Whether you’re considering a move for—or defending against—an attorney fee award, it’s crucial to be aware of the Oklahoma Supreme Court’s recent decision in Fleig v. Landmark Constr. Grp., 2024 OK 25. In Fleig, the Supreme Court granted certiorari review, providing vital guidance to trial judges on what an order awarding attorney fees must include and what lawyers must demonstrate before an attorney fee award will be upheld on appellate review.

Echoing its earlier ruling in State ex rel. Burk v. City of Oklahoma City, 1979 OK 115, 598 P.2d 659, the Supreme Court directed lawyers seeking compensation, including incentives or bonuses, to substantiate their claims with detailed time records showing the work performed and other evidence as to the reasonable value for the services performed, as measured by local legal community standards.

Fleig also directed the trial court to play a crucial role in the process. The Supreme Court directed that any order awarding attorney fees “must set forth with specificity the facts and computation to support the award. The trial court must make findings of fact, incorporated into the record, regarding the hours spent, reasonable hourly rates, and the value placed on additional factors in each case.” Further, in awarding compensation for incentives or bonuses, the trial court’s order must demonstrate the reasonable value to be given for incentive fees and must bear a reasonable relationship to the aggregate hourly compensation.

Attorney fee awards require more than just a number. Given the Supreme Court’s mandatory directive on both the trial courts and lawyers, any agreement between the parties that forgoes the mandatory showing of the criteria and standards will not be upheld upon appellate review. In fact, that is precisely what occurred in Fleig, which necessitated the Supreme Court’s mandatory reversal of the fee award.

Should the trial court’s order embody the requisite showing, however, then the only appealable issue is whether the trial court’s award was “reasonable,” and absent an abuse of discretion by the trial judge, the award will be upheld.

Fleig v. Landmark Constr. Grp. underscores the importance of transparency and precision in awarding attorney fees, ensuring fairness, and accuracy in legal proceedings. You can read the Oklahoma Supreme Court’s full decision in Fleig v. Landmark Constr. Grp., 2024 OK 25 here: https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=495319