Reasonableness Of Fees: Fees Clause Allowed Trial Court Authority To Award $204,637 In Fees Under Section 1717 For Two Successful Demurrers

 

Excessiveness Challenge Rejected By Appellate Court.

     A party who was successfully dismissed as a proposed complainant in intervention, after two demurrers, was hit with a $204,637 fee award under Civil Code section 1717 based on a fees clause. The party was obviously upset, appealing the award as excessive.

     Not so, said the appellate court in Pars Ice Cream California, Inc. v. Conopco, Inc., Case No. B2220686 (2d Dist., Div. 7 Nov. 16, 2011) (unpublished). The fee substantiation was extensive and spelled things out, providing a roadmap for the 220 hour fee request–including a fee declaration from expert Gerry Knapton as to the reasonableness of the requested hourly rates. Appellant only claimed that the case was simple and challenged a few selected tasks, which did not meet its burden on appeal.

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