Attorney Fees for Claim Preparation Are Recoverable, Despite Contingency Arrangement

June 19, 2012

In SUFI Network Servs., Inc. v. U.S. (June 18, 2012), the Court of Federal Claims granted SUFI, represented by C&M, summary judgment, holding that SUFI is entitled to attorneys' fees as an equitable adjustment pursuant to the common-law test of foreseeability applicable to NAFI contractors when FAR regulations do not apply. The CFC analyzed SUFI's claim under the Federal Circuit's seminal Bill Strong decision, finding that, even under a FAR analysis, SUFI's claimed legal fees (calculated on an "hours times rate," or lodestar, basis) were not precluded by the existence of a contingency agreement and were recoverable because they were for contract administration, as opposed to claim prosecution.

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