Rahat v. Golmirzaie

966 S.W.2d 883, 332 Ark. 569, 1998 Ark. LEXIS 227
CourtSupreme Court of Arkansas
DecidedApril 16, 1998
Docket97-832
StatusPublished
Cited by1 cases

This text of 966 S.W.2d 883 (Rahat v. Golmirzaie) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rahat v. Golmirzaie, 966 S.W.2d 883, 332 Ark. 569, 1998 Ark. LEXIS 227 (Ark. 1998).

Opinion

Donald L. Corbin, Justice.

Appellants Fred and Mary Rahat appeal the judgment of the Washington County Chancery Court awarding attorney’s fees to C. Thomas Pearson Jr., Appellee Akbar Golmirzaie’s attorney in this partition suit, pursuant to Ark. Code Ann. § 18-60-419 (1987). Appellants’ sole argument on appeal is that the trial court abused its discretion in awarding an attorney’s fee of five percent (5%) of the total sales price of the property. Appellants ask this court to abolish the practice of allowing the trial court to award a fee on the basis of a percentage of the sales price and to overrule any precedent to the contrary. Our jurisdiction of this appeal is pursuant to Ark. Sup. Ct. R. 1-2(a) (17), as it raises an issue of significant public interest. We find no error and affirm.

The record in this case reveals the following facts. Appellee co-owned three parcels of land with Appellants. On June 9, 1995, Appellee petitioned the chancery court for partition of the land, which he asserted was not divisible in kind, and requested attorney’s fees. Appellants answered on June 20, 1995, asking for consideration of a division in kind. Appellants also indicated that they would not oppose attorney’s fees awarded within the discretion of the trial court. The partition action was dismissed for want of prosecution on December 11, 1995, but reinstated on December 21, 1995. On that date, the trial court entered a partition decree, finding that the properties were not capable of a division in kind and should be sold, with the proceeds of the sale to be divided and apportioned among the parties, after payment of costs and attorney’s fees.

The properties were sold at auction on January 25, 1996. Tracts A and C were subsequently purchased by Appellants for $51,600 and $24,000, respectively, while Tract B was purchased by third parties for $80,000. On March 12, 1996, the trial court awarded Appellee’s attorney a fee in the amount of $7,780, which was five percent (5%) of the total sales price of $155,600. Appellants objected to the amount of the attorney’s fees and asked the trial court to reconsider the award. They argued that the amount of the fees failed to reflect the simplicity of the case, the dearth of pleadings, and the small amount of time needed to complete the uncontested litigation. The trial court overruled Appellants’ objection, determining that the award of $7,780 was not per se unreasonable.

On February 12, 1997, per Appellants’ request, the trial court conducted a hearing on the issue of attorney’s fees. Walter Niblock, a practicing attorney and member of the local bar for thirty-five years, testified for Appellee. Niblock stated that he had experience in bringing foreclosure and partition cases, for which he had received attorney’s fees in the amount of five percent (5%) to ten percent (10%) of the sales price of the properties. He also stated that in assessing attorney’s fees in partition cases, the court should consider the amount of the partition and the pleadings involved.

Appellee’s next witness, Lamar Pettus, a local attorney who had practiced in the area for twenty-two years, also testified that he had considerable experience with partitions and foreclosures. He stated that normally the attorney’s fees awarded for both partitions and foreclosures is a percentage of the sales price of the property. He stated that a fee of five percent (5%) of the sales price was a reasonable fee, and that he had seen awards ranging from three percent (3%) to ten percent (10%). He stated that the factors to consider in this type of case were the amount of time and labor, the difficulty of the case, and the experience of the attorney. He indicated that even in an uncontested partition action, however, the custom and practice in that area was that the actual work required had no real bearing on the amount of attorney’s fees awarded; rather, such fees were treated in the same manner as a real estate commission or an auctioneer’s fee. He further stated that the amount of attorney’s fees awarded should be based upon a percentage of the total sales price, as opposed to the net gain to the parties.

Appellant presented the testimony of David Morris, a local attorney, who had practiced in the area for fifteen years. He stated that he had reviewed the pleadings in this case, and that it was his belief that the case was not unusual or difficult and did not require a high level of legal skill to accomplish. He stated that an experienced attorney such as Appellee’s attorney should receive an hourly rate between $90 and $150. He stated further that such an experienced attorney should not have had to devote a lot of labor to finish this partition case and distribute the proceeds. He stated that the fee awarded in this case was high. On cross-examination, however, he agreed that attorney’s fees in partition and foreclosure cases are not normally awarded upon an hourly rate. He indicated that some of his fees in partition cases were based upon a percentage of the sales price, and that in fight of the factors enunciated by this court, a fee of five percent (5%) of the sales price is not per se unreasonable.

Appellant Fred Rahat testified that he did not believe that he had benefitted from the partition and sale of all three parcels of land. He contended that because he had purchased Tracts A and C and had thereby increased his debt, he had not actually benefited from the partition of those parcels. Conversely, on rebuttal, Appellee, who is responsible for his proportionate share of the attorney’s fees pursuant to section 18-60-419, testified that he thought the amount of attorney’s fees was fair.

The trial court ruled that in awarding attorney’s fees of $7,780, it had considered the various factors submitted by Appellants, namely the ability of the practitioner, the results obtained, and the amount of work required, as well as the total sales price involved. The trial court found that Appellee’s attorney was a lawyer of long standing in that court and was at least a reasonably average, competent attorney. (The trial court noted that Appellants did not raise any question of the attorney’s competency.) The court found that the results obtained in this case were those specifically envisioned by the statute providing for fees in partition suits, as all parties to the suit had benefitted from the partition of the land. The trial court found that Appellants had actually received a benefit from the partition of the entire property, despite the fact that their debt had increased on the two parcels that they purchased. The trial court reasoned that it was their choice to assume the additional debt.

The trial court found further that the lack of evidence as to the amount of time Appellee’s attorney actually spent on this case was of little consequence to its decision. The court reasoned that although an attorney’s time was one factor to consider in awarding attorney’s fees, it was not a decisive factor in this case, weighed along with the requisite skill, knowledge, and expertise required to take such a case to a successful conclusion. The court explained that because all attorneys do not work at the same rate of speed to obtain similar results, the particular hourly rate of an attorney was not a true measure of the work involved. The trial court additionally observed that this court’s prior decisions regarding attorney’s fees in partition suits have viewed the amount of the fee in relation to the value of the property in determining whether such fee was reasonable.

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Bluebook (online)
966 S.W.2d 883, 332 Ark. 569, 1998 Ark. LEXIS 227, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rahat-v-golmirzaie-ark-1998.