Awarded attorney's fees, but that didn't cover what they billed

[moretolove]

What is the name of your state?
CO

In my Separation Agreement, there is an indemnification clause to award attorney's fees necessary to enforce the agreement. In a case brought before The Court, I was awarded $7,000 in fees but that was around 1/2 of the legal fees incurred. I suspect that I have no recourse here and just have to pay the difference even though the judge concluded that this case should have only been billed at 20 hours. Thanks for the help!

36. Under the circumstances, the Court will conclude that the appropriate lodestar concerning
fees is $7,000 based on an hourly rate of $350 an hour which the Court finds reasonable
and effective and reflective of the rates in this market for this type of work and that such
work could have been concluded within 20 hours. So, the Court is going to award
$7,000 in attorney’s fees against the Respondent in favor of the Petitioner to be paid
within 90 days of ____.

 

[doucar]

Do you have a question?

 

[moretolove]

Is there any recourse to avoid paying the full amount as the judge stated that they only provided $7,000 of value? I am assuming no, but was wondering what the precedent is in this situation.

 

[Ohiogal]

Is there any recourse to avoid paying the full amount as the judge stated that they only provided $7,000 of value? I am assuming no, but was wondering what the precedent is in this situation.

Most likely not. You owe what you contracted to pay. The court didn't have to award that final amount.

 

[adjusterjack]

Is there any recourse to avoid paying the full amount as the judge stated that they only provided $7,000 of value? I am assuming no, but was wondering what the precedent is in this situation.

Try the attorney fee arbitration with the CO Bar:

https://www.cobar.org/legalfee

Who knows, invoking the arbitration might get you a discount if the attorney doesn't want to go through the process.

 

[Taxing Matters]

Is there any recourse to avoid paying the full amount as the judge stated that they only provided $7,000 of value? I am assuming no, but was wondering what the precedent is in this situation.

The courts frequently award an amount different (and usually lower) than the attorney billed. The Colorado courts (among a number of other court systems in the U.S) use the Lodestar rule to conclude what appropriate fees should be awarded. That rule does not reflect everything your lawyer did for you. If the lawyer spent the time he billed and the work was not below the minimum standard for lawyers doing divorce work, you'll still be responsible for the rest of the bill, unless the lawyer agrees to take something less. Since you were awarded attorney's fees that suggests you prevailed in the case and in that circumstance it's hard to see any malpractice. As Jack suggests you can try the fee arbitration offered by the Colorado Bar Association (CBA), but just know that the CBA is not a government agency; it's basically a trade association for lawyers. As a result, the process is voluntary on both sides; i.e. both you and the attorney would have to agree to the arbitration. An article in the CBA's monthly publication for member attorneys explains the process in detail. But to succeed, you'll likely need more than just that the court awarded a different amount. When a court orders the other side to pay legal fees to you, the court is typically conservative in the award so as not to encourage lawyers to bill even more hoping to milk that from the other side.

The arbitrator will not look at the fee issue the way the court did. In arbitration the issue is whether the fee agreement was reasonable, whether the work that the attorney billed you for was done was within the scope of work outlined in the fee agreement, and whether the lawyer worked all the hours claimed. The fee amount the lawyer charged is within the normal range of fees for this kind of work and is pretty common for hourly fees if you are in the Denver/Boulder area or other high cost of living area. My firm charges a similar fee for the work of its most experienced or specialized attorneys. Typically this comes down to arguing over whether all the things the lawyer billed for was necessary and proper given the scope of what you hired the attorney to do. In other words clients often need point to things the lawyer biled for that did not advance your case in some way to get some traction in the arbitration. You can point to the arbitration award in support of a lesser fee, but the arbitrator is not bound by that judge's view of what was earned under the Lodestar rule. As article points out, the abitrator will be a CBA member attorney.

I'm not saying not to try the arbitration. If the lawyer agrees to participate in the arbitration the result will be binding on the attorney and the CBA doesn't charge either side for providing the arbitration. So there's not much to lose except your time and whatever you spend yourself to put together your argument. Some clients do prevail, at least in part, in using the arbitration system. But if you were satisfied with the work done and the results, why try to cut the attorney out of a fee that he/she legitimately earned? Everyone is entitled to the agreed pay for the work they do, after all.

Have you actually talked to your attorney about this? That really should be the first step. Lawyers want happy clients. Thus the lawyer may agree to reduce the fee for good client relations, though probably not as much as the court did. That might get you more than you'd get in arbitration if you don't have any genuine concerns about the work the attorney did for you.