Antitrust Law Daily Wrap Up, STATE UNFAIR TRADE PRACTICES—IllAppCt: Attorney Fee Award Was Reasonable Based on Company’s Failure to Avoid Litigation , (May 10, 2013)

By Jody Coultas, J.D.

A trial court did not abuse its discretion in awarding travel company customers attorney fees in light of a judgment in their favor on their Illinois Consumer Fraud and Deceptive Business Practices Act (CFA) against Planet Travel Holdings, Inc., according to an Illinois appellate court (Clayton v. Planet Travel Holdings, Inc., May 9, 2013, Perrin, C.).

The customers arranged a trip to Mexico through Planet Travel, which was booked with a third party travel company. After the customers learned that Planet Travel had not paid the travel company, despite receiving full payment from the customers, they cancelled their dealings with Plant Travel and booked directly through the travel company. Planet Travel failed to reimburse the customers.

A trial court entered judgment against Planet Travel finding it had violated the CFA, and awarded the customers attorney fees. Planet Travel appealed the award. Specifically, Planet Travel argued that the trial court abused its discretion in awarding $32,306 in attorney fees because the award was disproportionate to the recovery of $5,994.

A reasonable attorneys fee award is based on (1) the skill and standing of the attorney; (2) the nature of the case; (3) the novelty or difficulty of the issues and work involved; (4) the importance of the matter; (5) the degree of responsibility required; (6) the usual and customary charges for comparable services; (7) the benefit to the client; and (8) whether there was a reasonable connection between the fees charged and the amount involved in the litigation.

The trial court did not abuse its discretion in awarding the attorneys fees, according to the court. Counsel for the customers reiterated the fact that they tried to resolve the claims but were unable to do so and, due to Planet Travel’s actions, the customers were forced to proceed with litigation to recover the amount owed to them. The fees were reasonable based on the period of time this matter had been pending, the number of motions filed, the number of hearings reset, and the amount of time actually spent working on the case as the result of Planet Travel's actions. Planet Travel was unable to contradict the customers’ account of the details. The award was supported by the record. Planet Travel had multiple opportunities to cure its debt with the customers and avoid litigation.

The case is No. 4-12-0717.

Attorneys: Michael Costello (Costello Law Office) for Gary Clayton. Lisa Petrilli (Sorling, Northrup, Hanna, Cullen and Cochran, Ltd.) for Planet Travel Holdings, Inc.

Companies: Planet Travel Holdings, Inc.

Cases: StateUnfairTradePractices IllinoisNews