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? |