Louis Stein and Estate of Yvonne Stein - Page 5




                                        - 5 -                                         
               The parties have stipulated that “there were a few other               
          attorneys in South Florida who had the expertise to deal with the           
          issues raised in the notice of deficiency and who charged hourly            
          rates comparable to[,] or higher than, those charged by                     
          petitioners’ counsel.”  In essence, respondent admits that there            
          was limited availability of qualified attorneys, that                       
          petitioners’ attorney possessed a specialized skill needful for             
          the litigation in question, and that the services could not be              
          obtained at a lower rate.  We also note that respondent has                 
          represented to the Court that the CFC issue is “complex” and “a             
          case of first impression” and that petitioners’ attorney                    
          possessed “recognized expertise in United States international              
          taxation”.  Accordingly, petitioners are entitled to the higher             
          rates paid.                                                                 
               The parties stipulated that fees for 4.9 hours in 1998                 
          “relate to legal work which did not require specialized                     
          knowledge.”  Therefore, no special factor justifies the higher              
          rate for those fees.                                                        
               B.  Paralegal Fees and Other Costs                                     
               Petitioners seek reimbursement for the fees of two                     
          paralegals at hourly rates of $120 and $90.  Respondent contends            
          that $55 per hour (i.e., about half the attorney rate) would be             
          reasonable.  We agree.  See, e.g., Powers v. Commissioner, supra            
          at 493 (awarding paralegal fees at about half the attorney rate).           






Page:  Previous  1  2  3  4  5  6  Next

Last modified: May 25, 2011