Court: Michigan Court of Appeals; September 27, 1966; Michigan; State Appellate Court
Proceeding initiated by Airport Motel Corporation against the law firm Burke, Burke, Ryan, Roberts, and attorney William G. Hrquhart. The trial court determined an attorney fee of $18,250 to be fair and reasonable, resulting in a judgment of $15,750 against the plaintiff, as the defendants had previously received a retainer of $2,500. Defendants were retained to represent both the plaintiff and Belle Harbor Estates, Inc. in condemnation proceedings initiated by the State, which argued that no compensation was owed due to benefits exceeding the value of the taken land.
Belle Harbor's claim was settled for $3,427 before trial, and no settlement proposal for the plaintiff's claim was presented prior to trial. The trial concluded with a judgment for the plaintiff amounting to $66,017.48, leading to a total recovery of $69,444.48 when combined with Belle Harbor's settlement. The attorney fee dispute stemmed from the terms of the oral employment contract, with the defendants asserting an additional fee beyond the agreed rates of $25 per hour for out-of-court work and $200 per court day, while the plaintiff contended they were not informed of this additional fee.
Expert testimony indicated a customary contingent fee of one-third of the increase over the offering price, which would amount to approximately $23,000. The trial court's findings were upheld due to the absence of clear error, with the court noting the plaintiff benefitted significantly from the defendants' legal efforts, achieving nearly $70,000 from an initial position of having nothing. The judgment was affirmed, and costs were awarded to the appellees. The document also references the jurisdiction of courts over attorney conduct and fee disputes, affirming the circuit court's authority in such matters.
