Reasonableness Of Fees: In Liquidated Damages Dispute Won By Defendant, Trial Court’s Award Of $1,778,500 In Fees Under Contract Clause, About $350,000 Less Than The Request, Was No Abuse Of Discretion

Although Some Math Mistakes Were Made By Lower Court, Reduction Was Justified By The Record.

            In Micrel, LLC v. Zinn, Case Nos. A157136/A158069 (1^st Dist., Div. 1 Apr. 6, 2021) (unpublished), defendant won a battle over whether a nondefamation liquidated provision seeking $1.3 million in damages was reasonable.  The defense then sought $2,128,534.50 in contractual attorney’s fees for prevailing, with the lower court awarding $1,778,500—about a 16% reduction, prompting an appeal by the defense.  (Plaintiff also appealed on the merits of the liquidated damages clause being unreasonable, but that was affirmed on appeal.)

            The 1/1 DCA affirmed the fees award.  Although the math was a little off by the lower court, the record justified this reduction based on excessive paralegal work, $142,000 billed for work on sanctions/discovery motions which were withdrawn or denied by the lower court, and time preparing expert witnesses on issues which had been resolved.  The appellate court actually reconstructed time to show how the lower court mistakes still justified the reduction—given that the ultimate result was justified, actual fee award (reduced a bit) affirmed.