Caryn Groedel & Assocs. Co., L.P.A. v. Laraway
CourtOhio Court of Appeals
Date FiledOctober 22, 2026
Docket116093
JudgeSheehan
StatusPublished
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Full Opinion
[Cite as Caryn Groedel & Assocs. Co., L.P.A. v. Laraway, 2026-Ohio-4148.]
COURT OF APPEALS OF OHIO
EIGHTH APPELLATE DISTRICT
COUNTY OF CUYAHOGA
CARYN GROEDEL & :
ASSOCIATES CO., LPA,
:
Plaintiff-Appellant,
: No. 116093
v.
:
RONALD LARAWAY,
:
Defendant-Appellee.
JOURNAL ENTRY AND OPINION
JUDGMENT: AFFIRMED IN PART, REVERSED IN PART,
AND REMANDED
RELEASED AND JOURNALIZED: October 22, 2026
Civil Appeal from the Cuyahoga County Common Pleas Court
Case No. CV-23-978501
Appearances:
Caryn M. Groedel & Associates Co., LPA, and Caryn M.
Groedel, for appellant.
Stephen M. Hanudel, for appellee.
MICHELLE J. SHEEHAN, A.J.:
{¶ 1} This appeal arises from a legal fee dispute between plaintiff-appellant
Caryn Groedel & Associates Co., LPA (“Groedel”), and defendant-appellee Ronald
Laraway (“Laraway”). After a bench trial, the trial court denied Groedel’s breach-
of-contract claim but found in favor of Groedel on its unjust-enrichment claim.
Specifically, the trial court concluded that while the written contract for legal
services between the parties had been terminated, Groedel continued to represent
Laraway and was therefore entitled to recover its reasonable attorney fees under the
theory of quantum meruit. Groedel appeals the trial court’s decision, asserting the
following assignments of error:1
(1) The Trial court abused its discretion by denying Appellant’s Motion
for Leave to Amend the Complaint to Conform to the Evidence, Or, In
the Alternative, to Reopen the Evidence to Admit the Operative Fee
Agreement.
(2) The trial court erred as a matter of law by applying the superseded
10/12/22 contract as the operative agreement, when the
uncontroverted evidence established that the parties had entered into
a new, superseding fee agreement on 1/23/23.
(3) The trial court erred in awarding quantum meruit at an hourly rate
rather than the full contingency fee where appellant fully completed
performance, entitling her to the full contingency fee as the measure of
the reasonable value of her services, and if not, then the courthouse
steps doctrine entitled her to the full contingence fee.
(4) The quantum meruit award of $XXXX is against the manifest
weight of the evidence.
(5) The trial court erred as a matter of law when it failed to enforce the
mandatory attorneys’ fees and costs reimbursement provision of the
January 20, 2023 legal services agreement — which by its own terms
superseded all prior fee agreements — where that provision
unambiguously obligated defendant-appellee to reimburse plaintiff-
appellant for its reasonable attorneys’ fees and costs if plaintiff-
appellant was required to bring an action to enforce the agreement, and
where the triggering event occurred.
1 Groedel filed a redacted appellant brief.
{¶ 2} After our thorough review of the record and applicable law, we affirm
in part and reverse in part the trial court’s decision. Specifically, with respect to
assignment of error No. 3, we find that the trial court erred in its calculation of the
amount of reasonable attorney fees owed to Groedel under the theory of quantum
meruit. Thus, assignment of error No. 3 is sustained and this matter is remanded to
the trial court to calculate the amount of reasonable attorney fees owed to Groedel
consistent with the legal authority outlined below.
Statement of Facts
Underlying Facts2
{¶ 3} In May 2022, Laraway was terminated by AutoServices Unlimited
(“AutoServices”) after approximately one month of employment. Laraway
contacted Groedel to represent him in a potential age discrimination lawsuit against
AutoServices. Groedel had previously represented Laraway in an employment
dispute where it obtained a million-dollar jury verdict in his favor.
{¶ 4} Groedel and Laraway discussed his new matter, and Groedel agreed
to represent him. Thus, Laraway and Groedel executed a legal services agreement
dated October 12, 2022 (“October 2022 Agreement”). Under this agreement,
Groedel would write a notice of representation and demand letter to AutoServices
in an attempt to resolve the matter without resorting to litigation. If a favorable
resolution was reached, Groedel was entitled to a 35% contingency fee from the
2 The facts are derived from the parties’ testimony during trial, exhibits admitted at trial,
and the trial court’s finding of facts and conclusions of law issued as part of its bench trial
verdict and order.
settlement amount plus costs. Groedel prepared and sent a demand letter to
AutoServices. No resolution, however, was reached at this time.
{¶ 5} As a result, Laraway and Groedel executed a new legal services
agreement dated January 20, 2023 (“January 2023 Agreement”) whereby Groedel
would represent Laraway in the proceedings before the Ohio Civil Rights
Commission (“OCRC”). If a favorable resolution was reached, Groedel would be
entitled to a 40% contingency fee from any settlement amount plus costs. Both the
October 2022 Agreement and the January 2023 Agreement provided that Groedel
was entitled to recover any attorney fees and costs it incurred to enforce the terms
of these agreements.
{¶ 6} On February 23, 2023, Groedel sent a letter to Laraway expressly
terminating their attorney-client relationship (“Termination Letter”). Groedel’s
stated reasons for the termination were Groedel’s sole practitioner, Caryn Groedel’s
age, needing to care for her aging mother, and the upcoming planned closure of the
law practice. In response, Laraway emailed asking Groedel to reconsider and to
continue to represent him. He stated, “I don’t trust anyone but you. And I need you.
. . . Again, I am asking you to please reconsider. I need your help. I promise I will
keep my mouth shut and follow whatever you say.”
{¶ 7} After receiving his email, Groedel decided to continue representing
Laraway. Groedel assisted in drafting the necessary paperwork and correspondence
for proceedings before the OCRC. Groedel also communicated with Laraway
through email on numerous occasions regarding aspects of his claim. Groedel also
appeared at the mediation with the OCRC where a settlement was reached in the
amount of $85,000.
{¶ 8} After the mediation, Laraway refused to pay Groedel for its legal
services, including the 40% contingency fee allegedly owed pursuant to the January
2023 Agreement claiming that Groedel was no longer representing him, but rather
just “helping him.”
Trial Court Proceedings
{¶ 9} In April 2023, Groedel filed a complaint against Laraway alleging
claims for breach of contract, declaratory judgment, and unjust enrichment. The
January 2023 Agreement was attached to the complaint as the controlling written
agreement providing the basis for its breach-of-contract claim. Laraway answered
the complaint denying the existence of an attorney-client relationship between him
and Groedel after Groedel sent him the Termination Letter.
{¶ 10} On August 11, 2025, and October 30, 2025, a two-day bench trial was
held. Both Groedel and Laraway testified. Notably, while both Laraway and Groedel
referred to the existence of the January 2023 Agreement, neither party expressly
questioned the other party regarding its existence, terms and conditions, or
termination. Moreover, Groedel did not introduce the January 2023 Agreement as
an exhibit during the trial and, consequently, the January 2023 Agreement was not
admitted into evidence at the end of trial. In contrast, the October 2022 Agreement
was discussed by both parties, including Laraway on cross-examination; Groedel
introduced this agreement as an exhibit at trial; and it was formally admitted as
evidence.
{¶ 11} On November 5, 2025, Groedel filed a post-trial motion to amend the
pleadings to conform to the evidence at trial pursuant to Civ.R. 15(B). Specifically,
Groedel’s motion below requested the trial court to treat the October 2022
Agreement as the operative agreement between the parties rather than the January
2023 Agreement that had been attached to the complaint. Groedel argued that the
parties had impliedly tried the case as if the October 2022 Agreement was the
controlling agreement between them. Alternatively, Groedel asked the trial court to
reopen the evidence to admit as an exhibit the January 2023 Agreement. The trial
court denied the motion.
Bench Trial Verdict and Order
{¶ 12} On January 29, 2026, the trial court issued its “Bench Trial Verdict
and Order” denying Groedel’s breach-of-contract claim but granting its claim for
unjust enrichment. The trial court’s order included written finding of facts and
conclusions of law. The trial court made the following material findings of fact:
The parties entered into a legal services contract 10/12/22. Plaintiff’s
Exhibit 3. They entered into a second legal services contract upon
Plaintiff’s decline of the demand letter written by the firm to
Defendant’s prior employer. The second legal services contract was
entered into prior to 02/23/23. However, while the second contract
was attached as an exhibit to the Plaintiff’s Complaint, it was never
admitted as an exhibit at trial by either party. See this court’s denial of
Plaintiff’s motion for leave to amend complaint to conform to the
evidence, or in the alternative, to reopen evidence to admit correct
contract, filed 11/05/25, five days after this case was heard and
submitted to the court. Therefore, the contract before the court in the
bench trial of this case for ruling is the 10/12/22 legal services contract,
admitted as Plaintiff’s Exhibit 3.
...
Plaintiff drafted a 02/23/23 letter which it sent to Defendant. It stated
that Plaintiff was “terminating the attorney-client relationship” due to
“several reasons, including” Groedel’s age, an aging mother with whom
she needed to spend more time, and the closing of her law practice in
August 2023. Plaintiff’s Exhibit 9. Thereafter, Defendant by email and
phone communication asked Plaintiff to reconsider. Plaintiff’s Exhibit
10. It is clear that Plaintiff did reconsider and continued to represent
Defendant, as he had requested, and as proved both by testimony
presented at trial and by Plaintiff’s exhibits.
...
With Plaintiff’s help, Defendant reached a settlement during the
hearing in the amount of $85,000.00. Plaintiff’s Exhibits 21 through
25.
...
But Plaintiff did continue to provide legal services to Defendant after
initially terminating the attorney-client relationship. Defendant
accepted them without argument, and to his clear benefit.
Bench trial verdict and order p. 2. The trial court also issued these pertinent
conclusions of law:
Most importantly here, Plaintiff represented Defendant at a crucial
state of his case before the Commission, and is now entitled to
reasonable compensation.
The parties’ legal services contract of 10/12/22, Plaintiff’s Exhibit 3,
was terminated by the Plaintiff’s 02/23/23 letter terminating the
attorney-client relationship. Further, as noted above, the second legal
services contract was never presented nor admitted as an exhibit by
either party. Therefore, it does not establish terms and conditions of
legal services and attorney-client relationship. Finally, no evidence
presented at trial established that any of the terms and conditions of
either contract were still in effect once the 02/23/23 letter terminated
the attorney-client relationship.
Because of Plaintiff’s 02/23/23 termination letter, Plaintiff may not
recover based upon the terms and conditions of the attorney-client
relationship agreement which was entered into 10/12/22.
...
Therefore, this court does not find for Plaintiff on its claim for breach
of contract. . . .
Accordingly, on both of Plaintiff’s claims for unjust enrichment (count
II) and declaratory judgment this court finds for Plaintiff based upon a
theory of quantum meruit. . . .
Plaintiff’s reasonable attorney fees for representation of Defendant in
the underlying case is comprised of Plaintiff’s hours of representation
from 10/12/22 through and including 04/04/23 at Plaintiff’s hourly
rate of $420.00. Furthermore, this court finds that 10.07 hours of
representation, between 10/12/22 up to and including 04/04/23, are
reasonable.[3] This court finds $4,494.00 (10.7 hours x $420.00 per
hour) in attorney fees for the representation of Defendant in the
underlying case to be reasonable fees.
This court therefore finds that Plaintiff’s reasonable attorney fees of
$4,494.00 minus Defendant’s retainer previously paid to Plaintiff in
the amount of $2,000.00 equals $2,494.00, which amount this court
now awards to Plaintiff. The court is not persuaded by a preponderance
of the evidence that Plaintiff is owed anything else.
Bench trial verdict and order p. 3-4.
{¶ 13} This appeal follows.
3 The trial court’s finding of 10.07 hours of representation appears to be a typographical
error based on the trial court’s award of $4,494 (10.7 hours x $420 per hour) in attorney
fees.
Law and Analysis
Assignment of Error No. 1
{¶ 14} Under assignment of error No. 1, Groedel argues that the trial court
abused its discretion in denying its post-trial motion to amend the pleadings to
conform to the evidence at trial pursuant to Civ.R. 15(B). First, we note that
Groedel’s appellate briefing misstates the basis for its motion below. Groedel’s
motion below requested the trial court to treat the October 2022 Agreement as the
controlling agreement between the parties most likely because this agreement was
admitted as an exhibit at trial and the January 2023 Agreement was not. Thus,
Groedel argued that the parties “impliedly consented” to trial on the October 2022
Agreement and therefore its motion to amend the pleadings to conform to the
evidence at trial was warranted. In contrast, Groedel’s appellate briefing argues that
its motion to amend the pleadings to conform to the evidence related to the January
2023 Agreement. Alternatively, Groedel argues that the trial court abused its
discretion in denying its motion to reopen the evidence to admit as an exhibit the
January 2023 Agreement. For the following reasons, assignment of error No. 1 is
overruled.
Standard of Review
{¶ 15} Appellate courts review a “trial court’s decision regarding
amendments of pleadings under Civ.R. 15(B) for an abuse of discretion.” Mattox v.
SW. Gen. Health Ctr., 2026-Ohio-3339, ¶ 59 (8th Dist.), citing Caruso v. Leneghan,
2014-Ohio-1824, ¶ 103 (8th Dist.), citing Aztec Internatl. Foods, Inc. v. Duenas,
2013-Ohio-450, ¶ 25 (12th Dist.). We also review a trial court’s decision regarding
whether to reopen the evidence for an abuse of discretion. Longo v. Longo, 2005-
Ohio-2069, ¶ 22 (11th Dist.), citing Nozik v. Mentor Lagoons, Inc., 1994 Ohio App.
LEXIS 1957, * 6 (11th Dist. May 6, 1994). “An abuse of discretion occurs when a
court exercises ‘its judgment, in an unwarranted way, in regard to a matter over
which it has discretionary authority.’” Caruso at ¶ 103, quoting Johnson v.
Abdullah, 2021-Ohio-3304, ¶ 35.
Motion to Amend the Pleadings to Conform to the Evidence
{¶ 16} Civ.R. 15(B) provides, in pertinent part, the following:
When issues not raised by the pleadings are tried by express or implied
consent of the parties, they shall be treated in all respects as if they have
been raised in the pleadings. Such amendment of the pleadings as may
be necessary to cause them to conform to the evidence and to raise
these issues may be made upon motion of any party at any time, even
after judgment.
{¶ 17} “Although Civ.R. 15 allows for liberal amendment of the pleadings
toward that end, the rule will only apply when, as stated therein, the amendment
would ‘conform to the evidence’ and when the issue is tried by either the ‘express or
implied consent of the parties.’” State ex rel. Evans v. Bainbridge Twp. Trustees, 5
Ohio St.3d 41, 44 (1983), quoting Civ.R. 15(B).
{¶ 18} Groedel’s reliance on Civ.R. 15(B) to cure its failure to admit the
January 2023 Agreement into evidence at trial is misplaced. With respect to
Groedel’s appellate argument to amend the pleadings to conform to the evidence
and to reflect the January 2023 Agreement, this argument lacks merit. The record
demonstrates that the January 2023 Agreement was attached to Groedel’s
complaint as an exhibit. In short, there is no need to amend the pleadings to reflect
the January 2023 Agreement — it is already there. Groedel’s problem is that
pleadings and their exhibits while part of the record are not evidence at trial. See
State ex rel. Copeland v. State Med. Bd., 107 Ohio St. 20 (1923), paragraph two of
the syllabus; Hocking Valley Ry. Co. v. Helber, 91 Ohio St. 231 (1915), paragraph
three of the syllabus; State ex rel. Benesch, Friedlander, Coplan & Arnoff L.L.P. v.
Rossford, 140 Ohio App.3d 149, 155, fn. 2 (6th Dist. 2000). Attachments to the
pleadings must be independently introduced at trial in order to be considered by the
court. Gupta v. Grahm, 1990 Ohio App. LEXIS 3653, *4 (6th Dist. Aug. 24, 1990).
{¶ 19} With respect to Groedel’s argument before the trial court requesting
that the pleadings be amended to conform to the evidence at trial and to treat the
October 2022 Agreement as the controlling agreement, we also find that this
argument lacks merit. In the instant matter, the evidence at trial does not
demonstrate that the October 2022 Agreement is either the controlling agreement
between the parties or that it was tried as the controlling agreement by the express
or implied consent of the parties. Rather, the testimony at trial reveals that both
parties believed that the October 2022 Agreement was no longer in effect. The
October 2022 Agreement only applied to Groedel’s efforts to resolve Laraway’s
dispute with AutoServices without resorting to litigation. Groedel’s efforts in this
regard failed, and the parties both testified regarding the existence of a second
agreement — the January 2023 Agreement — that they subsequently executed to
cover the next stage in attempting to resolve Laraway’s employment dispute. The
record also demonstrates that the trial court found that the October 2022
Agreement had been terminated. Because the evidence at trial does not reveal that
the October 2022 Agreement was the controlling agreement between the parties, the
trial court did not abuse its discretion in denying Groedel’s motion to amend the
pleadings to conform to the evidence at trial to say that it was.
Motion to Reopen the Evidence
{¶ 20} Alternatively, Groedel argues that the trial court abused its discretion
in denying its motion to reopen the evidence to admit as an exhibit the January 2023
Agreement. We disagree. The record demonstrates that Groedel had ample
opportunities during trial to introduce the January 2023 Agreement but
inexplicably failed to do so. While both parties made references to the January 2023
Agreement, neither party was questioned regarding its existence, terms and
conditions, or termination during trial. Again, Groedel failed to introduce the
January 2023 Agreement even on the multiple occasions the parties mentioned its
existence.
{¶ 21} Moreover, the trial court found that any written legal services
agreement executed by the parties had been terminated by Groedel’s February 2023
Termination Letter. Thus, even if the January 2023 was properly before the trial
court, its terms and conditions were no longer controlling. Thus, based on these
facts, we do not conclude that the trial court abused its discretion in refusing to
reopen the evidence to admit as an exhibit the January 2023 Agreement.
Assignments of Error Nos. 2 and 5
{¶ 22} Under both assignments of error Nos. 2 and 5, Groedel contends that
the trial court erred in refusing to enforce the terms and conditions of the January
2023 Agreement. In assignment of error No. 2, Groedel specifically argues that the
trial court erred in treating the October 2022 Agreement as the controlling
agreement between the parties where the “uncontroverted evidence” demonstrates
the existence of the January 2023 Agreement. In assignment of error No. 5, Groedel
asserts that the trial court erred in failing to enforce a singular provision of the
January 2023 Agreement that required Laraway to reimburse Groedel for any
attorney fees and costs incurred to enforce the January 2023 Agreement. For the
following reasons, both assignments of error are overruled.
{¶ 23} Putting aside the fact that we have already determined that the
January 2023 Agreement was not properly before the trial court, Groedel
mischaracterizes the trial court’s opinion. While the trial court noted that the
“contract before the court” was the October 2022 Agreement, the trial court did not
treat the October 2022 Agreement as “the operative agreement between the parties.”
Rather the trial court’s opinion unambiguously found that the October 2022
Agreement had been terminated by Groedel by its February Termination Letter. In
other words, the trial court concluded that there was no written agreement
controlling the relationship between the parties. The trial court’s conclusion that
the written legal services agreements executed by the parties were terminated by the
February Termination Letter is a finding of facts, and our review of the record
demonstrates that this conclusion is supported by some competent, credible
evidence. Shelly Co. v. N.E.S. Corp., 2026-Ohio-3019, ¶ 210 (8th Dist.) (In a bench
trial, we afford deference “to the trial court on findings of fact to the extent they are
supported by some competent, credible evidence . . . .”). Thus, we will not disturb
this decision. See, e.g., Powers v. Isaacs, 1990 Ohio App. LEXIS 4319, * 6 (3d Dist.
Sept. 28, 1990) (finding whether a contract has been terminated is a question of
fact); see also Elevation Ents. v. NMRD Ltd., 2023-Ohio-4433, ¶ 19 (10th Dist.)
(“[T]he question of whether the parties intend to be bound is a question of fact,
reviewed for whether they are supported by some competent, credible evidence
. . . .”).
{¶ 24} Groedel also asserts that “Ohio law is clear that the termination of a
contract, followed by the continued performance by both parties, evidences a new
agreement on the same or modified terms.” Not only does Groedel cite no Ohio
authority for this proposition, but it also misstates the proposition as referenced by
the Southern District of Ohio in Neely v. Crown Solutions Co., LLC, 2013 U.S. Dist.
LEXIS 162958 (S.D Ohio Nov. 15, 2013). The Neely Court noted that
when an agreement expires by its terms, if, without more, the parties
continue to perform as therefore an implication arises that they have
mutually assented to a new contract containing the same provisions as
the old. . . . Furthermore, neither party clearly and manifestly indicated,
through words or conduct, that it no longer wished to be bound by the
Agreement.
(Cleaned up and emphasis added.) Neely at * 28-29. In this case, we are addressing
a terminated agreement not an agreement that expired by its own terms. And
moreover, Groedel’s Termination Letter clearly and manifestly indicates that it no
longer wished to be bound by the agreement. Therefore, Neely is distinguishable
and has no application to the facts of this case. Assignments of error Nos. 2 and 5
are overruled.
Assignments of Error Nos. 3 and 4
{¶ 25} In both assignments of error Nos. 3 and 4, Groedel challenges the
amount of reasonable attorney fees awarded to it under the theory of quantum
meruit. In assignment of error No. 3, Groedel argues that the trial court erred in
failing to award it the full contingency fee set forth in either of the legal fees
agreements as the reasonable value of its services. In assignment of error No. 4,
Groedel asserts that the trial court’s award is against the manifest weight of the
evidence.
{¶ 26} Neither party challenges the trial court’s finding that Groedel is
entitled to reasonable attorney fees for its legal services rendered to Laraway under
the theory of quantum meruit. Rather, Groedel contends that the amount that the
trial court awarded to it is wrong. Thus, our focus under these assignments of error
will be on whether the trial court determined the amount of reasonable attorney fees
in accordance with Ohio law. For the following reasons, we conclude that it did not.
Standard of Review
{¶ 27} An appellate court reviews a trial court’s award of attorney fees on a
quantum meruit basis for an abuse of discretion. Dickson & Campbell L.L.C. v.
Marshall, 2018-Ohio-2233, ¶ 10 (8th Dist.); see also Reid v. Lansberry, 68 Ohio
St.3d 570, 577 (1994). “An abuse of discretion occurs when a court exercises ‘its
judgment, in an unwarranted way, in regard to a matter over which it has
discretionary authority.’” Johnson, 2021-Ohio-3304, at ¶ 35. However, no court
“has the authority, within its discretion, to commit an error of law.” Id. at ¶ 38,
quoting State v. Boles, 2010-Ohio-278, ¶ 26 (2d Dist.). Simply put, “courts lack the
discretion to make errors of law.” Id. at ¶ 39.
Measure of Reasonable Attorney Fees Under Quantum Meruit
{¶ 28} Quantum meruit ‘“is a doctrine derived from the natural law of equity,
the basic concept of which is that no one should be unjustly enriched who benefits
from the services of another. In order to prevent such an unjust enrichment, the law
implie[s] a promise to pay a reasonable amount for the services rendered and even
for materials furnished, in the absence of a specific contract.”’ Peiffer Wolf Carr
Kane Conway & Wise, APLC v. Washington, 2025-Ohio-4839, ¶ 45 (8th Dist.),
quoting Sonkin & Melena Co., L.P.A. v. Zaransky, 83 Ohio App.3d 169, 175 (8th
Dist. 1992). Quantum meruit ‘“literally translated means as much as he deserves.”’
Id. at ¶ 56, quoting Natl. City Bank v. Fleming, 2 Ohio App.3d 50, 57 (8th Dist.
1981). ““An action in quantum meruit involves the application of equitable
principles to the facts and circumstances.”’ Id., quoting id. at 58.
{¶ 29} ‘“In the absence of an express contract, an attorney can recover the
reasonable value of services rendered on the basis of quantum meruit.”’
Washington at ¶ 45, quoting Shearer v. Creekview Broadview Hts. Homeowners’
Assn., 2010-Ohio-5786, ¶ 14 (8th Dist.), citing Baer v. Woodruff, 111 Ohio App.3d
617, 620 (10th Dist. 1996); Lillie & Holderman v. Dimora, 2013-Ohio-3431, ¶ 6 (8th
Dist.). “A trial court must determine whether attorney fees are reasonable based
upon the actual value of the necessary services performed by the attorney and
evidence must exist in support of the court’s determination.” Lillie & Holderman at
¶ 8, citing Koblentz & Koblentz v. Summers, 2011-Ohio-1064, ¶ 9 (8th Dist.), citing
In re Hinko, 84 Ohio App.3d 89, 95 (8th Dist. 1992). Stated differently,
[g]enerally, a party who establishes his [or her] right to be compensated
on quantum meruit should recover only as much as he [or she]
reasonably deserves for his [or her] services, and no more. Thus, the
amount which he [or she] can recover on quantum meruit is subject to
a double limitation: (1) plaintiff cannot recover more than the actual
value of the services rendered for defendant, including the value of
materials and fair profit if and when applicable; and (2) plaintiff cannot
recover more than the amount defendant was enriched by his [or her]
rendering of services,
Thomas & Boles v. Burns, 1994 Ohio App. LEXIS 1390, *21 (8th Dist. Mar. 31, 1994).
{¶ 30} There exists a plethora of caselaw discussing numerous factors that a
trial court should consider when determining the reasonable value of an attorney’s
services under the theory of quantum meruit. Courts often state the relevant factors
as “‘“(1) time and labor, novelty of issues raised, and necessary skill to pursue the
course of action; (2) customary fees in the locality for similar legal services; (3) result
obtained; and (4) experience, reputation and ability of counsel.”’” Lillie &
Holderman at ¶ 8, quoting Koblentz & Koblentz at ¶ 9, quoting Pyle v. Pyle, 11 Ohio
App.3d 31, 35 (8th Dist. 1983). “Additional relevant considerations include the
recovery sought, the skill demanded, the results obtained, and the attorney-client
relationship itself.” Reid, 68 Ohio St.3d at 576. Courts also often consider the
factors as outlined by the Code of Professional Responsibility, DR 2-106(B), and
Code of Conduct Rule 1.5 that provide guidelines for determining the
reasonableness of attorney fees as follows:
(1) The time and labor required, the novelty and difficulty of the
questions involved, and the skill requisite to perform the legal service
properly.
(2) The likelihood, if apparent to the client, that the acceptance of the
particular employment will preclude other employment by the lawyer.
(3) The fee customarily charged in the locality for similar legal services.
(4) The amount involved and the results obtained.
(5) The time limitations imposed by the client or by the circumstances.
(6) The nature and length of the professional relationship with the
client.
(7) The experience, reputation, and ability of the lawyer or lawyers
performing the services.
(8) Whether the fee is fixed or contingent.
Lasher v. Haskins, 1998 Ohio App. LEXIS 2187, *10-11 (9th Dist. May 20, 1998);
Roux v. Lonardo, 1991 Ohio App. LEXIS 4125, * 5-7 (11th Dist. Aug. 30, 1991); Reid
at 577; Dickson & Campbell L.L.C., 2018-Ohio-2233, at ¶ 10 (8th Dist.); Lustig v.
Heyman, 1980 Ohio App. LEXIS 13723, *6 (8th Dist. Jan. 17, 1980).
Analysis
{¶ 31} In this case, the trial court determined Groedel’s award of reasonable
attorney fees solely by multiplying Groedel’s hourly rate by the number of hours of
work accrued. However, the key takeaway from our review of the applicable caselaw
demonstrates that courts consider a number of factors beyond a mere multiplication
of an hourly rate by an amount of hours worked. Indeed, there is persuasive
authority supporting a conclusion that a trial court commits error as a matter of law
when only calculating an attorney’s hourly rate by the numbers of hours accrued.
See Roux at *8, citing Swanson v. Swanson, 48 Ohio App.2d 85, 91-92 (8th Dist.
1976) (both holding that simply multiplying the number of hours worked by their
hourly rate is legally deficient as a matter of law); Reid at 576 (stating the number of
hours worked by the attorney . . . is only one factor to be considered). Accordingly,
we find that the trial court erred in its determination of the amount of reasonable
attorney fees owed to Groedel under a theory of quantum meruit.
{¶ 32} Groedel argues that the January 2023 Agreement (or the October
2022 Agreement) providing for a contingency fee of 40% or 35% respectively should
provide the basis for what constitutes its reasonable attorney fees. Groedel relies on
the Ohio Supreme Court decision in Fox & Assocs., Co. v. Purdon, 44 Ohio St.3d 69
(1989), wherein the Court stated, in the context of a contingency attorney, “an
attorney who substantially performs under the contract may be entitled to the full
price of the contract in the event of discharge ‘on the courthouse steps’ or just prior
to settlement.” Id. at 72. However, the Court subsequently clarified this language
to mean “even if an attorney is discharged without cause, and even if a contingent
fee agreement is in effect at the time of the discharge, the discharged attorney
recovers on the basis of quantum meruit, and not pursuant to the terms of the
agreement.” Reid at 573; see also Renner v. Siegel, 2015-Ohio-1839, ¶ 24 (8th
Dist.); Oliver v. Groedel, 2023-Ohio-275, ¶ 62 (7th Dist.); Lorain Cty. Treasurer v.
Elyria Sav. & Trust, 1996 Ohio App. LEXIS 2318, *8-9 (9th Dist. June 5, 1996)
(refers to language in Fox as dicta and noting clarification by Reid). Therefore, we
find that Fox does not entitle Groedel to an award of reasonable attorney fees
pursuant to either agreement. That being said, courts may still refer to a
contingency agreement as “guidance” in determining what is reasonable. Oliver at
¶ 68; Law Offices of Russell A. Klein v. Selby, 2017-Ohio-8239, ¶ 30 (10th Dist.);
Prof.Cond.R. DR 2-106(B)(8).
{¶ 33} In conclusion, while we do not conclude that Groedel is entitled as a
matter of law to an amount of reasonable attorney fees consistent with its
terminated contingency fee agreement, we do find that the trial court erred in its
measure of what constitutes a reasonable attorney fee in this matter. As
demonstrated in its Bench Trial Verdict and Order, the trial court measured the
amount of reasonable attorney fees owed to Groedel solely on a multiplication of
Groedel’s hourly rate and the number of hours worked. Based on the authority
above, we conclude that the trial court erred in doing so. The applicable legal
authority consistently demonstrates that a number of factors should be considered
by the court when determining what constitutes a reasonable attorney fee award
under the theory of quantum meruit.
{¶ 34} Accordingly, we sustain assignment of error No. 3 and this matter is
remanded to the trial court to measure the amount of reasonable attorney fees owed
to Groedel under the theory of quantum meruit and in doing so the trial court is to
consider the multiple factors outlined above in light of the facts of this case. Based
on our resolution of assignment of error No. 3, assignment of error No. 4 is moot.
{¶ 35} Judgment affirmed in part, reversed in part, and remanded.
It is ordered that appellant and appellee share the costs herein taxed.
The court finds there were reasonable grounds for this appeal.
It is ordered that a special mandate issue out of this court directing the
common pleas court to carry this judgment into execution.
A certified copy of this entry shall constitute the mandate pursuant to
Rule 27 of the Rules of Appellate Procedure.
______________________________________
MICHELLE J. SHEEHAN, ADMINISTRATIVE JUDGE
MICHAEL JOHN RYAN, J., and
DEENA R. CALABRESE, J., CONCUR