The Appellate Division unanimously affirmed dismissal of defendants' counterclaims for unpaid fees for services rendered before they failed to comply with a deadline set in an action in federal court. Where the attorney is discharged without cause, the recovery, in quantum merit, is limited to the reasonable value of the services rendered. However, where the discharge is for cause, the attorney has no right to compensation or a retaining lien, notwithstanding a specific retainer agreement. Here, as defendants do not challenge Supreme Court's finding, after a hearing, that plaintiff terminated them for cause in the prior action, recovery of unpaid fees is barred.
Vioni v. Carey & Assoc., LLC, NY Slip Op 01880 (1st Dep't March 25, 2021)
