Attachment Order Entered Against Attorney In Multi Million Dollar Dispute Involving Seaman's Claim For Maintenance And Cure Which Resulted In $8,329,720.65 Judgment
[*1] S.M. Pires and VIRGINIA PIRES, his wife, Plaintiff,v. Frota Oceanica Brasileira, S.A., BOARD OF TRUSTEES OF GALVESTON WHARVES d/b/aPORT of GALVESTON & CITY OF GALVESTON d/b/a PORT OF GALVESTON, Defendants. S.M.PIRES and SAUL RUDES, Plaintiffs, KENNETH HELLER, Defendant KENNETH HELLER,Third-party Defendant, SUSAN HARMON, Third-party Defendant. S.M. PIRES and SAULRUDES, Plaintiffs, v. KENNETH HELLER, Defendant
23829/76
SUPREME COURT OF NEW YORK, NEW YORK COUNTY
2005 NY Slip Op 50315U; 6 Misc. 3d 1036A; 2005 N.Y. Misc.LEXIS 434
January 14, 2005, Decided
According to the verified complaint in Pires and Rudes v Heller, plaintiff S.M. Pires retained defendant Kenneth Heller to represent him in[**5] the an action commenced in 1976 against Frota Oceanica Brasileira, S.A. et al, for personal injuries Mr. Pires sustained while employed as[*3] a seaman on Frota's ship. That action for maintenance and cure resulted in a judgment in Mr. Pires' favor in a sum exceeding $4,000,000 plus interest. The complaint further avers that Mr. Heller retained plaintiff Saul Rudes as appellate counsel to handle appeals resulting from the judgment and agreed that Mr. Rudes' fee would be 10% of Heller's net fee in Mr. Pires' personal injury action. After several appeals, the total judgment with interest awarded to Mr. Pires was $8,329,720.65. Defendant Frota issued a check in that amount made payable to "Starkheiser Pires and Kenneth Heller and Saul Rudes, his attorneys."
According to the supporting affidavit of Mr. Pires', Mr. Heller represented him in the personal injury action S.M. Pires v Frota Oceanica Brasileira, Index No. 23829/76. Mr. Pires states that (1) Mr. Heller showed him the June 24, 1997 Appellate Division decision which held that Mr. Pires was entitled to a $4,000,000 damage award, (2) after further appeals, defendant Frota was ordered to pay that amount with interest which amount totaled $8,239,720.65 and that Mr. Heller never informed him of this accrued additional interest and Mr. Heller kept that amount for himself, (3) at the time that Mr. Pires went to the bank with Mr. Heller to receive the $4,000,000 amount, Mr. Heller asked Mr. Pires to sign blank sheets of paper and Mr. Pires has no knowledge of the contents of those documents now, (4) after learning of the higher award, Mr. Pires confronted Mr. Heller who stated he took the other 50% as his fee, (5) Mr. Pires protested to Mr. Heller as he was never told of the higher award and never agreed to the 50% fee, (6) Mr. Pires never signed a retainer[**8] agreement, (7) Mr. Pires filed a complaint with the Disciplinary Committee of the Appellate Division, First Department, Mr. Heller promised that he would pay the money back because the Court would award an additional $4,000,000 as attorneys' fees against defendant Frota's insurance company, (8) Mr. Pires withdrew the complaint under duress as Mr. Heller said he would not get the money back if Mr. Heller was disbarred as Mr. Pires had no[*4] other attorney at the time, (9) Mr. Heller came to Brazil and Mr. Pires signed an affidavit which he did not read and gave a deposition recorded on videotape, a copy of which Mr. Pires does not have and which is invalid according to Brazilian law, (10) Mr. Heller has told Mr. Pires that he has no money to repay him and Mr. Heller has previously told him that he keeps money in bank accounts in Switzerland, Leichtenstein and Germany, and (11) Mr. Heller has threatened to leave the state and live in Brazil as Brazil has no extradition policy with the United States specifically for the purpose of defeating the collection of any judgment Mr. Pires would obtain against him.
Mr. Pires has taken contradictory positions regarding his former attorney Kenneth Heller and the[**9] submissions on these motions reflect those differing positions. However, the explanations given, that he signed blank sheets of paper for Mr. Heller and that Mr. Heller told him that he would not see the money owed to him unless he withdrew his complaints, are plausible.
The affirmation of plaintiff Saul Rudes n2 avers that Mr. Rudes has been co-counsel with Kenneth Heller in the Pires v Frota Oceanica Brasileira personal injury action since 1996, having been retained by Mr. Heller to handle several post-judgment appeals. Mr. Rudes states that (a) his status as an attorney of record was confirmed in a Supreme Court order dated July 29, 1999, (b) his fee agreement with Mr. Heller in this action as well as other actions for which he was retained is that he would receive 10% of Mr. Heller's net fee, and, thus, he has a 10% interest in the attorneys' fee against the judgment of $8,329,720.65, (c) Mr. Heller committed a fraud against Mr. Pires and Mr. Rudes when Mr. Heller took half of the full judgment amount, (d) Mr. Heller duped Mr. Rudes into waiving an attorneys' fee lien by falsely stating to Mr. Rudes, and to the Court, that the $8,329,720 was to be paid directly to the client, Mr. Pires [**10]and that attorneys' fees were to be awarded separately, (e) Mr. Heller moved to have defendant Frota issue a new check without Mr. Rudes name on it and as a result Frota issued a new check which was issued payable solely to Heller as attorney.
DISPOSITION: Plaintiffs' motion for an order of attachment granted; cross-motion to dismiss denied.