Sunrise Development Co. v. Iowa Dept. of Transp., 94-1861

• Decision Date: 22 September 1995
• Docket Number: No. 94-1861,94-1861
• Citation: 540 N.W.2d 465
• Parties: SUNRISE DEVELOPMENT COMPANY, Appellant, v. IOWA DEPARTMENT OF TRANSPORTATION, Appellee.
• Court: Iowa Court of Appeals

Page 465

540 N.W.2d 465

SUNRISE DEVELOPMENT COMPANY, Appellant, v. IOWA DEPARTMENT OF TRANSPORTATION, Appellee.

No. 94-1861.

Court of Appeals of Iowa.

Sept. 22, 1995.

John R. Ward, Des Moines, for appellant.

Thomas J. Miller, Attorney General, David A. Ferree, Assistant Attorney General, and Mark Hunacek, Assistant Attorney General, for appellee.

Considered by DONIELSON, C.J., and CADY and HUITINK, JJ.

CADY, Judge.

This is an appeal by plaintiff which requires us to consider the sufficiency of an allowance for attorney fees in a condemnation action pursuant to Iowa Code section 6B.33 (1993). The district court awarded the plaintiff $10,000 in attorney fees. We affirm.

Plaintiff, Sunrise Development Company, owned approximately 38.5 acres of farmland located in Polk County subject to condemnation by defendant, the Iowa Department of Transportation (DOT). Sunrise appealed the condemnation commission's award of $124,750 in damages to the district court, seeking an award of $500,000 in damages. After a four day trial, the jury returned a verdict of $200,000 in damages. Sunrise's subsequent motion for a new trial claiming inadequate damages was denied by the district court. Sunrise appealed the district court's verdict, which we affirmed. Sunrise Dev. Co. v. Iowa Dep't of Transp., 511 N.W.2d 641 (Iowa App.1993).

Sunrise later filed an application for costs including attorney fees pursuant to Iowa Code section 6B.33 (1993). It sought $37,625 in attorney fees, or one-half the difference between the condemnation commission's award and the jury verdict, as well as $4,640.42 in costs. DOT resisted the application claiming a reasonable award for attorney fees and costs would be between $10,000 and $12,000.

The district court held a hearing on the attorney fee application. Sunrise presented a professional statement of its counsel indicating a total of ninety-one and one-half hours in pretrial preparation was spent for this action. It also presented testimony from a Des Moines attorney supporting its claim. Sunrise admitted into evidence the contingent fee agreement between Sunrise and its counsel amounting to one-third of any recovery over $100,000, as well as a written statement concerning the time spent on the case. This written statement contained no hourly or daily details regarding specific time spent by counsel on Sunrise's action and was merely an estimate of total hours. Counsel for Sunrise acknowledged the statement did not represent contemporaneous time records made during the course of litigation, but rather was prepared after the fee dispute arose.

The district court awarded Sunrise $10,000 for attorney fees and $1692 for expenses. In reaching this result, the court considered various factors. It found the litigation was not complex and only required forty hours of pretrial preparation. It also observed that no detailed documentation of the time spent by the attorney was presented at the hearing. The court as well looked to the results achieved at trial, noting that Sunrise sought damages of $500,000 and was dissatisfied with the jury award as indicated by their motion for new trial and the unsuccessful appeal.

Sunrise appealed the fee award. It claims the award was so inadequate as to constitute an abuse of discretion. Sunrise does not contest the district court's award of $1692 for costs.

I. Standard of Review

Our review of the district court's attorney fees allowance in a condemnation case is not de novo. Nelson v. Iowa State Highway Comm'n, 253 Iowa 1248, 1256, 115 N.W.2d 695, 700 (1962); Schrader v. Sioux City, 167 N.W.2d 669, 674 (1969); Hetherington Letter Co. v. City of Cedar Rapids, 207 N.W.2d 800 (Iowa 1973). Judges have considerable discretion in awarding reasonable attorney fees, but cannot exercise it arbitrarily. Nelson, 253 Iowa at 1256, 115 N.W.2d at 700; Schrader, 167 N.W.2d at 674; Hetherington, 207 N.W.2d at 804. A trial court abuses its discretion when the evidence and all matters necessarily involved are considered and the award is manifestly inadequate. Tilton v. Iowa Power and Light Co., 250 Iowa 583, 590, 94 N.W.2d 782, 786 (1959). We review the district court's decision only to determine if such an abuse occurred.

II. Evidence Presented for Attorney Fees Award

Iowa Code section 6B.33 (1993) provides an allowance for "reasonable attorney fees to be taxed by the court," for appeals that produce a damage award greater than that given by the condemnation commission. The district court is itself an expert as to what constitutes a reasonable award. Tilton, 250 Iowa at 590, 94 N.W.2d at 786; Schrader, 167 N.W.2d at 674; Nelson, 253 Iowa at 1256, 115 N.W.2d at 699. To be recoverable, "attorney fees must have been reasonable and necessary in the landowner's defense to the condemnation." Goodwin v. Iowa State Highway Comm'n, 369 N.W.2d 816 (Iowa 1985).

As in any fee allowance claim, the claimant bears "the burden of showing the services rendered and the value thereof." Nelson, 253 Iowa at 1248, 115 N.W.2d at 700; See Sykes v. Iowa Power and Light Co., 263 N.W.2d 551 (Iowa 1978). Evidentiary hearings are required if sketchy itemization accompanies the claim filed in the district court. Rouse v. Iowa Dep't of Transp., 408 N.W.2d 767, 768 (Iowa 1987).

A claim for fees in condemnation cases, as in all fee allowance claims, requires appropriate documentation to enable the district court judge insight into the time actually spent, services performed, and the expenses incurred. As found with federal fee-shifting statutes, claimants must present to the court "applications that 'include contemporaneous time records of hours worked and rates claimed, plus a detailed description of the subject matter of the work with supporting documents if any.' " Houghton v. Sipco, Inc., 828 F.Supp. 631, 643 (S.D.Iowa 1993) (quoting In re Donovan, 877 F.2d 982, 994 (D.C.Cir.1989)). Similarly, in indigent criminal defense attorney fee claims, courts have found it beneficial for attorneys to

attach a supporting affidavit itemizing time spent and stating facts relevant to the difficulty and importance of the issues involved in this case, the responsibility assumed, his experience and ability, and any other factors important in determining reasonable compensation.

Furey v. Crawford County, 208 N.W.2d 15, 18 (Iowa 1973). See Hulse v. Wifvat, 306 N.W.2d 707 (Iowa 1981). We find the need for detailed documentation equally beneficial for condemnation cases in order for a district court to determine accurate and reasonable attorney fees.

Here, Sunrise's application presented obstacles to an accurate determination of attorney fees. Counsel for Sunrise made no attempts to maintain contemporaneous records of his pretrial preparation in connection with this condemnation case. As well, he admits the written statement provided to the court was prepared after the fee award contest arose, and was his best estimates based upon his calendar. The statement provides no indication of dates, times, rates, or charges to the client. ¹

Sunrise presented testimony of a Des Moines attorney who opined a reasonable fee for this case might be between $30,000 and $39,000, while admitting he was basing his opinion solely on the appellate brief, fee application, and exhibits presented to the court. Counsel for DOT, on the other hand, estimated this type of condemnation claim should result in an award between $10,000 and $12,000 based upon his previous trial and settlement experience.

Sunrise also admitted into evidence its contingent fee agreement with counsel. We recognize the attorney fee awards are for the client and not the attorney, and parties to attorney-client relationship in a condemnation case can make their own fee contract arrangements independent of the court's determination of fees. Carmichael v. Iowa State Highway Comm'n, 219 N.W.2d 658, 664 (Iowa 1974). However, while a contingency fee agreement may have some relevance in determining an attorney fee allowance, it does not...