Rule 1.5. Fees
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Delaware Court Rules › Delaware Lawyers' Rules of Professional Conduct › Delaware Lawyers' Rules of Professional Conduct with comments › Del. Lawyers' R. Prof'l Conduct 1.5
Text
« Rule 1.5. »
(a) A lawyer shall not make an agreement for, charge, or collect an
unreasonable fee or an unreasonable amount for expenses. The factors to
be considered in determining the reasonableness of a fee include the
following:
(1) the time and labor required, the novelty and difficulty of the
questions involved, and the skill requisite to perform the legal service
properly;
(2) the likelihood, if apparent to the client, that the acceptance of the
particular employment will preclude other employment by the lawyer;
(3) the fee customarily charged in the locality for similar legal services;
(4) the amount involved and the results obtained;
(5) the time limitations imposed by the client or by the circumstances;
(6) the nature and length of the professional relationship with the client;
(7) the experience, reputation, and ability of the lawyer or lawyers
performing the services; and
(8) whether the fee is fixed or contingent.
(b) The scope of the representation and the basis or rate of the fee and
expenses for which the client will be responsible shall be communicated to
the client, preferably in writing, before or within a reasonable time after
commencing the representation, except when the lawyer will charge a
regularly represented client on the same basis or rate. Any changes in the
basis or rate of the fee or expenses shall also be communicated to the
client.
(c) A fee may be contingent on the outcome of the matter for which the
service is rendered, except in a matter in which a contingent fee is
prohibited by paragraph (d) or other law. A contingent fee agreement shall
be in a writing signed by the client and shall state the method by which the
fee is to be determined, including the percentage or percentages that shall
accrue to the lawyer in the event of settlement, trial or appeal; litigation
matter for which the
service is rendered, except in a matter in which a contingent fee is
prohibited by paragraph (d) or other law. A contingent fee agreement shall
be in a writing signed by the client and shall state the method by which the
fee is to be determined, including the percentage or percentages that shall
accrue to the lawyer in the event of settlement, trial or appeal; litigation
and other expenses to be deducted from the recovery; and whether such
expenses are to be deducted before or after the contingent fee is
calculated. The agreement must clearly notify the client of any expenses
for which the client will be liable whether or not the client is the prevailing
party. Upon conclusion of a contingent fee matter, the lawyer shall provide
the client with a written statement stating the outcome of the matter and, if
there is a recovery, showing the remittance to the client and the method of
its determination.
(d) A lawyer shall not enter into an arrangement for, charge, or collect:
(1) any fee in a domestic relations matter, the payment or amount of
which is contingent upon the securing of a divorce or upon the amount of
alimony or support, or property settlement in lieu thereof; or
(2) a contingent fee for representing a defendant in a criminal case.
(e) A division of fee between lawyers who are not in the same firm may
be made only if:
(1) the client is advised in writing of and does not object to the
participation of all the lawyers involved; and
(2) the total fee is reasonable.
ce or upon the amount of
alimony or support, or property settlement in lieu thereof; or
(2) a contingent fee for representing a defendant in a criminal case.
(e) A division of fee between lawyers who are not in the same firm may
be made only if:
(1) the client is advised in writing of and does not object to the
participation of all the lawyers involved; and
(2) the total fee is reasonable.
(f) A lawyer may require the client to pay some or all of the fee in
advance of the lawyer undertaking the representation, provided that:
(1) The lawyer shall provide the client with a written statement that the
fee is refundable if it is not earned,
(2) The written statement shall state the basis under which the fees shall
be considered to have been earned, whether in whole or in part, and
(3) All unearned fees shall be retained in the lawyer’s trust account,
with statement of the fees earned provided to the client at the time such
funds are withdrawn from the trust account.
COMMENT
[1] Reasonableness of fee and expenses. — Paragraph (a) requires that
lawyers charge fees that are reasonable under the circumstances. The
factors specified in (1) through (8) are not exclusive. Nor will each factor
be relevant in each instance. Paragraph (a) also requires that expenses for
which the client will be charged must be reasonable. A lawyer may seek
reimbursement for the cost of services performed in-house, such as
copying, or for other expenses incurred in-house, such as telephone
charges, either by charging a reasonable amount to which the client has
agreed in advance or by charging an amount that reasonably reflects the
cost incurred by the lawyer.
[2] Basis or rate of fee. — When the lawyer has regularly represented a
client, they ordinarily will have evolved an understanding concerning the
basis or rate of the fee and the expenses for which the client will be
responsible. In a new client-lawyer relationship, however, an understanding
as to fees and expenses must be promptly established
onably reflects the
cost incurred by the lawyer.
[2] Basis or rate of fee. — When the lawyer has regularly represented a
client, they ordinarily will have evolved an understanding concerning the
basis or rate of the fee and the expenses for which the client will be
responsible. In a new client-lawyer relationship, however, an understanding
as to fees and expenses must be promptly established. Generally, it is
desirable to furnish the client with at least a simple memorandum or copy
of the lawyer’s customary fee arrangements that states the general nature
of the legal services to be provided, the basis, rate or total amount of the fee
and whether and to what extent the client will be responsible for any costs,
expenses or disbursements in the course of the representation. A written
statement concerning the terms of the engagement reduces the possibility
of misunderstanding.
[3] Contingent fees, like any other fees, are subject to the
reasonableness standard of paragraph (a) of this Rule. In determining
whether a particular contingent fee is reasonable, or whether it is
reasonable to charge any form of contingent fee, a lawyer must consider
the factors that are relevant under the circumstances. Applicable law may
impose limitations on contingent fees, such as a ceiling on the percentage
allowable, or may require a lawyer to offer clients an alternative basis for
the fee. Applicable law also may apply to situations other than a
contingent fee, for example, government regulations regarding fees in
certain tax matters.
[4] Terms of payment. — A lawyer may require advance payment of a
fee, but is obliged to return any unearned portion. See Rule 1.16(d). A
lawyer may accept property in payment for services, such as an ownership
interest in an enterprise, providing this does not involve acquisition of a
proprietary interest in the cause of action or subject matter of the litigation
contrary to Rule 1.8(i). However, a fee paid in property instead of money
dvance payment of a
fee, but is obliged to return any unearned portion. See Rule 1.16(d). A
lawyer may accept property in payment for services, such as an ownership
interest in an enterprise, providing this does not involve acquisition of a
proprietary interest in the cause of action or subject matter of the litigation
contrary to Rule 1.8(i). However, a fee paid in property instead of money
maybe subject to the requirements of Rule 1.8(a) because such fees often
have the essential qualities of a business transaction with the client.
[5] An agreement may not be made whose terms might induce the
lawyer improperly to curtail services for the client or perform them in a
way contrary to the client’s interest. For example, a lawyer should not
enter into an agreement whereby services are to be provided only up to a
stated amount when it is foreseeable that more extensive services probably
will be required, unless the situation is adequately explained to the client.
Otherwise, the client might have to bargain for further assistance in the
midst of a proceeding or transaction. However, it is proper to define the
extent of services in light of the client’s ability to pay. A lawyer should not
exploit a fee arrangement based primarily on hourly charges by using
wasteful procedures.
[6] Prohibited contingent fees. — Paragraph (d) prohibits a lawyer from
charging a contingent fee in a domestic relations matter when payment is
contingent upon the securing of a divorce or upon the amount of alimony
or support or property settlement to be obtained. This provision does not
preclude a contract for a contingent fee for legal representation in
connection with the recovery of post-judgment balances due under
support, alimony or other financial orders because such contracts do not
implicate the same policy concerns.
[7] Division of fee. — A division of fee is a single billing to a client
covering the fee of two or more lawyers who are not in the same firm
does not
preclude a contract for a contingent fee for legal representation in
connection with the recovery of post-judgment balances due under
support, alimony or other financial orders because such contracts do not
implicate the same policy concerns.
[7] Division of fee. — A division of fee is a single billing to a client
covering the fee of two or more lawyers who are not in the same firm. A
division of fee facilitates association of more than one lawyer in a matter
in which neither alone could serve the client as well, and most often is
used when the fee is contingent and the division is between a referring
lawyer and a trial specialist. Paragraph (e) permits the lawyers to divide a
fee without regard to whether the division is in proportion to the services
each lawyer renders or whether each lawyer assumes responsibility for the
representation as a whole, so long as the client is advised in writing and
does not object, and the total fee is reasonable. It does not require
disclosure to the client of the share that each lawyer is to receive.
Contingent fee agreements must be in a writing signed by the client and
must otherwise comply with paragraph (c) of this Rule. A lawyer should
only refer a matter to a lawyer whom the referring lawyer reasonably
believes is competent to handle the matter. See Rule 1.1.
[8] Paragraph (e) does not prohibit or regulate division of fees to be
received in the future for work done when lawyers were previously
associated in a law firm.
[9] Advance fees. — A lawyer may require that a client pay a fee in
advance of completing the work for the representation. All fees paid in
advance are refundable until earned. Until such time as that fee is earned,
that fee must be held in the attorney’s trust account. An attorney who
accepts an advance fee must provide the client with a written statement
that the fee is refundable if not earned and how the fee will be considered
earned
client pay a fee in
advance of completing the work for the representation. All fees paid in
advance are refundable until earned. Until such time as that fee is earned,
that fee must be held in the attorney’s trust account. An attorney who
accepts an advance fee must provide the client with a written statement
that the fee is refundable if not earned and how the fee will be considered
earned. When the fee is earned and the money is withdrawn from the
attorney’s trust account, the client must be notified and a statement
provided.
[10] Some smaller fees—such as those less than $2500.00—may be
considered earned in whole upon some identified event, such as upon
commencement of the attorney’s work on that matter or the attorney’s
appearance on the record. However, a fee considered to be “earned upon
commencement of the attorney’s work on the matter” is not the same as a
fee “earned upon receipt.” The former requires that the attorney actually
begin work whereas the latter is dependent only upon payment by the
client. In a criminal defense matter, for example, a smaller fee—such as a
fee under $2500.00—may be considered earned upon entry of the
attorney’s appearance on the record or at the initial consultation at which
substantive, confidential information has been communicated which
would preclude the attorney from representation of another potential client
(e.g. a co-defendant). Nevertheless, all fees must be reasonable such that
even a smaller fee might be refundable, in whole or in part, if it is not
reasonable under the circumstances.
[11] As a general rule, larger advance fees—such as those over
$2500.00—will not be considered earned upon one specific event.
Therefore, the attorney must identify the manner in which the fee will be
considered earned and make the appropriate disclosures to the client at the
outset of the representation. The written statement must include a
reasonable method of determining fees earned at a given time in the
representation
dvance fees—such as those over
$2500.00—will not be considered earned upon one specific event.
Therefore, the attorney must identify the manner in which the fee will be
considered earned and make the appropriate disclosures to the client at the
outset of the representation. The written statement must include a
reasonable method of determining fees earned at a given time in the
representation. One method might be calculation of fees based upon an
agreed upon hourly rate. If an hourly rate is not utilized, the attorney is
required to identify certain events which will trigger earned fees. For
example, in a criminal defense matter, an attorney might identify events
such as entry of appearance, arraignment, certain motions, case review,
and trial as the events which might trigger certain specified earned fees
and deduction of those fees from the attorney trust account. Likewise, in a
domestic matter, an attorney might identify such events as entry of
appearance, drafting petition, attendance at mediation conference,
commissioner’s hearing, pre-trial conference, and judge’s hearing as
triggering events for purposes of earning fees. It might be reasonable for
an attorney to provide that a certain percentage of this fee will be
considered earned on a monthly basis, for any work performed in that
month, or upon the completion of an identified portion of the work.
Nevertheless, all fees must be reasonable such that even a fee considered
earned in full per the written statement provided to the client might be
refundable, in whole or in part, if it is not reasonable under the
circumstances.
[12] In contrast to the general rule, a larger advance fee may, under
certain circumstances, be earned upon one specific event
of an identified portion of the work.
Nevertheless, all fees must be reasonable such that even a fee considered
earned in full per the written statement provided to the client might be
refundable, in whole or in part, if it is not reasonable under the
circumstances.
[12] In contrast to the general rule, a larger advance fee may, under
certain circumstances, be earned upon one specific event. For example,
this fee or a large portion thereof could become earned upon an attorney’s
initial consultation with a client in a bankruptcy matter at which
substantive, confidential information has been communicated which
would preclude the attorney from representation of another potential client
(e.g. the client’s creditors). In this context, the attorney must provide a
clear written statement that the fee, or a portion thereof, is earned at time
of consultation as compensation for this lost opportunity. Likewise, a
criminal defense attorney might outline in the written agreement that the
entire fee becomes earned upon conclusion of the matter—in the case of
negotiation and acceptance of a plea agreement prior to trial. Both of these
examples are tempered, however, by the reasonableness requirement set
forth above.
[13] It is not acceptable for an attorney to hold earned fees in the
attorney trust account. See Rule 1.15(a). This is commingling. Once fees
are earned, those fees must be withdrawn from the attorney trust account.
Typically, it is acceptable to draw down earned fees from an attorney trust
account on a monthly or some other reasonable periodic basis. Similarly,
monthly/periodic statements are considered an acceptable method of
notifying one’s clients that earned fees have been withdrawn from a trust
This is commingling. Once fees
are earned, those fees must be withdrawn from the attorney trust account.
Typically, it is acceptable to draw down earned fees from an attorney trust
account on a monthly or some other reasonable periodic basis. Similarly,
monthly/periodic statements are considered an acceptable method of
notifying one’s clients that earned fees have been withdrawn from a trust
account. For those attorneys earning fees on a percentage basis, wherein
the fee would be considered earned upon the completion of an identified
portion of the work, a statement to that effect upon completion of that
work would satisfy this requirement.
[14] Disputes over fees. — If a procedure has been established for
resolution of fee disputes, such as an arbitration or mediation procedure
established by the bar, the lawyer must comply with the procedure when it
is mandatory, and, even when it is voluntary, the lawyer should
conscientiously consider submitting to it. Law may prescribe a procedure
for determining a lawyer’s fee, for example, in representation of an
executor or administrator, a class or a person entitled to a reasonable fee
as part of the measure of damages. The lawyer entitled to such a fee and a
lawyer representing another party concerned with the fee should comply
with the prescribed procedure.
NOTES TO DECISIONS
Arbitration.
— Fees.
Attorneys’ fees.
— Allocation in Family Court.
— Contingency fees.
— Fee agreements.
— Fee splitting.
— Prevailing party.
— Reasonableness.
— Retainer.
— Standard of review.
Sanctions.
— Reprimand.
Analysis
er entitled to such a fee and a
lawyer representing another party concerned with the fee should comply
with the prescribed procedure.
NOTES TO DECISIONS
Arbitration.
— Fees.
Attorneys’ fees.
— Allocation in Family Court.
— Contingency fees.
— Fee agreements.
— Fee splitting.
— Prevailing party.
— Reasonableness.
— Retainer.
— Standard of review.
Sanctions.
— Reprimand.
Analysis
— Suspension.
Arbitration.
— Fees.
Arbitrator’s award of fees to law firm that represented the clients in an
underlying complex and physically dangerous lawsuit was not manifestly
violative of the terms of the arbitration agreement or Delaware law;
although the court did not review the individual factual findings, it did
find substantial evidence supporting the approach taken by the arbitrator
in reviewing the reasonableness of various groups of charges according to
rules of Delaware case law and ethical rules. Blank Rome, L.L.P. v. Vendel,
2003 Del. Ch. LEXIS 84 (Del. Ch. Aug. 5, 2003).
Attorneys’ fees.
— Allocation in Family Court.
Husband’s motion for counsel fees under 13 Del. C. § 1515 and Fam. Ct.
Civ. R. 11 was granted in part in a wife’s action, seeking specific
performance under the parties’ separation agreement, because the wife had
changed her position with respect to selection of an appraiser; while the
fees were reasonable under Fam. Ct. Civ. R. 88 and Law. Prof. Conduct R.
1.5(a), since it was unclear whether counsel made a reaonable inquiry,
sanctions were not imposed directly against counsel. C.L.G. v. J.F.W., 2002
Del. Fam. Ct. LEXIS 111 (Del. Fam. Ct. June 3, 2002).
Based on consideration of 13 Del. C. § 1515, Fam. Ct. Civ. R. 88 and
Law Prof. Conduct R. 1.5(a), it was not deemed appropriate to award
counsel fees to either party in post-divorce ancillary proceedings; while
the court must provide reasons for any award of fees, it need not justify a
denial of counsel fees. N.M.B. v. C.R.B., 2002 Del. Fam. Ct. LEXIS 155
(Del. Fam. Ct. June 26, 2002)
2002).
Based on consideration of 13 Del. C. § 1515, Fam. Ct. Civ. R. 88 and
Law Prof. Conduct R. 1.5(a), it was not deemed appropriate to award
counsel fees to either party in post-divorce ancillary proceedings; while
the court must provide reasons for any award of fees, it need not justify a
denial of counsel fees. N.M.B. v. C.R.B., 2002 Del. Fam. Ct. LEXIS 155
(Del. Fam. Ct. June 26, 2002).
Based on the financial circumstances, each party was to pay their own
attorney’s fees. R.A.C. v. V.M.E., 2002 Del. Fam. Ct. LEXIS 153 (Del.
Fam. Ct. Mar. 7, 2002).
Mother was awarded counsel fees under 13 Del. C. § 1515 where the
parties substantially agreed on visitation, making a court appearance
unnecessary had the father informed the mother that he did not intend to
pursue primary residential custody; although the mother’s counsel fees of
$1,462 were reasonable under Fam. Ct. Civ. R. 88 and Law. Prof. Conduct
R. 1.5(a), given the parties’ finances, it was improper to order the father to
pay the mother’s fees in full. E.K. v. C.K., 2002 Del. Fam. Ct. LEXIS 163
(Del. Fam. Ct. Dec. 16, 2002).
Because both parties were difficult and contributed to unnecessary and
excessive litigation, each party was to bear his or her own attorney’s fees
and costs pursuant to 13 Del. C. § 1515, Fam. Ct. Civ. R. 88, and Del. Law.
Prof. Conduct R. 1.5. T.M. v. M.M., 2002 Del. Fam. Ct. LEXIS 250 (Del.
Fam. Ct. Mar. 12, 2002); D. L. M. v. A. L. M., 2005 Del. Fam. Ct. LEXIS
35 (Del. Fam. Ct. June 6, 2005).
Trial court evaluated relevant evidence and 13 Del. C. § 1515 Del. Fam.
Ct. Civ. R. 88, and Del. Law. R. Prof. Conduct 1.5 to conclude that each
party was to pay their own attorneys’ fees. R.D.L. v. C.M.U., 2003 Del.
Fam. Ct. LEXIS 56 (Del. Fam. Ct. Apr. 30, 2003); S.W. v. S.W., 2003 Del.
Fam. Ct. LEXIS 62 (Del. Fam. Ct. June 24, 2003); J. P. v. S. P., 2004 Del.
Fam. Ct. LEXIS 189 (Del. Fam. Ct. Nov. 8, 2004); J.H. v. L.H., 2006 Del.
Fam. Ct. LEXIS 267 (Del. Fam. Ct. Nov. 13, 2006); D.E. v. S.M.E., 2007
Del
1.5 to conclude that each
party was to pay their own attorneys’ fees. R.D.L. v. C.M.U., 2003 Del.
Fam. Ct. LEXIS 56 (Del. Fam. Ct. Apr. 30, 2003); S.W. v. S.W., 2003 Del.
Fam. Ct. LEXIS 62 (Del. Fam. Ct. June 24, 2003); J. P. v. S. P., 2004 Del.
Fam. Ct. LEXIS 189 (Del. Fam. Ct. Nov. 8, 2004); J.H. v. L.H., 2006 Del.
Fam. Ct. LEXIS 267 (Del. Fam. Ct. Nov. 13, 2006); D.E. v. S.M.E., 2007
Del. Fam. Ct. LEXIS 38 (Del. Fam. Ct. Mar. 29, 2007).
Trial court entered orders, under 13 Del. C. § 1513, awarding 65 percent
of marital assets and 35 percent of liabilities to the wife, under 13 Del. C.
§ 1512, and after making allowance for her mother’s living with her,
awarding the wife $ 241 monthly alimony for 8.5 years, 50 percent of their
17-year marriage; under 13 Del. C. § 1515, Del. Fam. Ct. Civ. R. 88, and
Del. Law. R. Prof. Conduct 1.5, the court awarded no attorneys’ fees. J.S. v.
K.S., 2003 Del. Fam. Ct. LEXIS 54 (Del. Fam. Ct. May 12, 2003); K.D.R.
v. C.P.R., 2003 Del. Fam. Ct. LEXIS 58 (Del. Fam. Ct. May 12, 2003).
The purpose of 13 Del. C. § 1515 is to equalize the parties’ positions by
providing a financially disadvantaged party with the financial means to
prosecute or defend a divorce action; the court must provide reasons for
any award of fees, and is also guided by Del. Fam. Ct. Civ. R. 88 and Del.
Law. R. Prof. Conduct 1.5. S. S. v. C. S., 2003 Del. Fam. Ct. LEXIS 213
(Del. Fam. Ct. Aug. 22, 2003); M. B. v. P. B., 2005 Del. Fam. Ct. LEXIS 63
(Del. Fam. Ct. Apr. 21, 2005); D.B. v. N.D.B., 2006 Del. Fam. Ct. LEXIS
with the financial means to
prosecute or defend a divorce action; the court must provide reasons for
any award of fees, and is also guided by Del. Fam. Ct. Civ. R. 88 and Del.
Law. R. Prof. Conduct 1.5. S. S. v. C. S., 2003 Del. Fam. Ct. LEXIS 213
(Del. Fam. Ct. Aug. 22, 2003); M. B. v. P. B., 2005 Del. Fam. Ct. LEXIS 63
(Del. Fam. Ct. Apr. 21, 2005); D.B. v. N.D.B., 2006 Del. Fam. Ct. LEXIS
218 (Del. Fam. Ct. Jan. 31, 2006); N.P. v. S.B., 2007 Del. Fam. Ct. LEXIS
194 (Del. Fam. Ct. Oct. 24, 2007).
Del. Fam. Ct. Civ. R. 88 requires the Family Court of Delaware, in
determining the reasonableness of litigation costs incurred by the parties,
to consider: (1) the time and expense expended; (2) an itemization of
services rendered; (3) relevant hourly rates; (4) an itemization of
disbursements claimed; (5) any sums received or that will be received
with respect to legal services and/or disbursements; and (6) any
information that will enable the court to properly weigh the relevant factors
set forth in this rule. L. E. B. v. J. J. B., 2004 Del. Fam. Ct. LEXIS 17 (Del.
Fam. Ct. Mar. 25, 2004).
Family court awarded a mother attorney fees and costs because, in light
of the factors enumerated in 13 Del. C. § 731 and Law. Prof. Conduct R.
1.5, the fees she incurred were reasonable, with the exception of charging
the father with the travel time of the mother’s counsel to and from the
courthouse; the father was responsible for the remainder of the mother’s
fees, notwithstanding the disparity in the parties’ incomes, because it was
his refusal to exercise the visitation awarded him and to comply with his
responsibilities as the joint custodian of the parties’ sons that caused the
mother to incur the fees that she did. M. D. H. v. G. S. H., 2004 Del. Fam.
Ct. LEXIS 62 (Del. Fam. Ct. June 29, 2004), aff’d sub nom. Harold v.
Harold, 867 A.2d 901 (Del. 2005); M.B.M. v. C.M., 2006 Del. Fam. Ct.
LEXIS 10 (Del. Fam. Ct. Jan. 27, 2006); S.F.C. v. D.F.C., 2007 Del. Fam.
Ct. LEXIS 164 (Del. Fam. Ct. Nov
esponsibilities as the joint custodian of the parties’ sons that caused the
mother to incur the fees that she did. M. D. H. v. G. S. H., 2004 Del. Fam.
Ct. LEXIS 62 (Del. Fam. Ct. June 29, 2004), aff’d sub nom. Harold v.
Harold, 867 A.2d 901 (Del. 2005); M.B.M. v. C.M., 2006 Del. Fam. Ct.
LEXIS 10 (Del. Fam. Ct. Jan. 27, 2006); S.F.C. v. D.F.C., 2007 Del. Fam.
Ct. LEXIS 164 (Del. Fam. Ct. Nov. 27, 2007); M.B. v. E.B., 28 A.3d 495
(Del. Fam. Ct. 2011).
Under the 13 Del. C. § 1515 factors (especially the financial conditions
of both parties), Fam. Ct. Civ. R. 88 and Law. Prof. Conduct R. 1.5, it was
appropriate for the husband and the wife to be responsible for their own
attorneys’ fees and costs; this was despite the fact that the husband refused
to consider an offer to settle alimony until the day before the trial, leading
to an eventual award of alimony at trial. K. A. D. v. F. W. D., 2005 Del.
Fam. Ct. LEXIS 28 (Del. Fam. Ct. May 24, 2005); A.C.M.-W. v. S.W.,
2009 Del. Fam. Ct. LEXIS 58 (Del. Fam. Ct. Feb. 2, 2009); In re C.M.,
2011 Del. Fam. Ct. LEXIS 54 (Del. Fam. Ct. Aug. 22, 2011).
Wife’s recalcitrant behavior regarding a sale of the marital home was
excessively litigious behavior that increased litigation costs and warranted
an attorney’s fee award to husband; in finding that the requested fees were
reasonable, the court considered the factors listed under Fam. Ct. Civ. R.
88, which incorporated consideration of any factors that would be relevant
under Law. R. Prof. Conduct 1.5(a) to determine whether an attorney met
the ethical duty to charge reasonable fees. D.L.D. v. N.M.D., 2005 Del.
Fam. Ct. LEXIS 143 (Del. Fam. Ct. Nov. 7, 2005); D. E. v. S. M. E., 2003
Del. Fam. Ct. LEXIS 211 (Del. Fam. Ct. Dec. 19, 2003).
Taking into account Fam. Ct. Civ. R. 88 and Law. R. Prof. Conduct 1.5,
the court denied mother’s request for attorney’s fees and costs in a custody
modification action under 13 Del. C
torney met
the ethical duty to charge reasonable fees. D.L.D. v. N.M.D., 2005 Del.
Fam. Ct. LEXIS 143 (Del. Fam. Ct. Nov. 7, 2005); D. E. v. S. M. E., 2003
Del. Fam. Ct. LEXIS 211 (Del. Fam. Ct. Dec. 19, 2003).
Taking into account Fam. Ct. Civ. R. 88 and Law. R. Prof. Conduct 1.5,
the court denied mother’s request for attorney’s fees and costs in a custody
modification action under 13 Del. C. § 731; the mother did not prevail in
her requests for sole legal custody of her minor daughter, for permission
to relocate with the child to Utah or a neighboring state, or for restrictions
on the location of the father’s visits with the child, and she and the child’s
father were in comparable financial positions. K.J.G. v. J.M., 2005 Del.
Fam. Ct. LEXIS 164 (Del. Fam. Ct. Nov. 1, 2005).
Family Court declined to award attorneys’ fees to either a wife or
husband in an ancillary order following the dissolution of their 35-year
marriage; both parties worked and had sufficient income or assets to pay
their own legal fee obligations. S.C. v. D.C., 2006 Del. Fam. Ct. LEXIS
232 (Del. Fam. Ct. Nov. 20, 2006).
Parties’ requests for attorneys’ fees were denied as an interim
agreement did not prohibit a husband from making a claim against the
increased equity in the wife’s home, even though the trial court ruled that
the parties could keep the appreciation in their respective properties, and
neither party took an overly litigious position. K. C. S. v. S. H. S., 2006
Del. Fam. Ct. LEXIS 160 (Del. Fam. Ct. Sept. 7, 2006).
As a wife in a divorce proceeding was extremely litigious, took
unreasonable positions and incurred a significant amount of attorneys’
fees as a result, and was relentless with numerous filings that proved
baseless and bordered on harassment, the wife’s request under 13 Del. C. §
1515 for attorneys’ fees, as well as based on considerations of Fam. Ct.
Civ. R. 88 and Law R. Prof. Conduct was 1.5, was not deemed meritorious.
g was extremely litigious, took
unreasonable positions and incurred a significant amount of attorneys’
fees as a result, and was relentless with numerous filings that proved
baseless and bordered on harassment, the wife’s request under 13 Del. C. §
1515 for attorneys’ fees, as well as based on considerations of Fam. Ct.
Civ. R. 88 and Law R. Prof. Conduct was 1.5, was not deemed meritorious.
C.G.B. v. P.C.B., 2006 Del. Fam. Ct. LEXIS 255 (Del. Fam. Ct. Dec. 4,
2006).
Because the wife received a substantial portion of the marital estate, the
wife was required to pay her own attorneys’ fees pursuant to 13 Del. C. §
1515, Fam. Ct. Civ. R. 88 and Law. R. Prof. Conduct 1.5. S.C.B. v. L.A.S.,
2007 Del. Fam. Ct. LEXIS 138 (Del. Fam. Ct. June 7, 2007).
Because a wife was to receive a large portion of the marital estate, it
would not have been appropriate to award attorneys’ fees, under 13 Del. C.
§ 1515, Fam. Ct. Civ. R. 88, and Law R. Prof. Conduct 1.5. E.F.F. v. A.J.O.,
2007 Del. Fam. Ct. LEXIS 165 (Del. Fam. Ct. Nov. 15, 2007); C.F.M. v.
S.R.M., 2007 Del. Fam. Ct. LEXIS 250 (Del. Fam. Ct. Oct. 31, 2007);
E.F.F. v. A.J.C., 2008 Del. Fam. Ct. LEXIS 17 (Del. Fam. Ct. Jan. 29,
2008).
Because a husband’s request for a continuance resulted not from an
intentional attempt to cause delay but rather the unforeseen unavailability
of witnesses and the husband’s position regarding the wife’s alleged
cohabitation was not frivolous, it would be inequitable to order attorneys’
fees merely because the wife prevailed. M.D. v. C.D., 2007 Del. Fam. Ct.
LEXIS 11 (Del. Fam. Ct. Mar. 15, 2007).
Pursuant to 13 Del. C. § 1515, Fam. Ct. Civ. R. 88, and Law. R. Prof.
Conduct 1.5, a wife was entitled to an award of reasonable attorneys’ fees
from the husband in the parties’ divorce action, as the wife did not have
sufficient income or ability to pay her own fees. W.J.F. v. K.F., 2008 Del.
Fam. Ct. LEXIS 88 (Del. Fam. Ct. Jan. 15, 2008), aff’d sub nom. Fanin v.
Fanin, 3 A.3d 1096 (Del. 2009)
suant to 13 Del. C. § 1515, Fam. Ct. Civ. R. 88, and Law. R. Prof.
Conduct 1.5, a wife was entitled to an award of reasonable attorneys’ fees
from the husband in the parties’ divorce action, as the wife did not have
sufficient income or ability to pay her own fees. W.J.F. v. K.F., 2008 Del.
Fam. Ct. LEXIS 88 (Del. Fam. Ct. Jan. 15, 2008), aff’d sub nom. Fanin v.
Fanin, 3 A.3d 1096 (Del. 2009).
As parties in a divorce proceeding were not overly litigious and did not
take unreasonable positions, neither party was entitled to an award of
attorneys’ fees from the other pursuant to 13 Del. C. § 1515; the court
considered the financial circumstances of the parties in denying the fee
awards, as well as Fam. Ct. Civ. R. 88 and Law. R. Prof. Conduct 1.5. K.T.
v. Y.T., 2008 Del. Fam. Ct. LEXIS 39 (Del. Fam. Ct. Feb. 8, 2008), rev’d,
963 A.2d 1128 (Del. 2008).
Since both the husband and wife had some income even though they
were in dire financial straits, the trial court decided not to award
attorneys’ fees and costs to either party following the end of their 16-year
marriage; pursuant to 13 Del. C. § 1515, and considering reasonable fee
award factors set forth in Fam. Ct. Civ. R. 88 and Law. R. Prof. Conduct
1.5, the trial court directed each party to pay his or her own fees and costs,
as the husband had limited income because the husband was disabled and
only receiving weekly workers’ compensation payments, while the wife
although working had been bearing the brunt of paying the bills and rearing
the parties’ 2 children even before the husband left the marital residence.
K.F. v. L.F., 2008 Del. Fam. Ct. LEXIS 10 (Del. Fam. Ct. Mar. 10, 2008).
Upon evaluation by a court of each party’s assets, debts, and financial
circumstances in their divorce and ancillary relief proceeding, each party
was responsible for their own attorneys’ fees pursuant to Fam. Ct. Civ. R.
88 and Law. R. Prof. Conduct 1.5. N.P. v. J.L.P., 2008 Del. Fam. Ct. LEXIS
20 (Del. Fam. Ct. Mar. 11, 2008)
L.F., 2008 Del. Fam. Ct. LEXIS 10 (Del. Fam. Ct. Mar. 10, 2008).
Upon evaluation by a court of each party’s assets, debts, and financial
circumstances in their divorce and ancillary relief proceeding, each party
was responsible for their own attorneys’ fees pursuant to Fam. Ct. Civ. R.
88 and Law. R. Prof. Conduct 1.5. N.P. v. J.L.P., 2008 Del. Fam. Ct. LEXIS
20 (Del. Fam. Ct. Mar. 11, 2008).
Husband was not entitled to counsel fees under 13 Del. C. § 1515, Fam.
Ct. Civ. R. 88 or Law. R. Prof. Conduct 1.5, given the de minimis size of
the marital estate ($645 equity in a car), the 25-year length of the marriage
and the substantial difference in income and earning capacity of the parties;
the husband took unreasonable positions, leading to excessive litigation.
N.J.H. v. J.H.H., 2008 Del. Fam. Ct. LEXIS 128 (Del. Fam. Ct. Nov. 26,
2008).
Wife was not awarded attorney fees and costs under 13 Del. C. § 1515,
Fam. Ct. Civ. R. 88, and Law. R. Prof. Conduct 1.5, even though the wife
was disabled and the husband was in good health, as the parties had been
essentially placed in equal financial positions through the payment of
alimony and the disposition of the marital home. A.S. v. R.S., 2010 Del.
Fam. Ct. LEXIS 39 (Del. Fam. Ct. May 12, 2010).
Based on the counsel fees incurred by the husband in successfully
defending the wife’s appeal on the issue of the validity of the parties’
divorce, and upon consideration of Fam. Ct. Civ. R. 88 and Law Prof.
Conduct R. 1.5, there was no basis to support an award of fees. M.R. v.
B.R., 2012 Del. Fam. Ct. LEXIS 51 (Del. Fam. Ct. May 23, 2012).
Although a decision on attorney’s fees was deferred, the court was
inclined to require that each party be responsible for payment of their
ppeal on the issue of the validity of the parties’
divorce, and upon consideration of Fam. Ct. Civ. R. 88 and Law Prof.
Conduct R. 1.5, there was no basis to support an award of fees. M.R. v.
B.R., 2012 Del. Fam. Ct. LEXIS 51 (Del. Fam. Ct. May 23, 2012).
Although a decision on attorney’s fees was deferred, the court was
inclined to require that each party be responsible for payment of their
respective counsel fees and costs because, although the wife was the
economically weaker party, she was receiving 60% of the marital estate
and 50% of tax-deferred assets, in addition to alimony and child support.
E.K. v. M.K., 2013 Del. Fam. Ct. LEXIS 55 (Del. Fam. Ct. Mar. 28, 2013),
amended, 2013 Del. Fam. Ct. LEXIS 60 (Del. Fam. Ct. June 13, 2013).
Wife was awarded attorneys’ fees in a divorce action based upon the
husband’s unreasonable conduct of dissipation, but not based upon her
economic state (due to the substantial award of marital property and
alimony to her). In re J-M-R, 2013 Del. Fam. Ct. LEXIS 50 (Del. Fam. Ct.
July 29, 2013), amended, 2013 Del. Fam. Ct. LEXIS 48 (Del. Fam. Ct.
Sept. 23, 2013).
Award of attorneys’ fees in the wife’s favor was appropriate because the
Family Court on several occasions acknowledged the husband’s delay in
litigation and the wife’s need to continually resort to motions to compel
discovery for litigation. Weiner v. Weiner, 2015 Del. Fam. Ct. LEXIS 34
(Del. Fam. Ct. July 13, 2015).
Family Court limited the award of fees to the mother only to the narrow
issue covered under the rule to show cause (RTSC) because: (1) the
testimony regarding the father’s use and/or possession of alcohol in the
home was easily divisible from the rest of the testimony; and (2) the time
spent at trial limited to the RTSC did not exceed 3%, resulting in the father
paying $1,005 in fees and costs. K.W. v. S.W., — A.3d —, 2019 Del. Fam.
Ct. LEXIS 35 (Del. Fam. Ct. July 16, 2019).
— Allocation in Family Court
(RTSC) because: (1) the
testimony regarding the father’s use and/or possession of alcohol in the
home was easily divisible from the rest of the testimony; and (2) the time
spent at trial limited to the RTSC did not exceed 3%, resulting in the father
paying $1,005 in fees and costs. K.W. v. S.W., — A.3d —, 2019 Del. Fam.
Ct. LEXIS 35 (Del. Fam. Ct. July 16, 2019).
— Allocation in Family Court.
Family Court did not abuse its discretion in awarding a wife attorneys’
fees after finding the wife’s former husband in contempt for disobeying a
property division stipulation and order; the award was based on an
extensive record developed at trial and attorney fee affidavits. Cook v.
Cook, — A.3d —, 2022 Del. LEXIS 65 (Del. Feb. 23, 2022).
— Contingency fees.
Attorney’s failing to put a contingency fee arrangement in writing
violated subsection (c). In re Maguire, 725 A.2d 417 (Del. 1999).
Attorney was entitled to quantum meruit fees up to a 1/3 contingency
fee from former clients because: (1) the attorney was not fired for cause;
(2) the issues were not complex; (3) the clients pressed the attorney to
settle quickly; (4) nothing showed the attorney was precluded from other
employment; (5) the fee was contingent and based on 1/3 of the recovery;
and (6) the clients’ subsequent attorney could pay the fee based on a
charging lien on recovered fees. Murrey v. Shank, 2011 Del. Super. LEXIS
431 (Del. Super. Ct. Aug. 30, 2011), aff’d, 41 A.3d 430 (Del. 2012)
3) the clients pressed the attorney to
settle quickly; (4) nothing showed the attorney was precluded from other
employment; (5) the fee was contingent and based on 1/3 of the recovery;
and (6) the clients’ subsequent attorney could pay the fee based on a
charging lien on recovered fees. Murrey v. Shank, 2011 Del. Super. LEXIS
431 (Del. Super. Ct. Aug. 30, 2011), aff’d, 41 A.3d 430 (Del. 2012).
Law firm was entitled to the full amount of requested fees in a
contractual fee-shifting case because: (1) the requested fees were not
unreasonable; (2) the parties’ one-third contingent fee arrangement was
quite typical and commercially reasonable; (3) there was nothing
inherently unreasonable in including prejudgment
interest
when
calculating the appropriate amount of fees; (4) the law firm did not include
late fees in the proceeds; and (5) the requested fees were on par with, or
less than, awards the court had previously deemed reasonable. S’holder
Representative Servs. LLC v. Shire US Holdings, Inc., — A.3d
—, 2021 Del. Ch. LEXIS 81 (Del. Ch. Apr. 27, 2021).
— Fee agreements.
Attorney was suspended for 3 months, followed by 18 months of
conditional probation, for having violated Law Prof. Conduct R. 1.5(f),
1.7(a), 1.15(a), 1.16(d) by: (1) having a conflict of interest with 2 clients;
(2) having a personal interest in a loan transaction; (3) failing to safeguard
client funds; and (4) failing to provide a new client with a fee agreement.
In re O’Brien, 26 A.3d 203 (Del. 2011)
s suspended for 3 months, followed by 18 months of
conditional probation, for having violated Law Prof. Conduct R. 1.5(f),
1.7(a), 1.15(a), 1.16(d) by: (1) having a conflict of interest with 2 clients;
(2) having a personal interest in a loan transaction; (3) failing to safeguard
client funds; and (4) failing to provide a new client with a fee agreement.
In re O’Brien, 26 A.3d 203 (Del. 2011).
The Delaware Supreme Court accepted the Board on Professional
Responsibility’s findings and recommendation for discipline, publicly
reprimanding and placing the attorney on a 2-year period of probation with
the imposition of specific conditions, because the attorney failed to
provide the client with a fee agreement and/or statement of earned fees
withdrawn from the trust account, to identify and safeguard client fund, to
maintain financial books and records or to supervise nonlawyer assistants;
the attorney had engaged in conduct involving misrepresentation,
prejudicial to the administration of justice. In re Malik, 167 A.3d 1189
(Del. 2017).
— Fee splitting.
Finding of attorney’s violation of subdivision (e)(1) was supported by
substantial evidence. In re Berl, 540 A.2d 410 (Del. 1988); In re Berl, 560
A.2d 1009 (Del. 1989).
Fee division agreement between a law firm and its former associate was
valid and enforceable and did not violate the disciplinary rules; it is not
common for a law firm and a departing attorney to divide the fees resulting
from contingent fee cases which the attorney has been handling and will
continue to handle after he leaves. Tomar, Seliger, Simonoff, Adourian
& O’Brien v. Snyder, 601 A.2d 1056 (Del. Super. Ct. 1990).
A Delaware lawyer may not assert non-compliance with Rule 1.5(e) as a
defense to an oral agreement with an out-of-state lawyer who is not charged
with compliance with that rule or a similar rule of another jurisdiction.
Potter v. Peirce, 688 A.2d 894 (Del. 1997)
l
continue to handle after he leaves. Tomar, Seliger, Simonoff, Adourian
& O’Brien v. Snyder, 601 A.2d 1056 (Del. Super. Ct. 1990).
A Delaware lawyer may not assert non-compliance with Rule 1.5(e) as a
defense to an oral agreement with an out-of-state lawyer who is not charged
with compliance with that rule or a similar rule of another jurisdiction.
Potter v. Peirce, 688 A.2d 894 (Del. 1997).
Attorney’s failing to obtain a written agreement with the client
regarding joint representation with another lawyer and his attempting to
divide a prospective fee violated subsection (e). In re Maguire, 725 A.2d
417 (Del. 1999).
Assuming that there was a contract by which a law firm engaged a
representative plaintiff to perform legal work in class action litigation, any
purported contract would have been void and unenforceable as it was
unethical and in violation of the principles governing representative
actions in Delaware; in particular, the agreement would have violated Law.
R. Prof. Conduct 1.5(e) as the representative plaintiff did not advise the
class, either in writing or orally, of the alleged fee-sharing agreement.
Fuqua Indus. S’holder Litig. v. Abrams (In re Fuqua Indus.), 2006 Del. Ch.
LEXIS 167 (Del. Ch. Sept. 7, 2006), aff’d, 922 A.2d 414 (Del. 2007).
— Prevailing party.
Pursuant to Law. Prof. Conduct R. 1.5(a)(4), an award for fees, costs,
and expenses incurred in the Chancery Court was not warranted to an
investment company, because it was not the prevailing party there; rather,
the company’s claims in that Court were dismissed. Shore Invs., Inc. v.
Bhole, Inc., 2012 Del. Super. LEXIS 621 (Del. Super. Ct. Apr. 9, 2012).
Mother found in contempt of a custody order was required to reimburse
the father $2,520 in attorney fees because: (1) the father’s application
ry Court was not warranted to an
investment company, because it was not the prevailing party there; rather,
the company’s claims in that Court were dismissed. Shore Invs., Inc. v.
Bhole, Inc., 2012 Del. Super. LEXIS 621 (Del. Super. Ct. Apr. 9, 2012).
Mother found in contempt of a custody order was required to reimburse
the father $2,520 in attorney fees because: (1) the father’s application
complied with both Law. Prof. Cond. R. 1.5 and Fam. Ct. Civ. R. 88; (2)
the rate charged and time spent by the father’s attorney were reasonable in
light of the work performed; (3) the father’s attorney was unavailable for
other work; (4) the father prevailed on his contempt claims; and (5) the
court reduced the father’s fee request by 2.4 hours in light of duplicative
work. A.K. v. A.K., — A.3d —, 2020 Del. Fam. Ct. LEXIS 40 (Del. Fam.
Ct. Oct. 6, 2020).
Court determined that having each party bear their own attorneys’ fees,
costs and expenses incurred during the litigation was equitable because:
(1) neither party “prevailed,” as each party won on some claims and lost
on others, with each party recovering far less than they sought; and (2) as a
result, shifting would not have been equitable under the purchase and sale
agreement at issue. In re Facchina Constr. Litigs., — A.3d —, 2021 Del.
Super. LEXIS 239 (Del. Super. Ct. Mar. 24, 2021).
— Reasonableness.
Although the fees incurred by a mother in an expedited custody
proceeding were reasonable in light of the factors enumerated in Law.
Prof. Conduct R. 1.5, pursuant to 13 Del. C. § 731, the father was not
responsible for fees that the mother would have incurred regardless of his
obstreperous conduct. M.D.H. v. G.S.H., 2003 Del. Fam. Ct. LEXIS 6 (Del.
Fam. Ct. Feb. 28, 2003)
— Reasonableness.
Although the fees incurred by a mother in an expedited custody
proceeding were reasonable in light of the factors enumerated in Law.
Prof. Conduct R. 1.5, pursuant to 13 Del. C. § 731, the father was not
responsible for fees that the mother would have incurred regardless of his
obstreperous conduct. M.D.H. v. G.S.H., 2003 Del. Fam. Ct. LEXIS 6 (Del.
Fam. Ct. Feb. 28, 2003).
Court granted the father’s motion for attorney fees because the mother
violated the court’s order granting the father joint legal custody of and
visitation with the parties’ children in several respects; in setting the fees,
the court considered the factors enumerated in Del. Law. R. Prof. Conduct
1.5. D.M.E. v. M.B.S.E., 2003 Del. Fam. Ct. LEXIS 119 (Del. Fam. Ct.
Sept. 11, 2003).
Although the insured was entitled to an attorney fee award as the
prevailing party against the insurer, its fee request was excessive and had
to be reduced to a reasonable amount. Nassau Gallery, Inc. v. Nationwide
Mut. Fire Ins. Co., 2003 Del. Super. LEXIS 401 (Del. Super. Ct. Nov. 18,
2003).
Exercising its broad 13 Del. C. § 731 discretion and considering Del.
Fam. Ct. Civ. R. 88, Del. Law. R. Prof. Conduct 1.5, and related factors to
determine a reasonable fee, the court allowed the mother’s $412 and father’s
$275 attorney fee requests and ordered the father to pay $100 of the
mother’s fee; the court specifically mentioned it took into account the
father’s intransigent position violating Del. Fam. Ct. Civ. R. 16(b) policy
that contemplated the parties’ participation in mediation to mediate to
settle unresolved issues, the positions taken by the parties, the discrepancy
in counsel’s experience, and the parties’ incomes. N. J. G. v. J. J. G., 2004
Del. Fam. Ct. LEXIS 18 (Del. Fam. Ct. Mar. 2, 2004); L D M v. R L, 2006
Del. Fam. Ct. LEXIS 131 (Del. Fam. Ct. June 1, 2006); D.G.C. v. R.C.,
2006 Del. Fam. Ct. LEXIS 260 (Del. Fam. Ct. Aug. 30, 2006), aff’d sub
nom. Chasin v. Chasin, 940 A.2d 945 (Del. 2007); R.U. v
e positions taken by the parties, the discrepancy
in counsel’s experience, and the parties’ incomes. N. J. G. v. J. J. G., 2004
Del. Fam. Ct. LEXIS 18 (Del. Fam. Ct. Mar. 2, 2004); L D M v. R L, 2006
Del. Fam. Ct. LEXIS 131 (Del. Fam. Ct. June 1, 2006); D.G.C. v. R.C.,
2006 Del. Fam. Ct. LEXIS 260 (Del. Fam. Ct. Aug. 30, 2006), aff’d sub
nom. Chasin v. Chasin, 940 A.2d 945 (Del. 2007); R.U. v. R.L.U., 2008
Del. Fam. Ct. LEXIS 26 (Del. Fam. Ct. Jan. 22, 2008).
After plaintiffs voluntarily dismissed their action against defendants for
the interpretation of a partnership agreement, defendants were entitled to
reasonable attorney fees for answering the complaint and responding to
the motion to dismiss; however, the court declined to award fees for the
preparation of defendants’ counterclaims since these were voluntary in
nature and were not necessarily incurred in defense of the action.
Richmont Capital Ptnrs. I, L.P. v. J. R. Invs. Corp., 2004 Del. Ch. LEXIS
73 (Del. Ch. May 20, 2004).
Taking into account the Law. Prof. Conduct R. 1.5(a) factors, the trial
court approved the reasonableness of the attorney fees the Special Master
recommended in the Special Master’s Final Report, as the coproate officer
was due the advancement of funds (as provided for in the corporation’s
bylaws) in an investigation for possible accounting irregularities; however,
the trial court had to modify the corporate officer’s pre-judgment interest
request because the corporate officer was only entitled to interest from the
time the officer produced specific advancement expenses to the
corporation. Tafeen v. Homestore, Inc., 2005 Del. Ch. LEXIS 41 (Del. Ch.
Mar. 29, 2005).
Delaware Industrial Accident Board, in awarding minimal attorney’s fee
to the employee’s counsel under 19 Del. C. § 2320, abused its discretion in
failing to demonstrate that it had considered the requisite Cox factors,
based on Law. R. Prof
time the officer produced specific advancement expenses to the
corporation. Tafeen v. Homestore, Inc., 2005 Del. Ch. LEXIS 41 (Del. Ch.
Mar. 29, 2005).
Delaware Industrial Accident Board, in awarding minimal attorney’s fee
to the employee’s counsel under 19 Del. C. § 2320, abused its discretion in
failing to demonstrate that it had considered the requisite Cox factors,
based on Law. R. Prof. Conduct 1.5(a), in making its award; the Board
merely stated that it awarded a minimal fee due to the employee’s counsel’s
failure to cooperate with the employer’s counsel by refusing to
send photographs of the employee’s disfigurement. Green v. ConAgra
Poultry Co., 2005 Del. Super. LEXIS 321 (Del. Super. Ct. Sept. 8, 2005).
Wife’s counsel’s motion for attorneys’ fees and costs in the parties’
post-divorce proceedings was granted based upon consideration of the
relevant factors under Fam. Ct. Civ. R. 88, as well as the reasonableness of
the fee under Law. R. Prof. Conduct 1.5; the award was within the family
court’s authority under 13 Del. C. § 1515, and included consideration of
the former husband’s financial situation, his retention of a new attorney
for a longer time than the wife, the extensiveness of the parties’ litigation,
and the necessity of the wife’s retention of counsel to obtain a final
resolution of pending matters. L. F. v. L. M. H., 2005 Del. Fam. Ct. LEXIS
73 (Del. Fam. Ct. June 3, 2005).
Because a mortgage agreement established a ceiling of 5 percent of the
judgment amount which ultimately would be entered after trial and the
lender could not recover attorneys’ fees outside of the foreclosure, the
requested attorneys’ fees were unreasonable. Beneficial Delaware, Inc. v.
Waples, 2006 Del. Super. LEXIS 274 (Del. Super. Ct. July 3, 2006)
. LEXIS
73 (Del. Fam. Ct. June 3, 2005).
Because a mortgage agreement established a ceiling of 5 percent of the
judgment amount which ultimately would be entered after trial and the
lender could not recover attorneys’ fees outside of the foreclosure, the
requested attorneys’ fees were unreasonable. Beneficial Delaware, Inc. v.
Waples, 2006 Del. Super. LEXIS 274 (Del. Super. Ct. July 3, 2006).
When the court had held that a workers’ compensation claimant was an
employee and not an independent contractor, the claimant’s attorney was
awarded a fee of $29,053.19, representing $300 multiplied by 96 hours
plus costs of $253.19, as the time expended and the hourly rate were
reasonable given the nature of the case, counsel’s experience, and
community custom, and the employers had not supplied any evidence of
their claimed inability to pay the fee; a ⅓ multiplier, however, was not
justified, because if the issue was complex at all, it was factually, not
legally, complex. Falconi v. Coombs & Coombs, Inc., 2006 Del. Super.
LEXIS 471 (Del. Super. Ct. Nov. 21, 2006).
The employee was entitled to attorney’s fees under 19 Del. C. § 2350(f)
where: (1) the employee’s total disability case presented relatively
difficult questions on appeal; (2) the attorney’s hourly rate was reasonable;
(3) the attorney was successful on appeal; (4) pursuant to Law. Prof.
Conduct R. 1.5, the employer was able to pay; and (5) the Industrial
Accident Board’s award was the only source of attorneys’ fees. Smith v.
Del. State Hous. Auth., 2006 Del. Super. LEXIS 624 (Del. Super. Ct. Feb.
14, 2006).
presented relatively
difficult questions on appeal; (2) the attorney’s hourly rate was reasonable;
(3) the attorney was successful on appeal; (4) pursuant to Law. Prof.
Conduct R. 1.5, the employer was able to pay; and (5) the Industrial
Accident Board’s award was the only source of attorneys’ fees. Smith v.
Del. State Hous. Auth., 2006 Del. Super. LEXIS 624 (Del. Super. Ct. Feb.
14, 2006).
When an employer was partially successful in a suit against an
employee for the employee’s violation of a noncompetition agreement, an
award to the employer of attorneys’ fees exceeding the amount of damages
awarded was not excessive under Law. R. Prof. Conduct 1.5 because the
employee was responsible for delays resulting in increased fees, as: (1) the
employee’s motion for a continuance required counsel to prepare for trial
twice; and (2) the employee could have minimized litigation costs but
instead drew out the case by requiring the employer to prove every key
issue of fact. EDIX Media Group v. Mahani, 2007 Del. Ch. LEXIS 17 (Del.
Ch. Jan. 25, 2007), aff’d, 935 A.2d 242 (Del. 2007); Mahani v. EDIX
Media Group, Inc., 935 A.2d 242 (Del. 2007); Weichert Co. v. Young, 2008
Del. Ch. LEXIS 51 (Del. Ch. May 1, 2008).
Attorney violated Law. R. Prof. Conduct 1.5(a) by charging a fee of
$1,500 for the minimal legal services performed in connection with a
motion for reduction of sentence. In re Pankowski, 947 A.2d 1122 (Del.
2007).
Attorneys’ total fees of $144,866.70 were reasonable as the case
required a tenacious and highly-skilled lawyer with extensive understanding
of employment law and, as a solo practitioner, the attorney’s ability to
take on other cases was severely limited by the obligations in the case; the
amount involved and the amount recovered by the client, $252,416 on
wrongful termination and bad faith claims, were both substantial. Bunting
v. Citizens Fin. Group, 2007 Del. Super. LEXIS 205 (Del. Super. Ct. June
29, 2007)
nsive understanding
of employment law and, as a solo practitioner, the attorney’s ability to
take on other cases was severely limited by the obligations in the case; the
amount involved and the amount recovered by the client, $252,416 on
wrongful termination and bad faith claims, were both substantial. Bunting
v. Citizens Fin. Group, 2007 Del. Super. LEXIS 205 (Del. Super. Ct. June
29, 2007).
The attorneys’ request for the maximum fee allowed by law was
unsupported because: (1) motion practice was a normal part of litigation;
(2) movant attorneys offered no reason why their motions were so
complex as to justify an attorneys’ fee award of 33%; and (3) the fact that
the county vigorously opposed the motion was irrelevant. Korn v. New
Castle County, 2007 Del. Ch. LEXIS 139 (Del. Ch. Oct. 3, 2007).
Although an attorney fee award in a workers’ compensation case could
be based on nonmonetary benefits, the Industrial Accident Board had
nothing before it other than the employee’s monetary award from which to
calculate the attorney fee award; however, applying Del. Law. R. Prof.
Conduct 1.5, regarding reasonable attorney fees, and the General Motors
Corporation v. Cox, 304 A.2d 55, 57 (Del. 1973) factors that included the
amount involved and the results obtained, there existed no basis for
overturning the Board’s attorney fee award. Pugh v. Wal-Mart Stores, Inc.,
945 A.2d 588 (Del. 2008).
Reimbursement of defense fees and costs pursuant to an indemnification
provision in a stock purchase agreement of a manufacturing entity by the
former manufacturer was warranted where the fees were reasonable based
on consideration of the reasonableness factors under Law. R. Prof. Conduct
1.5(a)(1) and (4); such fees included work done prior to the time when
the underlying environmental litigation was commenced, as there were
subpoenas and information requests that served as the basis for the lawsuit
against the new manufacturing entity and others. Rexnord Indus., LLC
v. RHI Holdings, Inc., 2009 Del
ed
on consideration of the reasonableness factors under Law. R. Prof. Conduct
1.5(a)(1) and (4); such fees included work done prior to the time when
the underlying environmental litigation was commenced, as there were
subpoenas and information requests that served as the basis for the lawsuit
against the new manufacturing entity and others. Rexnord Indus., LLC
v. RHI Holdings, Inc., 2009 Del. Super. LEXIS 47 (Del. Super. Ct. Feb. 13,
2009).
Attorney fees and expert witness fees incurred by former executives in
their action against a corporation, seeking payment of certain options that
they were allegedly promised, were ordered to be paid by the corporation
where the executives were awarded judgment after trial and the sums
sought were, for the most part, reasonable, not duplicative, and not
excessive under Law. R. Prof. Conduct 1.5(a); the executives were also
entitled to fees for the prosecution of their action seeking payment of fees.
Lillis v. AT&T Corp., 2009 Del. Ch. LEXIS 34 (Del. Ch. Feb. 25, 2009).
Treatment center that failed to comply with subpoenas duces tecum for
substance and alcohol abuse records of an indigent parent involved in a
child dependency case, and which was ultimately found in contempt for its
misconduct, was ordered to pay the parent’s attorney that attorney’s
reasonable attorneys’ fees under Fam. Ct. Civ. R. 88; such attorneys’ fees,
based on what the attorney would have earned if the attorney was working
for a private client, were reasonable in the circumstances pursuant to Law.
R. Prof. Conduct 1.5. A.B. v. Thresholds, Inc., 982 A.2d 295 (Del. Fam. Ct.
2009).
Plaintiffs’ request for $83,980 in attorneys’ fees was reduced by 30
percent where: (1) the disputed fees pertained directly to plaintiffs’ efforts
to gain possession of and ability to inspect a defendant’s computer which
that defendant had already modified, losing or disposing of, the hard drive;
(2) the time spent by the most junior and senior attorneys was disallowed;
l. Fam. Ct.
2009).
Plaintiffs’ request for $83,980 in attorneys’ fees was reduced by 30
percent where: (1) the disputed fees pertained directly to plaintiffs’ efforts
to gain possession of and ability to inspect a defendant’s computer which
that defendant had already modified, losing or disposing of, the hard drive;
(2) the time spent by the most junior and senior attorneys was disallowed;
(3) it was reasonable under Law. R. Prof. Conduct 1.5(a) to allow a
weighted average rate of approximately $340 per hour for the other 2
attorneys who spent almost 240 hours on the claimed work, given their
level of experience; and (4) much of the requested relief was denied; and
(5) the award was directed to the prejudice caused by the spoliation. Beard
Research, Inc v. Kates, 2009 Del. Ch. LEXIS 170 (Del. Ch. Oct. 1, 2009).
Condominium code and declaration authorized attorneys’ fees to a
prevailing party, such that a condominium council that was awarded partial
summary judgment in its debt action against condominium owners was
awarded its reasonable fees; the fees were reasonable under Law. R. Prof.
Conduct 1.5(a), based on the amount charged, the hours worked, the
owners’ willingness to pursue litigation, and their ability to pay. Dixon v.
Council of the Cliff House Condo., 2009 Del. C.P. LEXIS 71 (Del. C.P.
Dec. 8, 2009).
Although the first party’s attorneys’ fees were reasonable under the
factors set forth in Law. Prof. Conduct R. 1.5(a), the first party’s expenses
related to photocopying, transcripts, travel, and computer research were
not to be included because: (1) the terms “costs” and “expenses” had
different meanings; and (2) the parties’ asset purchase agreement only
provided for payment of costs, pursuant to Ch. Ct. R. 54. Ivize of
Milwaukee v. Compex Litig. Support, 2009 Del. Ch. LEXIS 251 (Del. Ch.
June 24, 2009).
Attorneys’ fees based on Law. R. Prof
o photocopying, transcripts, travel, and computer research were
not to be included because: (1) the terms “costs” and “expenses” had
different meanings; and (2) the parties’ asset purchase agreement only
provided for payment of costs, pursuant to Ch. Ct. R. 54. Ivize of
Milwaukee v. Compex Litig. Support, 2009 Del. Ch. LEXIS 251 (Del. Ch.
June 24, 2009).
Attorneys’ fees based on Law. R. Prof. Conduct 1.5(a) were reduced
partially where the amount of time spent by partners in 1 law firm was
deemed an artificial inflation of a company’s requested fees; the company
was awarded fees based on another company’s breach of a noncompetition
provision in the parties’ asset purchase agreement. Concord Steel, Inc. v.
Wilmington Steel Processing Co., 2010 Del. Ch. LEXIS 18 (Del. Ch. Feb.
5, 2010), aff’d, 7 A.3d 486 (Del. 2010).
Because the plaintiffs’ fees were reasonable as to the amount involved,
and because the time expended was justifiable based on the amount of
money involved, the number of the defendants, and the vigor with which
the arbitration was contested, the plaintiffs were entitled to their
attorneys’ fees and costs under Law. R. Prof. Conduct 1.5(a). Global Link
Logistics, Inc. v. Olympus Growth Fund III, L.P., 2010 Del. Ch. LEXIS 30
(Del. Ch. Feb. 24, 2010).
With the exception of certain expenses that fell outside the fee award, a
corporation’s attorneys’ fees were reasonable as to the number of attorneys
involved and the related dollar amounts; therefore, pursuant to Law. R.
Prof. Conduct 1.5(a) and Ch. Ct. R. 88, a shareholder was obligated to pay
the corporation’s expenses incurred by the shareholder’s contempt. Aveta
Inc. v. Bengoa, 2010 Del. Ch. LEXIS 175 (Del. Ch. Aug. 13, 2010)
that fell outside the fee award, a
corporation’s attorneys’ fees were reasonable as to the number of attorneys
involved and the related dollar amounts; therefore, pursuant to Law. R.
Prof. Conduct 1.5(a) and Ch. Ct. R. 88, a shareholder was obligated to pay
the corporation’s expenses incurred by the shareholder’s contempt. Aveta
Inc. v. Bengoa, 2010 Del. Ch. LEXIS 175 (Del. Ch. Aug. 13, 2010).
Former officer of a corporation reasonably requested $292,019.91 for
fees and expenses incurred in connection with the officer’s defense of
claims asserted against the officer by the corporation’s parent in an
underlying action; the record in the underlying action strongly suggested
that the parent adopted a litigation strategy designed to overwhelm the
officer by forcing the officer to incur significant expenses defending a
wide-ranging, unfocused action. Danenberg v. Fitracks, Inc., 58 A.3d 991
(Del. Ch. 2012).
Attorneys’ fees and costs of $3,267,355 requested were reasonable and
were awarded to a fund under a contractual fee-shifting provision because:
(1) the attorneys’ fee component was calculated using the rates the fund’s
counsel customarily charged the fund, which were their standard hourly
rates discounted by 10%; (2) the lawyers who staffed the matter were able
and experienced practitioners and charged what were readily recognizable
as reasonable rates for complex commercial litigation; (3) that the
opponents’ attorneys charged lower rates did not render the fund’s
counsel’s rates unreasonable in light of the fund’s counsel’s prominence,
the qualifications of its practitioners and the legal market in which the
firm provided services; and (4) that the opponents’ attorneys incurred
fewer hours working on the case did not undercut the reasonableness of the
fund’s request. ASB Allegiance Real Estate Fund v. Scion Breckenridge
Managing Member, LLC, 50 A.3d 434 (Del. Ch. 2012), aff’d in part and
rev’d in part, 68 A.3d 665 (Del. 2013)
e qualifications of its practitioners and the legal market in which the
firm provided services; and (4) that the opponents’ attorneys incurred
fewer hours working on the case did not undercut the reasonableness of the
fund’s request. ASB Allegiance Real Estate Fund v. Scion Breckenridge
Managing Member, LLC, 50 A.3d 434 (Del. Ch. 2012), aff’d in part and
rev’d in part, 68 A.3d 665 (Del. 2013).
Trial court properly awarded a minority stockholder’s attorney a fee of
$304 million (15% of a $2.031 billion judgment) in a derivative suit since
Law Prof. Conduct R. 1.5(c) contemplated fees that were based on a
percentage; the trial court properly made a reasonableness determination
based on the Sugarland Indus. v. Thomas, 420 A.2d 142 (Del. 1980)
factors. Ams. Mining Corp. v. Theriault, 51 A.3d 1213 (Del. 2012).
The extraordinary benefit that was achieved by plaintiff minority
shareholder in a derivative suit merited a very substantial award of $304
million in attorneys’ fees where: (1) plaintiff’s attorneys pursued the case
on a contingent fee basis, invested a significant number of hours, incurred
more than $1 million in expenses, attorneys reviewed approximately
282,046 pages in document production and traveled outside the United
States to take multiple depositions; (2) plaintiffs indisputably prosecuted
the action through trial and secured an immense economic benefit; (3)
plaintiff had to deal with very complex financial and valuation issues,
while being up against major league, first-rate legal talent; (4) with
prejudgment interest, the benefit achieved through the litigation amounted
to more than $2 billion; and (5) postjudgment interest accrued at more
than $212,000 per day. Ams. Mining Corp. v. Theriault, 51 A.3d 1213 (Del.
2012)
nse economic benefit; (3)
plaintiff had to deal with very complex financial and valuation issues,
while being up against major league, first-rate legal talent; (4) with
prejudgment interest, the benefit achieved through the litigation amounted
to more than $2 billion; and (5) postjudgment interest accrued at more
than $212,000 per day. Ams. Mining Corp. v. Theriault, 51 A.3d 1213 (Del.
2012).
Award of $304 million in attorneys’ fees in a derivative suit was properly
based upon the total damage award, which included prejudgment interest;
the Court of Chancery’s decision to include prejudgment interest in its
determination of the benefit achieved was not arbitrary or capricious, but
rather was the product of a logical and deductive reasoning process which
took into account the slow pace of litigation and any part plaintiffs might
have played in that pace. Ams. Mining Corp. v. Theriault, 51 A.3d 1213
(Del. 2012).
Award of $304 million in attorneys’ fees in a derivative suit, based upon
a calculation of 15% of a $2.031 billion judgment, was proper due to the
complexity of the case and valuable benefits conferred; the fact that
plaintiff’s counsel spent 8,597 hours on this case, meaning that the award
would represent a per hour payment of approximately $35,000 an hour,
was irrelevant because the benefit achieved by the litigation was the
common yardstick by which a plaintiff’s counsel should be compensated
in a successful derivative action. Ams. Mining Corp. v. Theriault, 51 A.3d
1213 (Del. 2012).
Pursuant to Law. Prof. Conduct R. 1.5, an award for fees, costs and
expenses incurred in a breach of lease claim was reasonable and
proximately $35,000 an hour,
was irrelevant because the benefit achieved by the litigation was the
common yardstick by which a plaintiff’s counsel should be compensated
in a successful derivative action. Ams. Mining Corp. v. Theriault, 51 A.3d
1213 (Del. 2012).
Pursuant to Law. Prof. Conduct R. 1.5, an award for fees, costs and
expenses incurred in a breach of lease claim was reasonable and
appropriate where an investment company prevailed on that claim; the
court allocated the percentage to be awarded for each item, because other
claims had also been pursued. Shore Invs., Inc. v. Bhole, Inc., 2012 Del.
Super. LEXIS 621 (Del. Super. Ct. Apr. 9, 2012).
Wife’s request for attorneys’ fees was granted only in part because
many of the entries by her attorney did not relate to the husband’s
dissipation of marital assets, which was the basis of the award; the amount
awarded was deemed reasonable. J- M- R- v. K- J. R-, 2013 Del. Fam. Ct.
LEXIS 48 (Del. Fam. Ct. Sept. 23, 2013).
In awarding fees and costs under the bad faith exception to the
American Rule, an indication that the amount of the fee request was
reasonable was that at the time the fees and expenses were incurred,
plaintiffs had no guarantee of obtaining a fee-shifting award; further, the
court determined that most prelitigation expenses were reasonable,
considering that plaintiffs acted reasonably by seeking to resolve the matter
before filing suit. Staffieri v. Black, 2013 Del. Ch. LEXIS 322 (Del. Ch.
Aug. 8, 2013), aff’d, 2014 Del. LEXIS 88 (Del. Feb. 27, 2014).
While the attorney fee award was greater than the amount recovered for
the breach of contract, the award was supported because: (1) the guarantor
made many claims which were costly to defend against; (2) the lender
hired a legal team and expert advisors necessary to tackle the numerous,
difficult issues; (3) the fees charges were reasonable and less than those
expended by the guarantor; and (4) the professionals chosen were well-
qualified
amount recovered for
the breach of contract, the award was supported because: (1) the guarantor
made many claims which were costly to defend against; (2) the lender
hired a legal team and expert advisors necessary to tackle the numerous,
difficult issues; (3) the fees charges were reasonable and less than those
expended by the guarantor; and (4) the professionals chosen were well-
qualified. Edgewater Growth Capital Partners L.P. v. H.I.G. Capital, Inc.,
2013 Del. Ch. LEXIS 104 (Del. Ch. Apr. 18, 2013).
Defendant’s attorneys’ fees of $287,339 were reasonable because: (1)
the litigation lasted over 3 years; (2) plaintiff repeatedly engaged in bad
faith litigation tactic; (3) defense counsel’s hourly rates were consistent
with the rates generally charged in Delaware; and (4) the number of hours
devoted to the litigation was not excessive, redundant, duplicative or
otherwise unnecessary. Preferred Invs., Inc. v. T&H Bail Bonds, 2014 Del.
Ch. LEXIS 43 (Del. Ch. Mar. 25, 2014).
Shifting attorneys’ fees under the bad faith exception to the American
Rule and awarding reasonable fees to an estate for defending against a
challenger’s exceptions to the final accounting was appropriate because:
(1) the challenger lacked standing to prosecute exceptions; (2) the
litigation was vexatious and frivolous; and (3) the attorney’s fees
requested were reasonable and involved a modest hourly rate of $225 for
over 20 hours in preparing for the exceptions. In re Estate of Branson,
2014 Del. Ch. LEXIS 57 (Del. Ch. Apr. 22, 2014), aff’d sub nom. Branson
v. Branson, 105 A.3d 988 (Del. 2014).
In this contract action, defendant was entitled to an award of $700,000
for attorneys’ fees, costs and expenses because defendant predominated in
the litigation regarding the breach of contract issuea; the time and labor
required in this suit were significant because the ownership and control of
defendant was at stake. AFH Holding & Advisory, LLC v. Emmaus Life
Scis., Inc., 2014 Del. Super. LEXIS 228 (Del. Super. Ct
defendant was entitled to an award of $700,000
for attorneys’ fees, costs and expenses because defendant predominated in
the litigation regarding the breach of contract issuea; the time and labor
required in this suit were significant because the ownership and control of
defendant was at stake. AFH Holding & Advisory, LLC v. Emmaus Life
Scis., Inc., 2014 Del. Super. LEXIS 228 (Del. Super. Ct. Apr. 16, 2014).
Although plaintiff requested $374,128 in attorneys’ fees and costs for
misuse of computer system information, the award was reduced to
$200,000 because: (1) the amount sought was unreasonable and
disproportionate to the $87,016.25 awarded to plaintiff as nominal and
unjust enrichment damages; and (2) not all of the time and labor expended
by plaintiff’s counsel on the computer misuse claim was necessary.
Wayman Fire Prot., Inc. v. Premium Fire & Sec., LLC, 2014 Del. Ch.
LEXIS 108 (Del. Ch. June 27, 2014).
Plaintiff was entitled to an award of reasonable attorneys’ fees of
$33,440 for defendant’s refusal to comply with a discovery request
because: (1) plaintiff’s time entries sufficiently advised the court as to the
task being completed; (2) plaintiff’s explanations as to the nature of any
disputed work were credible; (3) defendant was not paying for purely
clerical tasks; and (4) defendant was not paying for redundant/unnecessary
tasks or excessive time. Mine Safety Appliances Co. v. AIU Ins. Co., 2014
Del. Super. LEXIS 475 (Del. Super. Ct. Sept. 19, 2014).
While the amount of time law firms devoted to the representation of the
trustees of a trust was reasonable, given that the beneficiaries vigorously
contested numerous aspects of the action, and the amounts charged by the
trustees’ attorneys generally were reasonable, the court capped the
reimbursable billing rates for one law firm when the court determined that
the maximum rate for reasonable attorneys’ fees was lower than that firm
to the representation of the
trustees of a trust was reasonable, given that the beneficiaries vigorously
contested numerous aspects of the action, and the amounts charged by the
trustees’ attorneys generally were reasonable, the court capped the
reimbursable billing rates for one law firm when the court determined that
the maximum rate for reasonable attorneys’ fees was lower than that firm
charged. In re Hawk Mt. Trust, 2015 Del. Ch. LEXIS 236 (Del. Ch. Sept. 8,
2015).
Upon granting a mortgagee’s foreclosure and breach of contract claims
pursuant to a judgment on the pleadings, the court determined the
reasonable amount of attorneys’ fees to award, based upon consideration
of the professional conduct factors, including the billing statements that
detailed the hours worked, the nature of the representation and the amount
of the judgment. CRELK Enters. v. Meris Props., 2016 Del. Super. LEXIS
180 (Del. Super. Ct. Apr. 21, 2016).
Nursing home’s attorney was entitled to an award of fees and costs
pursuant to the admission agreement because: (1) the attorney practiced
law for more than 40 years, including the representation of nursing homes
for about 20 years; (2) the attorney’s discounted hourly rate of $270 was
below those fees customarily charged by attorneys with similar experience;
and (3) the attorney obtained a favorable result for the home. 810 South
Broom St. Operations, LLC v. Daniel, 2016 Del. Super. LEXIS 332 (Del.
Super. Ct. July 15, 2016), rev’d, 158 A.3d 884 (Del. 2017).
Trial court did not abuse its discretion in awarding attorneys’ fees and
costs in the amount of $10,296 to a nursing home because: (1) there was a
contractual basis for shifting attorneys’ fees; (2) the parties engaged in an
unsuccessful mediation; (3) the nursing home was required to engage in
motion practice; and (4) there was a 1-day trial. Miller v. Onix Silverside,
LLC, 2016 Del. Super. LEXIS 434 (Del. Super. Ct. Aug. 26, 2016)
in awarding attorneys’ fees and
costs in the amount of $10,296 to a nursing home because: (1) there was a
contractual basis for shifting attorneys’ fees; (2) the parties engaged in an
unsuccessful mediation; (3) the nursing home was required to engage in
motion practice; and (4) there was a 1-day trial. Miller v. Onix Silverside,
LLC, 2016 Del. Super. LEXIS 434 (Del. Super. Ct. Aug. 26, 2016).
Although a commercial landlord sought $42,412 in attorneys’ fees, the
landlord was awarded $20,132 in fees because 32.5 hours billed for post-
trial memoranda was unreasonable; the landlord was not permitted to bill
for another trial that had to be held at a later date when 2 of the landlord’s
witnesses were unavailable for the original trial. J.M.L. Inc. v. Shoppes of
Mount Pleasant, LLC, 2016 Del. Super. LEXIS 519 (Del. Super. Ct. Oct.
14, 2016).
Trial court did not abuse its discretion by awarding attorneys’ fees to a
maintenance company in its action against a property owner, arising from
the property owner’s alleged failure to pay annual assessment; the amount
awarded was reasonable. Saunders-Gomez v. Rutledge Maint. Corp., 2017
Del. Super. LEXIS 164 (Del. Super. Ct. Apr. 3, 2017), aff’d, 189 A.3d 1288
(Del. 2018).
Defendant’s motion for attorneys’ fees was granted, in part, because: (1)
tasks performed by defendant’s attorneys were made necessary by counsel
having had no part in negotiating the asset purchasing agreement; and (2)
defendant’s attorneys were required to research and understand a complex
corporate transaction with little to no prior familiarity with what occurred.
The Boeing Co. v. Spirit Aerosystems, Inc., 2017 Del. Super. LEXIS 630
(Del. Super. Ct. Dec. 5, 2017), aff’d, 190 A.3d 999 (Del. 2018)
neys were made necessary by counsel
having had no part in negotiating the asset purchasing agreement; and (2)
defendant’s attorneys were required to research and understand a complex
corporate transaction with little to no prior familiarity with what occurred.
The Boeing Co. v. Spirit Aerosystems, Inc., 2017 Del. Super. LEXIS 630
(Del. Super. Ct. Dec. 5, 2017), aff’d, 190 A.3d 999 (Del. 2018).
In an action for breach of a commercial lease, the landlord’s attorneys’
fees were reasonable because counsel: (1) could not work on other matters
while working on the instant litigation; (2) gave the landlord a discounted
fee rate due to their continued business; (3) assigned different matters to
associates and paralegals at a lower billable rate; and (4) never raised its
rates throughout the 3-year litigation. Bridev One, LLC v. Regency Ctrs.,
L.P., 2017 Del. Super. LEXIS 729 (Del. Super. Ct. Dec. 1, 2017).
When a partnership official sought advancement of fees and costs, where
the partnership objected that the official’s counsel’s fees exceeded rates
charged by other law firms, the official was not entitled to summary
judgment; a discrepancy between rates the official’s counsel charged and
rates other firms charged raised a fact question on the reasonableness of
the firm’s fees. Weil v. Vereit Operating P’ship, L.P., — A.3d —, 2018 Del.
Ch. LEXIS 48 (Del. Ch. Feb. 13, 2018).
In light of the absence of any novel or complex issues on appeal from a
decision of the Delaware Industrial Accident Board, a request for
attorneys’ fees was excessive (failing to justify a contingency multiplier).
McCabe v. Bayside Roofing, Inc., — A.3d —, 2018 Del. Super. LEXIS 76
(Del. Super. Ct. Feb. 13, 2018)
ating P’ship, L.P., — A.3d —, 2018 Del.
Ch. LEXIS 48 (Del. Ch. Feb. 13, 2018).
In light of the absence of any novel or complex issues on appeal from a
decision of the Delaware Industrial Accident Board, a request for
attorneys’ fees was excessive (failing to justify a contingency multiplier).
McCabe v. Bayside Roofing, Inc., — A.3d —, 2018 Del. Super. LEXIS 76
(Del. Super. Ct. Feb. 13, 2018).
Plaintiff’s counsel’s fees of $41,110 were reasonable, even though
plaintiff’s counsel spent 11 more hours working on the case than
defendant’s counsel, because: (1) plaintiff’s counsel had to review and
respond to defendant’s affirmative defenses; (2) plaintiff showed that the
services its attorneys rendered were thought prudent and appropriate at the
time, in the good faith professional judgment of counsel; and (3)
plaintiff’s counsel successfully secured a $1,000,000 award and charged
less than 5% of that sum to do so. Bellmoff v. Integra Servs. Techs., —
A.3d —, 2018 Del. Super. LEXIS 273 (Del. Super. Ct. June 22, 2018).
In response to competing motions for attorney fees and costs, the court
held that shifting fees was inequitable and unwarranted in favor of any
party because no bad faith existed; under Law Prof. Conduct R. 1.5(a),
plaintiffs were entitled to fees and costs in the amount of $681,835 in light
of the fees expended by them and the amount recovered. Brace Indus.
Contr. v. Peterson Enters., — A.3d —, 2018 Del. Ch. LEXIS 567 (Del. Ch.
Dec. 12, 2018), aff’d in part, rev’d, 224 A.3d 574 (Del. 2020).
Plaintiffs’ request for $3,022 in fees, in connection with their motion
for evidentiary relief, was reasonable given the Delaware legal market, the
proximity of the motion to an important trial and the fact that the outcome
of the motion would likely impact plaintiffs’ pretrial briefing strategy.
Greenstar IH Rep, LLC v. Tutor Perini Corp., — A.3d —, 2019 Del. Ch.
LEXIS 1379 (Del. Ch. Dec. 4, 2019)
iffs’ request for $3,022 in fees, in connection with their motion
for evidentiary relief, was reasonable given the Delaware legal market, the
proximity of the motion to an important trial and the fact that the outcome
of the motion would likely impact plaintiffs’ pretrial briefing strategy.
Greenstar IH Rep, LLC v. Tutor Perini Corp., — A.3d —, 2019 Del. Ch.
LEXIS 1379 (Del. Ch. Dec. 4, 2019).
On plaintiff’s action for advancement of fees and expenses, the fees
invoiced by plaintiff’s counsel were reasonable because: (1) the hourly
rate charged by counsel was reasonable; (2) there was no suggestion that
any amount invoiced failed to reflect legal services actually performed;
(3) the amounts were reasonable in light of the damages pled by defendant
in the substantive breach of loyalty action; and (4) the controversy was of
great concern to the plaintiff, given that defendant had framed a complaint
putting plaintiff in legal jeopardy for millions of dollars. Day v. Diligence,
Inc., — A.3d —, 2020 Del. Ch. LEXIS 184 (Del. Ch. May 15, 2020).
In an action by an insured for declaratory relief against insurance
companies for alleged breach of director and officer liability policies
arising from a failure to defend the insured in an underlying suit, the court
granted the insured’s motion to recover costs and fees expended in that
underlying action; the insured was to submit mostly unredacted historic
invoices because attorneys’ fees and other expenses submitted for
advancement must be reasonable, as governed by the factors set out in the
Rules of Professional Conduct. Ferrellgas Partners L.P. v. Zurich Am. Ins.
Co., — A.3d —, 2020 Del. Super. LEXIS 2745 (Del. Super. Ct. Aug. 20,
2020).
osts and fees expended in that
underlying action; the insured was to submit mostly unredacted historic
invoices because attorneys’ fees and other expenses submitted for
advancement must be reasonable, as governed by the factors set out in the
Rules of Professional Conduct. Ferrellgas Partners L.P. v. Zurich Am. Ins.
Co., — A.3d —, 2020 Del. Super. LEXIS 2745 (Del. Super. Ct. Aug. 20,
2020).
Following a determination by the Industrial Accident Board (IAB) that
an estate representative was entitled to compensation for the decedent’s
mesothelioma, the representative was entitled to attorney fees because the
estate’s position in the hearing before the IAB was affirmed on appeal; the
court awarded the claimant $31,530 in fees based on the relevant General
Motors Corporation v. Cox, 304 A.2d 55, 57 (Del. 1973) factors, including
consideration of the fact that the underlying appeal involved novel issues
of first impression requiring considerable time and labor, the experience
of claimant’s legal team and that customary rates for the legal services
provided in this case were considerably lower than the rates requested.
Weddle v. BP Amoco Chem. Co., — A.3d —, 2020 Del. Super. LEXIS
2756 (Del. Super. Ct. Aug. 26, 2020).
Defendants’ requested fee award was prima facie reasonable because
the litigation, which concerned ownership of a media conglomerate worth
$27.3 million, was complex, contentious and time-consuming. the litigation
was also expedited, meaning it incurred more substantial attorneys’ fees
than litigation proceeding at the customary pace. Lynch v. Gonzalez, —
A.3d —, 2020 Del. Ch. LEXIS 292 (Del. Ch. Sept. 18, 2020)
d fee award was prima facie reasonable because
the litigation, which concerned ownership of a media conglomerate worth
$27.3 million, was complex, contentious and time-consuming. the litigation
was also expedited, meaning it incurred more substantial attorneys’ fees
than litigation proceeding at the customary pace. Lynch v. Gonzalez, —
A.3d —, 2020 Del. Ch. LEXIS 292 (Del. Ch. Sept. 18, 2020).
Director and shareholder were entitled to recover legal fees and costs
incurred in underlying litigation with a corporation because: (1)
advancement was warranted under the indemnification agreement; (2) the
legal expenses were reasonable where it was logical to retain Delaware
counsel to defend an action in which Delaware law is at issue; (3) even if
the director and shareholder were never served in the underlying New York
action, it was reasonable to retain representation due to the threat of
litigation (that threat also being a trigger to the advancement right); and
(4) the filing of particular motions or the achievement of certain litigation
milestones were not the only possible triggers of the right to advancement.
Seiff v. Tokenize Inc., — A.3d —, 2020 Del. Ch. LEXIS 342 (Del. Ch. Nov.
19, 2020).
Claimant was entitled to an award of attorneys’ fees because although
the compensation owed to the claimant had not yet been determined by the
Industrial Accident Board, the claimant’s counsel obtained a favorable
result for the claimant; counsel had shown that the rate charged was
commensurate with those customarily charged in Delaware workers’
compensation cases, as well as properly reflective of counsel’s experience,
ward of attorneys’ fees because although
the compensation owed to the claimant had not yet been determined by the
Industrial Accident Board, the claimant’s counsel obtained a favorable
result for the claimant; counsel had shown that the rate charged was
commensurate with those customarily charged in Delaware workers’
compensation cases, as well as properly reflective of counsel’s experience,
reputation and ability. Foraker v. Amazon.com, Inc., — A.3d —, 2021 Del.
Super. LEXIS 30 (Del. Super. Ct. Jan. 12, 2021).
Trial court awarded attorneys’ fees to a limited liability company (LLC)
in a dispute involving contractual and tort claims because the parties’
license agreement provided for an award of attorneys’ fees to the LLC as
the reasonably prevailing party on all contractual claims; although the
LLC failed to segregate noncompensable hours, the court considered that
the case lacked novelty, that the litigation prevented the attorneys from
working on other remunerative work, that the fee was not contingent and
that the hourly fee was reasonable. Optical Air Data Sys., LLC v. L-3
Communs. Corp., — A.3d —, 2021 Del. Super. LEXIS 113 (Del. Super. Ct.
Feb. 8, 2021).
In an action by a condominium owner against a condominium
association that retaliated against the owner by publicizing the owner’s
appeal from a fine, the owner was entitled to recover litigation expenses
pursuant to the Delaware Uniform Common Interest Ownership Act
(“DUCIOA,” 25 Del. C. § 81-101 et seq.) because: (1) the association’s
declarations of covenants, conditions and restrictions did not conflict with
the DUCIOA enforcement provision; (2) the owner established that the
association breached both the declaration and DUCIOA; (3) fees were
warranted due to the owner having been adversely affected by actions of
the association; (4) it was an appropriate case for expense shifting under
DUCIOA; and (5) the court considered reasonableness factors set out in
this rule. Bragdon v. Bayshore Prop
ith
the DUCIOA enforcement provision; (2) the owner established that the
association breached both the declaration and DUCIOA; (3) fees were
warranted due to the owner having been adversely affected by actions of
the association; (4) it was an appropriate case for expense shifting under
DUCIOA; and (5) the court considered reasonableness factors set out in
this rule. Bragdon v. Bayshore Prop. Owners Ass’n, 251 A.3d 661 (Del. Ch.
2021).
In a condominium association’s action alleging defendant failed to pay
liens and assessments against defendant and defendant’s townhouse unit,
an award of attorneys’ fees to the association in the amount of $34,307
was proper because: (1) the primary reason for the fees was the litigation
strategy adopted by the defendant; (2) the record was replete with
opportunities to end the litigation and mitigate liability for attorneys’ fees;
and (3) defendant eventually did what could have been done much earlier
by paying the assessments. Linden Green Condo. Ass’n v. Larkin, — A.3d
—, 2022 Del. Super. LEXIS 130 (Del. Super. Ct. Mar. 31, 2022).
— Retainer.
Attorney’s acceptance of a $1,000.00 retainer, without providing the
client with a written explanation of fees, was in violation of subsection (f)
of this rule. In re Becker, 788 A.2d 527 (Del. 2001).
Attorney violated Law. R. Prof. Conduct 1.5(f) by: (1) failing to provide
a client with a written statement that a $1,500 advance fee was refundable
(if not earned) and stating the basis under which the fees would be
considered to have been earned, whether in whole or in part; and (2) by
failing to deposit, account for and retain the $1,500 in a client trust account
as fees were earned. In re Pankowski, 947 A.2d 1122 (Del. 2007).
Attorney did not violate Law. Prof. Conduct R
ith a written statement that a $1,500 advance fee was refundable
(if not earned) and stating the basis under which the fees would be
considered to have been earned, whether in whole or in part; and (2) by
failing to deposit, account for and retain the $1,500 in a client trust account
as fees were earned. In re Pankowski, 947 A.2d 1122 (Del. 2007).
Attorney did not violate Law. Prof. Conduct R. 1.5 where a retainer was
deposited originally into a trust account and not into an operating account;
because no fees were claimed to have been earned at the time the retainer
was deposited, a written statement of the fees earned was not required. In
re Sisk, 54 A.3d 257 (Del. 2012).
Attorney violated various disciplinary rules because the results of an
audit showed the attorney’s failure to adequately maintain books and
records, to safeguard client funds or to indicate in the retainer that
unearned fees were refundable. In re A Member of the Bar of the Supreme
Court of Delaware: Fred Bar, 99 A.3d 639 (Del. 2013), cert. denied, 573
U.S. 916, 134 S. Ct. 2822, 189 L. Ed. 2d 785 (U.S. 2014).
— Standard of review.
For the court, 1 of the most important factors in reviewing and awarding
attorneys’ fees is if the attorneys cannot take on other work because of the
requirements of the case for which fees are sought. Cuppels v. Mountaire
Corp., — A.3d —, 2021 Del. Super. LEXIS 292 (Del. Super. Ct. Apr. 12,
2021).
Sanctions.
— Reprimand.
For the violation of both Rule 1.4(b) and subdivision (e)(1) of this Rule,
the appropriate sanction to be imposed is a public reprimand. In re Berl,
560 A.2d 1009 (Del. 1989).
When respondent violated Law. Prof. Conduct R. 1.5(f), 1.15(a) and (d),
8.4(c) and (d) by failing to properly maintain law firm’s books and records
LEXIS 292 (Del. Super. Ct. Apr. 12,
2021).
Sanctions.
— Reprimand.
For the violation of both Rule 1.4(b) and subdivision (e)(1) of this Rule,
the appropriate sanction to be imposed is a public reprimand. In re Berl,
560 A.2d 1009 (Del. 1989).
When respondent violated Law. Prof. Conduct R. 1.5(f), 1.15(a) and (d),
8.4(c) and (d) by failing to properly maintain law firm’s books and records
for 3 consecutive years, filing inaccurate certificates of compliance for 3
consecutive years, and failing to give flat fee clients proper notice that the
fee was refundable if not earned, a public reprimand with a 2-year period
of probation was appropriate; this was true, even considering the
mitigating factors, given a lawyer’s obligation to maintain orderly books
and records. In re Castro, 160 A.3d 1134 (Del. 2017).
— Suspension.
Where a lawyer engaged in a pattern of knowing misconduct over a
period of several years by commingling client funds, failing to maintain
the lawyer’s law practice accounts, failing to pay taxes, falsely representing
on certificates of compliance that the lawyer complied with the record-
keeping requirements and paid taxes, the lawyer violated Del. Law. R.
Prof. Conduct 1.5(f), 1.15(a), (b), (d), 8.4(b), (c), (d); as a result, the lawyer
was suspended for 3 years. In re Garrett, 835 A.2d 514 (Del. 2003).
Attorney whose multiple federal actions for assorted clients were
dismissed due to failure to respond to dismissal or summary judgment
motions violated Law. R. Prof. Conduct 1.1, 1.3, 1.4, 1.5, and 8.4,
warranting a 2-year suspension from the practice of law, with conditions
where: (1) the attorney had an unblemished record; (2) the attorney had
undergone 2 eye surgeries; (3) the attorney had suffered the loss of a half-
sibling; but (4) the conduct was deemed “knowing” and evidenced
engagement in a pattern of misconduct. In re Feuerhake, 998 A.2d 850
(Del. 2010)
.1, 1.3, 1.4, 1.5, and 8.4,
warranting a 2-year suspension from the practice of law, with conditions
where: (1) the attorney had an unblemished record; (2) the attorney had
undergone 2 eye surgeries; (3) the attorney had suffered the loss of a half-
sibling; but (4) the conduct was deemed “knowing” and evidenced
engagement in a pattern of misconduct. In re Feuerhake, 998 A.2d 850
(Del. 2010).
There was substantial evidence to support the factual findings and
conclusions of law of the Board on Professional Responsibility regarding
an attorney’s violations of Law Prof. Conduct R. 1.5(f), 1.15(a) and (b),
and 8.4(c), based on the attorney’s misappropriation of clients’ fees on
various occasions, and the attorney’s failure to include the typical refund
provision regarding unearned fees in the retainer agreements for other
clients; a 1-year suspension was warranted. In re Vanderslice, 55 A.3d 322
(Del. 2012).
Attorney who committed numerous ethical violations, including
neglecting multiple client matters, making misrepresentations to the court
and failing to properly safeguard clients’ funds, was suspended for 18
months, based on a determination that the mitigating factors significantly
outweighed the aggravating factors. In re Carucci, 132 A.3d 1161 (Del.
2016).
Del. Rules of Prof'l Conduct Rule 1.6
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.