What is the test for determining a reasonable attorney fee under a contingency agreement?

California, United States of America


The following excerpt is from Ellis v. State of California ex rel. Dept. of Transportation, 44 Cal.App.4th 170, 51 Cal.Rptr.2d 458 (Cal. App. 1996):

"While the amount to be awarded as attorney fees is a matter committed to the court's discretion [citation], courts have developed general rules to guide the exercise of that discretion in determining a reasonable fee. [Citation.]" (People ex rel. Dept. of Transportation v. Yuki (1995) 31 Cal.App.4th 1754, 1767, 37 Cal.Rptr.2d 616.) "A trial court may not determine a 'reasonable' attorney fee solely by reference to the amount due under a contingency agreement. [Citations.] However, the court may consider the contingent nature of the fee agreement as one factor in determining a reasonable fee. Other factors to be considered by the court, where appropriate, include: the novelty and difficulty of the questions involved and the skill required to perform the legal services properly; the likelihood that the acceptance of this particular employment would preclude other employment by the attorneys; the amount involved and the results obtained; the time limitations imposed by the clients or by the circumstances of the case; the nature and length of the professional relationship with the client; the experience, reputation, and ability of the attorneys who performed the services; the time and labor required of the attorneys; and the informed consent of the client to the fee agreement. [Citations.]" (Id. at pp. 1770-1771, 37 Cal.Rptr.2d 616, italics in original.) Based on the record, we cannot say the trial court abused its discretion in its award of attorneys' fees.

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