Substantiation Of Reasonableness Of Fees: Gotta Submit Admissible, Competent Evidence On Fees Or Else Beware!

 

Must Submit Competent Business Records or a Competent Attorney Declaration.

     Lund v. Merrick, Case No. G048210 (4th Dist., Div. 3 May 21, 2014) (unpublished) illustrates how admissible fee submissions are necessary, especially if an opponent makes an objection.

     In this one, a trial court granted a full fee request for SLAPP winner fees of $195,866 under a mandatory fee-shifting statute favoring the defense. However, on appeal, this one was reversed with some instructive remand instructions on the proof necessary in a fee petition, given objections by the adverse side.

     The problem was that there was no admissible evidence to support either the fees requested or awarded. First of all, the supporting declaration by a partner only attached a stack of bills, without any attempt to qualify them as business records. Second, even though attorney declaration testimony will suffice, “no one gave the court that kind of information either”—relying instead on an associate declaration, with no indication that the associate had personal knowledge of work efforts except for the associate’s time.

     So, this one had to go back for a fee re-do. However, the appellate court did indicate no fees could be claimed for the initial fee motion or for fees incurred on appeal.

     Acting Presiding Justice Bedsworth wrote the decision for a 3-0 panel, with appellant recovering costs on appeal.

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