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Rivertown Development Group v. West Congress Street Partners
330728
| Mich. Ct. App. | Sep 14, 2017
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Background

  • Lawrence R. Walker, PC (petitioner) represented West Congress Street Partners, LLC (defendant) in a landlord-tenant suit and later sought to withdraw; the court permitted withdrawal and recognized petitioner’s charging lien for $35,094.14.
  • After petitioner withdrew, the underlying dispute settled via case evaluation awarding defendant $125,000.
  • Petitioner moved to enforce his charging lien against the settlement proceeds for unpaid fees and costs; defendant contested and requested an evidentiary hearing.
  • At a two-day hearing the trial court admitted petitioner’s billing statement, heard testimony, and concluded petitioner reasonably expended 167 hours at the agreed $300/hour rate plus $2,833.62 in expenses.
  • The court found prior payments totaled $34,044.14, deducted that from fees and expenses, and awarded petitioner $18,889.62 on the charging lien.
  • Petitioner appealed, arguing (1) the court miscalculated prior payments (claimed actual payments were $30,155) and (2) the court abused discretion by reducing billable hours from 217 to 167.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the trial court erred in treating $34,044.14 as prior payments Petitioner: billing "account receivable" math shows only $30,155 was paid; $34,044.14 was amount due, not paid Defendant: parties (including petitioner at hearing) treated $34,044.14 as payments; record supported that figure Court: No error — petitioner agreed at hearing to $34,000 figure and cannot now claim error he contributed to; affirmed
Whether the trial court abused discretion by reducing compensable hours from 217 to 167 Petitioner: trial court relied improperly on client testimony and reduced hours without justification Defendant: trial court considered billing, testimony, and its own knowledge; excluded excessive or unnecessary hours Court: No abuse — trial court reasonably evaluated entries and excluded excessive/redundant time; 167 hours within range of principled outcomes

Key Cases Cited

  • Reynolds v. Polen, 222 Mich. App. 20 (attorney discharged remains entitled to payment for services rendered)
  • George v. Sandor M. Gelman, P.C., 201 Mich. App. 474 (charging lien is equitable right to secure fees from recovery)
  • Souden v. Souden, 303 Mich. App. 406 (review of charging-lien fee awards is for abuse of discretion)
  • Pirgu v. United Servs. Auto Ass’n, 499 Mich. 269 (fee reasonableness: determine local reasonable hourly rate and multiply by reasonable hours)
  • Smith v. Khouri, 481 Mich. 519 (trial courts should exclude excessive, redundant, or unnecessary hours)
Read the full case

Case Details

Case Name: Rivertown Development Group v. West Congress Street Partners
Court Name: Michigan Court of Appeals
Date Published: Sep 14, 2017
Docket Number: 330728
Court Abbreviation: Mich. Ct. App.