Opinion ID: 2027641
Heading Depth: 1
Heading Rank: 3

Heading: whether the trial court which adjudicated the underlying action had jurisdiction to determine the amount and validity of the attorney's lien filed by karras' former attorney.

Text: Karras argues that the trial court lacked jurisdiction over Hoy's motion to determine his attorney's lien. Karras contends that Hoy could only recover fees due through a separate action in quantum meruit. We disagree. First, quantum meruit is not the only remedy available to Hoy. Quantum meruit is an equitable doctrine, based on the concept that no one who benefits by the labor and materials of another should be unjustly enriched thereby; under those circumstances, the law implies a promise to pay a reasonable amount for the labor and materials furnished, even absent a specific contract therefor. Black's Law Dictionary 1243 (6th ed.1990). However, South Dakota law explicitly allows an attorney to recover fees by operation of an attorney's lien. SDCL 16-18-21 provides: An attorney and counselor at law has a lien for a general balance of compensation in and for each case upon: . . . . . (3) Money due his client in the hands of the adverse party or attorney of such party, in an action or proceeding in which the attorney claiming the lien was employed, from the time of giving notice in writing to such adverse party or attorney of such party, if the money is in the possession or under the control of such attorney, which notice shall state the amount claimed and in general terms for what services[.] (Emphasis added.) It is undisputed that Hoy gave notice of his claim for compensation to the attorney for Alpha Corporation, and that the Alpha Corporation attorney understood this claim to extend not only to judgments, but also to all money due, including settlement proceeds. Consequently, Hoy satisfied the statutory notice requirements for establishing an attorney's lien. Second, although at least one jurisdiction requires counsel to bring a separate action against his client to enforce an attorney's lien, Neilson v. Neilson, 780 P.2d 1264 (Utah Ct.App.1989), we align ourselves with the majority of jurisdictions which hold that an attorney's lien may be enforced either through a separate action or incident to the underlying litigation. See Gee v. Crabtree, 192 Colo. 550, 560 P.2d 835 (1977) (holding that the attorney's charging lien may be asserted and enforced in the civil action which gave rise to the lien claim or in an independent action); Plaza Shoe Store, Inc. v. Hermel, Inc., 636 S.W.2d 53 (Mo.1982) (ruling attorney may proceed to enforce attorney's lien by motion in the original case or by an independent suit); Fire Protection Resources, Inc. v. Johnson Fire Protection Co., 72 Ohio App.3d 205, 594 N.E.2d 146 (1991) (holding that a motion to declare and enforce an attorney's lien must be entertained by the court in the action in which the judgment was rendered, provided client is given an opportunity to obtain new counsel and there is a final judgment in the case which the claiming attorney helped secure through his services in the litigation); Stubblefield v. General Motors Acceptance Corp., 619 P.2d 620, 623 (Okla.1980) (holding that a lawyer's claim for impression of his statutory charging lien upon the recovery secured in an action may be prosecuted as an ancillary proceeding to the main litigation). We specifically adopt the reasoning of the Supreme Court of Colorado: To restrict the means of enforcement of an attorney's lien solely to independent civil actions would be a waste of judicial time[.] ... The trial judge who heard the proceedings which gave rise to the lien is in a position to determine whether the amount asserted as a lien is proper and can determine the means for the enforcement of the lien. Gee, 560 P.2d at 836 (emphasis in original). In light of the above, the trial judge who presided over the trademark litigation properly exercised jurisdiction over Hoy's motion to declare and enforce his attorney's lien on the proceeds from settlement of that litigation.