Attorney’s Fees in Excess of $1,000 per Hour: The High Cost of Fighting Employment Claims in California

Key Takeaways:

• California’s FEHA allows prevailing plaintiffs to recover steep attorney fees.
• Employers risk exorbitant legal costs by repeatedly disputing claims.
• Bronshteyn v. CDCA illustrates how failing to settle early can inflate fees.
• Multiple unsuccessful motions significantly boost overall litigation expenses.
• A strategic approach can mitigate the financial burden of employment lawsuits.

California’s High-Cost Legal Terrain

California employment litigation has long been considered more expensive than in many other states, and recent developments confirm this trend. According to a recent appellate decision, attorneys in certain employment disputes can charge over $1,000 per hour, underscoring the potentially steep price of vigorously defending a claim.

The Bronshteyn Case

In Bronshteyn v. California Department of Consumer Affairs, the plaintiff, diagnosed with fibromyalgia, brought a disability discrimination lawsuit under the California Fair Employment and Housing Act (FEHA). This statute allows successful plaintiffs to collect their attorneys’ fees, raising the stakes for employers that choose to litigate rather than settle.

A Hard-Fought Legal Battle

From the outset, the California Department of Consumer Affairs “fought the case hard,” as described by the Court of Appeal. The agency failed to settle before litigation commenced, opposed motions to amend pleadings, and filed a series of unsuccessful legal challenges, including a motion for summary adjudication. Each motion the department lost came with additional costs, accumulating over three years of litigation and driving up the total attorneys’ fees for the prevailing party.

Implications for Employers

The case demonstrates the challenges employers can face when battling discrimination claims. By resisting settlement and pursuing multiple motions, the department experienced firsthand how legal fees can mount. Under FEHA, once an employee is deemed a prevailing party, these fees and costs typically shift to the employer—a sobering reminder of the risk for organizations defending against such lawsuits.

Preventing Runaway Costs

While litigation tactics vary from case to case, early risk assessment and strategic decision-making are crucial. Employers should consider whether a settlement might be more cost-effective in the long run, rather than incurring high hourly rates for prolonged courtroom battles. As this appellate decision shows, the cost of “fighting hard” can sometimes outweigh the cost of settling, with potential fees skyrocketing into the thousands per hour.