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Guess v. Parrott9/16/2003
results achieved and amounts customarily charged for similar services in the same locality.
Ingber, 229 A.D.2d at 887, 645 N.Y.S.2d at 920 (citations omitted). See also Wegner, 305 Ill. App. 3d at 693, 713 N.E.2d at 250 ("In making its determination, the trial court should assess all of the relevant factors, including the time and labor required, the attorney's skill and standing, the nature of the cause, the novelty and difficulty of the subject matter, the attorney's degree of responsibility in managing the case, the usual and customary charge for that type of work in the community, and the benefits resulting to the client.").
These factors are consistent with our own case law when trial courts have discretion to award attorneys' fees. For example, N.C. Gen. Stat. § 75-16.1 (2001) authorizes attorneys' fees in unfair and deceptive trade practices cases. See United Laboratories, Inc. v. Kuykendall, 335 N.C. 183, 437 S.E.2d 374 (1993). In Kuykendall, our Supreme Court held:
The Court of Appeals held that there was sufficient evidence before the trial court to support an award of attorneys fees pursuant to N.C.G.S. § 75-16.1, but it concluded the trial court made insufficient findings on the question of the reasonableness of the amount awarded. The Court of Appeals, therefore, remanded the case for findings of fact "as to the time and labor expended, the skill required, the customary fee for like work, and the experience or ability of the attorney." . . . In addition to these findings suggested by the Court of Appeals, the trial court should consider and make findings concerning "the novelty and difficulty of the questions of law"; "the adequacy of the representation," the "difficulty of the problems faced by the attorney," especially any "unusual difficulties," and "the kind of case . . . for which the fees are sought and the result obtained[.]" The court may also in its discretion consider and make findings on "the services expended by paralegals and secretaries acting as paralegals if, in [the trial court's opinion], it is reasonable to do so."
Id. at 195, 437 S.E.2d at 381-82 (citations omitted). See also Owensby v. Owensby, 312 N.C. 473, 475-77, 322 S.E.2d 772, 774-75 (1984) (same factors for attorneys' fees in divorce and alimony actions); Lowder v. All Star Mills, Inc., 82 N.C. App. 470, 479-80, 346 S.E.2d 695, 700-01 (1986) (Attorneys' fees for derivative shareholder action awarded by N.C. Gen. Stat. § 55-55(d) use the same factors); see generally, Middleton v. Russell Group, Ltd., 126 N.C. App. 1, 15-19, 483 S.E.2d 727, 735-37, disc. review denied, 346 N.C. 548, 488 S.E.2d 805 (1997) (ERISA actions); see also N.C. State Bar, Rule 1.5 (2002).
We hold that the factors set forth above are proper guidelines for the trial courts to follow when determining the reasonable value of a discharged attorney's services. These determinations are reviewable upon appeal only for abuse of discretion.
In the present case, the trial court made several findings of fact and conclusions of law. These noted that: (1) appellee hired an accident reconstruction expert and two other experts to evaluate the client's physical condition; (2) the amount promised to appellee under the contingency fee contract was 1/3; (3) proof of liability in this case was difficult; (4) defendant and insurer vigorously defended the case; (5) settlement offers from defendant; (6) "it was reasonable for the Plaintiff to have two (2) attorneys at trial given the questionable issue of liability, and the fact that the case had the potential of a very large award for the Plaintiff if the jury found the Defendants to be liable"; (7) the hours worked by appellee, reproduced above in findi
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