Chambliss, Bahner & Crawford v. Luther

Luther and other stockholders (defendants) hired the law firm Chambliss, Bahner & Crawford (plaintiff) on a contingency contract entitling the firm to 15% of any recovery above an $860,000 settlement offer from Detrex Corporation, which the clients rejected. About a year in, the clients brought on a second attorney, agreeing that Chambliss would keep 70% and the new attorney 30% of the contingency fee — but soon after, the clients made the new attorney lead counsel, causing Chambliss to withdraw. The case eventually settled for $965,150. Chambliss sued for breach of contract, and the trial court awarded Chambliss $15,772.50 (15% of the recovery above the original offer), limiting damages to the contract terms; Chambliss appealed, seeking quantum meruit damages instead based on the value of the time he'd spent on the case.