Opinion ID: 2615014
Heading Depth: 3
Heading Rank: 2

Heading: Abril v. Harris Litigation: Counts 1-4

Text: On June 1, 1981, Anthony Abril, Jr., retained the firm of Levine & Harris, P.C., to represent him in a bad faith suit against Globe American Insurance Company (Globe). This suit was based on Globe's refusal to settle a personal injury action against Abril that had resulted in an excess judgment of $95,000 in favor of Gregory Johnson, a pedestrian who had been injured in a hit-and-run accident in which Abril was the driver. In November 1981, after the firm of Levine & Harris dissolved, Abril chose Harris and his new firm, Harris & Palumbo, to continue the litigation. In 1984 Harris succeeded in obtaining a judgment of $1,300,000 in Abril's favor against Globe. In January 1985, Globe appealed from that judgment. On April 9, 1985, Abril fired Harris and his new firm and retained respondent to represent him. Respondent successfully moved to strike an appellate brief that Harris and his associates had filed in the court of appeals, and substituted his own brief on Abril's behalf. After oral argument in the court of appeals, in which respondent participated, the court of appeals reversed the punitive damages portion of Abril's judgment of $1,000,000, but affirmed the compensatory damages portion of $300,000. Abril v. Globe American Cas. Co., 1 CA-CIV 8172, Ariz. App. mem. dec. filed Aug. 15, 1986. Respondent then filed a petition for review in this court, which was denied. Before filing the bad faith suit, Harris had unsuccessfully attempted to assign Abril's bad faith claim to Johnson. After this failed, on July 6, 1981, Harris entered into an agreement, allegedly without Abril's knowledge, with William Piatt, Johnson's counsel in the personal injury case. Under this agreement, Piatt would attempt to increase his contingency fee from Johnson from 33% to 50%, and for any amount up to $95,000 that Abril recovered from Globe, Piatt would split his contingency fee with Harris. This agreement was made on behalf of Levine & Harris, P.C., before the dissolution, and later became one of the subjects of the arbitration award. After Abril had discharged Harris, telephone discussions occurred between Harris and Piatt regarding renewal of the Johnson judgment against Abril. Harris also wrote to Piatt on June 3, 1985, noting the date that the judgment would expire and advising Piatt to renew it immediately. Piatt subsequently renewed the Johnson judgment against Abril. After Abril's compensatory damages against Globe were affirmed on appeal, Piatt served a garnishment on Globe for the amount Abril still owed on the Johnson judgment. Harris eventually credited Abril with $25,482.15 towards Abril's attorney's fees from Piatt's payment to Harris under the fee agreement between Harris and Piatt. When Abril learned of the fee agreement between Harris and Piatt and the renewal of the Johnson judgment against him, he asked respondent to file a suit against Harris, alleging a conflict of interest and breach of fiduciary relationship. Respondent persuaded Abril to file two bar complaints against Harris instead. When the bar complaints ultimately were dismissed, respondent then filed, on Abril's behalf, a suit against Harris & Palumbo, M. Byron Lewis, John R. Cunningham, and Harris & Palumbo, P.C., alleging five causes of action, seeking more than $41,000,000 in damages. After the trial court granted summary judgment in favor of Harris and indicated its intent to award attorney's fees against respondent personally, respondent filed a special action in the court of appeals, which declined jurisdiction. The trial court ultimately assessed attorney's fees against respondent for $7,586.25. Respondent then appealed the granting of summary judgment; that judgment was affirmed, and the court of appeals awarded attorney's fees against respondent for $9,418.25. Abril v. Harris, 157 Ariz. 78, 754 P.2d 1353 (App. 1987). Respondent filed a petition for review in the Arizona Supreme Court, which was denied with a fee award against respondent for $1,950. The Abril suit against Harris, the special action, appeal, and petition for review form the basis of counts 1 through 4 of the bar complaint, respectively.