Iowa Court of Appeals upholds ruling on Kragnes attorney fees

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A three-judge panel of the Iowa Court of Appeals voted 2-1 to uphold a Polk County judge’s decision to slash by more than 50 percent the nearly $15 million in attorney fees requested in a case that challenged fees the city of Des Moines assessed utility customers. Judge Joel Novak ruled in October 2013 that attorneys for Lisa Kragnes should receive $7 million of the fees they requested in the decade-long class-action lawsuit that resulted in a ruling that the city owed its utility customers $40 million. Kragnes’ lawyers appealed the fees ruling, saying Novak should not have taken into account the fact that the rebate would be paid from public funds. Appeals Judge Gayle Vogel agreed, saying in her dissent that “the district court failed to specify how it came up with what appears to be an arbitrary award other than to say it was ‘appropriate and fair.’  I would therefore reverse the district court’s order and remand the case to the district court to award the class counsel 37 percent of the judgment received.” Chief Judge David Danilson and Judge Amanda Potterfield upheld Novak’s ruling, saying he “carefully considered all relevant factors, adequately explained its analysis, and awarded reasonable attorney fees.  We find no abuse of discretion …” The ruling does not mean that refund checks will be in the mail anytime soon, as Kragnes’ legal team is expected to ask the Supreme Court to review the ruling. Click here to read a related story.