Curtis v. Estate of Fagan

In Curtis v. Estate of Fagan (2000) 82 Cal. App. 4th 270 98 Cal. Rptr. 2d 84, our colleagues in Division Two examined this issue and the rule articulated in the Bell line of cases and concluded no independent action was necessary to divide attorney fees between former and current counsel. There, as here, the minor's present attorney filed a petition for compromise, seeking attorney fees and costs; former counsel filed a lien claiming fees under a theory of quantum meruit. Current counsel argued that the court had no jurisdiction to divide fees. The trial court disagreed and divided fees between the two attorneys. On appeal, the court held attorney fees could be divided in the main action, eliminating the need for a separate action. ( Curtis v. Estate of Fagan, supra, 82 Cal. App. 4th at p. 279.) In so doing, it determined Bell, supra, 36 Cal. App. 4th 1011, and its predecessors misinterpreted section 3601, leading to an absurd result not intended by the Legislature. ( Curtis, supra, at p. 279.) It found the language of the section unambiguous in its requirement that the court "make a further order authorizing and directing that such reasonable expenses . . ., costs, and attorney's fees, as the court shall approve and allow therein, shall be paid from the minor's settlement." ( 3601, subd. (a); Curtis, supra, 82 Cal. App. 4th at pp. 276-277.) To approve those items, the court necessarily must determine the validity of the claims or liens, including "the reasonable amount of fees which will be allowed." (Curtis, at p. 277.) Curtis also observed that when reviewing the court's jurisdiction to consider a claim for attorney fees, the nature of the action dictates the result. Where, as here, the claim is part of a minor's compromise and there are multiple claims for attorney fees, section 3601, subdivision (a), which empowers the court to authorize payment of attorney fees and costs, requires the court to "decide the validity of each claim." ( Curtis v. Estate of Fagan, supra, 82 Cal. App. 4th at p. 279.) To make such a decision, the court must consider evidence and calculate the reasonable amount to pay each attorney. (Ibid.)