MONTGOMERY, Ala. (Legal Newsline) – A dad’s effort to keep his former son-in-law from claiming attorneys fees from BP oil spill claims didn’t work out.
The Alabama Supreme Court ruled Sept. 24 in favor of attorney Randall Caldwell, who arranged for his then-father-in-law George Woerner’s oil spill claims to be handled by the firm Cunningham Bounds.
Caldwell, for his part in arranging the representation, was to be paid one-third of attorneys fees. But after he divorced Woerner’s daughter and she found out just how much he would be making, the family tried to implement a substitute referral counsel and severed the attorney-client relationship with Caldwell.
But the court said the Woerners were not allowed to do that and affirmed the fees headed to Caldwell, thanks in part to Woerner’s original agreement with Cunningham Bounds that formalized the referral fees.
“Our review of the evidence presented at trial reveals that the trial court had sufficient evidence to conclude that an attorney-client relationship between Caldwell and the Woerner entities existed and that the scope of that relationship was limited to the initial advice Caldwell provided and his referral of the Woerner entities' BP claims to Cunningham Bounds,“ Justice Jay Mitchell wrote.
Though a lawyer, it was not Caldwell’s main role while he worked for several businesses along the Gulf Coast owned by Woerner from 2008-2012. He was the president of Woerner Landscape and provided occasional legal advice to other companies.
When the Deepwater Horizon oil rig began spilling into the Gulf of Mexico in 2010, Caldwell recommended to Woerner a firm familiar with federal multidistrict litigation. He proposed Cunningham Bounds, and Woerner gave Caldwell permission to reach out to the firm.
Ultimately, Woerner signed a retainer agreement with Cunningham Bounds. It was clear that Caldwell would not have to continue performing any work to earn one-third of any attorneys fees earned from the Woerner claims.
“I/We understand that my/our claims and case were referred to you by Randall Caldwell (Referring Attorney), who may receive up to 1/3 of the attorneys fees set out in this agreement,” the contract said.
Steve Olen of Cunningham Bounds said this was included to “have a record of what we have agreed to with the referring lawyer.”
In 2012, Caldwell filed for divorce from Woerner’s daughter. He left his father-in-law’s company and returned to private legal practice.
In 2013, Cunningham Bounds gave Caldwell an approximate settlement amount. He says his ex-wife became angry upon learning of how much and threatened to keep him from recovering it.
Woerner asked Olen if Cunningham Bounds could give the referral fee to someone else, but Olen said no. Woerner, in 2014, retained the law firm as Sirote & Permutt as “substitute” referral counsel and claimed Caldwell had been working as in-house counsel when he made the initial referral. Cunningham Bounds refused to honor the terms of Woerner’s substitute agreement.
Cunningham Bounds filed an interpleader action in Mobile Circuit Court to determine who was legally owed the referral fee.
“(T)he testimony of Caldwell and Olen was sufficient to establish the essential terms of their agreement – Caldwell’s obligation was to refer the Woerner entities’ BP claims, and Cunningham Bounds’ job was to represent the Woerner entitles and pay Caldwell one-third of its attorneys fees from any funds it recovered from the BP claims,” Mitchell wrote.