Summary
This Appellate Division, First Department decision reviews a nonparty law firm's appeal concerning the denial of reimbursement for litigation disbursements in an infant compromise order. The court reversed the trial court's blanket policy against granting such disbursements, ruling that the lower court must individually assess the reasonableness and propriety of the expenses pursuant to applicable court rules. The case was remanded for reconsideration of the expense schedule and retainer agreement.
Topics
Practice areas
Questions Presented
- Whether the Supreme Court erred in disallowing reimbursement of counsel’s disbursements in an infant compromise order under CPLR 1207/1208, Judiciary Law §474, and 22 NYCRR 202.67
Holdings
- The Appellate Division held that the Supreme Court improperly exercised its discretion by a blanket policy disallowing disbursements and therefore reversed and remanded for a reasoned determination of the reasonableness of the disbursements.
Key quotations
“Supreme Court improvidently exercised its discretion in wholly disallowing, based on its own blanket policy not to grant disbursements in infant compromise orders, the branch of the application that sought to reimburse The Fitzgerald Law Firm for disbursements.”
Factual background
The infant plaintiff, represented by her parent guardian Brenda G., entered a supplemental contingent fee retainer allowing The Fitzgerald Law Firm to incur and deduct expert witness expenses totaling $8,657. The Supreme Court disallowed reimbursement of those disbursements in the infant compromise order.
Procedural history
The Supreme Court, Bronx County, denied the infant's application for reimbursement of counsel's disbursements. The appellant appealed, and the Appellate Division reversed the order and remanded for further review.
Remand instructions
Remand for review of the schedule of disbursements annexed to the application and the retainer agreement to determine whether the sums are reasonable, properly explained, and incurred for prosecuting the infant plaintiff's personal injury claims; also consider whether the law firm may take one third of the recovery before deduction of reimbursements.