General Brewing Co. v. Law Firms of Gordon, Thomas, Honeywell, Malanca, Peterson & O'hearn

This is an appeal from a judgment of $117,100 in favor of attorneys Albert Malanca and Robert Schaefer and their law firms. The attorneys had represented General Brewing Company (“General”) between 1977 and 1980 in four separate antitrust actions in the district court for the Western District of Washington. The judgment awarded attorneys’ fees for that representation.

Over the course of two and one-half years, attorneys Malanca and Schaefer, their assistants and staff persons, had rendered valuable services and incurred substantial costs. During the last year of representation, the client and its chairman, Paul Kalmanovitz, became uncooperative and uncommunicative. In June, 1980 Malanca and Schaefer sought leave of court to withdraw and to recover their fees. They alleged good cause, and supported their claim with affidavits. General filed no opposition. The parties entered into a stipulation for withdrawal and for substitution of counsel. The stipulation provided in part:

Based on this stipulation, and on his own knowledge of the case, the district judge entered an order approving the withdrawal “based upon good cause shown.” Action on *192 the fee request was deferred. General…