Also known as: reasonable compensations
Written by attorneys · grounded in primary & secondary sources — see below
A standard for determining the amount of payment due for services rendered. The standard measures the value of time, effort, and expertise supplied under circumstances where compensation is authorized by statute, rule, or doctrine.
Ravi Reddy's negligence caused a third party to sue Rosalind Reed. Reed incurred attorney fees defending the suit. Reed then sued Reddy and recovered reasonable compensation for those fees because Reddy's tort forced Reed to protect her interests in the earlier action.
Ronald Reed and Rowan Russell formed a partnership that later dissolved. Reed performed extra services liquidating assets after operations ceased. Reed recovered reasonable compensation for those winding-up services even though partners ordinarily receive no pay for ordinary partnership work.
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Rebecca Ross was appointed personal representative of an estate. She performed ordinary administration tasks and petitioned for payment. The court awarded reasonable compensation for her services after she filed a written renunciation of any will provision that set a different amount.
Riley Rivera declared a trust for family members and traded securities on its behalf. At year end Rivera deducted a sum representing reasonable compensation for the trading services before distributing remaining profits. The deduction was allowed because the amount reflected the value of services actually performed.
A partner may receive reasonable compensation only for services rendered in winding up the partnership business. Ordinary services performed during ongoing operations do not qualify.
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Yes. The personal representative may renounce the will provision before qualifying and then receive reasonable compensation instead. A written renunciation may be filed with the court.
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The victim may recover reasonable compensation for loss of time, attorney fees, and other expenditures incurred in the earlier action brought to protect the victim's interests.
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…venture, and to distribute the profits, if any, in equal shares to his wife, mother, and two minor children after deducting a reasonable compensation for his services. During 1928 taxpayer carried on the trading operations contemplated and at the end of the year determined his compensation at slightly less than $10,000, which he reported…