Cortez v. Bootsma

Opinion

FROEHLICH, J.

This appeal presents a single narrow question: when a statute requires the superior court to award “reasonable attorney’s fees,” may a local court rule limit the amount of that award? Specifically, the court determined a “reasonable” fee was $65,000. However, San Diego County Superior Court Rules,

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rule 6.1 provided that in contested actions no attorney fees could be awarded “in excess of the amount agreed by the plaintiff to be paid to the plaintiff’s attorney.” In this case plaintiff and his attorney agreed to a 40 percent contingent fee, which would have amounted to $48,775 based on the underlying jury award to plaintiff of $121,938.24.

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We are thus confronted with whether a superior court may disregard a local rule when the local rule would restrict the discretion granted a court by a state statute.

1.

Facts

The relevant facts are undisputed. Plaintiff Fidel Cortez (Cortez) was an employee of the general contractor hired by appellants to perform work. Cortez was seriously injured on the job. The general contractor did not have workers’ compensation insurance. Accordingly, plaintiff was entitled to sue defendants for damages in superior court.

Cortez recovered damages of $121,938.24. As the successful plaintiff, Cortez also was entitled to “reasonable attorney’s fees fixed by the court.” (Lab. Code, § 3709.) Cortez requested fees of $149,848.75. Defendants moved to reduce the fee request, arguing both that it was unreasonable and that it exceeded the amount permitted by local rule.

The court concluded, based on the factors ordinarily considered when assessing reasonable attorney fees, that an award of $65,000 was reasonable. The court also rejected defendants’ claim that local court rules placed a ceiling on the award, reasoning that such a ceiling would contravene state law and hence be invalid.

2.

The Local Rule Limiting Attorney Fees Must Yield to the State Law Granting Discretion to Award a Reasonable Fee