Joseph G. Blackburn Mary Louise Blackburn, Special Administrator of the Estate of Joseph G. Blackburn, Deceased v. Sheryl Goettel-Blanton

This is a case of litigation run amok. A minor dispute that long ago should have been resolved by the parties without the help of lawyers has been transformed into an attorney-fee-generating machine. While yielding only $6,654 in damages, it has resulted in more than $138,000 in billings for plaintiffs alone. We consider, inter alia, whether Hawaii law permits an attorney’s fees award to exceed the underlying judgment.

Facts

There’s no doubt about it: Sheryl Goettl-Blanton breached a contract. Four years ago, she agreed to buy a condominium for $245,000, signed the appropriate forms and made a small down payment. She even moved in. A month later, she changed her mind and refused to go through with the deal. The would-be sellers, Joseph and Mary Louise Blackburn, sued Blanton under the contract, as was their right. After much procedural wrangling, the case came to trial and the district court awarded the Blackburns damages of $6,654, prejudgment interest of $14,707.14, costs of $14,-262.56 and attorney’s fees of $61,250.

On appeal, Blanton challenges the award of attorney’s fees. She contends that the amount awarded was excessive, and that the district court erred in denying her…