Opinion ID: 1500938
Heading Depth: 2
Heading Rank: 1

Heading: Attorney's and Consultant's Fees

Text: Many of the deposit orders indicate that OPC expended substantial amounts of money in hiring multiple lawyers and law firms within a single proceeding before the Commission. Petitioner Pepco and WGL, as intervenor, complain that the assessment requests did not state the specific responsibilities or division of work that the various lawyers and firms performed. They argue that OPC did not support their requests with adequate documentation, but merely submitted contracts with generalized statements of services to be performed. The necessary conclusion, according to the utilities, is that the Commission allowed expenses for overprepared, disorganized, and duplicative work. We cannot create a per se rule, as WGL urges, barring OPC's practice of using multiple law firms in the same case. However, we do find it per se unreasonable for OPC to hire lawyers to perform duplicative work. The duplication of work efforts by various attorneys results in expenses which the Commission surely cannot deem necessary. D.C.Code 1981, § 43-612. In light of the history of OPC's creation, it is illogical to conclude that the Commission may give free reign to OPC's use of outside counsel by approving amounts expended for unnecessary, overprepared work. [9] In order for the Commission to conduct a meaningful review of the reasonableness of the attorney's fees sought by OPC, it must be able to ascertain as precisely as is practicable what legal services are involved. The requisite degree of specificity necessarily depends on whether expense requests are considered before or after the work is performed. [10] Obviously, less precision is possible in estimating future needs than in reporting work already performed. But even where, as in this case, expenses are approved in advance, the mere submission of a contract containing vague boilerplate provisions is insufficient to justify a conclusion that the attorney's fees are reasonable. [11] The Commission must be informed more specifically of the tasks involved, the time to be expended for each service, and the charge of the attorney or law firm for that time or that service. Only when the Commission has such information at hand can it begin to assess reasonableness and ensure that amounts are not being expended unnecessarily for duplicative efforts. When the Commission conducts its review for attorney's fees, it must consider the appropriateness of the work in conjunction with the time involved and rates charged. The nature of the proceeding, the quality of the representation, and the customary expenditures required for services in similar cases are other factors which should be considered by the Commission when reviewing the OPC requests. We do not here set forth a complete list of specific factors which must be considered by the Commission as to every request for attorney's fees, although we recommend that the Commission consider those factors approved by the Court of Appeals for the D.C. Circuit for determining the reasonableness of attorney's fees in the calculation of awards under various federal statutes. See, e.g., National Association of Concerned Veterans v. Secretary of Defense, 219 U.S.App.D.C. 94, 675 F.2d 1319 (1982); Environmental Defense Fund, Inc. v. Environmental Protection Agency, 217 U.S.App.D.C. 189, 672 F.2d 42 (1982); Copeland v. Marshall, 205 U.S.App.D.C. 390, 641 F.2d 880 (1980) (en banc); Johnson v. Georgia Highway Express, Inc., 488 F.2d 714 (5th Cir.1974). [12] Because these standards were developed for purposes of post-hoc fee awards, they are particularly relevant when expense requests are made at the close of a proceeding. However, many of the same factors can also be applied at the outset of a case, albeit with less specificity. What we deem indispensable is that the Commission review the OPC requests for attorney's fees in accord with reasonable criteria and that its deposit orders reflect the precise reasons supporting the approval of any amounts. Provided with such a statement of reasons, this court can be assured that the Commission has fulfilled its statutory obligation of review and we will be able to conduct our limited review to ensure that the Commission's action has not been arbitrary or capricious. Consultant fees assessed against the utilities must also comply with the general guidelines discussed above. It is necessary that the Commission be informed of the specific nature of the services to be performed by the consultant or expert. In addition, the Commission must provide a statement of reasons supporting its determination of reasonableness. As with attorney's fees, of course, the Commission must safeguard against unreasonable rates of compensation. [13]