[co-author: Victoria Boyko]

In Calvo Fisher & Jacob LLP v. Lujan, 2015 DJDAR 1965, the California Court of Appeal for the First Appellate District decided another case in the ongoing saga arising out of litigation concerning the Estate of Larry Hillbroom, the founder of DHL Worldwide Express (“DHL”).

David Lujan (“Lujan”) was a Guam attorney who represented Junior Hillbroom (”Junior”). After hotly contested litigation, Lujan proved that Junior was an heir of Larry Hillbroom, which resulted in a significant award. Subsequently, however, Junior sued Lujan in federal court in California alleging legal malpractice and other claims. Lujan hired the law firm of Calvo & Clark (“Calvo”) to defend him against Junior’s lawsuit. Subsequently, Lujan failed to pay Calvo’s fees. Calvo then sued Lujan for breach of contract. Ultimately, a jury found in favor of Calvo in a sum approaching $1 million. The trial court also awarded the firm prejudgment interest plus $1,532,675 in attorney fees.

Lujan appealed the rulings of the trial court, which were affirmed by the first appellate district. The Court of Appeal noted that an appellate court may disturb an attorney fee award only where there has been a “manifest abuse of discretion” or where the attorney fee award “shocks the conscience.” Because the parties’ agreement provided that Calvo would be entitled to reasonable attorney fee and costs in connection with an action seeking to collect fees and costs, the court of appeal reviewed the record as to the reasonableness of the fees sought. The court noted that the record was replete with evidence establishing the reasonableness of the fees sought. Because the trial court was in the “best position” to value the services, it upheld the award and concluded that the trial court did not abuse its discretion.