Cook v. Moran Atlantic Towing Corp

In Cook v. Moran Atlantic Towing Corp. (79 FRD 392, 396 [1978]) the court discusses the cases of Ward v. Donovan (235 NY 240, 139 N.E. 254 [1923]) and In re Reisfeld (227 NY 137, 140, 124 N.E. 725 [1919]): "Ward and Reisfeld both stand for the proposition that where a client enters into a contingent fee agreement with an attorney, and subsequently, without discharging the attorney, settles the case directly with the defendant, the attorney may assert his statutory lien against the settlement proceeds, and collect the contracted-for percentage from that recovery" (Cook v. Moran Atlantic Towing Corp., 79 FRD 392, 395 [1978] [holding that at the time of settlement, client had not terminated attorneys]). The court noted that recovery by a discharged attorney for fees pursuant to a retainer agreement turned "upon whether, at the time of the client's direct settlement with the defendant, the attorneys were still within his employ; or whether the attorneys had been discharged prior to the time of settlement. In the latter circumstance, the original contract of employment between attorney and client is not in effect at the time of settlement, its terms accordingly will not be enforced, and the attorneys are limited to the reasonable value of their services prior to the time of their discharge."