Contractual Attorneys’ Fees Reduced For Block Billing, Apparent Inefficiencies

Posted: July 29, 2026 / Written by: Jeffrey M. Eilender, Thomas A. Kissane, Samuel L. Butt, Joshua Wurtzel, Channing J. Turner / Category Attorney Fees

Contractual Attorneys’ Fees Reduced For Block Billing, Apparent Inefficiencies

On April 10, 2026, Justice Melissa A. Crane of the New York County Commercial Division resolved a fee application made by plaintiff further to the Court’s award of contractual attorneys’ fees. The case is Coney Island Auto Holdings Corp. v. Parts Authority, LLC, Index No. 656816/2022.

After a week-long bench trial, Justice Crane had awarded plaintiff $3 million under an Asset Purchase Agreement that contained a fee-shifting clause. On this application, she eliminated amounts sought by plaintiff in applying for fees (“[n]othing in the agreement allows for fees on fees”, Slip op.2), reducing the amount sought to $1,501,138.55, and found that amount subject to a 25% reduction:

The time records and entries plaintiff’s counsel submitted indicate numerous instances of block billing. The block billing ultimately prevents the court from determining the reasonableness of the requested attorneys’ fees, as the court cannot differentiate nor specify exactly how much time plaintiff’s counsel spent on each task listed.

Slip Op., p. 3.

After quoting examples of block billing, Justice Crane continued:

Plaintiff’s submitted invoices are replete with this style of block billing. In addition, there are instances where various attorneys seemingly charge for similar tasks, potentially billing for duplicated work. Some instances also indicate excessive hours for certain tasks, and some tasks completed by an attorney could have been done by non-attorney staff.

In addition, plaintiff’s submissions do not include attorney and non-attorney CVs and biographies. However, the memoranda include some information about these staff members (i.e., graduation year [where applicable] and title]). . . .

In sum, the court finds that a 25% reduction to the remaining $1,501,138.55 amount is appropriate. Thus, the court reduces the requested amount [less the fees-on-fees portion, discussed above] by $375,284.64, for a total award equaling $1,125,853.91.

Slip op., p. 4.

Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions concerning contractual attorneys’ fees.