SENATE BILL No. 1182

 

 

November 8, 2018, Introduced by Senator SHIRKEY and referred to the Committee on Judiciary.

 

 

 

     A bill to amend 1961 PA 236, entitled

 

"Revised judicature act of 1961,"

 

(MCL 600.101 to 600.9947) by adding section 2443.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2443. (1) Except as otherwise provided by law or agreed

 

to by the parties, in a civil action, the court shall award the

 

prevailing party attorney fees as calculated under this section.

 

     (2) If a money judgment is entered for a party in a civil

 

action, the court shall award attorney fees to the party based on

 

the amount of the judgment, including any prejudgment interest

 

awarded, as follows:

 

     (a) If the action was contested and a trial was held:

 

     (i) If the amount is $25,000.00 or less, 20% of the amount.

 


     (ii) If the amount is more than $25,000.00, $5,000.00 plus 10%

 

of the amount that exceeds $25,000.00.

 

     (b) If the action was contested but a trial was not held:

 

     (i) If the amount is $25,000.00 or less, 18% of the amount.

 

     (ii) If the amount is $100,000.00 or less but more than

 

$25,000.00, $4,500.00 plus 8% of the amount that exceeds

 

$25,000.00.

 

     (iii) If the amount is $500,000.00 or less but more than

 

$100,000.00, $10,500.00 plus 6% of the amount that exceeds

 

$100,000.00.

 

     (iv) If the amount is more than $500,000.00, $34,500.00 plus

 

2% of the amount that exceeds $500,000.00.

 

     (c) If the action was not contested:

 

     (i) If the amount is $25,000.00 or less, 10% of the amount.

 

     (ii) If the amount is $100,000.00 or less but more than

 

$25,000.00, $2,500.00 plus 3% of the amount that exceeds

 

$25,000.00.

 

     (iii) If the amount is $500,000.00 or less but more than

 

$100,000.00, $4,750.00 plus 2% of the amount that exceeds

 

$100,000.00.

 

     (iv) If the amount is more than $500,000.00, $12,750.00 plus

 

1% of the amount that exceeds $500,000.00.

 

     (3) If a money judgment is not entered for the prevailing

 

party in a civil action, the court shall award the prevailing party

 

30% of the prevailing party's reasonable actual attorney fees that

 

were necessarily incurred if a trial was held or 20% of the

 

prevailing party's actual attorney fees that were necessarily


incurred if a trial was not held. The actual fees must include fees

 

for legal work customarily performed by an attorney but that was

 

delegated to and performed by an investigator, paralegal, or law

 

clerk.

 

     (4) On entry of judgment by default, a plaintiff is entitled

 

to an attorney fee award calculated under subsection (2) or the

 

plaintiff's reasonable actual attorney fees that were necessarily

 

incurred, whichever is less. The actual fees must include fees for

 

legal work customarily performed by an attorney but that was

 

delegated to and performed by an investigator, paralegal, or law

 

clerk.

 

     (5) A court may vary an attorney fee award calculated under

 

this section if, on consideration of all of the factors listed in

 

this subsection, the court determines that a variation is

 

warranted. If the court decides to vary an award, the court shall

 

state the reasons for the variation on the record or in a written

 

opinion or order. The factors that the court may consider under

 

this subsection are the following:

 

     (a) The complexity of the litigation.

 

     (b) The length of trial.

 

     (c) The reasonableness of the hourly rates and the number of

 

hours expended.

 

     (d) The reasonableness of the number of attorneys used.

 

     (e) The attorney's efforts to minimize fees.

 

     (f) The reasonableness of the claims and defenses pursued by

 

each side.

 

     (g) Any vexatious or bad-faith conduct.


     (h) The relationship between the amount of work performed and

 

the significance of the matters at stake.

 

     (i) The extent to which a given fee award may be so onerous to

 

the nonprevailing party that it would deter similarly situated

 

litigants from the voluntary use of the courts.

 

     (j) The extent to which the fees incurred by the prevailing

 

party suggest that they were influenced by considerations apart

 

from the litigation of this action, such as a desire to discourage

 

claims by others against the prevailing party or its insurer.

 

     (k) Other equitable factors that the court considers relevant.

 

     (6) A motion for an award of attorney fees under this section

 

must be filed within 10 days after the date the judgment is

 

entered. Failure to file the motion within 10 days, or within any

 

additional time allowed by the court, is a waiver of the right to

 

recover attorney fees under this section. A motion for attorney

 

fees in a default case must specify the amount of the actual fees

 

incurred.

 

     (7) If damages in an action are apportioned among the parties

 

under sections 2925a to 2925d, the attorney fees awarded to a

 

prevailing party under this section must also be apportioned among

 

the parties according to their respective pro rata shares of

 

liability.

 

     (8) The allowance of attorney fees by a court under this

 

section does not affect the obligation to pay or the right to

 

collect fees between an attorney and a client.

 

     (9) This section does not apply to an action brought in the

 

small claims division of the district court, unless the action is


removed from the small claims division.