COTCHETT, PITRE & McCARTHY v. Universal Paragon Corp.

Appellant Universal Paragon Corporation, formerly known as Tuntex (USA), Inc. (UPC), hired respondent law firm Cotchett, Pitre & McCarthy (CP&M) to represent it in complex environmental litigation. After a settlement in the underlying action was reached, UPC and CP&M were unable to agree on the amount of fees owed to CP&M under their written fee agreement. The parties proceeded to binding arbitration, as provided for in the agreement, and the arbitrator awarded CP&M $7,554,149.13 in attorney fees and expenses. UPC appeals the superior court judgment confirming the award (Code Civ. Proc., § 1285 et seq.), arguing that the amount is unconscionable and violates public policy. We affirm.

I. FACTS AND PROCED URAL HISTORY

A. The Schlage Lock Site and UPC’s Development Plans

UPC is a real estate development firm. In 1989, it purchased real property in the Brisbane area adjacent to a property owned by the Ingersoll-Rand Corporation (Ingersoll-Rand), known as the “Schlage Lock” site. The Schlage Lock site was contaminated with acid used in metalworks and with fuel from railroad operations by the Southern Pacific Railroad. This contamination was migrating to UPC’s property. UPC…