Elmrharri v. Marriott International, Inc.

Background

Evelyn Elmrharri, acting as the mother and natural guardian of A.E., an infant, applied for an order approving a settlement with Marriott International, Inc. The court held a hearing on August 20, 2020, to assess whether the proposed settlement was fair and reasonable. At that hearing, the court found that the compensation for the infant was fair, reasonable, and reached through arm’s-length negotiation, but reserved its decision on attorneys’ fees.

Attorneys’ Fees

The lawyer requested one-third of the $90,000 settlement, or $30,000. The court explained that it must independently approve compensation paid to a lawyer from an infant’s settlement and cannot simply accept the parties’ fee agreement. The court considered the lawyer’s skill and diligence, the result achieved, the time and labor involved, customary fees, and the likelihood of payment when the case began.

The lawyer submitted a time sheet prepared after the work was performed, estimating 41 hours based on management-software notes and customary time estimates for similar tasks. The lawyer did not state his usual hourly rate but described himself as highly skilled in negligence cases in state court. The requested $30,000 fee divided by 41 hours would equal an hourly rate of about $731. The court concluded that the requested amount was too high considering the hours worked, the nature of the tasks, and fees awarded in similar cases. It found that $24,000, closer to the lodestar—the reasonable hourly rate multiplied by the reasonable hours required—was appropriate.

Disposition

The court approved the proposed settlement with a reduction in attorneys’ fees. Evelyn Elmrharri was authorized to settle and compromise the infant’s claims. Marriott was directed to pay $90,000 in total: $66,000 to the plaintiff and $24,000 to plaintiff’s counsel. The court directed the clerk to close the case. Judge Lewis J. Liman entered the order.