White v. DaimlerChrysler Corp., ___ N.Y.S.2d ___, 57 A.D.3d 531, 2008 WL 5101637 (N.Y.A.D. 2 Dept. 2008)

Brief Summary
The court may reduce a contingent fee for the representation of infants. In doing so, the court will determine suitable compensation for the attorney in light of all facts and circumstances.

Complete Summary
Lawyer Kerry E. Connolly sued, among others, DaimlerChrysler (“Daimler”) on behalf of five infant passengers who were injured in a car accident. Connolly, in her retainer agreement, contracted for a one-third contingent fee. When the parties settled, Connolly moved the trial court to approve the settlement and award her fee. The court approved the settlement but reduced Connolly’s award to one-fourth of the net amount. Connolly appealed.

The appellate court affirmed the fee reduction. The court applied New York Judiciary Law §474, which calls for the court to assess suitable compensation for attorneys who represent infants. In assessing suitable compensation, the statute compels courts to determine the value of the attorney’s services. Further, case precedent implies that this determination shall be done in light of all facts and circumstances.

The court noted Connolly “handled the case with skill, diligence, and expertise.[]” Id. at *3. But the court held the fee reduction appropriate because, while the amount recovered was commensurate with the number of plaintiffs, the amount of effort Connolly expended was not. Much of Connolly’s work, the court noted, pertained to issues that were common to all the plaintiffs, such as causation and liability. The court further noted that Connolly’s requested one-third contingent fee was near the upper limit of what court rules deemed reasonable.

Significance of Opinion
This opinion gives the court broad discretion in determining suitable compensation for attorneys who represent infants.

This alert has been prepared by Hinshaw & Culbertson LLP to provide information on recent legal developments of interest to our readers. It is not intended to provide legal advice for a specific situation or to create an attorney-client relationship.

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