This
handbook will improve your odds of wining the attorney
fee award dispute - no matter on which side of the contest you are
on.
This page is devoted to sundry tips you should be aware when requesting an award of
reasonable attorney fees,
or defending against the request.
Our first tip is made because it is what you need to know at the
start.
Tip # 1. Either experience or handbook is needed. To win attorney fee awards -- or successfully defend against them
--- you, the attorney, need to either (1) have experience
in fee award contests or (2) read a short handbook on the law and
tactics of attorney fee awards contest.
If you don't have item
# 1, then you need item # 2.
We emphasize the words "short handbook." Thick textbooks have their place, but you won't read it cover to
cover -- before you start a case in which an attorney fee award may
be involved. And before the case starts is when you need to know
what to do, starting on Day 1 of an attorney fee award case. Hence a thick textbook actually won't help you much in
your
day to day work on new cases. That's why you should have in your
library a short handbook on attorney fees (with forms). Be alert and armed to do what needs to be done.
The links on the left side of this page will take you to
additional
discussions designed to help you with handling attorney fee award
disputes. One of those links takes you to a page with more
about the handbook.
|
Length of 199 pages
(including the pages of forms) makes this handbook readable is a few
hours, to guide you
in an attorney fee award dispute.
Includes forms for preventing mistakes and saving time. |
Tip # 2.
Attorney’s fees must be proven by expert testimony. The attorney in the case is
not the best expert witness. Attorney
fees now usually have to be proved in court by something more than the attorney
who did the work saying his/her charge per hour is a specific amount, or that
his/her contract says the charge will be a specific amount.
More on the elements of proof. Most
states now require expert opinion and testimony. It is true that in cases like
Aquilla
Southwest Pipeline, Inc. v. Harmony Exploration, Inc., 48 SW3d 225 (Texas, San Antonio,
2001) the attorney himself was the only person testifying as to fees, and it was
held sufficient without any real evidence of the attorney's qualifications as an
expert. However, in that case the Texas court pointed
out there was no challenge to the evidence on a reasonable attorney's fee and no
attempt to offer contrary proof.
The first problem on the attorney herself/himself testifying as an "expert"
in a legal fee dispute is the appearance it creates for the judge or jury.
The attorney must qualify as an expert (thus appearing to be engaging in
unseemly
"boasting" of what
a great and experienced attorney he/she is) and then testify on the "customary"
fees. Juries
recognize the bias of the attorney. The rules against an attorney being both
a witness and an attorney in the same case are founded on experience and the
practical difficulties involved. There are even ethics opinions in some states that
say that although the
rules of professional conduct have an exception in the
attorney-as-witness-rule to allow an attorney to testify on the
amount and nature of his own attorney fees, it is poor practice for the lawyer
in the case to do so.
The second problem: the average attorney really has no satisfactory expert
qualifications to evaluate his/her own work or the "customary" fees.
Unless the attorney has been "in the business" of setting fees other than
his/her own, it is the rare attorney who has taken the time to become an expert
in what are the "customary" fees in the state.
The third, the biggest, problem: when the attorney herself/himself is
declared to be a testifying "expert" -- he/she is subject to a deposition. The defense
attorney has the right to demand to see every document which the "expert" has
considered in determining the value of services. In most states and the federal
courts that means "every document" including privileged and work product
documents. An expert -- even an attorney expert -- has no privilege to withhold documents if they were seen
during the course of the expert's work.
Warning: in most states, the Rules of Professional Conduct do not contain an
exception to the attorney-as-witness-rule to allow a lawyer to
testify as an expert on the fees of the adversary counsel.
In many states contract claims and appeals procedures can produce awards of
attorneys fees. These contract cases and appeals fees cases furnish much of the
law on this subject. But negligence cases, civil rights cases, and other types
of tort cases also furnish law on the subject of what is a reasonable fee.
Warning: if the attorney fee amount is decided by a jury, even the fees for
the appeals work must be supported by evidence. For example, see Cantu v Moore, Texas
App., Case 04-01-00524-CV (Texas, San Antonio, 2002). Tthe Court of Appeals reversed an award of
attorney’s fees for appeals work, in part, finding that appellees failed to establish their
entitlement to an award of conditional appellate attorney’s fees. The only
testimony regarding appellate attorney’s fees was the testimony of a person who
was not
an attorney. No expert testimony was introduced to prove the amount of
attorney’s fees that would be reasonable for the appeals work. The court noted that
expert testimony is required to support an award of attorneys’ fees.
In Texas, which takes the matter of the amount of attorney fees away from
judges if the case is a jury case, see
cases like Lesikar v. Rappeport, 33 S.W.3d 282, 308 (Tex. App.—Texarkana 2000,
pet. denied); Woollett v. Matyastik, 23 S.W.3d 48, 52 (Tex. App.—Austin 2000,
pet. denied). “A court does not have authority to adjudicate the reasonableness
of attorney’s fees on judicial knowledge without the benefit of evidence.”
Woollett, 23 S.W.3d at 53. Because there is no evidence in the record to support
an award of attorneys’ fees for an appeal, the trial court's award of $50,000 in
attorney's fees was reversed.. Brown
& Root U.S.A., Inc. v. Trevino, 802 S.W.2d 13, 16 (Tex. App.—El Paso
1990, no writ).
Tip # 3. The attorney's fee expense of litigating the amount of the
attorney fee is may be recoverable. In litigation in which
attorneys fees are allowed, the expense of reasonable attorney's fees in claiming and proving attorney's fees
can be awarded. See, e.g, the civil rights case of hompson v. Pharmacy
Corp. of America Inc., No. 02-13402 (11th Cir., June 25).
Tip # 4. The attorney's fee expense of litigation with third party caused by wrongful acts of
defendant may be recoverable. It is
usually said that attorney fees may be awarded only if there is a statutory or
contractual basis for the claim, or if the attorney’s services create a common
fund from which the fee can be paid. E.g., see Kittel v. Kittel, 210 So.
2d 1, 3 (Fla.1967); Israel v. Lee, 470 So. 2d 861, 862 (Fla. 2d D.C.A.
1985). Yet
there are times other than when a statute or contract allows fees that the fees may be recoverable as special damages. For example, in
Blair v. Boulger, 336 NW2d 337 (North Dakota, 1983) held
that where the wrongful acts of a person caused another to become involved in
litigation with a third party, the expense of litigating against the third party
may be recovered from the wrongdoer that caused the litigation. The court
recognized this as a "third party exception" to the normal doctrine that
attorney's fees are not recoverable by a winning party.
Tip # 5. Attorney fees may be awarded in insurance policy litigation.
Insurance policy disputes involve the need for
expert testimony giving opinions on the reasonable value of attorney
fees. The cost of expert testimony is usually less than the amount the
award may be adjusted upward or downward by the award or denial of attorneys
fees in insurance policy disputes. Hence, there is an economic benefit to
obtaining expert testimony on the reasonable value of attorney's fees in the
case.
Tip # 6. The attorney's fee in proving the underlying litigation claim
in a legal malpractice action may be recoverable. In legal
malpractice actions claiming the defendant attorney committed malpractice in
handling litigation, a frequent legal hurdle the claimant must pass is proving
the underlying litigation would have been successful but for the malpractice of
the defendant attorney. The claimant's attorney fees and costs in proving the
underlying case is recoverable in the claimant's legal malpractice action. Most attorneys, even
experts in legal malpractice claims, often are not aware of this element of
damages.
"If Fulton had been required to prove his underlying
discrimination claim, he may have been entitled to attorney fees incurred as
a result of proving up his underlying claim in the malpractice action. See
Lorenzetti v. Jolles, 120 F. Supp. 2d 181, 190 (D. Conn. 2000) (permitting a
prevailing party to recover those attorney fees incurred as a result of
proving an underlying claim in a legal malpractice claim); Fitzgerald v.
Walker, 121 Idaho 589, 594, 826 P.2d 1301, 1306 (1992) (affirming denial of
attorney fees in malpractice case involving underlying antitrust claim
because attorney tried to prove his fees by post-trial affidavit; held: fees to prove underlying claim are part of measure of damages and must be
submitted at trial as part of proof of damages); Admiral Merchs. Motor
Freight, Inc. v. O'Connor & Hannan, 494 N.W.2d 261, 267 (Minn. 1992) ("In
Minnesota malpractice cases, attorney fees incurred in the underlying
dispute constituting the alleged malpractice may be recovered."); Glamann v.
St. Paul Fire and Marine Ins. Co., 424 N.W.2d 924, 927 (Wis. 1988) (awarding
attorney fees to prevailing party in legal malpractice action for portion of
claim that went to proving underlying employment discrimination claim)."
Fulton v. Schermer, No. C7-01-1449 (Minn.App. 04/02/2002)
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