Judge mulls breach of contract case between legendary lawyer's heirs, Aurora firm
A Kane County judge is mulling whether to dismiss the lawsuit filed by the heirs of a legendary attorney against the firm of Kinnally & Flaherty that argues breach of contract.
The suit, filed earlier this year, argues William C. Murphy had a long-standing agreement beginning in 2004 to receive 33.3 percent of any settlements on cases he referred to the Aurora firm.
Murphy died at age 96 in November 2016. But he wrote to his son in February 2016 that he still had an interest in two cases referred to the firm, one of which was a personal injury lawsuit.
That lawsuit was settled in summer 2017, and the firm paid Murphy's estate $150,000, a sum that his heirs now argue is insufficient.
Attorneys for Murphy's estate contend the $150,000 payment reflected the intent of the agreement and that Murphy's heirs deserved the entire 33.3 percent referral fee. The amount for which the personal injury lawsuit was settled was not included in court exhibits.
"The payment of a fee to Bill's estate from the professional fees earned is further evidence of the parties' intent and the agreement's applicability to the (personal injury lawsuit)," wrote Murphy's attorneys in a court motion. "The Kinnally law firm has since shifted and now refuses to pay Bill's estate the one-third fees he earned."
Attorneys from Kinnally & Flaherty disagree, noting the agreement clearly stated it would expire two months after Murphy's death.
A partner in the firm wrote a letter to Murphy's lawyers in July 2017, saying the case was settled, but under the "crystal clear language of the contract," Murphy's estate was not owed any fees. Masur's letter said the firm offered $150,000 out of "respect and admiration" for Murphy to his estate but it would be withdrawn on Aug. 7, 2017, if not accepted.
"The fact is, there's no liability and they know it," Patrick Kinnally argued Thursday to Akemann. "They filed a claim against me and my partner with no basis for it."
Akemann did not give a time frame for his decision, but hinted it would be rendered within 30 days.
During his 68-year legal career, Murphy represented a variety of clients and some of his cases set legal precedents.
In the 1950s, he represented a family whose children were injured in a Kaneland Community School District bus fire. The state's Supreme Court ruled to end "sovereign immunity" and allowed governments to be held liable for negligence by their employees or agents.