Friday, May 18, 2007

Jacques v Baskin et al, unpublished opinion per curiam of the Court of Appeals, issued January 9, 2007 (Docket No. 270715)

Link: http://courtofappeals.mijud.net/documents/OPINIONS/FINAL/COA/20070109_C270715_61_270715.OPN.PDF

Underlying Case or Transaction: Divorce Proceeding

Key Concepts: (1) voluntary payment doctrine

In this case arising from a divorce proceeding, the plaintiff claimed that she overpaid the defendant lawyer, when she paid defendants $1 million despite not receiving an invoice. The trial court granted summary disposition on the basis of the "voluntary payment doctrine". Pursuant to that doctrine, a "voluntary payment", i.e., "one made with a full knowledge of all the circumstances under which it is demanded, and without artifice, fraud or deception on the part of the payer, or duress of the person, or goods of the person making the payment" may not be recovered by the payor. Pingree v Mut Gas Co, 107 Mich 157, 157 (1895).

The court of appeals agreed that plaintiff's payment was voluntary given her knowledge of the surrounding facts and circumstances. First, plaintiff signed the engagement agreement, which provided that defendants would prepare interim billings based on hours expended. Plaintiff was fully aware that when she made the payment to defendants she had not been given a final bill despite her alleged request for an invoice. Second, plaintiff was aware that defendant had requested $1 million in attorneys fees from plaintiff's husband during property settlement negotiations. Third, it was irrelevant that plaintiff was generally unaware of the going rate for divorce attorneys in the area. Finally, plaintiff could not recover her voluntarily made payment to defendants merely because she was "emotionally fragile" at the time. There was no evidence that plaintiff lacked the mental capacity to enter into a contract or to satisfy her debts with defendants.

INTRODUCTION

The purpose of this blog is to track developments in Michigan legal malpractice case law. Practicioners in this area of the law can use this blog to research cases and to track the latest developments in this growing area of the law.