Two Interesting Cases re Awards of Attorneys' Fees For In-House Counsel Work
In the last two days, I have seen two interesting decisions regarding attorneys’ fee awards for in-house counsel litigation work. The first, AMX Enterprises, L.L.P. v. Masters Realty Corp., decided by the Texas Court of Appeals, has a comprehensive discussion of the appropriate measure of attorneys’ fees – should they be based upon market value or cost-plus value. After surveying various jurisdictions, the court determined that market value is the appropriate measure. The opinion also discusses the proof that should be submitted for an award. Ultimately, the case was sent back for a new trial on the fee issue.
The second case, Wordtech Systems, Inc. v. Integrated Network Solutions, Inc. decided by Judge England of the USDC for the Eastern District of California, also discusses the proof necessary for an in-house counsel fee award. Even while noting the “glaring lack of support” the court awarded $67,500 for the in-house services.
While it is very nice to have your employer compensated for your work – and certainly provides strong evidence of an in-house litigator’s value to his or her employer, as well as, a basis for a nice bonus for a good result – these cases support the wisdom of keeping time records if there is the potential for an attorneys fee award.
Unfortunately, I was only able to find the Westlaw opinion for each of these cases. If that is a problem, contact me.
