McKENZIE CONSTRUCTION, INC.

v.

Desmond L. MAYNARD

758 F.2d 97

United States Court of Appeals, Third Circuit.

Decided March 25, 1985.


Plaintiff, McKenzie Construction, Inc., appeals

from a judgment of the district court

refusing to set aside as unreasonable

a contingent attorney fee agreement


Plaintiff is a construction firm in the Virgin Islands

James H. King ("King") is its president


Construction contract with the government of the Virgin Islands to renovate hospital for $588,000


After a substantial portion of the work had been performed, the Government terminated contract


King went to see Maynard

They discussed attorney's fees


Maynard stated that if he took the case on an hourly basis his rate would be $60.00.

 

King indicated that he had no money to pay on an hourly basis


Maynard presented a contingent fee agreement

one-third of any recovery from judgment or settlement


Maynard negotiated with government for a year

Finally government settled for $195,000


Maynard's fee $65,000 +expenses came off the top


King asked Maynard to reduce fee to $16,000

Maynard offered to reduce his fee to $55,000


Maynard devoted about 83 hours to the case

At $60/hr fee would be about $5,000


$65,000/83hrs = $783 per hour

If Model Rule 1.5 applied

1. If an hourly fee, would written agreement be required?

 

2. Would Maynard be required to first offer a hourly fee arrangement?


 

3. When collecting fee, would Maynard be required to report his hrs to client?

 

Two more questions:

4. On what issues did the court of appeals reverse?


5. How would you decide on remand?