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This Is Why Our Legal System Sucks

pablow

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Mar 14, 2010
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Basement waterproofer accidently drills into your sewer line. You dispute the bill. It goes to court. Attorneys arrive on the scene. Iowa Supreme Court says that's cool - you lose your home.

Long-running litigation, like a species in the order lepidoptera, often
goes through a metamorphosis. The difference is that the final stage of a
legal metamorphosis is not a butterfly. Rather, as here, it is frequently a
battle over attorney fees.
In June 2013, certain homeowners hired a contractor to waterproof
their basement. After the contractor accidentally drilled into the house’s
water and sewer lines, which were in an unusual location, the homeowners
refused to pay the contractor’s bill. The contractor then sued to enforce a
mechanic’s lien.
After more than three years of litigation, including an appeal, it was
ultimately determined that the homeowners had to pay all but $500 of the
contractor’s unpaid $5400 bill and that the contractor was entitled to
foreclosure of its mechanic’s lien.
This lawsuit is now in the last stage of its life cycle. The present
dispute relates to the contractor’s attorney fees, which now amount to over
$58,000. Iowa law provides that “n a court action to enforce a
mechanic’s lien, a prevailing plaintiff may be awarded reasonable attorney
fees.” https://www.iowacourts.gov/courtcases/4395/embed/SupremeCourtOpinion

Iowa Supreme Court rules contractor can foreclose on hapless homeowner for $58,000 in attorney fees and water-proofer's bill plus court costs and interest, of course. Bye bye house.
 
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So be aware that the tab remains open all the while you are involved in a litigation...
 
Is $58K in attorney fees over a $5.4K matter really reasonable?

It's not reasonable. But the courts routinely okay these ridiculous inflated attorney fees claims. It's basically theft.

BTW, there are many doctors in prison for submitting similar claims to the government. Government contact attorney don't even attempt to bill like this. But in the private sector, anything goes. It's a disgrace.
 
It's not reasonable. But the courts routinely okay these ridiculous inflated attorney fees claims. It's basically theft.

BTW, there are many doctors in prison for submitting similar claims to the government. Government contact attorney don't even attempt to bill like this. But in the private sector, anything goes. It's a disgrace.

Doesn't sound all that ethical, in a field that is supposed to have some.
 
Doesn't sound all that ethical, in a field that is supposed to have some.

Judges are people who (I think many times, almost all the time) used to be attorneys.

The whole system is horrible for clients - you pay an hourly rate that you cannot possibly verify or audit, and you have zero guarantees of anything working out for you. It is one of the only professions where there are no guarantees of satisfaction, nor any timeline for how long the job might take.
 
After more than three years of litigation, including an appeal, it was
ultimately determined that the homeowners had to pay all but $500 of the
contractor’s unpaid $5400 bill and that the contractor was entitled to
foreclosure of its mechanic’s lien.

Likely, the stupid homeowner had to pay $500 to fix the mistake, and was not entitled to withhold the rest, just did so out of spite.

Got what he asked for...justice was probably served here.
 
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Government could pass laws that make it harder to bring a suit. Laws that force arbitration. Laws that limit legal fees recovered. Probably many other ways that I’m not considering. Why don’t you brainstorm with me.
Why do you think arbitration would result in fewer attorneys?
 

Likely, the stupid homeowner had to pay $500 to fix the mistake, and was not entitled to withhold the rest, just did so out of spite.

Got what he asked for...justice was probably served here.
$500 to fix a sewer main and water line?
d68xm.gif


On the other hand, the contractor should have had insurance for this very reason. Need more information if it was fixed or not.
 
Did the Defendants (Homeowners) know that they could be liable for the contractor's attorneys' fees if they chose not to pay the bill and forced the contractor to hire counsel to enforce the mechanic's lien? Without question.

You know how fees rise to $58,000 in cases like these? When Defendants (Homeowners) fight every single issue and try to foist fees upon contractors.

They made a risk/reward decision and lost.
 
Last edited:
$500 to fix a sewer main and water line?
d68xm.gif


On the other hand, the contractor should have had insurance for this very reason. Need more information if it was fixed or not.

That is the implication from the legal suit. The contractor was certainly liable to fix the sewer. Maybe $500 was the 'inconvenience' to the homeowner.
 

Likely, the stupid homeowner had to pay $500 to fix the mistake, and was not entitled to withhold the rest, just did so out of spite.

Got what he asked for...justice was probably served here.

Have to say this is likely correct. The homeowner is always responsible for the proper marking of utilities before a contractor starts a job. My guess is the homeowner didn't have them properly marked before the job. The contractor hit them and then this is what ensued.

I would like to see more information to see if this is what actually happened.
 
Basement waterproofer accidently drills into your sewer line. You dispute the bill. It goes to court. Attorneys arrive on the scene. Iowa Supreme Court says that's cool - you lose your home.

Long-running litigation, like a species in the order lepidoptera, often
goes through a metamorphosis. The difference is that the final stage of a
legal metamorphosis is not a butterfly. Rather, as here, it is frequently a
battle over attorney fees.
In June 2013, certain homeowners hired a contractor to waterproof
their basement. After the contractor accidentally drilled into the house’s
water and sewer lines, which were in an unusual location, the homeowners
refused to pay the contractor’s bill. The contractor then sued to enforce a
mechanic’s lien.
After more than three years of litigation, including an appeal, it was
ultimately determined that the homeowners had to pay all but $500 of the
contractor’s unpaid $5400 bill and that the contractor was entitled to
foreclosure of its mechanic’s lien.
This lawsuit is now in the last stage of its life cycle. The present
dispute relates to the contractor’s attorney fees, which now amount to over
$58,000. Iowa law provides that “n a court action to enforce a
mechanic’s lien, a prevailing plaintiff may be awarded reasonable attorney
fees.” https://www.iowacourts.gov/courtcases/4395/embed/SupremeCourtOpinion

Iowa Supreme Court rules contractor can foreclose on hapless homeowner for $58,000 in attorney fees and water-proofer's bill plus court costs and interest, of course. Bye bye house.
For all of the brilliant legal scholars who have posted in this thread, here is the opinion, if you care to actually know the facts, what the court decided, and why.
https://www.iowacourts.gov/courtcases/4395/embed/SupremeCourtOpinion
 
I'm not a legal wizard and I don't know the ins and outs of the plaintiff's financials or past history with the contractor.....but the idea of tens of thousands in potential legal fees vs. being pissed off and eating $5400 tells me that a lawsuit is bad math.
 
Government could pass laws that make it harder to bring a suit. Laws that force arbitration. Laws that limit legal fees recovered. Probably many other ways that I’m not considering. Why don’t you brainstorm with me.

Yes, all of the above. Expand small claims jurisdiction. BTW, why wasn't this case litigated in small claims court? Any of our big firm lawyers know?
 
Did the Defendants (Homeowners) know that they could be liable for the contractor's attorneys' fees if they chose not to pay the bill and forced the contractor to hire counsel to enforce the mechanic's lien? Without question.

You know how fees rise to $58,000 in cases like these? When Defendants (Homeowners) fight every single issue and try to foist fees upon contractors.

They made a risk/reward decision and lost.

You don't know why this was protracted. And, you have no idea what the homeowners' attorney advised them to do. Easy to see what you do for a living.
 
I don’t understand what you’re upset with the “legal system” for. I have no idea what the billing rate is for “big” firms in Des Moines, but if you assume a billing rate of $500 - that’s less than 100 hours total spent on the matter. That is hardly excessive.

If you want to be upset with anyone, be upset with the idiot homeowners who thought they could refuse to pay their bills, or the weatherproofer for hiring expensive lawyers to chase a $5,000 judgment, or the Iowa legislature for permitting foreclosure on a materialman’s lien, or the Iowa legislature for including attorney’s fees in the calculation of a materiaman’s lien, or the homeowners’ lawyers for apparently failing to raise the homestead defense in time. Lots of people to be upset with here; not sure why your primary target is the “legal system.”
 
I don’t understand what you’re upset with the “legal system” for. I have no idea what the billing rate is for “big” firms in Des Moines, but if you assume a billing rate of $500 - that’s less than 100 hours total spent on the matter. That is hardly excessive.

If you want to be upset with anyone, be upset with the idiot homeowners who thought they could refuse to pay their bills, or the weatherproofer for hiring expensive lawyers to chase a $5,000 judgment, or the Iowa legislature for permitting foreclosure on a materialman’s lien, or the Iowa legislature for including attorney’s fees in the calculation of a materiaman’s lien, or the homeowners’ lawyers for apparently failing to raise the homestead defense in time. Lots of people to be upset with here; not sure why your primary target is the “legal system.”

You do know that the "legal system" include all of the above.
 
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Yes, all of the above. Expand small claims jurisdiction. BTW, why wasn't this case litigated in small claims court? Any of our big firm lawyers know?

Aren't mechanic's lien / foreclosure cases always cases decided in equity? Hence the EQCE case designation . . .

You don't know why this was protracted.

You assume too much. Further, if you simply log onto the Iowa e-file system, you can see the entire case history, including the trial court's Order in favor of the contractor and why they were seeking $58K in fees and costs.

Easy to see what you do for a living.

I'm a civil defense lawyer who practices in a specific niche. And, as a civil defense lawyer I don't have the benefit of statutory fees as being part of the case. Again, you assume too much.
 
Yes, all of the above. Expand small claims jurisdiction. BTW, why wasn't this case litigated in small claims court? Any of our big firm lawyers know?

The homeowners had an original counter suit for $11,000 which put it above small claims level
 
I don’t understand what you’re upset with the “legal system” for. I have no idea what the billing rate is for “big” firms in Des Moines, but if you assume a billing rate of $500 - that’s less than 100 hours total spent on the matter. That is hardly excessive.

If you want to be upset with anyone, be upset with the idiot homeowners who thought they could refuse to pay their bills, or the weatherproofer for hiring expensive lawyers to chase a $5,000 judgment, or the Iowa legislature for permitting foreclosure on a materialman’s lien, or the Iowa legislature for including attorney’s fees in the calculation of a materiaman’s lien, or the homeowners’ lawyers for apparently failing to raise the homestead defense in time. Lots of people to be upset with here; not sure why your primary target is the “legal system.”

According to public records, the contractor's attorney's hourly rate was $250/hour.
 
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