E.D. New York cuts commercial fee award 35.4% over missing contemporaneous records

What happened

In a foreclosure action brought by Freedom Mortgage Corporation, the fee applicant sought $5,650 under a contract fee clause. The magistrate judge recommended awarding $3,650, a reduction of $2,000, or 35.4%. The court noted that the office charges a flat fee for foreclosure work and therefore does not maintain individual time sheets. The reduction rested on the absence of contemporaneous records supporting the hours claimed. The figures do not include costs.

What the court said

Because this office charges a flat fee for foreclosure work, individual time sheets are not maintained.

Why it matters

The ruling shows that a flat-fee arrangement does not by itself excuse a fee applicant from documenting the work behind a request. Where no contemporaneous time records exist, the court may reduce the award even when the requested amount is modest, and the applicant bears the consequence of the missing documentation.

How to keep this out of your fee petition

• Record time the same day the work happens.
• Keep the original records, not only a cleaned-up summary.
• Be able to show when each entry was created.

Cite this ruling

See hourly rates the E.D. New York approves and attorney fee motions in New York federal courts.

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