Clemens v. New York Central Mutual Fire Insurance Co.

264 F. Supp. 3d 618
CourtDistrict Court, M.D. Pennsylvania
DecidedAugust 29, 2017
DocketCIVIL ACTION NO. 3:13-2447
StatusPublished
Cited by8 cases

This text of 264 F. Supp. 3d 618 (Clemens v. New York Central Mutual Fire Insurance Co.) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clemens v. New York Central Mutual Fire Insurance Co., 264 F. Supp. 3d 618 (M.D. Pa. 2017).

Opinion

MEMORANDUM

MALACHY E. MANNION, United States District Judge

Pending before the court is the plaintiffs counsels’ petition for attorneys’ fees, interest and costs brought pursuant to the provisions of 42 Pa.C.S.A. § 8371.1 (Doc. 215). In reviewing the petition, the plaintiffs counsel have apparently overlooked the fact that attorneys “are quasi-officers of the court and they are expected to be careful and scrupulously honest in their representations to the court.. .[they] must exercise care, judgment, and ethical sensitivity in the delicate task of billing time and excluding hours that are [vague, redundant, excessive or] unnecessary.” See Hall v. Borough of Roselle, 747 F.2d 838, 842 (3d Cir. 1984). When they fail to do so, counsel should be conscious that their fees may be denied in their entirety. See id. (citations omitted). See also M.G. v. Eastern Regional High School Dist., 386 Fed.Appx. 186, 189 (3d Cir. 2010) (“If.. .the Court remains convinced that [counsel’s] hourly rate and hours billed are outrageously excessive, it retains the discretion to award whatever fee it deems appropriate, including no fee at all.”); Deptford Twp. Sch. Dist. v. H.B. ex rel. E.B., 279 [626]*626Fed.Appx. 122, 126 n.2 (3d Cir. 2008).2

1. PROCEDURAL HISTORY

By way of relevant background, the above-captioned insurance bad faith action was tried before a jury from November 2, 2015, through November 6, 2015.3 Despite the conduct of the plaintiffs lead trial counsel4, the plaintiff managed to obtain an award of punitive damages by way of the jury’s $100,000 verdict. On November 6, 2015, judgment was entered in favor of the plaintiff in the amount of $100,000. (Doc, 203). On November 20, 2015, the plaintiffs counsel submitted the instant, petition for attorneys’ fees, interest and costs5, (Doc. 215), along with a brief in support thereof, (Doc. 216). The defendant filed a brief in opposition to the plaintiffs petition on December 4, 2015. (Doc. 222). On December 21, 2015, the plaintiff filed a reply brief in support of the petition for attorneys’ fees. (Doc. 227).

In the meantime, by order dated December 11, 2015, the court noted that the plaintiffs counsel are seeking $1,122,156.43 in attorneys’ fees, interest and costs for prevailing on a claim the total award of which was $125,000~a $25,000 settlement on the UIM claim and a $100,000 punitive damages verdict on the bad faith claim. (Doc. 225). Given the astounding amount of fees requested by the plaintiffs counsel, the court directed that, “.. ,in relation to the, petition for attorneys’ fees,, interest and costs, counsel for the -plaintiff are to submit a. copy of the fee agreement entered into with their client for the court’s consideration. Counsel are also to submit a sworn verification, under penalty of perjury, from each attorney or non-attorney for whom fees have been requested in this action verifying that the fees requested [627]*627are accurate and were for the actual and necessary services performed in the representation of the plaintiff in this matter. Finally, plaintiffs counsel [are] advised to maintain and not destroy any time records for any client covering the period of time relevant to this case, including the time since its inception to the present date.”6 The plaintiffs counsel were directed to file the foregoing information on or before December 21, 2015.

On December 21, 2015, Attorney Al-bright hand-delivered several items to the Court for in camera inspection. Included among these items were the affidavits of five attorneys7 from the Pisanchyn Law Firm, which indicated each attorney’s affirmation that the hours and fees requested were accurate and for the actual and necessary services performed in the representation of the plaintiff; an undated contingent fee agreement entered into between the plaintiff and the Pisanchyn Law Firm; and two sets of time logs—one covering the plaintiffs underlying UIM- claim and one covering, the plaintiffs bad faith claim.8 . .

On January ll, 2016, the defendant filed a motion to file a sur-reply in opposition to the plaintiffs fee petition. (Doc. 231). By order dated January 24, 2017, the court noted that the plaintiffs counsel had asserted no privilege with respect to the documents submitted in camera and, in addition, there did not appear to be any privilege which could be asserted with respect to the documents.- (Doc. 233). As such, the court directed- that the documents submitted by the plaintiffs counsel in camera be docketed and placed on the record. The defendant’s motion for leave to file a sur-reply was granted and the plaintiffs counsel were, of course, given additional time to respond to the defendant’s sur-reply.-

On February 7, 2017, the defendant filed its sur-reply in opposition to the plaintiffs petition for attorneys’ fees, - interest and costs. (Doc. 235). The plaintiffs counsel filed a: response on February 13, 2017. (Doc. 236).

Upon review of the original and supplemental materials submitted by the plaintiffs counsel in support of their request for attorneys’ fees,-the court found the materials to be wholly inadequate to allow the court to make a determination as to what, if any, fees the plaintiffs counsel were entitled. Given the dearth of information submitted by the' plaintiffs counsel, the court scheduled a hearing in order to allow the plaintiffs counsel yet dhe more opportunity to provide sufficient information to support their petition. A hearing was held on the petition for attorneys’ fees on August 11, 2017. In attendance for the plaintiff were Attorney Pisanchyn, Attorney Al-bright, Attorney Yazinski, and Attorney [628]*628Michael R. Mey9. Attorney Charles E. Haddick, Jr., and Attorney Bryon R. Easter, who were both present for the trial in this matter, were present for the defendant. Attorney Albright was the only witness called to provide testimony in support of the petition for attorneys’ fees. The plaintiffs counsel presented no other witnesses and did not submit any other documentary evidence in support of the petition. Defense counsel, for their part, called Attorney Pisanchyn to testify.

With the plaintiffs counsel now having been given every opportunity to properly support their request for attorneys’ fees, the court considers the merits of the petition.

II. DISCUSSION

As the prevailing party, the plaintiffs counsel are requesting attorneys’ fees on the UIM claim in the amount of $48,050.00; on the bad faith claim in the amount of $827,515.00, and for the preparation of the petition for attorneys’ fees in the amount of $27,090.00, for a total of $902,655.00 in attorneys’ fees.10 In. addition, counsel are requesting interest in the amount of $175,630.70.

The Pennsylvania bad faith statute provides:

In an action arising under an insurance policy, if the court finds that the insurer has acted in bad faith toward the insured, the court may take all of the following actions:
(1)Award interest on the amount of the claim from the date the claim was made by the insured in an amount equal to the prime rate of interest plus 3%.
(2) Award punitive damages against the insurer.

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Cite This Page — Counsel Stack

Bluebook (online)
264 F. Supp. 3d 618, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clemens-v-new-york-central-mutual-fire-insurance-co-pamd-2017.