Opinion ID: 2042534
Heading Depth: 1
Heading Rank: 1

Heading: The Fee Issues.

Text: On the attorney fee issues, appellant urges us to reject the Commission's conclusion that his fee was excessive. The Committee resists this request and, in addition, suggests that the contingent fee agreement was improper because the litigation involved domestic relations matters. In resolving these issues, we are satisfied that the Commission was correct in concluding that the litigation to void the Schreiber dissolution decree was not subject to the prohibition which DR 2-106(C) places on contingent fee contracts in domestic relations matters. The proscriptions contained in DR 2-106(C) are based on the concerns expressed in EC 2-22 which observes that, [b]ecause of the human relationships involved and the unique character of the proceedings, contingent fee arrangements in domestic relation cases are rarely justified. The gravamen of the litigation which appellant agreed to pursue on Nancy's behalf was a claim to void a judgment on the ground of extrinsic fraud. There were no domestic issues involved, only economic considerations involving persons who were no longer married and one of whom was dead. The concerns expressed in EC 2-22 simply did not exist. On the other aspect of the fee issue, we disagree with the Commission's determination that the contingent fee was excessive. All of the well-recognized reasons for a contingent fee agreement existed with respect to the litigation to be pursued. Nancy had no funds to pay appellant, success in the litigation would produce a res from which payment of fees could be made, and the chances of success were very uncertain. See Wunschel Law Firm, P.C. v. Clabaugh, 291 N.W.2d 331, 334-35 (Iowa 1980). Although the Committee, arguing from a position of hindsight, suggests that the litigation was simple and that the chances for success were good, we reject that contention. Under well-established legal principles, the only type of fraud which is recognized as a basis for declaring a judgment to be void is extrinsic fraud. Sorenson v. Sorenson, 254 Iowa 817, 825, 119 N.W.2d 129, 134 (1963); Miller v. AMF Harley-Davidson Motor Co., 328 N.W.2d 348, 353 (Iowa App.1982). [2] Nancy's theory for establishing extrinsic fraud was to convince the court that, as a result of physical abuse and other intimidation, she was effectively precluded by Marc Schreiber from taking any active role in the dissolution proceedings. To prevail on this theory, she was not only required to show that the intimidation existed at the time the dissolution decree was entered in 1977 but also that it continued up until the time of Schreiber's death and precluded her from challenging the decree at an earlier time. See Sorenson, 254 Iowa at 825-26, 119 N.W.2d at 134. As Nancy's counsel, appellant was required to convince the court of these circumstances by the testimony of a witness who sought to gain a substantial sum of money if the litigation was successful. Being able to do this was far from a sure thing. Based on the considerations which we have discussed, we do not find the one-third contingent fee to be unreasonable. Nor do we believe that it is the intent of DR 2-106(B) that contingent fee agreements must be reexamined at the conclusion of successful litigation with respect to the factors applicable to noncontingent fees. Based on all of the considerations which we have discussed, we conclude that appellant was not guilty of any ethical violation with respect to the fee arrangement with Nancy.