Frates v. Nichols, s. 63-454

• Decision Date: 01 September 1964
• Docket Number: 63-455,63-457,63-456,63-476,63-478,Nos. 63-454,63-475,63-477,s. 63-454
• Citation: 167 So.2d 77
• Parties: William S. FRATES, Appellant, v. Perry NICHOLS, William C. Gaither, Walter H. Beckham, Jr., William R. Colson and J. B. Spence, Appellees. Peter T. FAY, Appellant, v. Perry NICHOLS, William C. Gaither, Walter H. Beckham, Jr., William R. Colson and J. B. Spence, Appellees. Perry NICHOLS, William C. Gaither, Walter H. Beckham, Jr., William R. Colson and J. B. Spence, Appellants, v. William S. FRATES, Appellee.
• Court: Florida District Court of Appeals

Page 77

167 So.2d 77 William S. FRATES, Appellant,
v.
Perry NICHOLS, William C. Gaither, Walter H. Beckham, Jr., William R. Colson and J. B. Spence, Appellees.
Peter T. FAY, Appellant,
v.
Perry NICHOLS, William C. Gaither, Walter H. Beckham, Jr., William R. Colson and J. B. Spence, Appellees.
Perry NICHOLS, William C. Gaither, Walter H. Beckham, Jr., William R. Colson and J. B. Spence, Appellants,
v.
William S. FRATES, Appellee. Nos. 63-454, 63-455, 63-478, 63-456, 63-457, 63-477, 63-475, 63-476 District Court of Appeal of Florida, Third District. Sept. 1, 1964.
As Amended on Denial of Rehearing Sept. 24, 1964.

Page 79

Paul & Sams and P. D. Thomson, Miami, for Frates & Fay.

Mershon, Sawyer, Johnston, Simmons & Dunwody, Sam Daniels, Miami, for Nichols, Gaither, Beckham, Colson & Spence.

Before CARROLL, HORTON and HENDRY, JJ.

HENDRY, Judge.

These consolidated appeals ¹ and cross-appeals are from orders of the chancellor determining the rights of the respective parties to legal fees in the amount of $200,577.70.

Messrs. Nichols, Gaither, Green, Frates, Beckham, Colson & Spence, as capital partners in conjunction with Daniels, Fay and others as non-capital partners, were, prior to February 28, 1961 practicing law under the firm name of Nichols, Gaither, Green, Frates & Beckham pursuant to a written agreement. Green, Frates, Daniels and Fay all left the firm as of February 28, 1961. Frates and Fay went into practice together as partners. The remaining members of the firm, pursuant to the partnership agreement, continued in practice, under the name of Nichols, Gaither, Beckham, Colson & Spence. This successor firm retained all of the assets of the predecessor firm of Nichols, Gaither, Green, Frates & Beckham, including those clients that were clients of the old firm prior to February 28, 1961.

Frates took with him when he left ten negligence cases of clients of the old firm. ² Eight of these cases resulted in fees. ³ These appeals challenge the propriety of the chancellor's ruling in regard thereto.

The chancellor awarded fees to Nichols, Gaither, Beckham, Colson & Spence in six of the cases. ⁴ In the Bowling case he awarded half of the fee ($4,558.225) to Frates & Fay, and the other half to Nichols, Gaither, Beckham, Colson & Spence. A fee of $120,000 in the Stewart case was awarded to Frates on the theory that the client had 'cause' to discharge the old firm and hire Frates.

Frates appeals from the chancellor's award of six fees to Nichols, Gaither, Beckham, Colson & Spence. Nichols, Gaither, Beckham, Colson & Spence appeal from the order granting one fee to Frates and half of the other fee to Frates. Fay appeals from the chancellor's order which denies him any interest, as a partner in the firm of Frates & Fay, of the six fees earned by Frates & Fay, but given by the chancellor cellor to Nichols, Gaither, Beckham, Colson & Spence.

It will serve no purpose to detail the events which lead up to and immediately

Page 80

precede the dissolution date of February 28, 1961. ⁵

We first decide that in regard to all of these eight fees, there is no significant distinction, and therefore, whatever disposition is subsequently determined to apply, this result will be in regard to all of the fees. The chancellor treated two of the eight fees differently. In one he found that there was no contract between the old firm and Bowling, and therefore, Article X of the partnership agreement (to be discussed infra) did not control...