9 Fla. L. Weekly Supp. 641a
Insurance — Personal injury protection — Attorney’s fees — Contingency risk multiplier — Where insured’s complaint was for overdue PIP benefits that included database bill reductions and income loss, insurer’s expert conceded income loss claim was more difficult claim on which to prevail, and insurer quickly settled claim after suit was filed by paying medical provider bill reductions and paying insured more than twice the claimed income loss, contingency risk multiplier of 1.5 is appropriate — Costs — Expert witness fee, filing fee, and service of process fee awarded as costs
ERIKA WILLIS, Plaintiff, vs. ALLSTATE INDEMNITY COMPANY, Defendant. County Court, 18th Judicial Circuit in and for Seminole County. Case No. 01-SC-3447. June 15, 2002. John R. Sloop, Judge. Counsel: Glenn M. Klausman, Jacobs & Goodman, P.A., Altamonte Springs.
FINAL JUDGMENT ON ATTORNEY’S FEES AND TAXABLE COSTS
This cause came before the Court on the Plaintiff’s Motion For Attorney’s Fees and Costs. The parties stipulated to the entry of an Order that attorney Klausman’s reasonable hourly rate is $375 and the reasonable attorney time expended for the Plaintiff on this case was 15.5 hours.
The parties presented testimony from expert witnesses concerning the application of a contingency fee risk multiplier. Plaintiff’s expert, attorney Steven M. Johnson, testified the marketplace required a contingency fee risk multiplier for the plaintiff to obtain competent counsel for this case, that plaintiff’s counsel had a pure “no recovery = no fee agreement” contingency fee agreement, and that plaintiff’s counsel had no way to mitigate the risk of non-payment of attorney’s fees.
Defendant’s expert, attorney Tim DePalma, testified a contingency fee risk multiplier was unnecessary because his opinion is the relevant marketplace did not require a multiplier to obtain competent counsel and because his experience is Allstate does not defend database bill reductions. When questioned whether Allstate has a business practice of reducing medical provider billings with database reductions Allstate does not defend, attorney DePalma qualified his assessment that there may be cases where Allstate successfully defends the database reductions.
The Complaint in this case alleged overdue PIP benefits of $369.80. The sum of $10.40 was alleged to be owed to Mt. Dora Chiropractic and $33.60 was alleged to be owed to Connie Towns, LMT. The balance allegedly owed was for income loss. Allstate had voluntarily paid approximately $4,000 in PIP benefits, so the reductions were approximately 1% of the bills submitted.
As to the income loss claim, the exhibits to the Complaint show the Plaintiff’s employer stated the Plaintiff only missed work on April 5, and the disability slip was for subsequent days in April. Plaintiff’s counsel submitted a request for payment of income loss to Allstate on October 5, 2001, alleging additional income loss. Allstate made no income loss payment and the Plaintiff subsequently filed suit. Allstate’s expert conceded the income loss claim was more a more difficult claim for the Plaintiff to prevail on than the provider bill reductions.
After the lawsuit was filed, Allstate quickly settled the claims by paying the provider bill reductions, plus interest, and by paying the Plaintiff $750.00 as income loss.
Based upon the record before the Court, and the applicable law, including Standard Guaranty Ins. Co. v. Quanstrom, 555 So.2d 828 (Fla. 1990), the Court finds a contingency fee risk multiplier is appropriate and that the appropriate multiplier is the 1.5 requested by the Plaintiff.
The parties have stipulated the taxable costs owed by Allstate are the expert witness fee of attorney Johnson of $350.00, the filing fee of $99.50 and the service of process fee of $15.00.
Based upon the agreement of the parties as to the loderstar attorney’s fee, and based upon the Court’s finding a 1.5 contingency fee risk multiplier is appropriate, IT IS HEREBY ORDERED AND ADJUDGED:
The Defendant shall pay attorney’s fees to Plaintiff’s counsel in the sum of $8,718.75 and pre-judgment costs of $114.50, with pre-judgement interest since March 13, 2002. The Defendant shall also pay the expert witness fee of attorney Steven M. Johnson of $350.00.
For which let execution issue.
* * *
