Opinion ID: 3065183
Heading Depth: 2
Heading Rank: 2

Heading: award of quantum meruit compensation

Text: Fitzgerald also appeals the district court’s award of quantum meruit compensation. We find that the district court CROCKETT & MYERS v. NAPIER 14169 clearly erred in failing to account for the value of the referral to Crockett. [7] “The basis of recovery on quantum meruit . . . is that a party has received from another a benefit which is unjust for him to retain without paying for it.” Thompson v. Herrmann, 530 P.2d 1183, 1186 (Nev. 1975). Accordingly, “the proper measure of damages under a quantum meruit theory of recovery is the reasonable value of the services.” Flamingo Realty, Inc. v. Midwest Dev., Inc., 879 P.2d 69, 71 (Nev. 1994) (internal quotation marks and alteration omitted). [8] We reject Fitzgerald’s argument that he was entitled to 50% of the fees as contemplated by the Retainer Agreement. Although a court may consider the contract price, the originally agreed upon fee “cannot be held to be the controlling or dominant consideration” in an action under quantum meruit. Gordon v. Stewart, 324 P.2d 234, 236 (Nev. 1958). “Quantum meruit contemplates that the true reasonable value is to be substituted for the agreed terms.” Id. Because Fitzgerald was terminated over a year before the case ultimately settled, the district court properly departed from the original contract price. [9] Although the district court recognized that Nostro benefitted from Fitzgerald’s careful selection of a local attorney well-versed in Nevada medical malpractice law, it failed to account for the value, in and of itself, of the referral. Instead, it focused solely on the value of the reduced contingency fee, calculating the fee as a percentage of the fee savings. We agree that the reduction conferred a benefit upon Nostro. The district court, however, erred in failing to account for the “reasonable value” to Crockett of the referral itself, apart from the fee reduction. Accordingly, we vacate the lower court’s order and remand for a recalculation of the award. We further note that a court may also consider “established customs” when calculating an award under quantum meruit. See, e.g., Asphalt 14170 CROCKETT & MYERS v. NAPIER Prods. Corp. v. All Star Ready Mix, Inc., 898 P.2d 699, 701 (Nev. 1995) (per curiam); Flamingo, 879 P.2d at 71.