Galasso Langione & Botter, LLP v. Liotti

22 Misc. 3d 450
CourtNew York Supreme Court
DecidedNovember 3, 2008
StatusPublished
Cited by1 cases

This text of 22 Misc. 3d 450 (Galasso Langione & Botter, LLP v. Liotti) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Galasso Langione & Botter, LLP v. Liotti, 22 Misc. 3d 450 (N.Y. Super. Ct. 2008).

Opinion

OPINION OF THE COURT

Daniel R. Palmieri, J.

In this defamation action the defendant Liotti impleaded plaintiffs counsel Brewington as a third-party defendant. In a decision dated May 12, 2008 (the decision), this court granted the motion of Brewington which sought dismissal of the third-party complaint and sanctions against Liotti for having instituted the third-party practice.

The court ordered a hearing to determine the amount of costs that should be awarded to Brewington pursuant to Rules of the Chief Administrator of the Courts (22 NYCRR) § 130-1.1. The hearing was conducted on Wednesday, October 29, 2008, during the hours of approximately 9:30 a.m. to 4:30 p.m. with a luncheon recess.

Following the court’s prior decision, Liotti moved for reargument, renewal and recusal, without, however, directly addressing the court’s finding that the institution of the third-party action was sanctionable pursuant to the Rules of the Chief Administrator. That motion, together with various other requests for relief that did not implicate the third-party action, resulted in a decision dated August 19, 2008 (second decision). In the second decision, the court denied all requests for sanctions against Liotti with respect to the main action. Accordingly, the third-party action alone is at issue herein.

At the hearing, testimony and oral argument were offered by both Brewington and Liotti with no other witnesses. Accepted into evidence were Brewington’s computer-generated pre-bill worksheet and a copy of a decision by Judge Frederic Block, United States District Court (EDNY) which, in an unrelated case, awarded statutory legal fees to Brewington at the rate of $400 per hour. The court allowed Judge Block’s decision into evidence since judicial notice could be taken of its content in any event. (CPLR 4511.)

Brewington testified that his hourly rate is $400 per hour, and described his law firm, practice, experience, training and education. He also described in detail his system of time record keeping and that his office maintains time records on all cases, [452]*452irrespective of the fee arrangement with the client. Liotti also testified as to his hourly billing rate, which is also $400 per hour, and described his law firm, practice, experience, training and education. Both parties have similar practices, similar sized law firms in the same county and have in fact appeared together in other cases.

The court finds as credible the testimony of the parties as to their hourly rates and with respect to Brewington, the testimony of the hourly rates of the personnel under his supervision who worked on this action. Also found to be credible, to the extent allowed, are the claims for out-of-pocket expenses incurred by Brewington.

At the hearing, Brewington claimed legal fees and disbursements in excess of $36,000, which included fees incurred in connection with the motions and other requests for relief that led to the court’s second decision, as well as for time spent in opposing a motion for a stay and a temporary restraining order made in the Appellate Division, which sought to enjoin all proceedings pending an appeal by Liotti of the decision and second decision.

The decision awarded Brewington costs in the form of reimbursement for actual expenses reasonably incurred and reasonable attorney’s fees resulting from the institution of the “frivolous” (as such term is defined in the Rules of the Chief Administrator) conduct of instituting the third-party action (22 NYCRR 130-1.1 [c]). Thus, fees and expenses incurred in connection with work which culminated in the second decision are not recoverable because they were incurred in connection with other aspects of this litigation. Similarly, fees and expenses in connection with Liotti’s appeal and his application for a stay were not incurred in pursuit of the dismissal of the third-party action. In any event, if related to an appeal, such fees and expenses fall within the purview of the Appellate Division.

Although Liotti argues that a sanction may not exceed $10,000, that limitation does not apply to an award, such as here, of costs. (Greene v Merchants & Businessmen’s Mut. Ins. Co., 259 AD2d 519 [2d Dept 1999]; see also Weissman v Weissman, 8 AD3d 263 [2d Dept 2004].)

A reasonable attorney’s fee is commonly understood to be a fee which represents the reasonable value of the services rendered and factors to be considered include (1) the time and labor required, the difficulty of the questions involved and the skill required, (2) the attorney’s experience, ability and reputa[453]*453tian, (3) the amount involved and benefit resulting from the services, (4) the customary fee charged for similar services, (5) the contingency or certainty of compensation, (6) the results obtained and (7) the responsibility involved. (Diaz v Audi of Am., Inc., 50 AD3d 728 [2d Dept 2008].) In arriving at the rate to be charged, the court has relied on the testimony of Brewing-ton as to his hourly billing rate, the decision of Judge Block, the computer-generated billing records, and Liotti’s testimony as to his own hourly billing rate in a similar sized firm having a similar type practice. Thus, there is ample corroborating evidence to support Brewington’s hourly billing rate request. (Cf. Matter of Gamache v Steinhaus, 7 AD3d 525 [2d Dept 2004].)

Moreover, an award of reasonable attorney’s fees may include the value of the time expended in proving the value of the services. Thus, Brewington should be compensated for the time associated with preparation for and attendance at the calls of the calendar and the hearing itself (Posner v S. Paul Posner 1976 Irrevocable Family Trust, 12 AD3d 177 [1st Dept 2004]; Rumble v Windsor Plaza Co., 161 AD2d 259, 260-261 [1st Dept 1990], lv denied 76 NY2d 709 [1990]; Ross v Congregation B’Nai Abraham Mordechai, 12 Misc 3d 559 [Civ Ct, NY County 2006]), together with interest on the award from the date of the hearing.

The court cannot disregard the fees incurred in proving the reasonableness of the requested fee at the hearing. To do otherwise penalizes the recipient for following the directives of a court and, in the face of dedicated albeit legitimate opposition, would cause the recipient to incur significant nonreimbursable time and effort. In cases where a modest award is involved, an award might be entirely offset and lost at the hearing. Such a result could have a significant chilling effect on a party’s willingness to seek enforcement of a right and should not be the unintended consequence of the initial result in favor of the prevailing party.

Although Brewington has admitted that his fee arrangement on the main action is based on a contingency, it has been held that while a fee arrangement may be indicative of what constitutes a reasonable fee, it is not determinative, and a reasonable attorney’s fee in excess of the actual fee to be charged may be awarded. (Manufacturers & Traders Trust Co. v Dougherty, 11 AD3d 1019 [4th Dept 2004].)

In this instance, the Rules of the Chief Administrator clearly contemplate that an award which includes attorney’s fees need [454]*454not be confined to the actual fee charged to the client. The Rules of the Chief Administrator refer to “actual expenses reasonably incurred and reasonable attorney’s fees.” (22 NYCRR 130-1.1 [a].) Thus, expenses must be actual while attorney’s fees are to be “reasonable” and are not modified in the same manner as expenses.

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Bluebook (online)
22 Misc. 3d 450, Counsel Stack Legal Research, https://law.counselstack.com/opinion/galasso-langione-botter-llp-v-liotti-nysupct-2008.