Rehabilitation Services v. Gray Duffy
Filed 12/4/13 Coast
Rehabilitation Services v. Gray Duffy CA2/6
NOT TO BE PUBLISHED
IN THE OFFICIAL REPORTS
California
Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or
relying on opinions not certified for publication or ordered published, except
as specified by rule 8.1115(b). This
opinion has not been certified for publication or ordered published for
purposes of rule 8.1115.
IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
SECOND APPELLATE DISTRICT
DIVISION SIX
COAST
REHABILITATION SERVICES, INC.,
Plaintiff and Respondent,
v.
GRAY
DUFFY, LLP,
Defendant and Appellant.
2d Civil No. B245940
(Super. Ct. No. 1383264)
(Santa Barbara County)
Defendant
law firm agreed to pay plaintiff $350 per hour for services performed by
"a qualified rehabilitation professional and/or life care
planner." The law firm disputed
plaintiff's bill, claiming most of the services were not performed by a
qualified professional. Plaintiff sued
for breach of contract. The trial court found for plaintiff and
awarded the entire amount billed as contract damages, plus prejudgment
interest, costs and attorney fees.
We
reduce the judgment by $630 for amounts billed for clerical work. In all other respects, we affirm.
FACTS
Gray
Duffy, LLP, (Gray) is a law firm in Encino.
Gray contracted with Coast Rehabilitation Services, Inc., (Coast) to
create a life care plan for a client in a
president of Coast.
The
contract provided that Coast would be paid a "[p]rofessional hourly
rate" of $350 per hour and $450 per hour for testifying at trial. The contract specified that the "[p]rofessional
hourly rate is charged regardless of who performed said services within the
offices of [Coast], although services will be provided by a qualified
rehabilitation professional and/or life care planner."
The
contract also provided for interest at the rate of 12 percent per annum on
invoices not paid within 30 days. The
contract contained a clause providing for an award of attorney fees to Coast in
the event of any litigation arising from the agreement.
As
the malpractice action progressed, Kevin Park, an attorney in the Gray law
firm, requested Coast to provide a loss of household duties evaluation and an
adult vocational evaluation, as well as the life care plan. Coast billed Gray $17,455.85 for its
services.
Coast's
billing included 1.8 hours or $630 for time spent by Jennifer Onnen
(Onnen), and 36.55 hours, or $12,950 for time spent by Andrew Jackson
(Jackson).
Bennett
testified that California does not have a license for rehabilitation
counselors. He has certifications from
professional organizations. He is a
certified rehabilitation counselor, life care planner and disability
specialist. Jackson is certified by the
"workers compensation bureau, bureau of rehabilitation."
Onnen
testified that she worked for Coast for 21 years. She said her duties were "[c]lerical,
billing, phones, scheduling, periodic research, transcription [and]
collections." Onnen said the
reports were a "joint effort" between Bennett and Jackson. "Mr. Jackson may have done most of the
billing, but it was all in guidance by Mr. Bennett."
The
trial court found in favor of Coast. The
court awarded Coast $17,455.85 for breach of contract plus $4,706.80 in
prejudgment interest. The court also awarded
Coast $14,504,50 in attorney fees.
DISCUSSION
I.
Gray
contends the trial court erred in awarding Coast damages for secretarial time
and Jackson's time billed at $350 per hour.
Where,
as here, the parties do not rely on extrinsic evidence to interpret a contract,
interpretation is a question of law. (
162 Cal.App.4th 1107, 1126.) Here the
contract provides for an hourly rate of $350 per hour regardless of who
performs the services within Coast's office.
But the provision is limited by the statement that "services will
be provided by a qualified rehabilitation professional and/or life care
planner."
Under
no reasonable interpretation of the contract can the type of clerical work
performed by Onnen be deemed services "provided by a qualified
rehabilitation professional and/or life care planner." There is no evidence she is so
qualified. Moreover, clerical work is ordinarily
deemed part of the office overhead. One
would not expect it to be billed separately, and certainly not at $350 per
hour. We reduce the award of damages by
$630.
The
amount billed for work performed by Jackson is, however, another matter. Bennett testified that Jackson is certified
by the "workers compensation bureau, bureau of rehabilitation." Onnen testified that the reports prepared for
Gray were a "joint effort" between Bennett and Jackson. The trial court could reasonably conclude
that Jackson was qualified and performing work as a "rehabilitation
professional and/or life care planner."
II.
Gray
contends the trial court abused its discretion in awarding Coast attorney fees
and costs.
Coast
filed its complaint as an unlimited jurisdiction civil case. An unlimited civil case is a case in which
the amount in controversy exceeds $25,000.
(Code Civ. Proc., §§ 86, subd. (a); 88.) The trial court has the discretion to deny
plaintiff costs where the judgment could have been rendered in a court of
lesser jurisdiction. (
been rendered in a court of lesser jurisdiction, the trial court does not
include an award of attorney fees. (
59 Cal.App.4th 326, 331.)
Here
the trial court awarded Coast $17,445.85 plus $4,706.80 in prejudgment interest
for a total of $22,162.55. Even reducing
the award by $630 and the interest on that amount, the total is close enough to
the jurisdictional limit that the trial court did not abuse its discretion.
The
judgment is reduced by $630 and the prejudgment interest on that amount. In all other respects, the judgment is
affirmed. Costs are awarded to
respondent.
NOT
TO BE PUBLISHED.
GILBERT,
P. J.
We concur:
YEGAN,
J.
PERREN,
J.
Donna
M. Geck, Judge
Superior
Court County of Santa Barbara
______________________________
Gray
Duffy LLP, John D. Duffy and Kevin H. Park for Defendant and Appellant.
Law
Offices of Jeffrey S. Young and Jeffrey S. Young for Plaintiff and Respondent.
We have been unable to independently calculate the time billed by Onnen, but
Coast does not dispute the amount.
