Parks v. Kanani, Unpublished Decision (3-21-2002)
Parks v. Kanani, Unpublished Decision (3-21-2002)
Opinion of the Court
In May 1998, appellant entered into a rental agreement with appellees for the rental of a single family residence in Columbus, Ohio. The monthly rent was $800, and appellant submitted $800 for the security deposit for "damage to the house beyond normal wear and tear." On April 1, 1999, appellees notified appellant they intended to re-occupy the residence on June 15, 1999, and, therefore, they were not going to renew his rental agreement. On July 1, 1999, appellees mailed a letter to appellant summarizing its proposed disposition of the security deposit. Appellees proposed that they retain the $800 security deposit and requested an additional $900 for damage done to the property. On July 23, 1999, appellant's counsel requested the return of the security deposit, plus interest, as provided by R.C.
Appellant filed a complaint on October 1, 1999 for the return of the security deposit. On January 13, 2000, appellant moved for summary judgment, which was unopposed. Appellant also filed a motion for judgment on February 11, 2000, based upon appellees' failure to provide discovery pursuant to the court's previous order. On May 22, 2000, the trial court granted both motions. The court awarded appellant $800 in compensatory damages, $800 in statutory damages, and $85.21 in statutory interest and costs. Appellant then applied to the court for costs and attorney fees pursuant to R.C.
On December 4, 2000, appellant moved for separate findings of fact and conclusions of law. An appeal was filed, but this court dismissed such appeal due to the pending findings of fact and conclusions of law. On July 24, 2001, the trial court issued findings of fact and conclusions of law, in which the court indicated it had reduced the attorney fees award due to discrepancies in the billing statements submitted by appellant, what the court considered unreasonably excessive time required to pursue the action, and the fact that the court believed the claim should have been brought in small claims court. Appellant appeals the trial court's judgment. Appellant does not present assignments of error; rather, appellant presents the following two "issues presented for review":
FIRST ISSUE PRESENTED FOR REVIEW:
WHETHER THE TRIAL COURT APPLIED THE INCORRECT STANDARD OF LAW IN ITS DETERMINATION OF THE AMOUNT OF ATTORNEY'S FEES TO WHICH APPELLANT IS ENTITLED PURSUANT TO R.C. §
5321.16 (C)[.]
SECOND ISSUE PRESENTED FOR REVIEW:
WHETHER THE TRIAL COURT ABUSED ITS DISCRETION IN REDUCING THE UNCONTROVERTED AMOUNT OF ATTORNEY'S FEES ABSENT EVIDENCE THAT THEY WERE NOT NECESSARY AND REASONABLE[.]
We will construe appellant's issues presented for review as assignments of error and will address them together, as they are related. Appellant argues in his first assignment of error the trial court erred in applying the incorrect standard of law in its determination of the amount of attorney fees to which he was entitled pursuant to R.C.
(C) If the landlord fails to comply with division (B) of this section, the tenant may recover the property and money due him, together with damages in an amount equal to the amount wrongfully withheld, and reasonable attorneys fees. (Emphasis added.)
The trial court shall determine the amount of such fees based upon the evidence presented, and such determination shall not be reversed except upon an abuse of discretion. Smith v. Padgett (1987),
In the present case, in awarding fees for an amount less than that requested, the trial court found that the amount of work spent on the case was well in excess of what would have been required under normal circumstances. The trial court was also concerned that appellant's attorney was overcharging him. There was testimony and evidence presented to support these findings. Newbold testified there were either errors or questionable billing entries on the substitute fee statement. The accuracy of the billing practices of appellant's counsel were also called into doubt by the wide difference between the original fee statement appellant submitted and the subsequent substitute fee statement he submitted thereafter. The subsequent fee statement contained numerous corrections, resulting in a reduction of $3,500 in total fees. These are valid reasons under DR-2-106(B). Pursuant to DR-2-106(B), the trial court could properly consider the time and labor involved in maintaining the litigation, the novelty and difficulty of the questions involved, and the amount involved and results obtained. Further, the trial court was well within its discretion to find Newbold's testimony as to the reasonableness of the fees unpersuasive. Chapman v. Adkins (Sept. 20, 2001), Franklin App. No. 00AP-1419, unreported (magistrate had the ability to evaluate the credibility of an attorney's testimony regarding reasonableness of attorney fees and make an award of reasonable attorney fees in her discretion). Thus, we find no abuse of discretion in the trial court questioning the accuracy and truthfulness of the total amount of attorney fees.
Our own review of the billing statement submitted by appellant raises the same concerns the trial court discussed. We find the total billed fees of $10,296.36 to be quite excessive given the circumstances of this case. The hours indicated for numerous charges appear to be out of line in comparison to the time in which a competent attorney could complete the tasks and resolve the case. There also appears to be charges for work that would be unnecessary given the low deposit monies at stake and the rather ordinary circumstances of the case. For example, appellant's counsel billed appellant 15.75 hours during just one day, which seems high given the relative straightforwardness of the landlord/tenant action. In a period of four days, appellant's counsel billed him for 46.07 hours. In addition, appellant's counsel billed him for a twenty-five minute phone call to the trial court's bailiff and a half-hour phone call to the trial judge, which appellant's witness, Newbold, admitted was unusual. Further, appellant's counsel billed him for time he spent preparing the fee statement, which Newbold also admitted was uncommon. Appellant's counsel also spent twenty-six hours drafting a motion for summary judgment, which did not include time for research, drafting the affidavits, or meeting with witnesses. These examples support the trial court's finding that the attorney fees incurred in the present case were excessive when compared to the nature of the case and the underlying judgment rendered.
We have before found that a trial court abuses its discretion when the amount awarded for attorney fees compared to the actual judgment for the tenant is excessive. In McGregor v. Armeni (Nov. 20, 1990), Franklin App. No. 89AP-1500, unreported, this court found attorney fees in the amount of $5,809.76 excessive and unconscionable when the tenant sought only $465 on a security deposit claim. This court noted that R.C.
We also note the trial court questioned the veracity of appellant's attorney fees because appellant's counsel billed for a March 20, 2000 pretrial conference with the judge, and the judge indicated that he was on vacation on March 20th and not at the courthouse. Appellant explained in his appellate brief that this was merely a typographical error and that the date of the pretrial conference was actually March 30, 2000. However, this explanation was never raised for the trial court to consider. It is well-established that a litigant's failure to raise an issue in the trial court waives the litigant's right to raise that issue on appeal. See State v. Comen (1990),
The third issue appellant raises as part of his second assignment of error is that the trial court's award of $250 for attorney fees was capricious. We agree the trial court did not give adequate reasoning as to how it arrived at the specific amount of $250 as the attorney fee award, and such figure appears arbitrary. Although we understand the trial court has wide discretion in awarding attorney fees, we believe that, in this particular case, the court should have provided some reasoning for choosing the particular amount awarded, such as indicating which charges from the fee statement it found inappropriate and why. Therefore, we reverse and remand the case for the trial court to give further findings regarding the $250 amount, or, if, at its discretion, the trial court decides to change the amount of its award of attorney fees, to give its reasons for choosing the specific amount. The court need not hold another hearing or take additional evidence on the matter. Appellant's second assignment of error is sustained in part.
Accordingly, we overrule appellant's first assignment of error and overrule in part and sustain in part his second assignment of error. The judgment of the Franklin County Municipal Court granting appellant attorney fees is affirmed in part and reversed in part, and this case is remanded to that court for further proceedings consistent with this decision.
Judgment affirmed in part and reversed in part; case remanded.
BRYANT and BOWMAN, JJ., concur.
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