Case Demonstrates How Fees/Costs Easily Can Outstrip Base Compensatory Award.
Attorney had to sue a former client for unpaid bills, invoking an arbitration clause in the initial retainer agreement. One of the key issues was whether that initial retainer agreement was orally modified by the parties’ conduct to encompass later matters, with the proof showing that it was. Attorney had to move to compel the matter into arbitration, proceeded to arbitration where he won a base award of $78,154.49 in unpaid fees plus $126,406.25 in fees and $36,681.57 in costs by the arbitrator after attorney prevailed, and then had to move to confirm the arbitration award—with former client vehemently opposing all the way.
The superior court awarded attorney another $133,362.50 in additional attorney’s fees for the motion to compel and motion to confirm efforts at the superior court level.
Former client’s appeal did not change anything in Caswell v. Jamgotchian, Case No. B271389 (2d Dist., Div. 3 Apr. 24, 2018) (unpublished).
The appellate court agreed with the oral modification theory and also found that the fees for superior court activities were justified under Code of Civil Procedure section 1293.2 and Ajida Technologies, Inc. v. Roos Instruments, Inc., 87 Cal.App.4th 534, 552 (2001). With respect to the reasonableness of the fees, the appellate court found (1) California cases do not disallow an award of fees to an attorney billing in quarter-hour increments, (2) attorney’s counsel’s $450 per hour was not unreasonable in the L.A. market, (3) there was no block billing issue, (4) no clerical time was requested much less awarded, and (5) attorney was entitled to fees on appeal, to be determined by a fee petition before the superior court judge. Ouch!