Thursday, March 20, 2014




WHEN EVERYTHING ELSE FAILS SUE THE LAWYERS



"Oral Agreement Unenforceable, Barred By Parol Evidence Rule; Firm Awarded Claim"

                     is the caption on a brief article appearing in the NYLJ on March 20, 2014 and the focal point of this article comes from a discussion of a recently decided case coming from the District Court of Nassau County in a dispute for the non payment of legal fees.

                     At issue is the non enforcement of a claimed prior oral agreement by the client to have been made to limit fees, but admittedly as superceded by a subsequent written agreement executed by the parties which made no mention of any prior agreements as the client alleged.

                    The law firm sued the former client for non-payment of legal fees in a matrimonial matter. In defending the action the former client alleged the existence of an oral agreement to cap legal fees at $6,000.00.

                     The law firm denied the same and referred to the express terms of the written retain which did not provide for a cap on legal. The client did not deny having signed the written retainer which made no mention of any prior oral agreement, but defended the claim on the basis of a prior oral agreement limiting the fees to be charged.

                     The Court relied on the application of Parole Evidence Doctrine precluding the introduction any evidence which would contradict the express terms of the written retainer because the terms of the written retainer were complete and not ambiguous , AND explicitly provided in the written retainer that "no other" agreements or terms that were effective other than what was provided for in the written retainer.

                       Caveat - read what you say you have read before you sign the document which states that is exactly what you are doing.  
- March 20, 2014

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