Retroactive Post-Judgment Interest

Chodos v. Borman, No. B260326 (D2d5 August 18, 2015)

This is an appeal after remand of this case, where the court of appeal modified a judgment in a quantum meruit case because the trial court for permitted the jury to include a lodestar multiplier when calculating an attorney’s fees owed by  his former client. The question on this second appeal is: From when and for how much does post-judgment interest run? The court holds that because the prior appeal only reduced the amount of the judgment, but did not reverse it on the merits, post-judgment interest should run from the date of the original judgment, but in the modified amount.

Reversed.

FWIW, this is the 400th post on this blog. Thanks to our readers for all your support!

Quantum Meruit for Attorney Can't Include a Lodestar Multplier

Chodos v. Borman, No. B252446 (D2d5 as modified, July 9, 2014)

An attorney sues his client to collect fees for representations in two divorce cases and a Marvin action. But, contrary to Business & Processions Code §§ 6147 and 6148, he never got a signed agreement. That limits him to quantum merit. After trial, the jury found that the attorney had done 1,800 hours of work and that his reasonable rate was $1,000 an hour. It then, as permitted by the court’s instructions, applied a lodestar multiple of five, ultimately awarding $7.8 million. The court here reverses, finding that a lodestar multiplier cannot be applied in awarding an attorney quantum meruit for services performed without a written fee agreement. To do so could reward attorneys for breaching their ethical obligations to get client fee agreements in writing.

Reversed.