Hyundai Must Pay Attorney’s Lemon Fees Even If Double Recovery

Lawyers who represented a consumer on claims that Hyundai Motor America sold him a breakdown-prone car must be paid “reasonably incurred” fees calculated on an hourly basis under California’s lemon law, regardless of any contingency-fee agreement with the client, an appeals court in the state said.

The risk of a windfall for the attorneys is a matter between them and their client, governed by precedent barring statutory plus contractual fees in a case and ethics rules prohibiting unreasonable fees, the California Court of Appeal, First District, ruled Jan. 29.

The trial court was wrong to award just $11,425 to the ...