Wasserman v. Wasserman

• Decision Date: 30 July 2014
• Citation: 2014 N.Y. Slip Op. 05535,119 A.D.3d 932,990 N.Y.S.2d 571
• Court: New York Supreme Court — Appellate Division
• Parties: Mark A. WASSERMAN, plaintiff, v. Joann WASSERMAN, respondent; Berman, Frucco, Gouz, Mitchel & Schub, P.C., nonparty-appellant.

119 A.D.3d 932

990 N.Y.S.2d 571

2014 N.Y. Slip Op. 05535

Mark A. WASSERMAN, plaintiff,

v. Joann WASSERMAN, respondent;Berman, Frucco, Gouz, Mitchel & Schub, P.C., nonparty-appellant.

Supreme Court, Appellate Division, Second Department, New York.

July 30, 2014.

Berman Frucco Gouz Mitchel & Schub, P.C., White Plains, N.Y. (Benjamin E. Schub of counsel), nonparty-appellant pro se.

Joann Wasserman, New York, N.Y., respondent pro se.

REINALDO E. RIVERA, J.P., RUTH C. BALKIN, JOHN M. LEVENTHAL, SHERI S. ROMAN, JJ.

In a matrimonial action in which the parties were divorced by judgment dated May 22, 2008, the nonparty law firm Berman, Frucco, Gouz, Mitchel & Schub, P.C., appeals from an order of the Supreme Court, Westchester County (Colangelo, J.), dated December 11, 2013, which denied its motion, in effect, to establish a charging lien pursuant to Judiciary Law § 475 in the sum of $47,236.73, for leave to enter a money judgment in its favor and against the defendant, which includes interest, in the sum of $69,133.86, and, upon the closingof sale of the former marital residence, to direct the defendant's real estate attorney, her agent, title company, or anyone acting on the defendant's behalf to hold in escrow the sum of $69,133.86 to be paid to it. By decision and order on motion dated February 10, 2014, this Court granted the nonparty-appellant's motion, in effect, to direct that the sum of $47,236.73 remain in an escrow account maintained by F. Todd McLouglin, real estate attorney for the respondent, pending hearing and determination of the appeal.

ORDERED that the order is modified, on the law, (1) by deleting the provision thereof denying that branch of the appellant's motion which was, in effect, to establish a charging lien pursuant to Judiciary Law § 475 in the sum of $47,236.73, and substituting therefor a provision granting that branch of the motion, and (2) by deleting the provision thereof denying that branch of the appellant's motion which was, upon the closing of sale of the former marital residence, to direct the defendant's real estate attorney, her agent, title company, or anyone acting on the defendant's behalf to hold in escrow the sum of $69,133.86 to be paid to the appellant, and substituting therefor a provision granting that branch of the motion to the extent of directing, upon the closing of sale of the former marital residence, that F. Todd McLouglin, real estate attorney for the defendant, pay the sum of $47,236.73 to the nonparty law firm Berman Frucco Gouz Mitchel & Schub, P.C.; as so modified, the order is affirmed, with costs to the appellant.

The nonparty-appellant law firm, Berman Frucco Gouz Mitchel & Schub, P.C. (hereinafter the law firm), represented the defendant in the instant matrimonial action. As relevant here, the judgment of divorce dated May 22, 2008, directed that the defendant would receive a distributive award in the principal sum of $1,841,500, which includes the defendant's receipt of the net proceeds from the sale of the former marital residence, and that the plaintiff would receive a credit for one-half of the net proceeds from the sale of the former marital residence toward the defendant's distributive award ( see Wasserman v. Wasserman, 66 A.D.3d 880, 888 N.Y.S.2d 90). In October 2013, the law firm, alleging that the defendant still owed it legal fees in the principal sum of $47,236.73 and that the defendant was about to sell the former marital residence, moved, in effect, to establish a charging lien pursuant to Judiciary Law § 475 in the sum of $47,236.73, for leave to enter a money judgment in its favor and against the defendant, which includes interest, in the sum of $69,133.86, and, upon the closing of sale of the former marital residence, to direct the defendant's real estate attorney, her agent, title company, or anyone acting on the defendant's behalf to hold in escrow the sum of $69,133.86 to be paid to the law firm. In response, the defendant, among other things, acknowledged that she owed the law firm money, but argued that she was waiting to receive her entire distributive award before paying the law firm. In the order appealed from, the Supreme Court denied the law firm's motion.

Judiciary Law § 475 provides that, from the commencement of an action in any court, the attorney who appears for a party has a lien upon his client's cause of action, claim, or counterclaim, which attaches to a verdict, report, determination, decision, judgment, or final order in his client's favor, and the proceeds thereof. “A charging lien is a security interest in the favorable result of litigation, giving the attorney equitable ownership interest in the client's cause of action and ensuring that the attorney can collect his fee from the fund he has created for that purpose on behalf of the client” ( Chadbourne & Parke, LLP v. AB Recur Finans, 18 A.D.3d 222, 223, 794 N.Y.S.2d 349 [internal quotation marks omitted]; see Banque Indosuez v. Sopwith Holdings Corp., 98 N.Y.2d 34, 44, 745 N.Y.S.2d 754, 772 N.E.2d 1112;Tutarashvili v. Barzilay, 39 A.D.3d 851, ...