Opinion ID: 2603822
Heading Depth: 1
Heading Rank: 2

Heading: Expert Witness Fee Award Challenged by League

Text: The League takes issue with the fact that the PUC did not award the full amount which it had to pay a Mr. Kosh, who was used as an expert witness by the League. Mr. Kosh charged a flat expert witness fee of $25,000, half of which the League agreed to pay. The other half was paid by the General Services Administration, which was also a protestant against higher Mountain Bell rates. The PUC awarded the League $4,000 of the $12,500 which it paid to Mr. Kosh. The League urges this court to reverse that portion of the PUC's decision, and to enter a mandate awarding the League full reimbursement by requiring Mountain Bell to pay another $8,500 to the League. The League characterizes the PUC's action in not awarding the full $12,500 to the League as arbitrary, capricious, and not supported by the record. We reject the League's contentions and hold that the PUC acted reasonably in setting what it considered a fair charge for the services of this expert witness. The League argues that the flat fee of $25,000 charged by Mr. Kosh is reasonable because he is acknowledged to be an outstanding rate of return expert in the public utilities field; that he has participated in many rate proceedings; that he has a national reputation as an expert; and that he has been favorably mentioned by commissions and courts for his expert assistance in public utility rate cases. On the matter of attorneys' fees, expert witness fees and other legal costs to be awarded to the League, the PUC held a hearing and in its decision made the following finding with reference to this particular expert witness fee: Mr. Kosh testified that his fee for services was not based upon any hourly or daily rate but was a flat fee of $25,000 half of which (or $12,500) is sought by the League by way of reimbursement. We note that Dr. Christy, the expert witness who appeared for Mountain Bell, charges $200 per day for time spent in hearings, and $150 per day for work done at his home or office. We find that a daily rate of $200 per day for hearing time is reasonable. Mr. Kosh testified for one day, and his assistant, Dr. Lurito, testified on one day and was present in the hearing room several other days. We estimate that a total of twenty days' hearing and non-hearing time is reasonable with respect to the participation of Mr. Kosh and Dr. Lurito in this proceeding. On the basis of the foregoing finding, the PUC concluded that $4,000 was a reasonable amount to award as a witness fee for Mr. Kosh in this case. The PUC, in effect, rejected the flat fee concept urged by the League and properly made a determination based upon actual time spent by this expert witness and his assistant in testimony, appearances, and preparation time. In addition, the PUC made a determination based on sound factors of a reasonable per day charge for the services of this expert witness. A flat fee for an expert witness is not per se a reasonable fee. When dealing with a matter which affects the general public interest as here, the PUC must make a determination that the attorneys' fees and other legal costs are fair and reasonable. Such costs have an effect on rates which a public utility will charge the general public for its services. Just as the PUC has the power and authority to determine what are just and reasonable rates as described in section 40-3-101(1), C.R.S.1973, it has the concomitant duty to approve only those charges, payable by rates, which it finds are fair, just and reasonable. Here, the record reveals that the PUC properly performed its duty with respect to this expert witness fee charge.