Douglas

Plaintiff Saltarelli & Steponovich, a law firm, appeals from an order dismissing its action against Peter J. Douglas, a former client. The primary question presented is whether plaintiff’s contractual lien on defendant’s prospective recovery in the lawsuit for which the firm had been retained to represent defendant survived defendant’s discharge in bankruptcy. We hold it does.

Facts

Defendant retained plaintiff to represent him in a suit seeking damages for fraud, conspiracy to commit fraud and breach of contract entitled Douglas v. Weiner (Super. Ct. Orange County, 1988, No. 559656) (Weiner action). The parties signed an hourly retainer agreement which provided plaintiff “shall have a Lien for . . . fees and costs against any settlement, judgment, or compromise obtained in this matter” if it withdrew from the case. While the Weiner action was pending, plaintiff withdrew as defendant’s attorney of record, claiming the latter had failed to pay fees and costs. Plaintiff then commenced this action, alleging defendant owed over $31,000 on account of these fees and costs.

Shortly thereafter, defendant filed a petition for bankruptcy. He listed plaintiff as an unsecured…