Libman

FACTS AND PROCEDURAL BACKGROUND

In early 2007, Michael Libman (lawyer) agreed to represent Stephanie Thomas and Audrey Ewells (collectively, clients) on a contingency basis in their lawsuit for injuries arising out of an automobile accident. Clients signed a contract with Bondarev Chiropractic, Inc. (chiropractor) in which they (1) agreed to be responsible for all chiropractic bills, (2) authorized lawyer to pay any chiropractic bills for them and deduct those amounts from any eventual recovery, and (3) granted the chiropractor “a lien . . . against any and all proceeds of any settlement, [judgment] or verdict which may be paid to” lawyer or to themselves. Clients incurred approximately $9,175 in chiropractic services. Clients’ lawsuit proceeded to arbitration, and they recovered $100,000. Of that amount, lawyer was entitled to a 40 percent contingency fee and his costs of $76,160.05. This left no positive recovery for clients or for any of clients’ medical bills. In August 2012, Anatoly Bondarev (Bondarev) sued lawyer in small claims court. The court ruled for lawyer because Bondarev, in his individual capacity, was not a party to any contract and thus lacked standing to sue. In…