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Attorneys
Breach of Fiduciary Duty
Fees

Paul H. Ottosi v. Robert Barry, Jeryl Barry, Lloyd Dix, Julius Dix, Law Offices of Lloyd Douglas Dix

Published: Nov. 23, 2004 | Result Date: Apr. 28, 2004 | Filing Date: Jan. 1, 1900 |

Case number: LC058013 Bench Decision –  $79,874

Judge

Richard B. Wolfe

Court

L.A. Superior Van Nuys


Attorneys

Plaintiff

Gerry De Simone
(De Simone & Huxster)


Defendant

David D. Kamanski


Experts

Plaintiff

Michael A. Wasieleski
(technical)

Defendant

Daniel W. Dugan
(technical)

Facts

Defendant Robert Barry was involved in a car accident in which he suffered serious injuries. He retained plaintiff attorney Paul Ottosi to represent him and his wife in a personal injury action. Ottosi filed the action, served discovery, responded to discovery and attended depositions. It was determined that there was an underlying policy of liability insurance covering defendant for $250,000. Ottosi explained the options of demanding the policy limits or going to trial. The defendants elected to demand the policy limits. The defendants also had a policy that extended $300,000 in underinsured motorist benefits. After the policy limits demand, the insurance carrier requested extensions of time to obtain a defense medical examination. Defendant Robert Barry did not appear for the examination. He then filed a Substitution of Attorney in favor of defendants Lloyd Dix and Julius Dix, and the Law Offices of Lloyd Douglas Dix. After the scheduled examination, the insurance carrier tendered the $250,000 policy limits. The defendants signed the settlement draft and returned it to Lloyd Dix. Dix was told the settlement draft could be deposited in the Dix Trust Account. However, the amount of Ottosi's fees and costs would be withheld. A dispute arose regarding the amount of fees due to Ottosi. Dix admitted that Ottosi did substantial work, but insisted that he receive more than 50 percent of the fees.

Result

After a bench trial, Ottosi was awarded $79,874 in attorney fees. Verdict in favor of cross-defendant Ottosi on cross-complaint for malpractice and breach of fiduciary duty. The defendants filed motions for a new trial and to tax costs. The motions were denied pursuant to a stipulation that defendants paid $101,500 (verdict plus costs and interest) in lieu of a stipulation to modify the judgment so that it would only be against the Law Offices of Lloyd Douglas Dix LLP only.


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