Losey v. Prieto

The fee agreement between the plaintiff and his attorneys constituted clear evidence that the parties agreed to arbitrate any dispute arising out of the agreement, including the enforceability of the arbitration provision.

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Edward H. Losey hired Michael A. Prieto, Perrotta, Cahn & Prieto, P.C., Jeffrey H. Schneider, and Weissman, Nowack, Curry & Wilco, P.C., collectively, “the Attorneys” to represent him in a lawsuit filed against him for specific performance of a real estate contract. After the lawsuit settled and Losey subsequently sold the property at issue, he filed suit against the Attorneys to recover the $1.1 million in fees paid to them pursuant to the parties’ engagement agreement. The Attorneys filed a motion to dismiss and to compel arbitration, and the trial court granted both motions. Losey appeals, arguing that the mandatory arbitration provision contained in the engagement agreement was unenforceable. We affirm, for the reasons that follow.

Similar to our review of the grant of summary judgment, which involves the elimination of all genuine issues of material fact, the standard of review from the grant of a motion to compel arbitration is whether the trial court was correct as a matter of law. In addition, the construction of a contract is a question of law for the court that is subject to de novo review. Where contract language is unambiguous, construction is unnecessary, and the court simply enforces the contract according to its clear terms.1 Losey contracted to sell 4.85 acres of land on Tybee Island, and he retained the Attorneys to defend him in a subsequent lawsuit for specific performance filed by the prospective buyers. The engagement agreement between the parties the “Fee Agreement” provided that the Attorneys would be paid a contingency fee of 45 percent “of the gross monetary proceeds from the future sale of the Tybee Island property above $1.5 million. The Fee Agreement also contained an arbitration provision:

Losey v. Prieto

The fee agreement between the plaintiff and his attorneys constituted clear evidence that the parties agreed to arbitrate any dispute arising out of the agreement, including the enforceability of the arbitration provision.

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