Is there any case law that would require a trial court to set attorney fees based on actual costs and overhead rather than an objective standard of reasonableness?

California, United States of America


The following excerpt is from PLCM GROUP v. Drexler, 22 Cal.4th 1084, 95 Cal.Rptr.2d 198, 997 P.2d 511 (Cal. 2000):

"`We do not want "a [trial] court, in setting an attorney's fee, [to] become enmeshed in a meticulous analysis of every detailed facet of the professional representation. It ... is not our intention that the inquiry into the adequacy of the fee assume massive proportions, perhaps dwarfing the case in chief.'" (Serrano v. Unruh (1982) 32 Cal.3d 621, 642, 186 Cal.Rptr. 754, 652 P.2d 985.) Indeed, such wholly ancillary litigation on the question of salaries and costs and the internal economics of a law office could lead to an increase rather than a diminution of the costs of fee awards under Civil Code section 1717.

Requiring trial courts in all instances to determine reasonable attorney fees based on actual costs and overhead rather than an objective standard of reasonableness, i.e., the prevailing market value of comparable legal services, is neither appropriate nor practical; it "would be an unwarranted burden and bad public policy." (Shaffer v. Superior Court, supra, 33 Cal.App.4th at p. 1003, 39 Cal.Rptr.2d 506.)

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