938 F.3d 1020
9th Cir.2019Background
- Roberts (permanent U.S. resident) sued City & County of Honolulu under 42 U.S.C. § 1983 after the City denied a firearm permit based on a policy targeting permanent residents.
- Roberts served a demand letter (initially seeking $8,000, later $12,000) and threatened injunctive motions; the City acknowledged receipt of the complaint but not the demand letter and later indicated willingness to discuss settlement.
- Parties reached agreement on substantive relief but not on attorney’s fees; a proposed settlement was exchanged in December and the final settlement was signed January 21, 2016. Roberts did not file the threatened motions.
- Roberts moved for attorney’s fees ($40,191.43). The magistrate recommended reduced hourly rates and disallowed time spent on unfiled motions; the district court adopted lower rates but credited some hours on the unfiled motions up to November 25, 2015, and awarded $21,302.95.
- Roberts appealed, arguing the district court applied an incorrect legal standard in setting hourly rates and abused its discretion by denying fees for work after November 25, 2015.
- The Ninth Circuit vacated and remanded: it held the district court used the wrong method to determine the prevailing hourly rate and instructed the district court to make a specific finding about when the settlement became final (and whether post-November 25 work was reasonable).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the district court applied the correct legal standard to determine the prevailing hourly rate for the lodestar | Holcomb’s declarations and supporting affidavits established prevailing market rates in the District of Hawaii and should have been credited | The City pointed to variation in the declarations and urged reliance on prior fee awards in the district to determine reasonable rates | Court held district court erred by wholesale rejecting counsel declarations and relying primarily on prior awards; remanded to determine prevailing rate in the relevant community for comparable attorneys |
| Whether fees for time spent on the Unfiled Motions after Nov. 25, 2015, were reasonable | Roberts argued those hours were reasonably expended because settlement was not finalized and drafting motions was prudent | City argued continued motion work after a settlement-in-principle was unnecessary and reflected wasted or churning hours | Court remanded: district court must make specific factual finding when settlement became sufficiently final and determine whether a reasonable attorney would have continued work after Nov. 25 |
Key Cases Cited
- Hensley v. Eckerhart, 461 U.S. 424 (1983) (lodestar method and fees should reflect hours reasonably expended; fully compensatory fee for excellent results)
- Camacho v. Bridgeport Fin., Inc., 523 F.3d 973 (9th Cir. 2008) (district court must find prevailing hourly rate in the community; may not rely solely on stale prior awards and must explain its reasoning)
- Kelly v. Wengler, 822 F.3d 1085 (9th Cir. 2016) (describes lodestar two-step: reasonable hours × reasonable hourly rate; courts may adjust lodestar for factors not subsumed)
- Moreno v. City of Sacramento, 534 F.3d 1106 (9th Cir. 2008) (hours awarded must be determined in light of the circumstances; reasonableness inquiry)
- McGrath v. County of Nevada, 67 F.3d 248 (9th Cir. 1995) (remand required if district court fails to explain how it exercised discretion in fee determinations)
- McCown v. City of Fontana, 565 F.3d 1097 (9th Cir. 2009) (trial court abuses discretion if fee award is based on an incorrect view of the law)
- Chaudry v. City of Los Angeles, 751 F.3d 1086 (9th Cir. 2014) (attorney affidavits showing prevailing billing rates are admissible evidence of market rates)
- Vogel v. Harbor Plaza Ctr., LLC, 893 F.3d 1152 (9th Cir. 2018) (prevailing party status under fee-shifting statutes)
