Hughes & Coleman, PLLC v. Chambers

Personal-injury law firm Hughes & Coleman was entitled to quantum meruit compensation after being hired and then fired by Travis Underwood, who was injured in a car crash. Shortly after Underwood discharged Hughes & Coleman and hired another attorney, Underwood agreed to a final settlement of his claims. Hughes & Coleman asserted an attorney’s lien on the new counsel’s contingency attorney fee on the final settlement, claiming it was entitled to a quantum meruit share of the fee as compensation for its services rendered before being terminated. The trial court concluded that Hughes & Coleman was discharged without cause and apportioned seventy-five percent of the contingency fee to the firm. The court of appeals reversed, ruling that Underwood had valid cause for terminating Hughes & Coleman’s services. The Supreme Court reversed, holding (1) case precedent entitles a discharged lawyer to receive, on a quantum meruit basis, a portion of a contingency fee on a former client’s recovery so long as the termination was not for cause; and (2) because Hughes & Coleman’s firing was not for cause, the firm was entitled to quantum meruit compensation.