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fees under section 7430(c)(1)(B)(iii), should be allowable as
“reasonable litigation costs” under section 7430(c)(1)(B)(ii).
In effect, the estates’ contention is that to the extent that the
Jones firm’s fees are not recoverable as attorney fees, they
should be allowed as expert witness fees or costs of a study,
analysis, engineering report, test, or project which was
necessary for the preparation of the estates’ cases.
We have held that the Jones firm’s fees are allowable as
attorney’s fees under section 7430(c)(1)(B)(iii) and that such
fees were limited to the adjusted statutory hourly rate. To hold
that amounts in excess of the adjusted statutory hourly rate are
permissible under section 7430(c)(1)(B)(ii) would thwart the
statutory limit and circumvent the intent of that limitation.
Although we hold that the Jones firm’s fees were necessary to the
estates’ preparation and presentation of their case, they are
attorney fees and not recoverable as other costs associated with
the litigation. In other words, the estates cannot have it both
ways. We therefore hold that no portion of the Jones firm’s fees
that exceed the adjusted statutory hourly rate are permissible as
costs under section 7430(c)(1)(B)(ii).
Has There Been a Duplication of Litigation Fees?
Respondent next contends that because the valuation issue
involved the same assets and issues in both estates, the
attorney’s fees and litigation costs were duplicated.
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Last modified: May 25, 2011