Lawyers fighting clients. About virtually nothing. Never a good look, and usually someone comes out very much on the short end of the stick. Interestingly, here, at various times, both sides were on the short end. But in the end, it's the lawyer who ends up very much wishing that the thing had been resolved in a more informal matter.
It's a totally tiny underlying dispute. Client T hires Attorney S to do some minor legal work. Seriously minor. As of October 2013, S says that the total fees due are $7,211. T doesn't want to pay for some of that work, which he says was unauthorized, so ends up paying $3,531.
So there's a difference of three grand and change. No big deal, right? Just write it off, or resolve it, or whatever.
But no. Client T files for fee arbitration, disputing the remaining $3,720 that the parties can't agree on. Again: Just resolve the thing. But no. The matter gets arbitrated. Ultimately resulting in an award to the attorney (S) of a whopping . . . $2.50.
But S isn't happy with that award. So instead of just moving on, files a lawsuit for the $3,580 in fees, plus twenty some thousand in "collection expenses" (presumably the fees expended in arbitration and the like). Client T responds by saying that the lawsuit -- which was filed 33 days after the arbitration award -- was too late, and wants the $2.50 award confirmed. But the trial court says that the suit was filed timely and awards the attorney $2,890 of the $3,580 requested.
But then there's the matter of fees. Attorney S then asks for over a quarter million dollars (!) in fees for the $2,890 award. The trial court slices that down a ton, to roughly $80,000. Still, a ton of money for a $3,000 award.
At which point Client T appeals, and wins, with the Court of Appeal holding that the lawsuit was indeed filed too late.
So now, on remand, everyone moves for a (relatively) absurd amount of fees. Attorney S now asks for over half a million ($543,365) in fees for this $3,000 dispute, claiming that he's the prevailing party given the $2.50 arbitration award he won. Whereas Client T in turn asks for over a third of a million dollars in fees ($339,603) for this $3,000 dispute, claiming that S didn't do better than the arbitration award, hence is liable for fees. The trial court agrees with T, and awards nearly everything requested; $328,166.50 in fees.
Again, over a $3,000 attorney-client fee dispute.
Today, the Court of Appeal affirms. As well as awards T costs on appeal. Which means yet additional fees to be awarded on remand.
I'm going to say it one last time: All as a result of a $3,000 fee dispute.
I think we can all agree that the world would have been better off had this minor dispute been resolved informally long ago.
