Two law firms that won a multi-million dollar award on behalf of a Lincoln woman severely injured in a 1997 SUV rollover are disputing the division of attorneys fees.
McCord and Burns, of Lincoln, is suing the Los Angeles firm, Law Offices of Michael J. Piuze, in Lancaster County District Court, claiming the firm owes it roughly 5 percent more than it actually received.
What dollar amount the 5 percent equals is unknown, since the final settlement between Penny Shipler and General Motors and the SUV’s driver is confidential. But the amount is likely substantial.
Shipler, represented by Dan McCord and Michael J. Piuze, won what was believed to be the largest ever monetary judgment when a Lancaster County District Court jury awarded her $19.562 million in 2003 for injuries she sustained in the rollover.
Shipler, then a 30-year-old mother, was paralyzed from the neck down after the Chevrolet SUV in which she was riding rolled over near U.S. 34 and Northwest 27th Street on Sept. 11, 1997.
In 2000, McCord and Piuze sued GM and the driver of the SUV, Kenneth Long of Lincoln, on behalf of Shipler.
The trial began in August 2003 and took about five weeks. The jury returned the judgment — later reduced by the trial judge to $18.6 million — after nearly six days of deliberations.
Last March, the Nebraska Supreme Court upheld the award. The following month, the auto manufacturer and Shipler reached a settlement, under which she agreed to an undisclosed sum of money.
In exchange, GM withdrew its motion for the Supreme Court to rehear the case, and it agreed to not pursue additional appellate options, according to the lawsuit filed by Lincoln attorney Jeff Patterson on behalf of the McCord firm.
Patterson said in the lawsuit that Shipler, McCord and Piuze signed an agreement before the trial that 40 percent of any amount recovered would go to attorneys fees.
Of the total fees, McCord would receive 25 percent, and Piuze, a nationally regarded product liability lawyer, would receive 75 percent, Patterson said in the lawsuit.
Roughly two months after the trial, Shipler and Piuze signed a supplemental agreement that increased the overall attorneys fees from 40 percent to 50 percent of the settlement amount, according to Patterson’s lawsuit.
Patterson said in the suit that the amount Piuze wired to McCord’s bank account last April was based on 25 percent of the original 40 percent agreement.
The correct amount, he alleges, is 50 percent of the overall confidential settlement amount, minus $497,952 in case expenses. Those expenses included expert witness fees.
In an interview Wednesday, Patterson described the disagreement as a contract dispute between two businesses.
“They both (McCord and Piuze) were extremely committed to this case,” he said. “They both have the utmost respect for Penny Shipler.”
McCord agreed. He said the disagreement will not affect Shipler’s award. “It’s just a dispute over how the fees are divided,” he said.
Piuze could not be reached for comment Wednesday.
“It’s unfortunate,” said his attorney, Bob Mullin of Omaha. “This was a landmark decision. It’s unfortunate there’s a squabble (over) fees, but that’s what happens sometimes.”
A hearing on Patterson’s motion for summary judgment is scheduled for Feb. 9 in district court.
In its award, the jury found GM and Long jointly liable, which means Shipler could attempt to collect the judgment from either.
Shipler, now 39, no longer lives in Nebraska.
Reach Clarence Mabin at cmabin@journalstar.com or 473-7234.
Posted in Local on Wednesday, January 3, 2007 6:00 pm Updated: 2:13 pm.
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