Hanlin v. Mitchelson

794 F.2d 834 (1986)

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Nature of the Case

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Facts

P entered into a written partnership agreement with a singing group called 'The Manhattans.' P would be an equal business partner with the four group members and would serve as the group's manager. P got a share in the partnership's profits and a commission on the group's personal appearances and a percentage of the proceeds from its music publishing activities. In 1981, there was a falling out between P and the group. The dispute went to arbitration in accordance with the arbitration laws of the State of New York. P retained California attorney D to represent her in the arbitration proceedings. P entered into a verbal agreement with D which required her to pay a flat fee of $25,000 in advance, plus expenses, and obligated him to handle the case 'as far as it has to go.' P paid the $25,000 fee. The arbitral award directed the Manhattans to pay P $20,620 and directed P to pay Kelley $26,750. (P had withdrawn the money from a joint account she shared with Kenneth Kelley, a group member who brought the issue up in arbitration over D's objection as beyond the proper scope of arbitration). The arbitral award directed the Manhattans to pay P $20,620 and directed P to pay Kelley $26,750. (P had withdrawn the money from a joint account she shared with Kenneth Kelley, a group member who brought the issue up in arbitration over D's objection as beyond the proper scope of arbitration). The award declared that P had percentage interests in certain Manhattans contracts and directed the parties to execute assignments in connection with those interests. These assignments were never executed and the award to her was never confirmed. P urged D to appeal the award and to persuade the arbitral panel to correct alleged errors. D did obtain a 'Clarification of Award.' P continued to urge D to appeal. P asked for a refund of the fee she paid. D refused stating that the arbitration award was 'final and . . . not appealable.' New York attorney Neal Rosenberg wrote to D. Rosenberg disagreed with D's assessment that the arbitral award could not have been appealed. He stated, however, that the deadline had passed for seeking an order to vacate or modify the award and asked D to 'advise us as to how you intend to resolve this matter. P filed suit seeking compensatory and punitive damages for 'intimidation,' negligence, defamation, and malpractice. D counterclaimed for the $6,500 in costs and expenses allegedly owed to him by D. He then filed a single motion seeking either dismissal of the complaint under Fed. R. Civ. P. 12(b)(6) or summary judgment under Fed. R. Civ. P. 56. The judge dismissed P's claims for intimidation and defamation, apparently pursuant to Rule 12(b)(6). The judge then granted partial summary judgment preserving only P's claim that D had improperly failed to object to the arbitral panel's consideration of the $26,700 Kelley counterclaim. Eventually, the court denied P's motion to compel discovery, denied leave to amend and granted summary judgment to D. P appealed.