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.

While Z.G.'s brother signed a contingent fee agreement with Saltz Mongeluzzi on her behalf, Z.G. signed a fee agreement with the firm herself in November 2014, after turning 18.

Elliott Greenleaf Hearing Refusal : Employment Terms and Departure

At the time of the agreements, DeMarco was a salaried employee at Elliott Greenleaf and "was not entitled to a set fixed percentage of fees from business origination," according to court testimony. Despite becoming a shareholder at the firm, his employment terms remained unchanged.

DeMarco left Elliott Greenleaf in December 2016 without a formal understanding regarding the referral fee for the pending injury case. He believed that Z.G. wished to remain his client after his departure from the firm.

Upon DeMarco's departure, Z.G., a recent immigrant who did not speak English, signed a letter stating she considered DeMarco her attorney and wished for him to receive appropriate compensation upon the case's resolution. However, DeMarco did not present this letter to Elliott Greenleaf until he filed his complaint in 2018. There were no written agreements between DeMarco and Saltz Mongeluzzi or Elliott Greenleaf regarding fees for the lawsuit.

Court's Decision and Appeal

On September 2, 2022, Judge Richard P. Haaz ruled in favor of Elliott Greenleaf, stating that Z.G. was aware of the fee-sharing agreement and that the client's letter, even if valid, was presented too late. DeMarco filed a post-trial motion to vacate the decision and request a jury trial.

DeMarco's attorney, George Bochetto of Bochetto & Lentz PC, emphasized the case's significance for Pennsylvania attorneys, citing the frequency of fee-sharing disputes. Bochetto argued that the judge's ruling, if upheld, would undermine a client's right to choose their attorney.

Elliott Greenleaf Hearing Refusal : Representation

Elliott Greenleaf PC is represented by Joseph P. Walsh of Walsh Pancio LLC and its own Colin J. O'Boyle and Mark J. Schwemler. DeMarco is represented by G. Alexander Bochetto, David P. Heim, and John A. O'Connell of Bochetto & Lentz PC.