Feridon Pirgu v. United Services Automobile Association , 499 Mich. 269 ( 2016 )


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  •                                                                                          Michigan Supreme Court
    Lansing, Michigan
    Chief Justice:            Justices:
    Syllabus                                                        Robert P. Young, Jr.      Stephen J. Markman
    Brian K. Zahra
    Bridget M. McCormack
    David F. Viviano
    Richard H. Bernstein
    Joan L. Larsen
    This syllabus constitutes no part of the opinion of the Court but has been                Reporter of Decisions:
    prepared by the Reporter of Decisions for the convenience of the reader.                  Corbin R. Davis
    PIRGU v UNITED SERVICES AUTOMOBILE ASSOCIATION
    Docket No. 150834.         Argued on application for leave to appeal January 14, 2016.
    Decided June 6, 2016.
    Feridon Pirgu sustained closed head injuries after he was struck by a vehicle driven by an
    individual insured by defendant, United Services Automobile Association. Plaintiff, Feridon’s
    wife Lindita, was appointed as Feridon’s guardian and conservator. Plaintiff filed a complaint
    against defendant in the Oakland Circuit Court after defendant discontinued payment of personal
    protection insurance (PIP) benefits previously provided for Feridon’s care. Plaintiff sought a
    judgment of $200,000 to $400,000 and the reinstatement of benefits. The jury awarded plaintiff
    $70,237.44. Plaintiff requested attorney fees totaling $220,945. Plaintiff’s counsel claimed that
    he spent more than 600 hours prosecuting the case, and that his normal billing rate was $350 an
    hour. The trial court, John J. McDonald, J., concluded that plaintiff was due attorney fees
    because defendant’s failure to pay the PIP benefits was unreasonable. The trial court noted that
    the jury awarded plaintiff approximately 33 percent of the amount plaintiff sought, and thus the
    court awarded plaintiff $23,412.48 in attorney fees, approximately 33 percent of the jury verdict.
    Plaintiff appealed in the Court of Appeals. The Court of Appeals, BECKERING, P.J., and
    HOEKSTRA, J., (GLEICHER, J., dissenting), affirmed the trial court in an unpublished opinion per
    curiam issued December 16, 2014 (Docket No. 314523). The Supreme Court scheduled oral
    argument on plaintiff’s application for leave to appeal, and in lieu of granting leave, reversed the
    trial court’s judgment, vacated the trial court’s award of attorney fees, and remanded the matter
    to the trial court for reconsideration.
    In a unanimous opinion by Justice VIVIANO, the Supreme Court held:
    A trial court must begin its calculation of a reasonable attorney fee under
    MCL 500.3148(1) by multiplying the reasonable hourly rate customarily charged in the locality
    for similar legal services by the reasonable number of hours expended on the case. Thereafter, a
    trial court must consider the following eight factors to determine whether an up or down
    adjustment to that baseline number is appropriate: (1) the experience, reputation, and ability of
    the lawyer or lawyers performing the services, (2) the difficulty of the case, i.e., the novelty and
    difficulty of the questions involved, and the skill requisite to perform the legal service properly,
    (3) the amount in question and the results obtained, (4) the expenses incurred, (5) the nature and
    length of the professional relationship with the client, (6) the likelihood, if apparent to the client,
    that acceptance of the particular employment will preclude other employment by the lawyer,
    (7) the time limitations imposed by the client or by the circumstances, and (8) whether the fee is
    fixed or contingent. These factors are not exclusive, and the trial court may consider additional
    relevant factors. To facilitate appellate review, a trial court should briefly discuss its view of
    each of the factors on the record and justify the relevance and use of any additional factors.
    The trial court abused its discretion by failing to apply this framework, and the Court of
    Appeals’ majority erred to the extent that it affirmed the trial court’s attorney fee award.
    Reversed, trial court fee award vacated, and case remanded to the trial court for
    reconsideration.
    ©2016 State of Michigan
    Michigan Supreme Court
    Lansing, Michigan
    Chief Justice:          Justices:
    OPINION                                             Robert P. Young, Jr. Stephen J. Markman
    Brian K. Zahra
    Bridget M. McCormack
    David F. Viviano
    Richard H. Bernstein
    Joan L. Larsen
    FILED June 6, 2016
    STATE OF MICHIGAN
    SUPREME COURT
    LINDITA PIRGU, Guardian and
    Conservator of FERIDON PIRGU, a Legally
    Incapacitated Person,
    Plaintiff-Appellant,
    v                                                            No. 150834
    UNITED SERVICES AUTOMOBILE
    ASSOCIATION d/b/a USAA INSURANCE
    AGENCY, INC.,
    Defendant-Appellee.
    BEFORE THE ENTIRE BENCH
    VIVIANO, J.
    The issue in this case is whether the framework for calculating a reasonable
    attorney fee set forth in Smith v Khouri 1 applies to attorney fee determinations under
    1
    Smith v Khouri, 
    481 Mich. 519
    ; 751 NW2d 472 (2008).
    MCL 500.3148(1) of the no-fault insurance act. 2           The Court of Appeals’ majority
    affirmed the trial court’s calculation of the attorney fee award, concluding that the Smith
    framework does not apply to attorney fee determinations under § 3148(1). We disagree
    with this conclusion and instead hold that the Smith framework—as described in Justice
    CORRIGAN’s concurring opinion, and as modified herein—applies to attorney fee
    determinations under § 3148(1). 3 Therefore, in lieu of granting leave to appeal, we
    reverse the judgment of the Court of Appeals, vacate the fee award, and remand to the
    trial court for reconsideration of its attorney fee award in light of this opinion.
    I. FACTS AND PROCEDURAL HISTORY
    In 2008, Feridon Pirgu sustained closed head injuries after he was struck by a car
    driven by an insured of defendant, United Services Automobile Association. Plaintiff,
    Feridon’s wife Lindita, was appointed as his guardian and conservator.                Shortly
    thereafter, plaintiff sought various personal protection insurance (PIP) benefits for
    Feridon.     Because Feridon was uninsured, the claim was initially assigned to the
    Michigan Assigned Claims Facility, which then assigned the claim to Citizens Insurance
    Company. Following a priority dispute between Citizens and defendant, defendant was
    determined to have first priority for payment of PIP benefits. Defendant began adjusting
    the claim in 2010, and immediately discontinued payment of the benefits.
    2
    MCL 500.3101 et seq.
    3
    
    Smith, 481 Mich. at 538-543
    (opinion by CORRIGAN, J.).
    2
    Plaintiff filed suit against defendant for reinstatement of the discontinued benefits
    and for attorney fees, seeking a judgment in the amount of $200,000 to $400,000. 4
    Following trial, the jury awarded plaintiff $70,237.44. 5 Thereafter, plaintiff’s counsel
    sought $220,945 in attorney fees, claiming that he had expended more than 600 hours
    prosecuting the case and that his normal billing rate was $350 per hour. Because the trial
    court concluded that defendant’s failure to pay the PIP benefits was unreasonable, it
    found that attorney fees were warranted under § 3148(1). 6 The trial court noted that the
    jury awarded plaintiff approximately 33 percent of the judgment amount sought, and
    therefore, the trial court awarded $23,412.48 in attorney fees, approximately 33 percent
    of the jury verdict.
    The Court of Appeals affirmed in a split, unpublished opinion. 7 The majority
    concluded that it was bound to follow University Rehab Alliance, Inc v Farm Bureau Gen
    Ins Co of Mich, 8 which held that the Smith framework does not apply to reasonable
    4
    The variance in the amounts is accounted for by the two different hourly rates for
    attendant care that plaintiff’s counsel offered to the jury in his closing argument.
    5
    The jury awarded $54,720 for attendant-care benefits, $7,992 in wage-loss benefits, and
    $7,525.44 in penalty interest.
    6
    Defendant has not challenged this ruling.
    7
    Pirgu v United States Auto Ass’n, unpublished opinion per curiam of the Court of
    Appeals, issued December 16, 2014 (Docket No. 314523). We note that the Court of
    Appeals incorrectly identified defendant as the United States Automobile Association.
    8
    University Rehab Alliance, Inc v Farm Bureau Gen Ins Co of Mich, 
    279 Mich. App. 691
    ,
    700 n 3; 760 NW2d 574 (2008).
    3
    attorney fee awards under § 3148(1). 9         Applying University Rehab’s totality of the
    circumstances analysis, the Court of Appeals’ majority concluded that the trial court’s
    award was reasonable. The majority gave the following justifications: (1) the results
    achieved were considerably less than the amount sought, (2) the fee award was
    commensurate with what plaintiff’s counsel would have received under a contingency fee
    arrangement, and (3) the trial court expressly found that not all of the hours plaintiff’s
    counsel expended were necessary. 10
    Dissenting in part, Judge GLEICHER would have held that the trial court abused its
    discretion by neglecting to consider the number of hours plaintiff’s counsel invested in
    the case and his appropriate hourly rate. 11 The dissent also opined that no-fault cases
    require a court either to fully apply the factors detailed by this Court in Wood v Detroit
    Auto Inter-Ins Exch 12 or to fully apply the Smith framework. 13 The dissent also criticized
    the trial court for only considering the amount in question and the results achieved. 14
    This Court scheduled oral argument on the application, directing the parties to
    address whether reasonable attorney fee determinations under § 3148(1) are governed by
    9
    Pirgu, unpub op at 3-4.
    10
    
    Id. at 5.
    11
    
    Id. at 4
    (GLEICHER, J., concurring in part and dissenting in part).
    12
    Wood v Detroit Auto Inter-Ins Exch, 
    413 Mich. 573
    , 588; 321 NW2d 653 (1982).
    13
    Pirgu, unpub op at 7 (GLEICHER, J., concurring in part and dissenting in part).
    14
    
    Id. at 6-7.
    4
    Wood and/or Smith, and whether the trial court abused its discretion in calculating the
    attorney fees due to plaintiff.15
    II. STANDARD OF REVIEW
    We review a trial court’s award of attorney fees and costs for an abuse of
    discretion. 16 An abuse of discretion occurs when the trial court’s decision is outside the
    range of reasonable and principled outcomes. 17          A trial court necessarily abuses its
    discretion when it makes an error of law. 18 Questions of law are reviewed de novo. 19
    III. ANALYSIS
    At issue in this case is the proper method for calculating a reasonable attorney fee
    under MCL 500.3148(1), which provides that:
    An attorney is entitled to a reasonable fee . . . in an action for
    personal or property insurance benefits which are overdue . . . if the court
    finds that the insurer unreasonably refused to pay the claim or unreasonably
    delayed in making proper payment.
    15
    Pirgu v United Servs Auto Ass’n, 
    498 Mich. 860
    (2015).
    16
    Moore v Secura Ins, 
    482 Mich. 507
    , 516; 759 NW2d 833 (2008).
    17
    
    Id. 18 People
    v Duncan, 
    494 Mich. 713
    , 723; 835 NW2d 399 (2013).
    19
    Universal Underwriters Ins Co v Kneeland, 
    464 Mich. 491
    , 496; 628 NW2d 491
    (2001).
    5
    The statute is an exception to the “American rule,” which provides that “attorney fees
    generally are not recoverable from the losing party as costs in the absence of an exception
    set forth in a statute or court rule expressly authorizing such an award.” 20
    At the outset, it is helpful to understand the current state of the law regarding the
    determination of a reasonable attorney fee. In Wood, which also involved an attorney fee
    award under § 3148(1), we enumerated the following factors for determining the
    reasonableness of an attorney fee:
    (1) the professional standing and experience of the attorney; (2) the skill,
    time and labor involved; (3) the amount in question and the results
    achieved; (4) the difficulty of the case; (5) the expenses incurred; and
    (6) the nature and length of the professional relationship with the client.[21]
    We held that a trial court should consider the factors outlined in Wood, but that it is not
    limited to them in making its determination. 22
    In Smith, we reviewed a reasonable attorney fee award as part of case-evaluation
    sanctions under MCR 2.403(O), and revisited Wood’s multifactor approach. 23 We held
    that a trial court must begin its reasonableness analysis “by determining the fee
    customarily charged in the locality for similar legal services,” and then multiplying that
    number “by the reasonable number of hours expended in the case.” 24 After a trial court
    20
    Haliw v City of Sterling Heights, 
    471 Mich. 700
    , 707; 691 NW2d 753 (2005).
    21
    
    Wood, 413 Mich. at 588
    (quotation marks and citations omitted).
    22
    
    Id. 23 Smith,
    481 Mich at 527-529 (opinion by TAYLOR, C.J.).
    24
    
    Id. at 530-531.
    6
    has calculated this baseline figure, it must consider and briefly discuss on the record the
    remaining Wood factors and the factors in MRPC 1.5(a) 25 to determine whether any up or
    down adjustments from the base number are appropriate. 26
    There was a split in Smith, however, regarding whether two factors, “the amount
    in question and the results achieved” (factor 3 under Wood and factor 4 under MRPC
    1.5(a)), and “whether the fee is fixed or contingent” (factor 8 under MRPC 1.5(a)),
    should be considered when determining a reasonable attorney fee for case-evaluation
    sanctions. The lead opinion concluded that the two factors are not relevant. 27 Justice
    CORRIGAN, joined by Justice MARKMAN, concurred with the reasoning and result of the
    25
    The MRPC 1.5(a) factors are:
    (1) the time and labor required, the novelty and difficulty of the questions
    involved, and the skill requisite to perform the legal service properly;
    (2) the likelihood, if apparent to the client, that the acceptance of the
    particular employment will preclude other employment by the lawyer;
    (3) the fee customarily charged in the locality for similar legal services;
    (4) the amount involved and the results obtained;
    (5) the time limitations imposed by the client or by the circumstances;
    (6) the nature and length of the professional relationship with the client;
    (7) the experience, reputation, and ability of the lawyer or lawyers
    performing the services; and
    (8) whether the fee is fixed or contingent.
    26
    
    Smith, 481 Mich. at 531
    , 533 (opinion by TAYLOR, C.J.).
    27
    
    Id. at 534
    n 20.
    7
    lead opinion, but argued that there was no principled basis or textual support for
    excluding the two factors from consideration. 28
    Subsequently, in University Rehab, the Court of Appeals relied on our decision in
    Wood, and on the MRPC 1.5(a) factors, to uphold a reasonable attorney fee award made
    under § 3148(1). 29 Pertinent to this case, the Court of Appeals held that our decision in
    Smith did not affect its analysis, stating:
    First, Smith addressed MCR 2.403(O)(6)(b), which explicitly requires that
    the reasonable-attorney-fee portion of actual costs be based on a reasonable
    hourly or daily rate as determined by the trial court. Second, while two
    justices would have held that whether an attorney has a contingent-fee
    agreement with a client is not an appropriate factor when considering a
    reasonable attorney fee as a case-evaluation sanction, that part of the
    opinion is not binding precedent because a majority of justices did not
    agree.[30]
    Although the University Rehab panel applied a combination of the Wood and
    MRPC 1.5(a) factors in a manner that is similar to the Smith concurrence’s approach, it
    did not require the trial court to begin its analysis by making the baseline calculation
    pursuant to Smith, and instead adopted a totality of the circumstances approach. 31
    As noted, the Court of Appeals’ majority in this case followed University Rehab to
    conclude that the Smith framework does not apply to reasonable attorney fee
    28
    
    Id. at 538
    (opinion by CORRIGAN, J.).
    29
    University 
    Rehab, 279 Mich. App. at 698-704
    .
    30
    
    Id. at 700
    n 3 (citations omitted).
    31
    
    Id. at 700
    .
    8
    determinations under § 3148(1). We disagree with this conclusion. Instead, we conclude
    that the Smith framework applies in this context.
    In Smith, we refined the analysis that applies when a fee-shifting statute or rule
    requires a trial court to determine a reasonable attorney fee. 32 We have held that the
    Smith framework applies beyond the case-evaluation sanctions context in appropriate
    circumstances. 33 Of course, whether it applies in a given case must depend on the plain
    language of the statute or rule at issue. 34 As we often note, any statutory construction
    must begin with the plain language. 35 “We must give effect to the Legislature’s intent,
    32
    See 
    Smith, 481 Mich. at 535
    (opinion by TAYLOR, C.J.) (“We merely aim to provide a
    workable, objective methodology for assessing reasonable attorney fees that Michigan
    courts can apply consistently to our various fee-shifting rules and statutes.”).
    33
    In Coblentz v City of Novi, 
    485 Mich. 961
    (2009), we considered an award of
    reasonable attorney fees under the Freedom of Information Act. At the time,
    MCL 15.240(6) provided that “[i]f a person . . . prevails in an action commenced under
    this section, the court shall award reasonable attorneys’ fees . . . .” In determining the
    reasonable attorney fees due to the plaintiffs, the trial court considered whether the city’s
    conduct was corrupt enough to justify fees and whether the fees would bankrupt the city
    or burden the public welfare. Coblentz, 
    485 Mich. 961
    . We held that “[n]othing in
    MCL 15.240(6), or decisions of this Court, authorizes consideration of such factors in
    determining a reasonable attorney fee award.” Coblentz, 
    485 Mich. 961
    . Accordingly,
    we reversed and remanded for a re-determination of the plaintiffs’ reasonable attorney
    fees using the Smith factors.
    34
    The answer to Justice CAVANAGH’S question of whether the rule applies to other fee-
    shifting provisions, 
    Smith, 481 Mich. at 554-555
    (CAVANAGH, J., dissenting), must be
    determined by examining the plain language of the rule or statute at issue in a given case.
    35
    Driver v Naini, 
    490 Mich. 239
    , 246-247; 802 NW2d 311 (2011).
    9
    and the best indicator of the Legislature’s intent is the words used.” 36 These same
    principles govern the interpretation of court rules. 37
    Smith considered a fee award under MCR 2.403(O)(6)(b), which provides for “a
    reasonable attorney fee based on a reasonable hourly or daily rate as determined by the
    trial judge for services necessitated by the rejection of the case evaluation . . . .” Section
    3148(1) contains slightly different language, providing that “[a]n attorney is entitled to a
    reasonable fee for advising and representing a claimant in an action for [overdue PIP
    benefits].”
    Although § 3148(1) is phrased differently than MCR 2.403(O)(6)(b), those
    differences are not material to determining whether the Smith framework applies. The
    plain language of the statute and the court rule both speak in terms of a reasonable fee.38
    The operative language triggering the Smith analysis is the Legislature’s instruction that
    an attorney is entitled to a reasonable fee.        The University Rehab panel erred by
    disregarding this language in § 3148(1) when it concluded that Smith was distinguishable
    because it only applies to case-evaluation sanctions. 39 Because the plain language of
    36
    Johnson v Pastoriza, 
    491 Mich. 417
    , 436; 818 NW2d 279 (2012).
    37
    
    Duncan, 494 Mich. at 723
    .
    38
    We agree with Justice CORRIGAN’s statement in Smith that the plain language of
    MCR 2.403(O)(6)(b) “merely requires that the court award a ‘reasonable attorney fee’; it
    does not suggest that ‘reasonable attorney fee’ means something different for case
    evaluation sanctions than for any other situation.” 
    Smith, 481 Mich. at 539
    (opinion by
    CORRIGAN, J.).
    39
    University 
    Rehab, 279 Mich. App. at 700
    n 3. The University Rehab panel also
    disregarded Smith’s repeated use of language of general applicability, which clearly
    10
    § 3148(1) speaks in terms of awarding a “reasonable fee,” we conclude that the Smith
    framework governing reasonable fee determinations is equally applicable in this context.
    Despite reaching the wrong conclusion, University Rehab properly recognized the
    non-binding nature of the lead opinion’s conclusion in Smith that two of the factors—“the
    amount in question and the results achieved” and “whether the fee is fixed or
    contingent”—are not relevant in the case-evaluation context. 40 While we do not decide
    today whether those factors should be considered in that context, we hold that they must
    be considered by a trial court when awarding attorney fees under § 3148(1). 41 We have
    long recognized that the results obtained are relevant to determining the reasonable value
    of legal services. 42   The results obtained are indicative of the exercise of skill and
    contemplated that the methodology announced therein could be applicable to reasonable
    attorney fee determinations outside the case-evaluation context. See e.g., 
    Smith, 481 Mich. at 522
    (opinion by TAYLOR, C.J.) (“We take this opportunity to clarify that the trial
    court should begin the process of calculating a reasonable attorney fee . . . .”) (emphasis
    added); 
    id. at 530
    (“We conclude that our current multifactor approach needs some fine-
    tuning.”); 
    id. at 533
    (“Having clarified how a trial court should go forward in calculating
    a reasonable attorney fee . . . .”) (emphasis added).
    40
    University 
    Rehab, 279 Mich. App. at 700
    n 3, citing People v Sexton, 
    458 Mich. 43
    , 65;
    580 NW2d 404 (1998) (“[A] majority of the Court must agree on a ground for decision in
    order to make that binding precedent for future cases.”) (quotation marks and citation
    omitted).
    41
    This is in accord with the lead opinion in Smith, since it recognized that both factors
    “may be relevant in other situations.” 
    Smith, 481 Mich. at 534
    n 20 (opinion by TAYLOR,
    C.J.). See also Beach v Kelly Auto Group, Inc, 
    482 Mich. 1101
    , 1102 (2008) (YOUNG, J.,
    concurring). And, in any event, the parties have offered no justification for excluding
    these factors when awarding attorney fees under § 3148(1).
    42
    See Becht v Miller, 
    279 Mich. 629
    , 640; 
    273 N.W. 294
    (1937) (“In ascertaining the
    reasonable value of legal services, the court should consider . . . the results obtained.”).
    11
    judgment on the part of the attorney. 43 Similarly, the nature of the fee arrangement is
    also a relevant factor because a contingency fee percentage may “express an attorney’s
    expectations of the case and the risks involved.” 44      Accordingly, a trial court must
    consider both of these factors when making adjustments to the baseline fee award.
    Thus, while we agree with portions of University Rehab, we disagree with that
    Court’s conclusion that Smith is inapplicable to reasonable attorney fee determinations
    under § 3148(1). In particular, the University Rehab panel erred by failing to begin its
    analysis by calculating the baseline figure pursuant to Smith. Therefore, we take this
    opportunity to overrule University Rehab to the extent that it is inconsistent with our
    opinion today. Having done so, we conclude that the Court of Appeals erred by holding
    that the Smith framework does not apply to reasonable attorney fee determinations under
    § 3148(1).
    In sum, we hold that when determining the reasonableness of attorney fees
    awarded under § 3148(1), a trial court must begin its analysis by determining the
    reasonable hourly rate customarily charged in the locality for similar services. 45 The trial
    court must then multiply that rate by the reasonable number of hours expended in the
    43
    Fry v Montague, 
    242 Mich. 391
    , 393-394; 
    218 N.W. 691
    (1928).
    44
    
    Smith, 481 Mich. at 540
    (opinion by CORRIGAN, J.).
    45
    
    Id. at 530-531
    (opinion by TAYLOR, C.J.). We emphasize that the burden of proving
    reasonableness rests with the party requesting the fees. 
    Id. at 528-529.
    With respect to
    the reasonable hourly rate, “the fee applicant must present something more than
    anecdotal statements to establish the customary fee for the locality.” 
    Id. at 532.
    “The
    fees customarily charged . . . can be established by testimony or empirical data found in
    surveys and other reliable reports.” 
    Id. at 531-532.
    12
    case to arrive at a baseline figure. 46 Thereafter, the trial court must consider all of the
    remaining Wood and MRPC 1.5(a) factors to determine whether an up or down
    adjustment is appropriate. 47
    Unfortunately, Smith requires trial courts to consult two different lists of factors
    containing significant overlap, which unnecessarily complicates the analysis and
    increases the risk that courts may engage in incomplete or duplicative consideration of
    the enumerated factors. Therefore, we distill the remaining Wood and MRPC 1.5(a)
    factors into one list to assist trial courts in this endeavor:
    (1) the experience, reputation, and ability of the lawyer or lawyers performing the
    services,
    (2) the difficulty of the case, i.e., the novelty and difficulty of the questions
    involved, and the skill requisite to perform the legal service properly,
    (3) the amount in question and the results obtained,
    (4) the expenses incurred,
    (5) the nature and length of the professional relationship with the client,
    (6) the likelihood, if apparent to the client, that acceptance of the particular
    employment will preclude other employment by the lawyer,
    (7) the time limitations imposed by the client or by the circumstances, and
    (8) whether the fee is fixed or contingent.
    These factors are not exclusive, and the trial court may consider any additional relevant
    46
    
    Id. at 531.
    47
    
    Id. 13 factors.
    48 In order to facilitate appellate review, the trial court should briefly discuss its
    view of each of the factors above on the record and justify the relevance and use of any
    additional factors. 49
    IV. APPLICATION
    Having clarified the proper framework that applies to reasonable fee awards under
    § 3148(1), we turn to the award in the instant case. The trial court erred by not starting
    its analysis by multiplying a reasonable hourly rate by the reasonable number of hours
    expended. Further, although it acknowledged some of the Wood and MRPC 1.5(a)
    factors, the trial court also erred by primarily relying on only one factor—the amount
    sought and results achieved—and failing to briefly discuss its view of the other factors.
    Therefore, the trial court necessarily abused its discretion, and as a result, the Court of
    Appeals erred by affirming the trial court’s attorney fee award. Accordingly, we reverse
    the Court of Appeals, vacate the fee award, and remand to the trial court for
    reconsideration in light of this opinion. 50
    48
    
    Id. at 530.
    49
    
    Id. at 529
    n 14, 531, 531 n 15.
    50
    Defendant argues that plaintiff entirely failed to meet her burden of proof to support
    her claim for attorney fees. See 
    Smith, 481 Mich. at 528-529
    (opinion by TAYLOR, C.J.).
    Because the trial court failed to properly apply Smith, it is unclear whether plaintiff met
    her burden. Accordingly, the trial court should consider this issue on remand when it
    applies the Smith framework.
    14
    V. CONCLUSION
    We hold that when calculating a reasonable attorney fee award under § 3148(1), a
    trial court must follow the Smith framework, as outlined by Justice CORRIGAN’s
    concurring opinion and as modified by this opinion. The trial court abused its discretion
    by failing to do so, and the Court of Appeals’ majority erred to the extent that it affirmed
    the trial court’s attorney fee award. Therefore, the judgment of the Court of Appeals is
    reversed, the fee award is vacated, and the case is remanded to the trial court for
    reconsideration in light of this opinion.
    David F. Viviano
    Robert P. Young, Jr.
    Stephen J. Markman
    Brian K. Zahra
    Bridget M. McCormack
    Richard H. Bernstein
    Joan L. Larsen
    15