Betz v. Diamond Jim’s Auto Sales

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Randy Betz hired attorney Vincent Megna to represent him in a dispute with Diamond Jim’s Auto Sales. Megna filed a lawsuit on Betz’s behalf under two fee-shifting statutes. During the litigation, Betz and Diamond Jim’s settled the case without their attorneys’ knowledge or approval. The settlement agreement did not address statutory attorney’s fees. Megna moved to recover his statutory fees from Diamond Jim. The circuit court denied the motion, concluding that the statutory right to recover attorney’s fees belonged to Betz and not his attorneys and that the settlement agreement was a binding contract between Betz and Diamond Jim’s. The court of appeals reversed, concluding that the settlement agreement was void due to public policy concerns with enforcing settlements made “behind the backs” of the attorneys in cases brought under fee-shifting statutes. The Supreme Court reversed, holding (1) the statutory right to recover attorney’s fees belonged to Betz, and Betz did not assign his right to recover those fees to Megna in their fee agreement; and (2) therefore, Megna’s remedy against Diamond Jim’s was foreclosed. View "Betz v. Diamond Jim's Auto Sales" on Justia Law