This month we discuss a matter in which the Court of Appeals adopted the approach used by federal courts in determining the proper measure of attorney fees in contingency fee cases where the client is also awarded statutory attorney fees. We also address a case which determined that lost profits from sales to third parties under a distribution agreement can constitute general—rather than consequential—damages, and one concerning substantial modifications in products liability actions.
Attorney Fees
In Albunio v. City of New York, the court considered a situation in which a lawyer took on a case on a contingency fee basis and was also awarded statutory attorney fees. The court, in a unanimous decision by Chief Judge Jonathan Lippman,1 adopted the approach taken in federal cases and ruled that unless the contingency fee agreement provides otherwise, a lawyer in this situation is entitled to the greater of the statutory fee award or the contingency fee.
