Liliya Komendat v. Andrew Gifford

CourtMichigan Court of Appeals
DecidedNovember 20, 2024
Docket366183
StatusUnpublished

This text of Liliya Komendat v. Andrew Gifford (Liliya Komendat v. Andrew Gifford) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Liliya Komendat v. Andrew Gifford, (Mich. Ct. App. 2024).

Opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

LILIYA KOMENDAT, UNPUBLISHED November 20, 2024 Plaintiff-Appellee/Cross-Appellant, 1:28 PM

v No. 366183 Wayne Circuit Court ANDREW GIFFORD and ROXANNE GIFFORD, LC No. 15-013957-NI

Defendants,

and

HOME-OWNERS INSURANCE COMPANY,

Defendant-Appellant/Cross-Appellee.

Before: K. F. KELLY, P.J., and CAVANAGH and RIORDAN, JJ.

PER CURIAM.

Defendant, Home-Owners Insurance Company, Inc., appeals of right the trial court’s order awarding plaintiff, Liliya Komendat, $53,585 in no-fault attorney fees.1 Plaintiff cross-appeals the same order. We affirm.

I. FACTS

This is the second time this case has been before this Court. The background facts can be found in this Court’s earlier opinion, Komendat v Gifford, 334 Mich App 138, 143-145; 964 NW2d 75 (2020):

1 Although Andrew Gifford and Roxanne Gifford were the other named defendants, they had no liability with regard to plaintiff’s claims involving personal protection insurance (PIP) benefits and uninsured motorist benefits, and they were dismissed as parties. As such, our use of the term “defendant” in this opinion will refer solely to Home-Owners.

-1- This case arises from injuries plaintiff suffered as a result of a January 22, 2015 motor vehicle accident. Plaintiff was a passenger in a vehicle struck by a car driven by Andrew Gifford and owned by Roxanne Gifford. Neither Roxanne nor Andrew had no- fault insurance. For some time, defendant insurer paid various medical and transportation bills for plaintiff, totaling about $61,000, pursuant to her husband’s insurance policy with defendant. On October 13, 2015, defendant refused to pay further benefits after a physician it had retained examined plaintiff and concluded that her injuries should have required only three to six months of treatment.

Plaintiff filed suit against defendant, seeking [personal protection insurance] PIP benefits and [uninsured motorist] UM coverage. . . . [D]efendant ultimately stipulated at trial that the vehicle was uninsured.

After the close of defendant’s proofs at trial, plaintiff moved for a directed verdict with respect to defendant’s failure to pay a prescription bill during the time that defendant was voluntarily paying plaintiff PIP benefits. The trial court granted the motion and awarded plaintiff $107.17 for the prescription bill and $38.57 in penalty interest. With respect to all other aspects of plaintiff’s claims, the jury returned a verdict in favor of defendant. The jury found that the accident did not cause plaintiff to suffer from a serious impairment of an important body function, which negated plaintiff’s UM claim, and it found that plaintiff had not incurred any allowable PIP expenses in excess of what defendant had already paid.

Both parties subsequently filed a series of posttrial motions. Relevant to this appeal [is] plaintiff’s motion[] seeking no-fault attorney fees under MCL 500.3148(1) . . . . Regarding the request for no-fault attorney fees, plaintiff relied on the directed verdict concerning the prescription bill and sought attorney fees of $235,000 based on the total amount of time her attorneys spent representing her in the case. . . .

On May 24, 2018, the trial court entered both a final judgment memorializing the results of trial—the directed verdict for the prescription bill and the jury verdict for no cause of action with respect to the other aspects of plaintiff’s claim—and a “combined order” disposing of the parties’ posttrial motions. The court ruled in the combined order that plaintiff was due no-fault attorney fees on the basis of the overdue prescription bill and the lack of evidence that defendant’s failure to pay the bill was reasonable. The court next considered the proper amount of the fee to be assessed and concluded that $4,688.75 was a reasonable attorney fee. . . .

Plaintiff appealed to this Court. Although this Court rejected nearly all of plaintiff’s arguments, it ruled that the trial court erred in the manner it calculated the reasonable attorney fee. Id. at 160. This Court outlined the three-step process that courts are to take when determining a reasonable attorney fee:

In Pirgu [v United Servs Auto Ass’n, 499 Mich 269, 281; 884 NW2d 257 (2016)], the Supreme Court defined a three-step process by which a trial court is to determine a reasonable attorney fee for purposes of MCL 500.3148(1). First, the trial court must begin its analysis by determining a reasonable hourly rate customarily charged in the locality for similar services. Second, having determined the proper hourly rate, the trial court must

-2- then multiply that rate by the reasonable number of hours expended in the case to arrive at a baseline figure. Third, the trial court must consider all of the [eight Pirgu factors] to determine whether an up or down adjustment of the baseline fee is appropriate. [Komendat, 334 Mich App at 152-153 (quotation marks, citations, and brackets omitted).]

Those factors include the following:

“(1) the experience, reputation, and ability of the lawyer or lawyers performing the services,

(2) the difficulty of the case, i.e., the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly,

(3) the amount in question and the results obtained,

(4) the expenses incurred,

(5) the nature and length of the professional relationship with the client,

(6) the likelihood, if apparent to the client, that acceptance of the particular employment will preclude other employment by the lawyer,

(7) the time limitations imposed by the client or by the circumstances, and

(8) whether the fee is fixed or contingent.” [Id. at 153, quoting Pirgu, 499 Mich at 282.]

This Court held that the trial court improperly conflated the second and third steps of the process by considering the Pirgu factors before determining the baseline number of hours and the baseline fee. Komendat, 334 Mich App at 153. This Court continued:

[I]n determining the baseline fee in accordance with Pirgu, the court is to include all attorney time that was relevant to recovery of the overdue benefit, even if that time was also relevant to other aspects of the case. Attorney time that was related only to other aspects of the action, and did not bear on the benefits unreasonably withheld, should be excluded from the baseline. Any further limitation on the baseline number of hours would be difficult to square with Pirgu, the statute, or with the principle that the no-fault act’s provisions should be liberally construed in favor of the intended beneficiaries. [Id. at 158.]

This Court therefore remanded to allow the trial court to calculate the reasonable number of hours and the baseline fee and after doing so, it “may adjust that figure based on the factors outlined in Pirgu, including ‘the amount in question and the results obtained’ in the case as a whole.” Id., quoting Pirgu, 499 Mich at 282.

-3- On remand, the parties stipulated that the baseline attorney fee for plaintiff’s attorneys was $146,302.50 or $147,126.25.2 Plaintiff argued that no adjustments were warranted after considering the Pirgu factors, while defendant argued that a substantial reduction should occur. Defendant suggested that the $4,688.75 amount the trial court previously awarded was adequate. Defendant opined that this was reasonable because although it represented about 3% of the baseline attorney fees, plaintiff only recovered less than 0.1% of what she sought at trial.

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Bluebook (online)
Liliya Komendat v. Andrew Gifford, Counsel Stack Legal Research, https://law.counselstack.com/opinion/liliya-komendat-v-andrew-gifford-michctapp-2024.