Opinion ID: 1287076
Heading Depth: 1
Heading Rank: 4

Heading: Filing Improper Attorney Liens

Text: In 1980, Beal represented a group of shareholders in a shareholder derivative suit against M.R.I. corporation, a company in the rubbish hauling business. After expending a substantial amount of time on the case, he was dismissed by the shareholders. Over his objections, the shareholders settled the suit. In October 1980, Beal sent the shareholders he had represented a bill for $23,092.95 for attorney fees. The shareholders did not pay the bill. In November 1980, he filed attorney liens against the homesteads of five shareholders. Minn.Stat. § 481.13(1) (1984) grants an attorney a lien upon the interest of his client in any money or property involved in or affected by any action or proceeding in which he may have been employed. Beal's filing of the attorney liens occurred prior to this court's holding in Northwestern National Bank of South St. Paul v. Kroll, 306 N.W.2d 104 (Minn.1981), that attorney liens may not attach to homestead property exempt from execution. The shareholders operated out of their homes private corporations which were also in the rubbish hauling business. Beal testified that these private corporations would have been affected by the outcome of the suit against M.R.I. and that he believed in good faith that the homesteads were related to the shareholder derivative suit. An attorney formerly associated with Beal's firm, however, stated that the litigation had nothing to do with the homesteads of any of the shareholders. When the shareholders counterclaimed for slander of title, Beal immediately removed the attorney liens. We uphold the referee's finding that the filing of the attorney liens was improper and conclude that respondent's actions violated DR 5-103(A), MCPR.