Thursday, March 11, 2010

Attorneys fees in small value wage claims

In the grand scheme of the legal system, a claim involving a few hundred or even a few thousand dollars is not one of monumental impact. However, for an individual who lives paycheck to paycheck denial of even a small amount of wages can cause major hardships. Thankfully, Wisconsin Statues and case law have provided that if an employee is a prevailing party in a wage claim, the trial court may award attorney fees. See Wis. Stat. § 109.03(6); Jacobson v. American Tool Cos., 222 Wis. 2d 384, 402, 588 N.W.2d 67 (Ct. App. 1998).

The Wisconsin Court of Appeals explained that “the purpose of Wis. Stat. ch. 109 is to ensure employees receive their wages to prevent harm to themselves and their families. If [the plaintiff] were not awarded attorney fees, he would be forced to pay the fees out of his pocket and, thus, would not receive the full wages to which he was entitled.” Zakowski v. CWA Transport, Inc., 2004 WI App 186; 276 Wis. 2d 572; 687 N.W.2d 549 (Ct. App.).

This decision and the statutes do not give litigants carte blanche to seek excessive attorney fees but rather limits attorney fees to a reasonable hourly rate multiplied by a reasonable number of hours expended and allows for adjustments for factors enumerated in SCR 20:1.5 and other “relevant” factors. See Lynch v. Crossroads Counseling Center, Inc., 2004 WI App 114, 275 Wis. 2d 171, 684 N.W.2d 141 (Ct. App.). What is clear, however, is that the amount of recovery itself is not a valid reason to reduce attorney fees below a reasonable amount.

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