Question
I have included the classmate's post below. Please comment on the classmate's post. Do you agree with your classmate's assessment of the case in the
I have included the classmate's post below. Please comment on the classmate's post. Do you agree with your classmate's assessment of the case in the post? Why or why not?
CLASSMATE POST:
In the case State Farm Mutual Automobile Ins. Co. v. Edge Family Chiropractic, EFC initiated a suit after State Farm stopped paying medical bills for injuries sustained in a motor vehicle accident. One case went to trial, resulting in judgement for EFC and the other two cases settled with State Farm agreeing to resume payments. Edge Family Chiropractic then sought an award for attorney fees and costs. The county court determined the hourly rate of the attorney and number of hours to be awarded including paralegal fees. The hourly rate was found to be $350 with a multiplier of 1.5 to one case and 2.0 to the others. State Farm argued that the multiplier should be applied to the attorney's fees only. Edge Family argued that the court properly included the paralegals fees and that doing so did not violate any "clearly established law".
This case points out how if paralegal fees were not included in recovery it would lead to attorneys performing the work themselves at higher rates. That would then significantly increase the attorney fees paid by the insurers or other parties. It also points out how the multiplier is used to enhance the calculated fee because in a case where the attorney is working on a contingency fee contract, they will not be compensated if the client does not prevail. Since a paralegals work is part of the legal services provided to a client, there is no reason the paralegals fees should be treated any differently than the attorneys fees.
I agree with the court's decision on this case. If a paralegal is assisting on a case and does a substantial amount of work, her fees should be included in the payment. Since her fees should be included, why would they be excluded from the multiplier? It makes sense that if the paralegal or legal assistants fees aren't included that the attorney will take on more of the work in order to get paid. Obviously they want to win a case, but they also want to get paid too. So I know if I were an attorney and the only way to make the most amount of money was for me to do the work myself, I would.
Please comment on the classmate's post. Do you agree with your classmate's assessment of the case in the post? Why or why not?
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