Supreme Court hands down big lawyer-related rulings
April 21st, 2010
The Supreme Court handed down three decisions today – two of which directly affect attorneys.
In Jerman v. Carlisle, McNellie, Rini, Kramer & Ulrich LPA, the Court held that a law firm cannot avoid liability under the Fair Debt Collection Practices Act with a “bona fide error” defense. The case involved a law firm that sent a letter to a debtor on behalf of a mortgage company, but the letter misstated the debtor’s obligation. The lawyers argued that it was an honest mistake – they simply misunderstood the law. But ignorance of the law is no defense, the Court held.
In Perdue v. Kenny A., the Court held that a judge may increase attorney’s fees for prevailing parties in civil rights actions above the lodestar for superior performance, but only in extraordinary circumstances – and even then, there’s got to be a limit to it, depending on the circumstances. In this case, the district court didn’t adequately justify the 75 percent fee boost they gave to the plaintiffs’ lawyers in this case.
And in an ERISA ruling, Conkright v. Frommert, the Court held that deference should have been given to a plan administrator when calculating benefits when that administrator is given the “power to construe disputed or doubtful terms.” In this case, the lower court should have deferred to a plan administrator’s interpretations amid claims by beneficiaries that a “phantom account method.”
Much more on these cases to come on this blog, and on Lawyers USA online.














