Olsen v. Harbison

In Olsen v. Harbison, 191 Cal. App.4th 325, 119 Cal. Rptr. 3d 460 (2010), Christopher Olsen was retained by Kathleen Klawitter to represent her in a personal injury action. Id. at 328. She signed a contingency fee retainer argument. Id. Mr. Olsen brought in Joseph Harbison to assist with the case, and the two attorneys reached an agreement regarding a division of attorneys' fees, which Ms. Klawitter authorized. Id. at 328-29. Ms. Klawitter then fired Mr. Olsen and entered into a new fee agreement with Mr. Harbison, who ultimately settled the case. Id. at 329. Mr. Olsen sued Mr. Harbison to recover attorney fees, asserting claims for, inter alia, quantum meruit and breach of contract based on the agreement to divide attorneys' fees. Id. at 328. With respect to the breach of contract claim, the Court stated: Klawitter hired Mr. Olsen as her lawyer. The subsequent association of Mr. Harbison into the case was predicated on the retainer agreement between Mr. Olsen and Klawitter, and Klawitter authorized the fee-sharing agreement in which Mr. Harbison was to receive "a portion of the total attorney fees recovered." . . . Once Klawitter fired Mr. Olsen as her attorney, the contract between them ceased to exist. When the Klawitter-Olsen contract ceased to exist, the feesharing agreement between Mr. Olsen and Mr. Harbison, premised on that agreement, also ceased to exist. There was no viable contract on which to base a breach of contract claim against Mr. Harbison." Id. at 341.