Cour Calls a 40% Real Estate Attorny Fee Defensible!!!
The court said that "at first blush," the 40 percent fee - worth about $42 million - that was claimed by the law firm, Graubard Miller, from Alice Lawrence, the 83-year old widow of the real estate developer Sylvan Lawrence, "might arguably seem excessive and invite skepticism."
But a majority of the five-member panel of the court, the Appellate Division of State Supreme Court in Manhattan, ruled that whether the fee was reasonable should be determined at a trial, based on a further exploration of the discussions that led to the fee agreement and the difficulty of the case.
In a dissent of justice, James M. Catterson, called the fee "exorbitant." He said that the retainer agreement was signed when a $60 million settlement offer was already on the table. The estate was settled just five months later for more than $100 million, the judge said, meaning that the law firm's fee was almost equal to the additional amount it won.
Mark Zauderer, a lawyer for the firm, said in a telephone interview that Graubard Mille was delighted with the decision, which was issued in response to Mrs. Lawrence's appeal of two decisions in Surrogate's Court.
Mr. Zauderer, said that the fee had been justified by the law firm's success in winning about $115 million for Mrs. Lawrence against Seymour Cohn, her husband's brother, business partner and executor - against an adversary who, he said, was "extremely wealthy and well defended."
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