Gagnon v. Shoblom

565 N.E.2d 775 (1991)

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Nature of the Case

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Facts

A truck operated by Donald Shoblom (D) crashed into a parked trailer, killing Susan Thompson and severely injuring Donald Gagnon (P). P retained Attorney Goodman. P and Goodman signed a contingent fee agreement for 33 1/3% of the recovery. Goodman did his job commenced an action and, after extensive discovery and investigation, a structured settlement of $2,925,000 (present cash valued was reached, subject to approval by the court). The judge approved the terms of the settlement agreement except for the provision for recovery of 33 1/3% of the settlement which amounted to $975,000. The judge called this fee unconscionable. There was an evidentiary hearing on the reasonableness of the settlement agreement. P testified that he voluntarily signed the contingent fee agreement and that he was satisfied that Goodman had earned his agreed fee. A leading member of the bar who specializes in prosecuting personal injury claims testified as to the reasonableness of the fee. The attorney who defended the action in the case testified as to the impressive work performed by Goodman. There was no evidence tending to prove that the fee was anything but reasonable. The judge held that Goodman was entitled to an attorney's fee of $695,000.00 and that anything in excess of that amount would be unreasonable and excessive. Goodman appealed.