delivered the opinion of the court:
The appellant in this case, D’Ancona & Pflaum, L.L.C., (D’Ancona & Pflaum), is a law firm that represented plaintiffs, D. Stephen Guerrant and Marcia Guerrant (the Guerrants), in the underlying litigation from March 1986 through September 2000. D’Ancona & Pflaum appeals from an order of the trial court finding that D’Ancona & Pflaum was entitled to recover only $2,940.92 for its costs and expenses 1 out of the $20,704.91 that it had claimed as costs and expenses. In this appeal, D’Ancona & Pflaum seeks the following expenditures denied by the trial court: computer-assisted legal research charges of $10,348.45 (Westlaw) and $443.83 (LEXIS), photocopy charges of $2,028.61, one court reporter bill in the amount of $100, telephone toll charges of $57.50, and cab fare of $15. 2 The primaiy issue in this appeal is whether the expenditures denied by the trial court were recoverable pursuant to the terms of the parties’ written contingent fee agreement.
Background
On March 8, 1996, D’Ancona & Pflaum commenced the underlying litigation when the firm filed a complaint on behalf of the Guerrants in the circuit court of Cook County against Vincent & Roth, PC., an Illinois law firm, and McCoy Real Estate Services, Inc., an Illinois real estate brokerage firm, alleging professional malpractice relating to a real estate claim. 3 D’Ancona & Pflaum, however, did not execute a written agreement with the Guerrants until June 25, 1999. At that time, Mr. Dean Dickie was the lead attorney in the underlying litigation. D’Ancona & Pflaum prosecuted the Guerrants’ case from 1996 through June 2000. Mr. Dickie, whose membership with D’Ancona & Pflaum was terminated effective June 30, 2000, took the Guerrants’ case with him when he left the firm. He formally substituted as counsel on September 25, 2000. A jury trial on the underlying litigation commenced in November 2000 during which time the case settled for $210,000. As a result of settlement, the trial court entered an order on November 29, 2000, dismissing the case with prejudice. The defendants in the underlying litigation subsequently refused to tender the settlement amount pending the resolution of this dispute that arose between the Guerrants and D’Ancona & Pflaum regarding an attorneys’ lien asserted by D’Ancona & Pflaum.
On February 7, 2001, the trial court entered an agreed order whereby it directed the Guerrants to pay D’Ancona & Pflaum $45,454.50 for the professional services rendered, pursuant to the written contingent fee agreement. 4 However, the amount of $20,704.91 for costs and expenses remained in dispute between D’Ancona & Pflaum and the Guerrants. Because the remainder of the disputed sum had dipped below the $30,000 minimum required for law division jurisdiction, the trial court transferred the case to the municipal division, where it was assigned to Judge Robert E. Gordon for further proceedings. 5
On October 10, 2001, a trial commenced before Judge Gordon. Mr. Dickie represented the Guerrants. After D’Ancona & Pflaum presented its case, Judge Gordon terminated the trial proceedings, called the attorneys into his chambers and rendered his decision. He allowed reimbursement of certain expenditures as set out in some of the trial exhibits. Judge Gordon allowed reimbursement for the entirety of travel expenses of $954.80, but denied cab fare of $15. Judge Gordon denied the remaining expenditures for computer-assisted research, photocopying and telephone charges because they were not expressly provided for in the contingent fee agreement. The basis of the trial court’s denial of the remaining expenditure of $100 for one court reporter bill is unclear.
Standard of Review
The parties here disagree on the standard of review that this court should apply. Generally, a trial court’s decision to award attorney fees is not reversed absent an abuse of discretion. Pietrzyk v. Oak Lawn Pavilion, Inc.,
Analysis
It is well settled that, when interpreting a contract, a court “should ascertain the intent of the parties and give effect to that intent.” Eiehengreen v. Rollins, Inc.,
“3. As compensation for professional services rendered, the Guerrants agree to pay the Firm a fee equal to one-third of the total amount of any settlement or judgment in favor of the Guerrants.
4. In addition to the fee specified in Paragraph 3 above the Guerrants agree to pay promptly all customary costs and reasonable out-of-pocket expenses incurred by the Firm in its pursuit of the claims covered by this Agreement. These expenses include court reporting services, expert witness fees, reasonable travel expenses, if any, fees paid to trial witnesses and the cost to create demonstrative trial exhibits. At the firm’s request the Guerrants agree to pay vendors directly for goods and services provided pursuant to this paragraph.” (Emphasis added.)
Both parties assert that the language of the contingent fee agreement is “clear and unambiguous.” Nevertheless, each party offers a different interpretation of its meaning. Although a contract is not “ambiguous” merely because the parties disagree as to its meaning, a contract will be deemed ambiguous if its language is susceptible to more than one reasonable interpretation. Owens v. McDermott, Will & Emery,
The Guerrants’ position is that the use of the word “include” in paragraph four of the parties’ agreement should be interpreted as “include only.” Under this interpretation, the word “include” is a term of limitation where that which follows is an exclusive list of expenses that cannot be expanded. D’Ancona & Pflaum asserts that the word “include” in paragraph four is a term of expansion used merely to preface illustrative examples and that what follows is a nonexclusive list of expenses that may be added to, such that the word “include” must be interpreted as “include, but are not limited to.” Had the contract expressly contained either the phrase “include only” or “include, but are not limited to,” the agreement would be unambiguous.
It has been recognized before by this court, in a contract situation, that the word “includes” may be susceptible to competing reasonable interpretations. Pekin Insurance Co. v. Benson,
In Pekin, this court was interpreting an insurance policy. Illinois law governing the construction of insurance contracts dictates that ambiguous policy terms must be construed in favor of the policyholder. Outboard Marine Corp. v. Liberty Mutual Insurance Co.,
In the context of a disciplinary proceeding, the Illinois Supreme Court concluded that a hearing panel had properly found that the terms of a contingent fee agreement did not entitle an attorney to a fee. In re Teichner,
“Given the fact that the unquestioned, routine payment here does not come within the normal definitions of a settlement, and did not result from a judgment, and that ambiguities are to be construed against the drafter [citations], we cannot disagree with the panel’s finding that the terms of the [contingent fee] contract do not entitle respondent to a fee.” (Emphasis added.) In re Teichner,104 Ill. 2d at 160 ,470 N.E.2d at 977 .
There is authority in other jurisdictions that obscurities or ambiguities in contingent fee agreements between an attorney and a client should be construed against the attorney as the drafter of the agreement. See, e.g., Grace & Nino, Inc. v. Orlando,
In Shaw, the court stated that “courts as a matter of public policy give particular scrutiny to fee arrangements between attorneys and clients, casting the burden on attorneys who have drafted the retainer agreements to show that the contracts are fair, reasonable, and fully known and understood by their clients.” (Emphasis added.) Shaw,
In Cohen, a New Jersey court, quoting Restatement of Law Governing Lawyers § 29A comment h (Proposed Final Draft No. 1, 1996), explained the reasons for construing agreements between lawyers and clients against the lawyer as follows:
“ ‘Three reasons support this rule. First, lawyers almost always write such agreements ... and an agreement traditionally is interpreted against its author. Second, lawyers are more able than most clients to detect and repair omissions in client-lawyer agreements. Third, lawyers have a fiduciary obligation to inform clients about the risks of the representation, including those unresolved by the client-lawyer agreement.’ ” Cohen,146 N.J. at 156 ,679 A.2d at 1196 .
In Untiedt, the Minnesota Court of Appeals noted that the application of the rule that an ambiguous agreement should be construed against the drafter is particularly appropriate when interpreting a contingent fee agreement. An earlier Minnesota case had also recognized the principle of construing ambiguous contingent fee agreements against their drafters, but had relied on the attorney’s sophistication and fiduciary status as the reason to favor an interpretation that comports with the client’s expectations. Cardenas v. Ramsey County, 322 N.W2d 191, 193-94 (Minn. 1982).
With respect to contingent fee agreements, because attorneys and their clients generally do not have equal bargaining power, clients consequently need protection from the courts. Contingent fee agreements between an attorney and client are subject to certain requirements, as well as a court’s supervision. Thus, courts have the inherent power to supervise contingent fee agreements. See, e.g., In re Doyle,
We first address D’Ancona & Pflaum’s request for reimbursement of computer-assisted legal research, which calls for a different analysis from that of the other claimed expenses. Although D’Ancona & Pflaum argues that the expenditures for this research are reimbursable pursuant to paragraph four of the contingent fee agreement, which covers “costs” and “expenses,” the Guerrants contend that computer-assisted legal research is included in the attorney’s fee for legal services, particularly where, as here, the agreement contains no express provision for the payment of computer-generated legal research charges. We agree.
Attorney fees are an attorney’s compensation for professional services rendered. In the present case, paragraph three of the written contingent fee agreement provided for the compensation for professional services rendered. Thus, paragraph three of the contingent fee agreement here, and not paragraph four, covers attorney fees, including computer-assisted legal research. As compensation for professional services rendered, the Guerrants agreed to pay a fee equal to one-third of the total amount of any settlement or judgment in their favor. Contractual provisions for attorney fees are strictly construed, and fees cannot be recovered for any services unless they are provided for by the specific terms. Wheeling Trust & Savings Bank v. Citizens National Bank of Downers Grove,
This court has briefly addressed the issue of reimbursement for computer-assisted legal research, but it was not in the context of a contingent fee agreement. In Kaiser v. MEPC American Properties, Inc.,
More recently, federal courts in Illinois have more thoroughly addressed the issue of reimbursement of computer-assisted legal research charges. See, e.g., Montgomery v. Aetna Plywood, Inc.,
D’Ancona & Pflaum has already been compensated for its attorney fees, as provided for under paragraph three of the parties’ agreement. Similar to most contingent fee agreements, the parties’ agreement used a percentage-of-recovery method, i.e., one-third of the total of any settlement or judgment. As the Seventh Circuit recently explained, when a court uses a percentage-of-recovery method of calculating attorney fees, computer-assisted legal research charges are simply subsumed in the award of attorney fees. Montgomery,
We hold, therefore, that the computer-assisted legal research expenses are a form of attorney fees and are not separately recoverable as a cost or expense pursuant to the parties’ contingent fee agreement. We express no opinion, however, as to whether computer-assisted legal research expenses are ever separately recoverable in a contingent fee agreement. See, e.g., Louisiana State Bar Ass’n v. Edwins,
We next consider the remaining expenses, which include photocopy charges, telephone toll charges, cab fare and a court reporter charge. Because we are construing the contingent fee agreement against D’Ancona & Pflaum, we conclude that the expenditures for photocopy charges and telephone toll charges were properly denied by the trial court because they were not expressly provided for in paragraph four of the contingent fee agreement. 6
Further support for our construing ambiguities regarding recoverable expenses against D’Ancona & Pflaum comes from Rule 1.5(c) of the Illinois Rules of Professional Conduct, which governs contingent fee agreements, and states as follows:
“A contingent fee agreement shall be in writing 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.” (Emphasis added.) 134 Ill. 2d R. 1.5(c).
The Illinois Supreme Court has explained that the writing requirement of Rule 1.5(c) is mandatory and contains no exception. In re Spak,
“A client in such a situation may be left with the unenviable choice of agreeing with his attorney’s recollection of the fee agreement, or delaying receipt of his money pending resolution of a fee dispute. The inequality of bargaining power between the attorney and client in such a case is readily apparent. ’ ’ (Emphasis added.) In re Spak,188 Ill. 2d at 67 ,719 N.E.2d at 754-55 .
We are now faced here with precisely the kind of dispute Rule 1.5 was designed to prevent. Although the court in Spak was focusing on the requirement that an attorney put the contingent fee agreement in writing in the first instance, the principle of preventing a fee dispute is just as relevant to the requirement that in a contingent fee agreement an attorney state with clarity those expenses the client will be responsible for.
Paragraph four of the written contingent fee agreement refers to “customary costs and reasonable out-of-pocket expenses.” (Emphasis added.) The agreement does not define “costs” or “customary costs.”
7
D’Ancona and Pflaum does not distinguish costs from expenses, nor address the fact that “costs” is qualified by the adjective “customary” and “expenses” is qualified by the adjective “reasonable.” In J.B. Esker & Sons, Inc. v. Cle-Pa’s Partnership,
As part of its analysis, the J.B. Esker court, citing portions of Corpus Juris Secundum (C.J.S.), discussed the term “expenses” and reimbursement for them in the context of fee agreements between attorneys and their clients. The court noted as follows:
“[C.J.S.] uses the term, ‘expenses’ when explaining the reimbursement to which an attorney is entitled: ‘Reimbursement for Expenses [ — Jin the absence of a contract or custom to the contrary, the attorney may recover disbursements made by him which were usual and reasonably necessary to carry out his employment.’ 7A C.J.S. Attorney & Client § 298, at 558 (1980). The employment of an attorney gives the attorney the implied authority to bind the client for the payment of the fees of expert witnesses as a part of the expenses and services properly and reasonably incurred in conducting the case. 7A C.J.S. Attorney & Client § 212 (1980). A client entering into a contract whereby he agreed to pay for ‘expenses’ would, therefore, be obligated to pay the fees of an expert witness if the witness was usual and reasonably necessary to carry out the litigation.” (Emphasis added.) J.B. Esker,325 Ill. App. 3d 276 , 286,757 N.E.2d 1271 , 1280 (2001).
We first note that this passage was mere dicta. Moreover, the court in J.B. Esker was not construing an ambiguous contingent fee agreement between a law firm and a client where, as here, the agreement specifically listed expenses that were in addition to the customary costs and attorney compensation.
Interestingly, section 298 of volume 7A of C.J.S. specifically discusses expenses in the context of a contingent fee agreement as follows:
“Where an attorney’s retainer agreement entitles him to a percentage of the recovery, but makes no provision regarding disbursements, he is entitled to all proper disbursements in addition to the fee, since the law implies a promise by the client to repay expenses in addition to what was promised in the retainer agreement.” 7A C.J.S. Attorney & Client § 298 (1980).
Although this language lends even more support to D’Ancona & Pflaum’s position, we find no support for this principle under Illinois law. In fact, this principle of an implied promise is in direct conflict with the requirement in Rule 1.5(c) of the Illinois Rules of Professional Conduct that a contingent fee agreement shall be in writing and state “litigation and other expenses to be deducted from the recovery.” 134 Ill. 2d R. 1.5(c). Although these mandatory requirements refer to an attorney’s professional duties, we nonetheless conclude that, under Illinois law, there can be no resort to the “implied promise” discussed by C.J.S.
We conclude, as did the trial court, that the only “expenses” that were recoverable under the terms of the contingent fee agreement were “court reporting services, expert witness fees, reasonable travel expenses, if any, fees paid to trial witnesses and the cost to create demonstrative trial exhibits,” which were expressly listed in paragraph four. Therefore, the trial court properly denied D’Ancona & Pflaum’s request for reimbursement of telephone toll charges of $57.50 and photocopy charges of $2,028.61. In view of our conclusion, we need not address the Guerrants’ contention that, pursuant to Kaiser, photocopy charges are general overhead office expenses that are incorporated into the hourly attorney fee charged to the client and, accordingly, cannot be separately itemized and charged as costs in an action for attorney fees. Kaiser,
We now address the remaining charges for cab fare and a court reporter bill. Since paragraph four specifically listed reasonable travel expenses and court reporting services as expenses the Guerrants were responsible for, these expenses shall be addressed separately. The transcript of the hearing below shows that the basis for denial of the cab fare, unlike the other expenses, was the trial court’s exercise of discretion and a determination that the expenditure was not reasonable. Thus, we review the decision as to these expenses using the previously mentioned abuse of discretion standard. Pietrzyk v. Oak Lawn Pavilion, Inc.,
The trial judge found that “the fact that counsel was pregnant and she needed a cab does not mean that the client has to pay for the cab.” D’Ancona & Pflaum has not addressed this particular expense in its brief. Thus, it has failed to meet its burden of showing why the trial court’s decision regarding reimbursement for the cab fare was incorrect. Moreover, D’Ancona & Pflaum has not specifically addressed the trial court’s decision regarding the court reporter fee of $100. As to D’Ancona & Pflaum’s contentions regarding the trial court’s purported mathematical errors, the record indicates that the issue was not raised below by either party to afford the trial court the opportunity to correct any purported mathematical errors in calculations. We have previously held that because the determination of reasonable attorney fees rests in the sound discretion of the trial court, “[e]ven where the trial court has, in its calculations, included improper fees or excluded recoverable fees, this court will not disturb the judgment unless ‘the total fees and costs awarded *** was [so excessive or] so inadequate as to amount to a clear abuse of discretion by the court.’ [Citation.]” Sampson v. Miglin,
For the foregoing reasons, we affirm the judgment of the circuit court of Cook County.
Affirmed.
O’BRIEN, EJ., and O’MARA FROSSARD, J., concur.
Notes
In addition to this amount, the trial court awarded D’Ancona & Pflaum $45,454.50 as compensation for professional services rendered pursuant to a contingent fee agreement. The parties are not disputing the $45,454.50 portion of the award.
D’Ancona & Pflaum asserts also that the trial court apparently made mathematical errors and further notes that D’Ancona & Pflaum is now abandoning some of its claims for reimbursement, including those expenditures for which the firm was unable to locate backup records.
The underlying litigation involved approximately 270 acres of farm property owned by the Guerrants in Scales Mound, Illinois. The Guerrants retained the defendants to assist them in subdividing and selling the real estate. The Guerrants alleged that the value of the real estate was adversely affected when the Guerrants’ attempt to subdivide and sell the real estate failed as a result of defendants’ professional negligence.
The figure of $45,454.50 represented D’Ancona & Pflaum’s share (65%) of the one-third contingent fee in the underlying litigation.
The trial court entered orders whereby the amount of $20,704.91 was deposited in escrow with the clerk of the circuit court and the remainder of the settlement proceeds was distributed.
We note that even if the previously discussed computer-assisted legal research charges were not attorney fees but instead were “expenses” as they are characterized by D’Ancona & Pflaum, another basis for why they are not recoverable is that these charges were not expressly provided for anywhere in the contingent fee agreement.
We believe that the term “customary” costs, as used here without any definition means court costs such as process server fees and filing fees customarily charged by the court.
