Court Opinion

ID: 9733282
Source: CourtListenerOpinion
Date Created: 2023-08-26 17:01:03.01736+00
Date Added: 2024-06-11T18:26:40.141216
License: Public Domain

V. J. Brennan, P.J.
(dissenting). I respectfully dissent from the holding in docket number 49955 and would award the attorney fees which the arbitrator assessed as the "reasonable value” of the attorney’s services.
In any dispute regarding costs or fees, the amounts submitted for settlement are usually figures for which the parties are willing to settle without the necessity of litigation or extended hassle. The figures usually represent amounts for less than the party thinks actually is owing. In short, they represent an offer of compromise.
However, once either party decides to reject the compromised settlement offer, and actual litigation becomes necessary to resolve the dispute, these settlement figures cease to be the guidelines for determination of the actual dispute. The trier must now look to the actual value of the services to determine the disputed fee.
"The reason for the rule is that the law is said to favor peaceful settlements and that to admit unaccepted offers of compromise or ineffective attempts to reach a settlement would reach quite the opposite result and serve to encourage legal war rather than peace in the settlement of claims already in or headed for litigation. Thus the above source [5 Callaghan’s Michigan Pleading & Practice, § 36.507] indicates that evidence of a compromise or settlement offer may not be received * * * as an admission of a disputed fact.” *236Thirlby v Mandeloff, 352 Mich 501, 505; 90 NW2d 476 (1958).
My perusal of the record persuades me that this is. applicable to the instant case. Upon going to actual arbitration, the earlier figure was rendered nugatory. Instead, the arbitrator was ordered to act "for the purpose of determining the reasonable value of fees due”. The order provided further that "* * * the Arbitrator shall make his determination of the reasonable value of the legal services based on the arbitrator’s knowledge and experience of these and similar matters”.
Based upon persuasive, competent and undisputed evidence, the arbitrator determined, and the trial court upheld, the reasonable value of the services in setting the disputed attorney’s fees. I would affirm the arbitrator’s award of fees herein.