S.D. Texas cuts commercial fee award over clerical work

What happened

PHH Mortgage Corporation sought attorney and paralegal fees under a contract fee clause. The court, Judge Dena Hanovice Palermo presiding, reviewed the paralegals' time entries and found that at least one half were clerical in nature rather than legal work. It therefore applied a 50 percent reduction to the requested paralegal fees, a cut of $515. The court did not state totals for the fees requested or awarded.

What the court said

Based on a review of the paralegals' entries, it appears that at least one half of the entries are clerical in nature. Accordingly, the Court determines that a 50 percent reduction in the requested paralegals' fees is appropriate.

Why it matters

The ruling shows that courts will examine individual time entries for the substance of the work, not just the title of the timekeeper. Where a substantial share of paralegal entries describe clerical tasks, a court may reduce that category of fees by a fixed percentage rather than parse each entry line by line.

How to keep this out of your fee petition

• Leave purely clerical work off the fee petition.
• Describe paralegal tasks so the substantive work is clear.
• Split mixed entries into their substantive and clerical parts.

Cite this ruling

See hourly rates the S.D. Texas approves and attorney fee motions in Texas federal courts.

Figures and quotes are taken from the opinion and checked against its text. Spot an error? Email team@legaltime.ai with the case name and we will correct it. Summaries of public court opinions. Not legal advice.