Abuse of Discretion – Attorney’s Fees

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WI Court of Appeals – District III

Case Name: Jody P. Vande Corput, et al. v. Pekin Insurance Company

Case No.: 2017AP357

Officials: Stark, P.J., Hruz and Seidl, JJ.

Focus: Abuse of Discretion – Attorney’s Fees

Jody and Sherry Vande Corput appeal an order in which the circuit court: (1) determined the amount of attorney fees to be awarded as reasonable costs of collection in a third-party liability action under WIS. STAT. § 102.29 (2015-16); (2) equally divided those fees between the Vande Corputs’ attorneys and the attorneys for Continental Western Insurance Company (Continental); and (3) approved the parties’ settlement agreement. The Vande Corputs argue the court erroneously exercised its discretion in determining the amount and division of the attorney fees. They further argue the court erred by approving the settlement agreement despite the presence of an unsatisfied contingency.

We agree that the circuit court erroneously exercised its discretion in determining the amount of attorney fees awarded as reasonable costs of collection. We therefore reverse and remand for the court to recalculate the reasonable costs of collection, using the correct legal framework, and to divide that amount between the parties’ respective attorneys. However, we reject the Vande Corputs’ argument that the court erred by approving the parties’ settlement agreement.

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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.