Razavi v. Merchant

765 S.E.2d 479, 330 Ga. App. 407, 2014 Ga. App. LEXIS 788
CourtCourt of Appeals of Georgia
DecidedNovember 20, 2014
DocketA14A1177
StatusPublished
Cited by9 cases

This text of 765 S.E.2d 479 (Razavi v. Merchant) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Razavi v. Merchant, 765 S.E.2d 479, 330 Ga. App. 407, 2014 Ga. App. LEXIS 788 (Ga. Ct. App. 2014).

Opinion

Phipps, Chief Judge.

This court granted Ehsan Razavi’s application for discretionary appeal to challenge the trial court’s award of attorney fees to Arif Merchant and his corporation, Great Investors Group, LLC (collectively “Great Investors”), pursuant to OCGA § 9-15-14 (b). Razavi contends that the trial court erred in failing to make proper findings of fact and conclusions of law, in failing to determine the reasonableness of the fees sought, and in making a lump sum award. Razavi further contends that the trial court erred in awarding attorney fees in any amount because his quantum meruit claim, upon which the award was based, did not lack substantial justification; the claim for attorney fees was barred by the doctrines of res judicata or collateral estoppel; and fundamental principles of jurisprudence militate against allowing Great Investors multiple attempts at obtaining attorney fees. For the reasons that follow, we vacate the award and remand the case for further action by the trial court.

In August 2011, Razavi filed a complaint against Great Investors, alleging, inter alia, a claim for breach of contract and a claim for quantum meruit. At (a bench) trial, after Razavi had rested his case, the trial court dismissed, inter alia, Razavi’s claim for quantum meruit. At the conclusion of the trial, the court found in favor of Merchant on Razavi’s breach of contract claim (the court denied Razavi’s breach of contract claim); and found in favor of Great Investors on counterclaims it had asserted for payment under certain promissory notes, conversion, and assault.

This is the second appearance of this case before this court; in the first appearance, this court affirmed the judgment of the trial court pursuant to Court of Appeals Rule 36. After the remittitur was issued, a hearing was held in the trial court on a motion for attorney fees pursuant to OCGA § 9-15-14 (b), which motion Great Investors had timely filed, and had later amended.1

In seeking attorney fees pursuant to OCGA § 9-15-14 (b), Great [408]*408Investors argued:

The claims asserted by [Razavi] lacked substantial justification. [Razavi] was not the correct party in interest to bring a quantum meruit complaint against [Great Investors] . Yet, the greatest majority of the time devoted to this case was associated with these quantum meruit claims. Furthermore, even if [Razavi] had been the appropriate party to assert the quantum meruit claim, [Razavi’s] claims were without merit. [Razavi] had no documentation or evidence to support the quantum meruit claim [.]

An affidavit executed by counsel for Great Investors was attached as an exhibit to the amended motion. At the hearing on the motion for attorney fees, counsel for Great Investors stated that his hourly rate was $250, that he had expended 84.3 hours representing Great Investors in the case, and that the total amount of attorney fees Great Investors had incurred in the case was $21,075. Counsel further stated that the total amount of paralegal time expended on the case was 9.9 hours, at a rate of $75 per hour, resulting in paralegal fees of $742.50; the total amount of expenses incurred in the case was $995.87. Thus, according to counsel, the total amount of attorney fees, paralegal fees, and expenses Great Investors had incurred in the case was $22,813.37. At the hearing, counsel for Great Investors told the court that he wanted to “add ... an additional exhibit” as it “just gives a better breakdown of all of the time and expense that I put into this case. . . .”

Counsel for Great Investors further stated that said exhibit broke down the costs of attorney fees and expenses even further than the affidavit which he had attached to the motion “as to the time and expense that was necessary in pursuing not only the claims we brought by way of our counter-claim, but primarily defending the claim that had been brought by [Razavi].” Counsel stated that “[t]he quantum meruit claim took about 50 percent of the time,” explaining that although it was meritless, the parties had “spent so much time” on the claim at and before trial.

The trial court “recall [ed] that this quantum meruit claim basically had no merit whatsoever,” that a company “did the work, it wasn’t even . . . Mr. Razavi,” that “there was scant evidence” on his claim “for the work done on the properties,” that the court had previously found that the lawsuit was brought in the wrong name, and that “that part of the case . . . definitely — lacked substantial justification for [OCGA §] 9-15-14 (b).” The trial court then stated, “I’m going to grant $10,000 in attorney’s fees in this case.” The trial [409]*409court later entered a written judgment granting Great Investors’ motion, finding that the quantum meruit claim lacked substantial justification, and awarding $10,000 for attorney fees and expenses of litigation.

1. We agree that the trial court erred in failing to make proper findings of fact and conclusions of law, in failing to determine the reasonableness of the fees sought, and in rendering a lump sum award.

(a) The trial court erred in failing to make proper findings of fact and conclusions of law.

“OCGA § 9-15-14 (b) authorizes an award of reasonable and necessary attorney fees upon a finding that an action or any part thereof lacked substantial justification.”2 An award pursuant to “OCGA § 9-15-14 (b) is discretionary and the standard of review is abuse of discretion.”3 “When a trial court decides in its discretion to award attorney fees, . . . the order must contain express findings of fact and conclusions of law as to the statutory basis for any such award and the conduct which would authorize it.”4

As a basis for awarding fees, the trial court’s order in this case states only that “[t]he count set forth in [Razavi’s] complaint alleging quantum meruit lacked substantial justification.” The trial court did not include in its order any factual finding(s) that underlay that conclusion. “This [conclusion] is insufficient to support the award of fees under OCGA § 9-15-14 [(b)].”5 Accordingly, the award must be vacated and the case remanded for the trial court to enter a judgment “containing findings of fact and conclusions of law as to the statutory basis for the award, if any, and the conduct for which it is authorized.”6

(b) The trial court erred in failing to determine the reasonableness of the fees sought.

“[I]n assessing attorney fees against a party, or the party’s attorney, pursuant to OCGA § 9-15-14, the trial judge must make an [410]*410independent determination concerning the reasonableness and necessity of the fees.”7

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Bluebook (online)
765 S.E.2d 479, 330 Ga. App. 407, 2014 Ga. App. LEXIS 788, Counsel Stack Legal Research, https://law.counselstack.com/opinion/razavi-v-merchant-gactapp-2014.