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Howe & Assocs. PC v. Daniels

O.C.G.A. § 15-19-14 b prevents dismissal of a suit after settlement to defeat a valid attorney's fee lien.

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We granted certiorari to the Court of Appeals in Howe & Assoc. v. Daniels , 274 Ga. App. 312 618 SE2d 42 2005, to inquire whether an attorney’s lien was correctly enforced even though the former client had settled and dismissed the underlying lawsuit. For the reasons which follow, we answer in the affirmative and we affirm the judgment of the Court of Appeals. Nikki and William Taylor filed a personal injury action arising from an automobile collision. The Taylors retained appellee Jerry A. Daniels to represent them in the matter pursuant to a contingent fee contract which provided for compensation to Daniels on an hourly basis in the event the Taylors were to terminate the contract. Over the next three years, Daniels filed a lawsuit on behalf of the Taylors, conducted discovery, participated in mediation, attended settlement conferences, and ultimately negotiated a settlement of the action. The Taylors, however, rejected the proposed settlement, discharged Daniels, and retained appellant Howe & Associates as new counsel.

During the pendency of the tort action, Daniels filed an attorney’s lien seeking to recover $7,000 in legal services rendered pursuant to the fee contract with the Taylors. All interested parties were served. Several months later, the Taylors settled their tort claim for $50,000. Those funds were distributed, and a voluntary dismissal without prejudice was filed but Daniels’ lien was not satisfied. The trial court then ordered that the case be closed.

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