Termination Provisions Set Fee Recovery With Reasonable Hourly Rates.
In David Allen, APLC v. Gentry, Case No. A160180 (1st Dist., Div. 5 Oct. 15, 2021) (unpublished), client terminated an attorney where the Retainer contained a provision stating, “I agree this Agreement may be terminated by either Attorney or me. In the event of termination, I realize I will be responsible for the expenses incurred and for the value of the services provided. I agree the services will be valued at $275 per hour for attorneys, $150 per hour for legal assistants and paralegals and $50 per hour for all other persons who work on my case.” Attorney then sought to collect $74,350 per the costs/fee arrangement in the termination provision, obtaining summary judgment on a quantum meruit claim. On appeal, client claimed that the termination of the agreement rendered the termination provision unenforceable. No way, said the appellate court. In this situation, the attorney sought to recover via the termination formula under quantum meruit, unlike other cases where counsel sought to be piggish and obtain greater compensation than that set under the agreement.
BLOG COMMENT—The result in this case was, in large part to us, based on the reasonableness of the termination provision, which only made client response for expenses and reasonable hourly rate compensation.