Drury v. Fawer

590 So. 2d 808, 1991 WL 246857
CourtLouisiana Court of Appeal
DecidedNovember 26, 1991
Docket91-CA-0493, 91-CA-0494
StatusPublished
Cited by9 cases

This text of 590 So. 2d 808 (Drury v. Fawer) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Drury v. Fawer, 590 So. 2d 808, 1991 WL 246857 (La. Ct. App. 1991).

Opinion

590 So.2d 808 (1991)

Edward R. DRURY
v.
Michael S. FAWER.
Michael S. FAWER
v.
Edward R. DRURY.

Nos. 91-CA-0493, 91-CA-0494.

Court of Appeal of Louisiana, Fourth Circuit.

November 26, 1991.
Writ Denied February 7, 1992.

*809 Gordon F. Wilson, Jr., Friend, Wilson & Draper, New Orleans, for appellee.

Edward R. Drury, in pro. per.

Before LOBRANO and PLOTKIN, JJ., and BRYAN, J. Pro Tem.

LOBRANO, Judge.

Defendant, Edward Drury (Drury), appeals the trial court's judgment awarding attorney fees to Drury's attorney, Michael Fawer (Fawer). Fawer cross appeals, claiming the trial court erred in reducing his fees.

FACTS:

On July 10, 1981, Drury was indicted for violating a federal mail fraud statute, 18 U.S.C. 1341. The indictment charged Drury with one count of conspiracy and twenty-one counts of mail fraud.

Drury hired Fawer and Rhonda Lustman (Lustman) as his defense counsel. After a two day bench trial, Drury was found guilty on all twenty-one counts of mail fraud; he was found not guilty on the conspiracy charge. Drury's criminal prosecution, which is not germane to this appeal, is set forth in United States v. Drury, 687 F.2d 63 (5th Cir.1982), cert. den. 461 U.S. 943, 103 S.Ct. 2119, 77 L.Ed.2d 1300 (1983).

The pertinent fee arrangement between Fawer and Drury provided that Fawer would charge $150.00 per hour for his time, $2,000.00 per day for each day of trial and $85.00 per hour for Rhonda Lustman's time.[1] Drury paid an initial $25,023.60 retainer *810 which was credited against future billings.

On December 1, 1981, Fawer billed Drury $40,633.75 in legal fees. The itemized statement reflects 91½ hours of Fawer's time, 256 hours of Lustman's time, 12¼ hours of law clerk time and 38 hours of paralegal time. In addition, $517.50 in costs were expended. Deducting the retainer of $25,023.60, the balance owed was $16,127.65. Of this amount, Drury paid $5,000.00 in January, $3,000.00 in February and $2,000.00 in March, leaving a balance of $6,127.65.

Drury received a second bill in June of 1982. Legal fees incurred from December 1, 1981 through June 18, 1982 were $39,640.00. The itemized statement shows 76¾ hours of Fawer's time, 325½ hours of Lustman's time and 14½ hours of paralegal time. Costs incurred were $1,929.04. Because of the extensive time required in brief preparation, Fawer reduced the fees by $12,140.00. Including the $6,127.65 due from the December billing, the total fees and costs due were $35,556.69.

Drury refused to settle Fawer's bill until after the decision of the Fifth Circuit Court of Appeals. In addition, Drury did not want Fawer to handle the appellate argument. Fawer would not agree to these demands, and withdrew from the case.

On November 23, 1982, Drury filed a malpractice suit against Fawer and Lustman. On January 18, 1983, Fawer filed suit against Drury to collect $33,627.65 in attorney fees, plus costs of $1,929.04.

On June 4, 1987, a summary judgment was granted in favor of Fawer and Lustman, dismissing Drury's malpractice suit. The summary judgment was affirmed by this court in Drury v. Fawer, 527 So.2d 423 (La.App. 4th Cir.1988).

Trial on Fawer's attorney fees was held on April 16-18, 1990. Judgment was entered on May 1, 1990, granting Fawer $1,929.04 in costs, as requested, but reducing the outstanding attorney fee balance to $16,000.00. The net result of the judgment is that Fawer's total fee for representing Drury is $51,023.60, rather than the $68,133.75 which had been billed.

Drury filed a motion for a new trial. The motion was denied. Drury now takes this appeal, challenging the amount of the award; Fawer cross appeals, challenging the reduction of attorney fees.

Drury asserts that there is no credible evidence to substantiate the award of the additional $16,000.00; that the court erred in not finding, to a mathematical certainty, the amount, if any, owed; and the exclusion by the trial court of any evidence with respect to the quality of legal representation.

Fawer argues that the court erred in reducing his fees.[2]

The arguments of both parties raise the sole question of whether the trial court's judgment reducing the balance owed to $16,000.00 for a total legal fee of $51,732.67 is clearly wrong. We must determine if the fee charged is supported by the evidence and whether it is excessive.

AMOUNT OF THE AWARD:

There is no question that Fawer rendered services for which he is entitled to compensation.

Rule 1.5 of the Louisiana State Bar Association's Rules of Professional Conduct provides that "[a] lawyer's fee shall be reasonable." The Louisiana Supreme Court has held that "courts may inquire as to the reasonableness of the attorney fee as part of their prevailing, inherent authority to regulate the practice of law." City of Baton Rouge v. Stauffer Chemical Co., 500 So.2d 397, 401 (La.1987); see also Leenerts Farms, Inc. v. Rogers, 421 So.2d 216 (La.1982). However, as this court recently stated, "review of purportedly excessive attorney fees should be tempered with judicial restraint. The courts should not be in the business of setting fees." Gibson v. Burns, 505 So.2d 66, 69 (La.App. 4th Cir. *811 1987). Thus, we will uphold a reduction in attorney's fees which is predicated on a factual finding that the fees were never earned, but will refrain from altering the contractual relationship between an attorney and client in the absence of a showing that a fee charged was clearly excessive. Id. See also, Anderson, Hawsey & Rainach v. Clean Land Air Water Corp., 489 So.2d 928 (La.App. 5th Cir.), writ denied 492 So.2d 1221 (La.1986).

In this case, Drury does not assert that the hourly rate charged was excessive; instead, he asserts that the time billed was excessive. In essence, his argument is that the fees billed were never earned. Fawer on the other hand, argues that unless the total fee is "clearly excessive" the trial court should not have interfered with the contract between the parties.

Fawer has the burden of proving the amount of fees earned. He also must show that they are reasonable, i.e. not clearly excessive. Succession of Herrle, 517 So.2d 386 (La.App. 5th Cir.1987) writ denied 519 So.2d 129 (La.1988); Becnel v. Arnouville, 425 So.2d 972 (La.App. 5th Cir. 1983). After review of the record we are satisfied that Fawer did not carry the burden of proving his entitlement to all of the fees billed. This is a factual determination which hinges entirely on the trial court's credibility call as to the sufficiency of the time slips and billings offered into evidence, as well as the testimony of the attorneys who prepared them. In this respect, we cannot say the trial judge was clearly wrong.

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Bluebook (online)
590 So. 2d 808, 1991 WL 246857, Counsel Stack Legal Research, https://law.counselstack.com/opinion/drury-v-fawer-lactapp-1991.