Retention Agreements:  Riverside County Bar Association Fee Arbitrators Find Enforceable A Hybrid Retention Agreement Providing For A Contingency To Attorney If Successful, Plus A Feature That Attorney’s Fees And Costs Awarded For The Success Are Kept

$304,570.00 Was Fee Award To Attorney, Plus $35,000 More For Post-Trial Work On A Quantum Meruit Basis.

            _{We would like to thank Gregory M. Burke of CGA Ventures, Inc. for sharing with us the Findings and Award by the Riverside County Bar Association’s Fee Arbitration Program in a fee dispute with a former client.}

            _{Specifically, client (a small business owner) and attorney entered into a retention agreement by which attorney agreed to represent client based on a 40% contingency on any sums in a civil action against a lender, plus any attorney’s fees awarded by the court to the client on any contract in any action would be retained by attorney.  Attorney won a nice verdict in the civil case ($250,000 principal judgment) and attorney’s fees of $188,100.  Attorney also beat back post-trial motions and upheld the civil verdict/fee award on appeal.}

            _{However, client argued that the retainer agreement was unenforceable.  Three fee arbitrators disagreed and found that the arrangement was perfectly proper.  However, because there was no written agreement covering post-trial and appellate work, $35,000 was due attorney for that additional work based on a quantum meruit basis.}

            _{Again, we thank Mr. Burke for providing us this interesting decision in the hybrid retainer area.}