Winning Plaintiff in Katrina Wind vs. Water Trial Requests $3.5 Million in Attorney's Fees, Expenses and Interest
A few weeks ago there was a $2 million verdict in a federal court Katrina wind vs. water trial. I last discussed the verdict in this post. Following the verdict the Court ruled that there was no arguable basis for Lloyd's of London to deny the claim, so the plaintiff is entitled to recover attorney's fees and expenses.
Here is plaintiff's motion, which it filed last week. The motion is well written and a good read.
The motion requests the following:
- attorney's fees: $2,312,312
- expenses: $279,338
- interest: $950,389
- Total: $3,512,039.
That's a lot of money. But does anyone want to bet me that the defendant did not have more than $2.6 million in fees and expenses? I bet they did.
Some facts about the scope of the case from the motion:
- pleadings: 400 plus
- depositions: 31
- motions: 68
- summary judgment motions: 4
- pre-trial order: 239 pages.
I look at those stats and see $5–10 million in defense fees and expenses. This is one of those cases where people see the verdict and the motion and think about all the money that the plaintiff's lawyers will make. But the defense lawyers will make as much or more than the plaintiff lawyers while taking no risk. Equally as important, the defense lawyers have been banking their money for years while the plaintiff lawyers have to collect to fill a big hole.
Jury verdict. $2.1 million. Fee request. $3.6 million. Policy limits - $3.5 million.
Interest? On a contingency fee?
Anderson, many insurance policies provide for interest if a claim is not paid in a timely manner. Not sure about this one.
Okay, but interest on the claim would've been in the judgment on the merits, right? The policy surely doesn't apply to claims for attorney's fees?
I'm not criticizing, because I just don't know enough about contingency-fee practice, damnable defense lawyer than I (usually) am. Just genuinely curious here.
Rutgers Law Professor Jay Feinman, Author of Delay, Deny, Defend mentioned to me last week that insurance defense lawyers are paid around $125/hour and the low hourly rate is the biggest gripe he hears from the insurance defense bar.
$5MM equates to 40,000 man hours at that rate. That is a lot of time.
sop
This was a bad faith case, not an insurance defense case. "Insurance defense" refers to third party cases where the insurance company is defending the insured. Like a car wreck. In those cases there is a policy limit that caps the insurance companies liability. This was not thay type of case and they were not using $125 an hour lawyers.
Big firm defense lawyers in Mississippi charge over $300 an hour. There are defense lawyers in Mississippi who charge over $450 an hour. In big cities it can be close to $1,000 an hour.
For a bad faith case like this insurance companies hire the expensive lawyers. You could debate whether it's justified, but they do it.
Thanks for the clarification Phillip.
I've seen rates as high as $590/hour from a national firm. I suspect the best of the hired guns like the now departed James Robie fetched more.
sop