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Central Pension Fund of the International Union of Operating Engineers & Participating Employers v. Ray Haluch Gravel Co.
745 F.3d 1
| 1st Cir. | 2014
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Background

  • Central Pension Fund (the Fund) sued Ray Haluch, Inc. to recover unpaid employer contributions under a collective bargaining agreement and ERISA; suit sought nearly $200,000 including claims for unidentified “John Doe” employees.
  • After a bench trial the district court awarded the Fund $26,897.41 in damages (rejecting the John Doe claims) and later awarded attorneys’ fees and costs after a separate ruling.
  • The district court calculated a lodestar of $84,656.50 (after reducing claimed hours by one-third), then reduced that lodestar to a final fee award of $18,000 and awarded $16,688.15 in expenses.
  • The Fund appealed the fee award as too small (arguing the court overemphasized proportionality); Haluch cross-appealed, challenging travel time and travel-expense reimbursement.
  • The First Circuit reviewed the fee award for abuse of discretion, analyzed lodestar methodology and proportionality, and affirmed the district court’s award and treatment of travel-related claims.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether district court abused discretion by reducing lodestar to $18,000 Fund: Court overemphasized proportionality to damages; fee should be larger Haluch: (cross-appeal focuses on travel) court’s award otherwise acceptable Affirmed — court permissibly considered proportionality as one factor and its sizeable reduction was within discretion
Whether proportionality between fees and damages may be used as controlling rule Fund: proportionality should not be used to limit fees; strict proportionality rejected Haluch: argues fee should reflect limited damages (supports reduction) Court: Strict proportionality is not required, but proportionality is a relevant factor and may be weighed alongside lodestar adjustments
Whether unsuccessful claims (e.g., John Doe) justify reducing fees for time spent on those claims Fund: contends entitlement to fees for work done; seeks broader award Haluch: work on unsuccessful claims supports reduction Held: Time spent on unsuccessful/overreaching claims properly considered; reduction permissible under Hensley framework
Whether travel time and travel-related expenses were properly allowed Haluch: travel time not separately identified/discounted; travel expenses excessive Fund: travel was necessary; reasonable reimbursement allowed Held: Travel time and reasonable travel expenses may be reimbursed; district court’s across-the-board reductions and allowance were within wide discretion

Key Cases Cited

  • Alyeska Pipeline Serv. Co. v. Wilderness Soc’y, 421 U.S. 240 (U.S. 1975) (general rule that parties bear their own fees absent statute/contract)
  • Hensley v. Eckerhart, 461 U.S. 424 (U.S. 1983) (lodestar hours: exclude excessive/duplicative time; adjust for success)
  • Perdue v. Kenny A. ex rel. Winn, 559 U.S. 542 (U.S. 2010) (lodestar approach and its flexibility)
  • City of Riverside v. Rivera, 477 U.S. 561 (U.S. 1986) (damages amount relevant to fee awards; rejects strict proportionality)
  • United States v. Metro. Dist. Comm’n, 847 F.2d 12 (1st Cir. 1988) (trial judge’s role and discretion in fee awards)
  • Coutin v. Young & Rubicam P.R., Inc., 124 F.3d 331 (1st Cir. 1997) (lodestar adjustments and factors)
  • Gay Officers Action League v. Puerto Rico, 247 F.3d 288 (1st Cir. 2001) (abuse-of-discretion standard for fee awards)
  • Spooner v. EEN, Inc., 644 F.3d 62 (1st Cir. 2011) (review standard for fee awards)
  • Hutchinson ex rel. Julien v. Patrick, 636 F.3d 1 (1st Cir. 2011) (attorney travel time may be reimbursed)
  • Boston & Me. Corp. v. Moore, 776 F.2d 2 (1st Cir. 1985) (reasonable travel costs reimbursable)
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Case Details

Case Name: Central Pension Fund of the International Union of Operating Engineers & Participating Employers v. Ray Haluch Gravel Co.
Court Name: Court of Appeals for the First Circuit
Date Published: Mar 11, 2014
Citation: 745 F.3d 1
Docket Number: 11-1944, 11-1970
Court Abbreviation: 1st Cir.