PELLETTIERI, RABSTEIN AND ALTMAN, PLAINTIFF-APPELLANT, v. MICHAEL PROTOPAPAS, DEFENDANT-RESPONDENT., 383 N.J. Super. 142

Summary

On appeal, the central issue raised was when did the statute of limitations commence to run in a law firm's action against a client for fees pursuant to a retainer agreement calling for services at an hourly rate, billed on an interim basis, and payable within 30 days of receipt of the bill. The appellate court concluded that the law firm's cause of action to seek unpaid fees arising from a retainer agreement permitting periodic hourly billing did not arise until the matter was concluded or the attorney-client relationship was terminated, whichever occurred first. A lawyer's inability to sue a client before either obtaining consent of the client or leave of court to withdraw mandated a tolling of the statute. The law firm's cause of action accrued in June 2003. The complaint was filed approximately five years and 10 months after the attorney-client relationship ceased. The limitation period was six years. Thus, the law firm's complaint was filed within the period mandated by statute.