Court Determines Amount of Contractual Attorney’s Fees Due Under Prior Ruling on Fee Liability

On April 5, 2024, in Caelen Invs. LLC v. Notias, Index No. 654142/2020, Justice Joel M. Cohen awarded $700,000.00 in contractual attorney’s fees and costs to Plaintiff in a suit for breach of a Loan Agreement. Having earlier prevailed on summary judgment and on liability for costs and fees, Plaintiff sought a total award of $838,414.56 ($818,391.00 in fees and $20,023.56 in costs.).

The Court rejected Defendant’s arguments that reduction was warranted due to Plaintiff’s failure to establish an entitlement to fees under Greek law, because litigating in Athens would have been less expensive, and for failure of proof regarding payment. The Court’s prior ruling had established the Defendant’s liability for fees notwithstanding Greek law, and was law of the case. Plaintiff’s choice of forum did not support reduction because the parties’ contract specifically designated both Athens and the place of execution, which was New York, as having concurrent jurisdiction. The Plaintiff established proof of payment by an affidavit from Plaintiff’s counsel.

The Court ruled that the fees should be reduced on other grounds, however. In considering a fee application, a court considers, among other factors, “the benefit resulting to the client from the services” and “the results obtained.” Caelen Invs. LLC, Slip Op. at 2 (citing, In re Freeman's Estate, 34 N.Y.2d 1, 9 (1974)). No fees were warranted for Plaintiff's unsuccessful motion for summary judgment in lieu of a complaint, a separate action in which Plaintiff was not the prevailing party, or on its unsuccessful motion to appoint a receiver in the case at bar. The Court also found that “a limited number of time entries are duplicative, unrelated to the Agreement, or premature.” Id. at 3. The Court therefore ordered a 15% across the board reduction in the claimed fees.