FOLLOW US

The Pennsylvania Supreme Court has decided not to review the lower court decisions that denied a former Elliott Greenleaf attorney a share of an $11 million referral fee for a personal injury case. The courts found that a letter from the client requesting the lawyer's payment was invalid and presented too late.

Elliott Greenleaf Hearing Refusal : Supreme Court Order

In a brief one-sentence order issued on Tuesday, the court denied the petition for allowance of appeal, thus ending Richard C. DeMarco's pursuit of part of the fee from a personal injury lawsuit. This lawsuit involved a minor who sustained severe injuries from a propane tank explosion in 2014. DeMarco had hoped to overturn a September 2022 trial court decision by filing a petition for allowance of appeal in October. The trial court had ruled that he was not a party to the referral agreement between Elliott Greenleaf PC and Saltz Mongeluzzi Barrett & Bendesky PC, the firm that handled the injury suit, and thus had no valid claim to any portion of the $11.3 million referral fee.

Elliott Greenleaf Hearing Refusal : Lower Court Rulings

After the trial court's decision, DeMarco appealed to the Pennsylvania Superior Court, where a three-judge panel upheld the lower court's ruling in September 2023. DeMarco initially filed a writ of summons in Pennsylvania state court in April 2018, followed by a complaint on May 2, 2018. He sought declaratory relief against Elliott Greenleaf, claiming his rightful share of the $41,120,000 personal injury settlement awarded to the minor, identified only as Z.G. Elliott Greenleaf countered by filing its own complaint on May 1, 2018, seeking a declaratory judgment that it owed DeMarco nothing. The firm later included tort claims but withdrew them before the bench trial in July 2022.

Referral Fee Agreement

DeMarco, a zoning and real estate attorney, learned of the personal injury case through a personal connection. While Elliott Greenleaf considered referring the case to Saltz Mongeluzzi, a firm attorney prepared a standard contingent fee agreement and power of attorney, signed by the injured party's brother, who was acting as the "guardian-in-fact of minor immigrant." Following the July 1, 2014, explosion, Elliott Greenleaf signed a referral fee agreement with Saltz Mongeluzzi on August 6, 2014. The agreement designated one-third of the legal fee for Elliott Greenleaf, or 40% if the fee equaled 40% of the settlement, and allowed the firm to stay in contact with the client.