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OKOLI v. MADUEGBUNA

Appellate Division of the Supreme Court of New York, First Department.
May 12, 2009
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Plaintiff attorney alleges that he assisted defendants in a contingency fee case for which they paid him 20% of the fee they realized on settlement, in breach of an oral agreement calling for a division of the fee as the parties "had done in the past," and that in all previous contingency-fee cases procured by defendants on which plaintiff had worked, they had paid him 50% of the fee. Contrary to the motion court's ruling, the complaint alleges a course of dealing sufficient to establish the terms of the parties' oral contract ( see Telecommunications Tech. Corp. v Deutsche Bank, 235 AD2d 288). Equally unavailing is defendants' argument that the parties' alleged fee-sharing agreement would be void under Code of Professional Responsibility DR 2-107 (a) (2) ( 22 NYCRR 1200.12 [a] [2]). Defendants are also bound by the Code of Professional Responsibility, and cannot avoid a fee-sharing agreement on ethical grounds if they freely agreed to be bound by and received the benefit of same ( see Benjamin v Koeppel, 85 NY2d 549, 556).

[ See 2008 NY Slip Op 31142(U).]