“Don’t Worry, You Don’t Have To Pay My Attorney Fees Unless We Win.” Expected Response? …Thank You; …That’s A Relief; …That’s Kind Of You. Yeah Right.

In a FEHA [Government Code section 12900, et seq.; Fair Employment and Housing Act] employment discrimination action, a law firm advanced all costs and agreed to charge no attorney fees unless the outcome was successful. A jury awarded her $266,347 in damages, and the trial court awarded $623,908.12 in attorney fees and $26,932.84 for costs. The law firm received a check from the employer, which included $34,699 in postjudgment interest on the fee award. When the lawyers refused their client’s request to disburse the fees and interest to her, she sued the lawyers for breach of fiduciary duty and intentional tort. After a bench trial, the court found for the lawyers, and the client appealed. In its opinion affirming the trial court, the appellate court quotes much of the attorney fee agreement, and states: “In the absence of an agreement establishing the client’s entitlement to an attorney fee award, or to any accrued interest, we hold that interest belongs to the attorney who owns the fee judgment upon which interest is accruing.” (Hernandez v. Siegel (Cal. App. First Dist., Div. 5; September 30, 2014) 230 Cal.App.4th 165, [178 Cal.Rptr.3d 417].)