Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 15

Attorney John Rorem was to receive a fee of one-third of any recovery for representing Dora Coblentz and her children in a lawsuit. He settled the suit for $167,500, and the court calculated Coblentz's recovery at $131,500, the children's at $36,000, and Rorem's fee at $51,000. The court then entered an order prescribing a gross recovery for Coblentz of $131,500 with a net recovery of $80,500 and recovery of $36,000 for the children less $6,000 in attorneys' fees. Rorem transmitted $00,742 to Coblentz but believed she should receive $4,802 more, so Rorem executed a promissory note to her for $4,802. Coblentz demanded immediate pay ment of the note and sued on it. Rorem alleged that there was no consideration for the note. What kind of defense did he assert, and could it be effective against Coblentz?