Attorney Fees

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7^th Circuit Court of Appeals

Case Name: Richard N. Bell v. Charles Lantz

Case No.: 15-2341

Officials: EASTERBROOK, ROVNER, and SYKES, Circuit Judges.

Focus: Attorney Fees

Attorney fees for $410 per hour lacks support on the record.

“Lantz’s evidence of the $410 rate is minimal. In addition to the January 27th invoice, Lantz provided two declarations by Overhauser, as well as testimony by Overhauser about what Lantz agreed to pay. Bell objects to the consideration of Overhauser’s testimony as to what Lantz agreed to pay as hearsay, and in response Lantz has clarified that he is not relying on any testimony to establish a reasonable attorney’s fee, but rather is basing his claim solely on the two declarations of Overhauser. Those declarations, however, do not address the rate that Overhauser actually agreed to charge Lantz for his legal services in this case. The declarations merely set forth that Overhauser’s “present standard hourly rate for cases of this type” is $410 per hour, and states that he has billed other clients at that rate for the same type of work as in this case. That would tend to prove that Overhauser could charge that amount for cases such as this one, but the proper focus is on what this particular client agreed to pay. In Assessment Techs. of WI, LLC v. WIRE data, Inc., 361 F.3d 434, 438-39 (7th Cir. 2004), we held that in a copyright case “the best value of the lawyer’s services is what the client agrees to pay him,” and therefore agreed with the Third Circuit in Lieb v. Topstone Industries, 788 F.2d 151, 156 (3d Cir.1986), that the contract between a party and his lawyer places a ceiling on what a court can award the lawyer in such cases. Overhauser’s declarations do not address the fees that Lantz agreed to pay it, as opposed to fees charged to other clients for similar services, and are therefore unhelpful.”

Vacated and remanded

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.