Pharmacia Corp. v. McGowan

915 So. 2d 549, 2004 WL 2849485
CourtSupreme Court of Alabama
DecidedJune 17, 2005
Docket1031016
StatusPublished
Cited by25 cases

This text of 915 So. 2d 549 (Pharmacia Corp. v. McGowan) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pharmacia Corp. v. McGowan, 915 So. 2d 549, 2004 WL 2849485 (Ala. 2005).

Opinion

915 So.2d 549 (2004)

PHARMACIA CORPORATION f/k/a Monsanto Company
v.
Candis McGOWAN, as guardian ad litem and administrator ad litem in the matter of Pharmacia Corporation f/k/a Monsanto Company
v.
Sabrina Abernathy et al.

No. 1031016.

Supreme Court of Alabama.

December 10, 2004.
Opinion on Return to Remand June 17, 2005.

*550 Matthew H. Lembke and Scott Burnett Smith of Bradley Arant Rose & White, LLP, Birmingham; and W. Stancil Starnes of Starnes & Atchison, LLP, Birmingham, for appellant.

Candis A. McGowan of John D. Saxon, P.C., Birmingham, for appellee.

SEE, Justice.

Pharmacia Corporation f/k/a Monsanto Company appeals from a judgment entered by the Etowah Circuit Court ordering Pharmacia to pay an attorney fee of $284,000 to Candis McGowan, the guardian ad litem for the minor plaintiffs and the administrator ad litem for the deceased plaintiffs in the underlying action. We remand this case with directions.

The underlying litigation involves three consolidated actions brought by approximately 3,500 plaintiffs against Pharmacia asserting various tort claims. The plaintiffs alleged environmental contamination resulting from the production of polychlorinated biphenyls, also known as PCBs, at a plant operated by Pharmacia in Anniston.

After the parties had reached a settlement agreement, the trial court appointed Candis McGowan to serve as guardian ad litem for the minor plaintiffs. McGowan was also appointed as administrator ad *551 litem for the estates of those plaintiffs who had died during the course of the litigation. Her appointment as administrator ad litem was "for the limited purpose of considering the Settlement Agreement and determining whether to execute (and if a determination to execute is made, then to execute) releases on behalf of the estates." The trial court also ordered:

"[Pharmacia] shall reimburse the administrator ad litem for any costs she incurs in connection with this action and shall pay the administrator ad litem her customary rate for her time spent on this action."

McGowan reviewed the settlement agreement and determined that it was in the best interests of the minors and the estates she represented to enter into the agreement. After a pro ami hearing, in which the trial court heard McGowan's opinion on the settlement agreement as guardian ad litem for the minor plaintiffs, the trial court entered a judgment pursuant to the settlement agreement with Pharmacia McGowan had executed on behalf of the 300 minor plaintiffs she represented. The trial court retained jurisdiction over the matter "for the purpose of enforcing the Settlement Agreement and this Judgment." It appears that McGowan also executed releases and/or settlement agreements on behalf of all of the 268 estates she represented.[1]

McGowan then petitioned the trial court for an award of an attorney fee in the amount of $284,000. McGowan asserted in her petition that she had "fulfilled her obligations as guardian ad litem and administrator ad litem." McGowan did not submit to the trial court any records evidencing the actual time she had spent representing her wards. Instead, McGowan argued that a reasonable attorney fee would be $500 for each of the 568 plaintiffs she represented, or "at least $284,000." McGowan also sought reimbursement of expenses in the amount of $2,777.68.[2] McGowan supported her petition for an attorney fee with the affidavits of two attorneys who purported to serve regularly as guardians ad litem and who stated their opinion that the fee McGowan was requesting was reasonable under the circumstances. Mavanee R. Bear attested that a normal fee for a guardian ad litem or administrator ad litem is "between $400.00 to $1,000.00 per plaintiff, in a simple, uncomplicated domestic relations case"; Donna Knotts Byrd attested that a reasonable fee awarded to a guardian ad litem is "between $500 to $1,000 per ward in a simple Probate matter."

Pharmacia objected on the ground that McGowan did not provide any records indicating the hourly rate at which she regularly billed clients or the time she had actually spent on behalf of the plaintiffs she represented in this case. Pharmacia conceded that an hourly rate of $250 was reasonable for McGowan's services and pointed out that, at this hourly rate, in order to amass $284,000 in fees, McGowan would have had to work on this case for nine hours a day, seven days a week, from her appointment as guardian ad litem on August 22, 2003, to the date she filed her fee petition — December 24, 2003.

McGowan responded to Pharmacia's objection by arguing that the amount she was requesting — $500 per plaintiff — *552 amounted to two hours of time on behalf of each plaintiff at what Pharmacia agreed was the reasonable hourly rate of $250. She asserted that the amount requested would compensate her for all work already performed and for any work she might be required to perform in the future. McGowan argued that it was easily foreseeable that she would spend two or more additional hours on each plaintiff's case in the future, because her obligation to the plaintiffs would continue through the 10-year settlement-payout term under the settlement agreement and because it was possible that additional claims would be filed on behalf of the minor plaintiffs who had suffered neurological damage.[3] Pharmacia replied that, if that was true, then McGowan essentially was requesting an improper nonrefundable retainer, in that she was requesting payment for work to be performed in the future, with no provision for the refund of those fees if the work was not actually performed. Pharmacia proposed that McGowan be paid $250 for each hour she actually spent on the case and that, if it becomes necessary that McGowan expend additional time on this matter in the future, she submit additional fee requests to the trial court for its review and approval.

Over Pharmacia's objection, the trial court entered an order awarding McGowan $286,777.68 — the $284,000 in fees and $2,777.68 in expenses that she had requested. The entire text of the order reads as follows:

"The Court having reviewed the file in the above styled case, it is hereby ORDERED that Candis McGowan, Guardian-Ad-Litem and Administrator-Ad-Litem in this case is awarded a fee of Two Hundred Eighty Six Thousand Seven Hundred Seventy Seven and 68/100 ($286,777.68) Dollars. These fees are hereby assessed against the Defendant[]. It is further ORDERED that the Defendant[] [is] given Fourteen (14) days in which to pay said fees."

Pharmacia moved the trial court to alter, amend, or vacate its order awarding $284,000 in fees, arguing that the amount of the award was unreasonable. Pharmacia did not contest the award insofar as it reimbursed McGowan for the expenses she had incurred of $2,777.68. McGowan responded; Pharmacia replied to her response. Pharmacia's postjudgment motion was denied by operation of law, pursuant to Rule 59.1, Ala. R. Civ. P. Pharmacia appeals.

The determination of whether an attorney fee is reasonable is within the sound discretion of the trial court and its determination on such an issue will not be disturbed on appeal unless in awarding the fee the trial court exceeded that discretion. State Bd. of Educ. v. Waldrop, 840 So.2d 893, 896 (Ala.2002); City of Birmingham v. Horn, 810 So.2d 667, 681-82 (Ala.2001); Ex parte Edwards, 601 So.2d 82, 85 (Ala.1992), citing Varner v. Century Fin. Co., 738 F.2d 1143 (11th Cir.1984).

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Bluebook (online)
915 So. 2d 549, 2004 WL 2849485, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pharmacia-corp-v-mcgowan-ala-2005.