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Shamus
Can't Sue NY Lawyers to Collect Illegal Fees
By Mark Fass
New York Lawyer
New York Law Journal
January 26, 2007
An attorney who allegedly
hired an investigator to locate and solicit accident victims then
failed to pay the investigator's finder's fee has successfully moved
to dismiss the investigator's suit for non-payment on the grounds of
illegality.
"The agreement
alleged by plaintiff is one between a nonlawyer and attorneys to
split legal fees which is proscribed by Judiciary Law §491," a
unanimous Appellate Division, First Department, panel held in
Bonilla v. Rotter, 9806. "Accordingly, the agreement is illegal and
plaintiff is foreclosed from seeking the assistance of the courts in
enforcing it."
According to the pro se
suit filed by Guillermo Bonilla, Seth Rotter of the now-disbanded
Manhattan personal-injury firm Ripka Rotter King & Tacopina hired
Mr. Bonilla to use his contacts at New York City hospitals to obtain
the names and medical records of people involved in accidents.
Under their agreement, Mr.
Bonilla would contact the accident victims and recommend they hire
Mr. Rotter, who agreed to pay Mr. Bonilla $2,500 for each case
landed and settled, according to Mr. Bonilla's suit.
After Mr. Rotter and his
then-partner Alan Ripka - who took over Mr. Rotter's cases when he
was suspended from practicing law in 1998 for bribing insurance
company employees - purportedly failed to pay Mr. Bonilla, he
commenced this suit.
In February 2005, Manhattan
Supreme Court Justice Rolando T. Acosta denied the defendants'
motion for summary judgment.
Yesterday, the First
Department reversed, holding that the illegality of the alleged
agreement precluded the court from enforcing it.
"It is the settled law of
this State . . . that a party to an illegal contract cannot ask a
court of law to help him carry out his illegal object, nor can such
a person plead or prove in any court a case in which he, as a basis
for his claim, must show forth his illegal purpose," the court held
in its unsigned opinion, quoting Stone v Freeman, 298 NY 268.
The defendants' law firm
broke up last January, when Mr. Ripka joined Napoli Bern, bringing
the majority of the firm's attorneys and clients with him.
Mr. Rotter has since filed
a $40 million claim against Mr. Ripka, alleging among other things
that he had misrepresented to clients that their firm had merged
with Napoli Bern.
Richard Godosky of Godosky
& Gentile represented Mr. Rotter and Mr. Ripka in the appeal of the
present case.
Mr. Godosky said he does
not anticipate that Mr. Rotter, who no longer practices law, will
face disciplinary charges.
"[Mr. Rotter] denied any
such agreement," Mr. Godosky said. "Mr. Ripka shouldn't even have
been part of the case. The last claim was made in 1991. He was not
even part of the firm then."
The panel included Justices
Richard T. Andrias, Peter Tom, George D. Marlow, Eugene Nardelli and
James McGuire.
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