Photo: Maryna Pleshkun/Shutterstock.com

The state Superior Court has upheld a ruling coordinating litigation in Montgomery County over a referral fee dispute stemming from a personal injury case in Philadelphia.

A three-judge panel consisting of Judges Paula Francisco Ott, Correale F. Stevens and Alice Beck Dubow affirmed a Montgomery County Court of Common Pleas judge's order granting law firm Elliott Greenleaf's motion for coordination, stay and transfer of Richard Demarco's overlapping and duplicative Philadelphia County action.

Demarco was a lawyer at Elliott Greenleaf when he obtained a client who suffered an injury in Philadelphia, according to Dubow's opinion. The firm entered into a fee agreement with the client to which Demarco was not a party. Elliott Greenleaf then referred the case to Saltz Mongeluzzi Barrett & Bendesky.

Demarco left Elliott Greenleaf in 2016, according to the opinion. Saltz Mongeluzzi paid Elliott Greenleaf a percentage of the resulting settlement in the case in 2018, as per the referral agreement between the two firms.

Demarco filed his action in Philadelphia, declaring his intent to sue for a cut of the settlement money. That same day, Elliott Greenleaf initiated the declaratory judgment action in Montgomery County seeking a determination that it is entitled to the referral fee, Dubow said. The firm also filed its motion related to duplicative litigation.

The court sided with Elliott Greenleaf. Demarco appealed, arguing the court abused its discretion in ordering the coordination in Montgomery County instead of Philadelphia.

Dubow said the Superior Court adopted Montgomery County Judge Garrett D. Page's opinion as its own.

Page wrote in his opinion that Demarco ”argues that Philadelphia County is the more proper venue because the victim in the underlying personal injury case subject to the referral fee is seriously injured and there is a Philadelphia Orphan's Court matter related to that settlement. These arguments misunderstand the question before this court. While it is true that the underlying case arises in Philadelphia, the question this court must address is whether the declaratory judgment action regarding the referral fee is more closely related to Philadelphia or Montgomery County. It is clear to this court that the referral fee arose in Montgomery County.”

He added, “Further, there is no reason to believe that the possibility of settlement is increased by keeping the matter in Philadelphia. This court is available for settlement conference if desired by the parties. There is nothing particular about the Philadelphia Court system that weighs in favor of transferring the case to Philadelphia County. Nor would the likelihood of settlement have been increased by denying coordination, which as was mentioned supra, both parties sought.”

John O'Connell of Bochetto & Lentz represents Demarco and did not respond to a request for comment.

Elliott Greenleaf lawyer Colin O'Boyle represented his firm in the case. In an email, O'Boyle said, “We agree with the Superior Court that Judge Page 'authored a comprehensive, thorough, and well-reasoned Opinion …' in support of coordinating these two cases. We are pleased that the Superior Court affirmed Judge Page's decision.”