Van v. Wal-Mart Stores, Inc.

Background

Nathalie Thuy Van won a jury verdict against Wal-Mart Stores, Inc. on claims involving negligent hiring, training, and supervision; negligence; and negligent misrepresentation. The jury awarded Van $30,000 in compensatory damages, and judgment was entered on January 13, 2015. After additional cost awards and an appeal that the Ninth Circuit affirmed, Wal-Mart deposited $36,958.17 with the court under Federal Rule of Civil Procedure 67. The fund earned interest and totaled $38,839 as of December 22, 2020, although the amount changed daily.

Two groups of attorneys asserted claims against the deposited money. Anthony Boskovich represented Van at the beginning of the case, filed the initial complaint, and later withdrew. He claimed $529.98 in expenses and $20,880 in attorney fees. Banys P.C., through Christopher D. Banys and Jennifer Lu Gilbert, represented Van during the period leading up to and including the jury trial. Banys P.C. claimed $34,112.40 in fees and costs. The combined claims exceeded the available fund.

Van disputed both claims, alleging that Boskovich’s work did not produce the judgment and that both attorney claimants committed malpractice or violated court or professional-conduct rules. She also alleged that Banys P.C. presented fraudulent documents during the hearing. Judge Nathanael Cousins stated that he was not persuaded by those allegations.

Legal standard and analysis

The court applied California law concerning contingent-fee agreements and quantum meruit. Quantum meruit is an equitable remedy that allows recovery of the reasonable value of services provided at a client’s request when those services remain unpaid and keeping the benefit without payment would be unfair. The court found that both Boskovich and Banys P.C. had enforceable agreements with Van, performed valuable legal services for her at her request, and were unpaid.

The court then compared the reasonable value and impact of their work. Boskovich began the case but withdrew nearly five years before trial. Banys P.C. worked for a shorter but more intensive period, staffed three lawyers, spent hundreds of hours on the case, and contributed more directly to the trial result. The court also rejected Van’s assertion that Banys P.C. submitted fraudulent documents during the hearing.

Ruling and distribution

Judge Nathanael Cousins awarded Boskovich $529.98 for out-of-pocket expenses and zero dollars in attorney fees. The court awarded Banys P.C. $12,663.15 in attorney fees, representing 40% of the $30,000 judgment plus interest as calculated in the record, and $10,000 in reimbursable case expenses and advanced costs. The $10,000 expense award was less than Banys P.C.’s requested expenses, advanced costs, and interest; the court found some expenses excessive, including Fairmont hotel rooms and food for the trial.

The court ordered the clerk to distribute $529.98 to Anthony Boskovich, $22,663.15 to Banys P.C., and the remainder of the fund—approximately $15,645.87—to Nathalie Thuy Van. The order stated that the Rule 67 deposit should have no remaining funds after distribution, that the case would be closed, and that any appeal had to be timely filed with the Ninth Circuit Court of Appeals.