The Reason Why People Hate Lawyers

Yes, I am a lawyer. And every so often I read a case that explains to me why it is that people hate lawyers so much. Today I read just such a case.

The plaintiff in Harrington v. Payroll Entertainment Services, Inc. had a $44.63 claim against his former employer for unpaid overtime. Yes, you read that right, $44.63. And, of course, he found an attorney to file a lawsuit in order to get that money. In fact, he believed there were others who also were owed overtime, and he filed a class action alleging various violations of California's Labor Code. There were a total of 16 people affected by the violations. Calculations done by the employer revealed that the total amount of overtime owed was $714.08. Because of various penalties, etc. that had accrued, the case ultimately settled for $10,500. As part of the settlement, the parties agreed that Harrington would be considered the "prevailing party" for purposes of an attorney fee award. So far, so good.

Harrington's attorney then submitted a motion for fees, seeking $46, 277, more than 1000 times the amount of the value of Harrington's claim, and more than four times the amount of the settlement. The documentation supporting the award noted that there were five lawyers and one paralegal working on the case, with one lawyer billing 55.6 hours at $525 per hour! On a case that arose from a $44.63 claim. The trial court judge denied the motion outright, and the Court of Appeal reversed, awarding $500. Maybe that wasn't enough, maybe it was. But it certainly sent a message.

Yes, labor code violations can be costly, both in terms of liability and the attorneys fees that must be paid if an employer is found to violate the labor code. For some useful information about how to avoid violating the labor code, check out my podcasts at http://employerhelpcast.blip.tv/file/224221/ and http://employerhelpcast.blip.tv/file/224199/.

But the fact that the lawyers spent so much time (and money) and thought it was reasonable to recover that amount of money (which was so many times the amount of recovery their clients received), is what gives many people a bad feeling about lawyers.