Opinion ID: 1259155
Heading Depth: 1
Heading Rank: 5

Heading: Objection To Amounts Requested for Specific Categories of Expenses

Text: Respondent objects to the amount that the State Bar requested for hearing transcripts as unreasonable. Respondent also objects to the State Bar's request for reimbursement for State Bar counsel's routine in-state travel expenses, office supplies, and the staff investigator's time. He argues that these expenses are contemplated by the $450 charged for screening and administration costs. a. Amount Requested for Hearing Transcripts The State Bar requested $4-per-page, for a total of $3,680, for the costs associated with its preparation of the hearing transcripts. The State Bar arrived at this per-page rate by reviewing the per-page rates charged by independent court reporters in different disciplinary proceedings. Respondent argues that the $4-per-page charge requested is unreasonable, claiming that the State Bar is limited to recovering those costs actually incurred. Thus, Respondent argues, the correct method for determining the cost of the hearing transcript is for the State Bar to calculate the State Bar typist's hourly wage to include a percentage for overhead, and apply that figure to the amount of time that the typist actually spent on this project. The costs and expenses of a disciplinary proceeding are assessed against a sanctioned attorney pursuant to Supreme Court rule 52(a)(8), which does not contain language that limits the recovery to actual costs or expenses incurred. Although we have defined the types of expenditures that may be recovered as either costs or expenses, these definitional terms are limiting only in the types of expenditures that are recoverable. See rule 46(g)(7), Arizona Rules of the Supreme Court. No Arizona cases address how costs should be calculated in a disciplinary action. Cases discussing the calculation of attorney's fees awarded to public sector attorneys, however, are instructional. Arizona courts have had to decide the proper method for determining attorney's fees in cases in which the employers of public sector attorneys were entitled to recover their fees. Unless specifically limited by statute to the amount paid, Arizona courts have concluded that a public sector attorney's fee should be measured by the reasonable hourly rate prevailing in the community for similar work. See State v. Mecham, 173 Ariz. 474, 485-86, 844 P.2d 641, 652-53 (App. 1992) (awarding market rates and distinguishing Lacer v. Navajo County, 141 Ariz. 392, 687 P.2d 400 (App. 1984), because fees awarded in Lacer were statutorily limited to amount paid or agreed to be paid); see also Schweiger v. China Doll Restaurant, Inc., 138 Ariz. 183, 187, 673 P.2d 927, 931 (App. 1983) (stating in dicta that fees awarded to public sector attorneys should be measured by reasonable hourly rate prevailing in community for similar work). As with public sector attorneys, determining the costs incurred by public sector employees presents a special challenge. Public sector employees do not bill for their work in the same manner as private sector employees. Consequently, public sector employees do not compute the cost of their work by the hour or by the project, and determining the costs that these agencies actually incur is difficult at best. When a market for the services provided by public sector employees exists, we see no reason to treat public sector employees differently from the way we treat public sector attorneys. Although we recognize that State Bar employees are not technically public sector employees, their status approximates that of public sector employees. Accordingly, we find that a per-page rate, prevailing in the community for similar work, is an appropriate measure of the cost for transcription services employees of the State Bar provided in connection with this hearing. In this case, the $4-per-page charged by the State Bar for transcription services its employees provided was based on an informal survey of the per-page charges that independent court reporters charged the State Bar in different disciplinary cases. The charges range from $3.91 per page to $5.47 per page. Court reporters charged less than $4.00 per page in only 2 of the 7 cases surveyed. The $4-per-page that the State Bar is requesting falls within the per-page rate prevailing in the community for similar work and thus is both reasonable and recoverable by the State Bar. b. Duplicative Expenses Respondent also claims that the charges for Bar counsel's routine in-state travel expenses, office supplies, and the staff investigator's time are duplicative of the $450 charged for screening and administration. Respondent's claim, however, is not supported by the evidence. According to the Statement of Costs and Expenses that the State Bar submitted and to Rosemary B. Martin's affidavit, the amount charged for screening and administration solely reflects costs associated with screening or investigating disciplinary claims and general administrative costs incurred by the State Bar from the assignment of a case to a hearing committee through the conclusion of the case. These general administrative costs include charges for such things as administrative time expended by staff bar counsel, legal assistants, secretaries, typists, file clerks and messengers, postage charges, telephone costs, normal office supplies, and other factors normally attributed to office overhead. Ms. Martin specifically averred that travel expenses and staff investigator's times were not included in the amount charged for screening and administration. The Statement of Costs and Expenses submitted reflects charges for supplies purchased specifically for this case. We therefore find that Respondent's claim that he is being charged twice for the same expenses is unfounded.