Baucom f e e . 
The 
f i r m 
s t a t e d 
t h a t 
i t was 
" p r e p a r e d 
t o 
c a l l 
a 
s p e c i a l 
m e e t i n g of the s h a r e h o l d e r s 
... i n o r d e r t o a d d r e s s the 
f i r m ' s 
response i f you do not s i g n . 
There i s a l s o a p o s s i b i l i t y t h a t 
we 
s h o u l d have such a m e e t i n g even i f you do 
s i g n . " 
R o t h f e d e r t e s t i f i e d t h a t "the s t a t e m e n t i n the 
E x e c u t i v e 
Committee's 
l e t t e r 
t h a t 
he 
had 
p l a c e d 
the 
fee 
o u t s i d e 
the 
c o n t r o l of the law f i r m was 
a ' t o t a l m i s s t a t e m e n t , and i t was 
10 
1090639, 1090671, 1090723, 1090724 
an 
i n s i n u a t i o n 
t h a t [ h e ] took 
t h e i r money.'" 
R o t h f e d e r ' s 
b r i e f , a t 37; P a r r ' s b r i e f , a t 35. 
R o t h f e d e r 
i n s i s t e d t h a t 
" [ h e ] had no c o n t r o l over t h e money. 
There was no way t h a t 
[ h e ] wasn't g o i n g t o l e t t h a t money come i n . I t b e l o n g e d t o 
the f i r m . " 
R o t h f e d e r ' s b r i e f , a t 37; P a r r ' s b r i e f , a t 35. 
R o t h f e d e r and P a r r responded 
t o t h e f i r m ' s May 23, 2007, 
l e t t e r by r e s i g n i n g from t h e f i r m . 
The 
f i r m s t a t e s t h a t , on May 31, 2007, Thomas e - m a i l e d 
R o t h f e d e r and P a r r , " a s k [ i n g ] them t o meet w i t h him a g a i n t o 
a s s i s t t h e f i r m i n b i l l i n g 
t h e i r 
c l i e n t s so t h e y c o u l d a l l 
e a s i l y and p r o f e s s i o n a l l y 
t r a n s i t i o n f o r t h e i r 
d e p a r t u r e . " 
The 
f i r m ' s b r i e f , a t 19. 
The f i r m says t h a t R o t h f e d e r and 
P a r r d i d n o t respond t o t h a t r e q u e s t o r t o subsequent 
r e q u e s t s 
f o r 
h e l p w i t h b i l l i n g 
t h e i r 
c l i e n t s . 
Based upon i t s b e s t 
a v a i l a b l e r e c o r d s , t h e f i r m e v e n t u a l l y b i l l e d R o t h f e d e r ' s and 
P a r r ' s c l i e n t s f o r 
t h e work p e r f o r m e d by R o t h f e d e r and P a r r 
b e f o r e t h e i r d e p a r t u r e from t h e f i r m . 
I n 
August 
2007, t h e f i r m 
sued 
R o t h f e d e r , 
P a r r , and 
Warren, s e e k i n g , among o t h e r t h i n g s , a judgment d e c l a r i n g t h a t 
the Baucom f e e 
was t h e f i r m ' s p r o p e r t y . 
R o t h f e d e r and P a r r 
answered t h e c o m p l a i n t and f i l e d a c o u n t e r c l a i m , 
a l l e g i n g , 
11 
1090639, 1090671, 1090723, 1090724 
among o t h e r t h i n g s , t h a t , by 
f a i l i n g t o a c t r e a s o n a b l y and 
f a i r l y i n 
m a t t e r s r e g a r d i n g compensation, t h e f i r m ' s e x e c u t i v e 
committee had b r e a c h e d i t s f i d u c i a r y and c o n t r a c t u a l 
d u t i e s t o 
R o t h f e d e r and P a r r . 
I n November 2007, t h e p a r t i e s r e a c h e d a s e t t l e m e n t w i t h 
Warren. 
Warren was a l l o w e d t o r e t a i n $200,000 o f t h e Baucom 
f e e , 
as w e l l as any i n t e r e s t earned on t h e escrowed funds. 
Warren d e p o s i t e d t h e r e m a i n i n g $1.4 m i l l i o n w i t h t h e c i r c u i t 
c l e r k , who d e p o s i t e d t h e money i n an i n t e r e s t - b e a r i n g account 
" t o be d i s b u r s e d p u r s u a n t t o agreement o f t h e l a w f i r m and 
R o t h f e d e r / P a r r o r c o u r t o r d e r . " 
A l l 
c l a i m s a g a i n s t Warren 
were then d i s m i s s e d w i t h p r e j u d i c e . 
Between J u l y 2008 and t h e bench t r i a l i n October 2009, 
the 
t r i a l 
c o u r t a l l o w e d R o t h f e d e r 
and P a r r t o amend 
t h e i r 
c o u n t e r c l a i m s e v e r a l t i m e s and t o i n t e r p l e a d 
f e e s p a i d by 
c l i e n t s f o r s e r v i c e s r e n d e r e d b e f o r e t h e y r e s i g n e d from t h e 
f i r m . 
R o t h f e d e r and P a r r c l a i m e d t h a t t h e y were e n t i t l e d t o 
t h o s e i n t e r p l e a d e d funds. 
On October 20, 2009, R o t h f e d e r and 
P a r r moved t h e 
t r i a l 
c o u r t t o a l l o w them t o amend 
t h e i r 
c o u n t e r c l a i m t o add c l a i m s s e e k i n g r e c o v e r y under a t h e o r y o f 
quantum m e r u i t and a l l e g i n g u n j u s t 
e n r i c h m e n t . 
12 
1090639, 1090671, 1090723, 1090724 
A l s o d u r i n g t h a t t i m e , the f i r m made s e v e r a l amendments 
t o i t s c o m p l a i n t , a l l e g i n g , among o t h e r t h i n g s , t h a t a l l the 
i n t e r p l e a d e d 
f u n d s , 
i n c l u d i n g 
t h e 
Baucom 
f e e , 
were 
the 
p r o p e r t y 
o f 
the 
f i r m . 
The 
f i r m f u r t h e r 
c l a i m e d 
t h a t , 
by 
i n t e r p l e a d i n g t h o s e f u n d s 
i n t o the 
t r i a l 
c o u r t 
i n s t e a d 
o f 
t u r n i n g 
them 
over 
t o 
the 
f i r m , 
R o t h f e d e r 
and 
P a r r 
had 
c o n t i n u e d 
t o 
i n t e r f e r e w i t h 
the 
f i r m ' s 
b u s i n e s s 
and 
i t s 
c o n t r a c t u a l r e l a t i o n s h i p s w i t h i t s c l i e n t s . 
On November 23, 2009, f o l l o w i n g a bench t r i a l , the 
t r i a l 
c o u r t e n t e r e d i t s f i n a l judgment, w h i c h i n c l u d e d the f o l l o w i n g 
f i n d i n g s of f a c t : 
" 1 . 
The 
a f f a i r s of the law f i r m are governed by 
the b y - l a w s , r e s o l u t i o n s , p l a n s and a c t i o n s adopted 
by the b o a r d of d i r e c t o r s of the law 
f i r m . 
" 2 . 
F o r 
a t 
l e a s t 
the 
l a s t 
t e n 
y e a r s , 
a l l 
compensation, s a l a r y , bonuses or money of any 
k i n d 
r e c e i v e d by a t t o r n e y s 
i n c l u d i n g [ R o t h f e d e r and 
P a r r ] 
from the 
law 
f i r m has been approved and 
a u t h o r i z e d 
by 
the b o a r d of d i r e c t o r s . 
I n 
f a c t , the 
e v i d e n c e 
shows t h a t 
t h i s 
has 
been 
the 
p r a c t i c e 
s i n c e 
the 
i n c e p t i o n of the [ f i r m ] i n 1983. 
F o r the y e a r s 2003 
and 
f o r w a r d , 
a l l compensation, 
s a l a r y , bonuses 
or 
money 
of 
any 
k i n d 
r e c e i v e d 
by 
a l l 
a t t o r n e y s 
i n c l u d i n g [ R o t h f e d e r and P a r r ] has been recommended 
by the e x e c u t i v e committee of the law f i r m and 
t h e n 
approved by the b o a r d of d i r e c t o r s of the law 
f i r m . 
" 3 . 
[ R o t h f e d e r and P a r r ] v o l u n t a r i l y l e f t 
and 
d i s a s s o c i a t e d 
t h e m s e l v e s 
from 
[ t h e 
f i r m ] 
and 
13 
1090639, 1090671, 1090723, 1090724 
[ R o t h f e d e r ' s and P a r r ' s ] s t o c k i n 
[ t h e f i r m ] has no 
m a r k e t a b l e v a l u e . 
" 4 . 
[ R o t h f e d e r 
and 
P a r r ] 
a r e no 
l o n g e r 
p a r t i c i p a n t s i n t h e b u s i n e s s o f t h e law f i r m and 
t h e r e f o r e 
have no 
f u r t h e r 
p a r t i c i p a t i o n 
i n t h e 
d i s p e n s a t i o n o f t h e 
law f i r m ' s a s s e t s . " 
The 
t r i a l c o u r t then 
o r d e r e d : 
" a . 
The J o i n t M o t i o n o f D e f e n d a n t s 
R o t h f e d e r 
and P a r r f o r 
l e a v e t o amend c o u n t e r c l a i m s , 
f i l e d on 
October 20, 2009, i s 
GRANTED. 
"b. 
I n r e g a r d t o t h e [ f i r m ' s ] C o m p l a i n t as 
Amended, judgment i s hereby r e n d e r e d i n 
f a v o r o f t h e 
[ f i r m ] and a g a i n s t [ R o t h f e d e r and P a r r ] . 
" c . 
I n 
r e g a r d 
t o t h e C o u n t e r c l a i m s 
o f 
[ R o t h f e d e r and P a r r ] as Amended, judgment i s hereby 
r e n d e r e d 
i n f a v o r 
o f t h e [ f i r m ] and 
a g a i n s t 
[ R o t h f e d e r 
and P a r r ] 
e x c e p t 
as s e t f o r t h i n 
p a r a g r a p h s d & e below. 
" d . 
The C l e r k i s 
d i r e c t e d t o 
pay and d i s b u r s e 
from t h e i n t e r p l e d funds t h e 
sum o f [ $ 3 4 0 , 0 0 0 ] made 
p a y a b l e 
t o t h e Defendant 
A l a n E. R o t h f e d e r and 
d e l i v e r e d t o h i s a t t o r n e y , M a r v i n H. C a m p b e l l . 
"e. 
The C l e r k i s 
d i r e c t e d t o 
pay and d i s b u r s e 
from t h e i n t e r p l e d funds t h e sum o f [$50,000] made 
p a y a b l e t o 
t h e 
Defendant Jo Karen P a r r and 
d e l i v e r e d 
t o h e r a t t o r n e y , James Anderson. 
" f . 
The [ f i r m ] i s 
e n t i t l e d t o have and r e c o v e r 
the r e m a i n i n g b a l a n c e o f t h e i n t e r p l e d funds b e i n g 
h e l d by t h e 
C l e r k o f t h e 
C o u r t and such funds 
s h a l l 
be d i s b u r s e d and made p a y a b l e by t h e C l e r k t o [the 
f i r m ] and d e l i v e r e d t o i t s a t t o r n e y Joe Espy, I I I . 
" g . 
[ R o t h f e d e r and P a r r ] s h a l l have no f u r t h e r 
r i g h t , 
t i t l e 
o r 
i n t e r e s t 
i n t h e 
[ f i r m ] and 
14 
1090639, 1090671, 1090723, 1090724 
[ R o t h f e d e r ' s and P a r r ' s ] 
s t o c k i n [the f i r m ] i s 
h e r e b y c a n c e l l e d and d e c l a r e d t o be n u l l and v o i d . 
"h. 
Any r e m a i n i n g 
c l a i m s by t h e p a r t i e s n o t 
s e p a r a t e l y 
d i s p o s e d o f i n t h i s 
Order a r e h e r e b y 
d e n i e d on t h e m e r i t s . 
" i . 
A l l p a r t i e s s h a l l be r e s p o n s i b l e f o r t h e i r 
own a t t o r n e y ' s f e e s i n t h i s 
case. 
" j . 
The p a r t i e s s h a l l bear t h e i r own c o s t s . " 
R o t h f e d e r and P a r r each moved f o r 
a new t r i a l o r , i n 
t h e 
a l t e r n a t i v e , t o a l t e r and amend t h e 
judgment. The t r i a l c o u r t 
d e n i e d 
t h o s e 
m o t i o n s . 
R o t h f e d e r 
and 
P a r r 
now 
a p p e a l 
s e p a r a t e l y ( c a s e s no. 1090639 and no. 1090671), and t h e f i r m 
c r o s s - a p p e a l s ( c a s e s no. 1090723 and no. 1090724). 
A n a l y s i s 
" [ T ] r i a l 
c o u r t s , i n t h e o r d i n a r y d i s c h a r g e 
o f 
t h e i r 
d u t i e s , 
[should] r e v i e w t h e i r judgments t o i n s u r e t h a t 
such 
judgments 
a r e 
i n t e r n a l l y 
c o n s i s t e n t and, i f 
n e c e s s a r y , 
s u p p o r t e d by s u f f i c i e n t f i n d i n g s t o p e r m i t r e v i e w on a p p e a l . " 
Forbes v. H a w a i i C u l i n a r y Corp., 8 
5 Haw. 501, 507 n.5, 946 P. 
2d 609, 615 n.5 (Haw. C t . App. 1997). 
E f f e c t i v e 
a p p e l l a t e 
r e v i e w i s 
n o t p o s s i b l e where t h e r e i s 
"some i n c o n s i s t e n c y " i n 
the 
t r i a l 
c o u r t ' s 
judgment, 
and 
t h i s 
C o u r t 
" c a n n o t 
d e f i n i t i v e l y c o n c l u d e 
from t h e r e c o r d what t h e t r i a l 
c o u r t 
i n t e n d e d when i t e n t e r e d " i t s judgment. 
McCutcheon v. S l a d e , 
15 
1090639, 1090671, 1090723, 1090724 
993 
So. 
2d 428, 
432 
( A l a . 2007). 
The 
p a r t i e s r a i s e s e v e r a l 
i s s u e s f o r t h i s C o u r t t o c o n s i d e r . 
However, e f f e c t i v e r e v i e w 
of t h o s e i s s u e s i s f o r e c l o s e d by i n c o n s i s t e n c i e s i n the 
t r i a l 
c o u r t ' s judgment. 
The 
judgment i s f r a u g h t 
w i t h 
i n c o n s i s t e n c y . 
The 
t r i a l 
c o u r t f i r s t r e n d e r s judgment i n f a v o r of the f i r m " [ i ] n r e g a r d 
t o 
the 
[ f i r m ' s ] 
C o m p l a i n t 
as 
Amended." 
As 
p r e v i o u s l y 
mentioned i n t h i s o p i n i o n , the f i r m , i n i t s amended 
c o m p l a i n t , 
c l a i m e d 
t h a t a l l the funds a t i s s u e -- 
i n c l u d i n g the Baucom 
fee and the o t h e r i n t e r p l e a d e d funds — 
were the p r o p e r t y 
of 
the f i r m and, 
t h e r e f o r e , s h o u l d be under the f i r m ' s c o n t r o l . 
However, the 
t r i a l 
c o u r t , w i t h o u t e x p l a n a t i o n , 
then d i r e c t s 
the c l e r k t o d i s b u r s e from the i n t e r p l e a d e d funds i t had 
j u s t 
d e c l a r e d t o be the p r o p e r t y of the f i r m $340,000 t o R o t h f e d e r 
and $50,000 t o P a r r . 
Those d i r e c t i o n s are i n c o n s i s t e n t w i t h 
the e a r l i e r p o r t i o n of the 
t r i a l c o u r t ' s judgment i n f a v o r of 
the f i r m w i t h r e g a r d t o i t s amended 
c o m p l a i n t . 
The 
t r i a l 
c o u r t ' s 
f i n d i n g s of 
f a c t c a s t no 
l i g h t upon 
what the 
t r i a l 
c o u r t i n t e n d e d when i t e n t e r e d 
i t s judgment; 
i n s t e a d , t h e y r e v e a l o n l y more a p p a r e n t i n c o n s i s t e n c y i n the 
judgment. 
The 
t r i a l c o u r t found t h a t , " [ f ] o r the y e a r s 2003 
and f o r w a r d , a l l 
compensation, s a l a r y , bonuses or money of 
any 
16 
1090639, 1090671, 1090723, 1090724 
k i n d r e c e i v e d by a l l a t t o r n e y s i n c l u d i n g [ R o t h f e d e r and 
P a r r ] 
has been recommended by 
the e x e c u t i v e committee of the 
law 
f i r m and t h e n approved by the b o a r d of d i r e c t o r s of the 
law 
f i r m . " 
I t i s u n d i s p u t e d 
t h a t , i n December 2007, the 
f i r m ' s 
b o a r d 
of 
d i r e c t o r s 
approved 
the 
e x e c u t i v e 
committee's 
recommendation t h a t R o t h f e d e r 
and P a r r r e c e i v e no a d d i t i o n a l 
compensation 
f o r the work t h e y 
had 
p e r f o r m e d b e f o r e 
t h e i r 
r e s i g n a t i o n s 
from the 
f i r m . 
N e v e r t h e l e s s , 
the 
t r i a l 
c o u r t 
awarded R o t h f e d e r 
and P a r r p o r t i o n s of the i n t e r p l e a d e d funds 
t h a t i t had, 
i n e f f e c t , p r e v i o u s l y d e c l a r e d t o be the 
f i r m ' s 
p r o p e r t y and s u b j e c t t o d i s t r i b u t i o n as approved by the f i r m ' s 
b o a r d of 
d i r e c t o r s . 
F i n a l l y , 
the amounts the 
t r i a l 
c o u r t awarded, 
w i t h o u t 
e x p l a n a t i o n , t o 
R o t h f e d e r 
and P a r r r e v e a l n o t h i n g 
c o n c e r n i n g 
the 
t r i a l 
c o u r t ' s i n t e n t i o n s when i t e n t e r e d 
i t s judgment. 
Indeed, the p a r t i e s agree t h a t the amounts awarded have 
no 
b a s i s i n f a c t . 
"The 
b a s i c p r o b l e m p r e s e n t e d by our 
i n a b i l i t y 
t o 
d e t e r m i n e 
how 
the 
t r i a l 
c o u r t 
a r r i v e d a t 
the 
f i g u r e s 
r e c i t e d 
i n 
i t s o r d e r 
i s 
t h a t 
we 
cannot 
d e t e r m i n e 
w i t h 
p r e c i s i o n the e x a c t e v i d e n c e upon which t h a t c o u r t r e l i e d " i n 
d i r e c t i n g the c l e r k t o d i s b u r s e t o R o t h f e d e r 
and P a r r amounts 
17 
1090639, 1090671, 1090723, 1090724 
from t h e 
i n t e r p l e a d e d f u n d s . 
H e n s l e y v. P o o l e , 910 So. 
2d 
96, 
103 ( A l a . 
2005) 
. 
For t h e s e r e a s o n s , we r e v e r s e t h e judgment o f t h e t r i a l 
c o u r t and remand t h e case f o r f u r t h e r p r o c e e d i n g s c o n s i s t e n t 
w i t h t h i s o p i n i o n . 
1090639 -- REVERSED AND REMANDED. 
1090671 -- REVERSED AND REMANDED. 
1090723 -- REVERSED AND REMANDED. 
1090724 -- REVERSED AND REMANDED. 
S t u a r t , B o l i n , P a r k e r , and Shaw, J J . , c o n c u r . 
Cobb, C.J., r e c u s e s 
h e r s e l f . 
18