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Demarco Nichols v. Illinois Department of Transp
19-1456
7th Cir.
Jul 6, 2021
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Background

  • Plaintiff Demarco Nichols prevailed in a Title VII employment-discrimination suit; judgment included $300,000 (statutory cap) plus equitable relief.
  • Attorney Joseph Longo petitioned for $1,709,345 in attorneys’ fees (3,107.9 hours at $550/hr) and $4,460.47 in costs.
  • IDOT objected, proposing a much smaller fee award and arguing Longo’s hours and rate were inflated and some conduct was unreasonable.
  • The district court calculated a lodestar using $360/hour for attorney time and $125/hour for paralegal time, disallowed 962.1 hours (including travel, paralegal billed as attorney, clerical work, and a 20% across-the-board cut), and set the lodestar at $774,584.50; costs awarded were $4,061.02.
  • The district court denied Longo’s request for a 15% upward adjustment and denied fees for litigating the fee petition itself.
  • Longo appealed; the Seventh Circuit affirmed, holding the district court applied the correct framework and did not abuse its discretion.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Proper legal framework for fee awards District court used wrong methodology District court used lodestar + adjustments as required Court applied correct lodestar framework; no legal error
Reasonable hourly rate $550/hr is market rate supported by affidavits Affidavits were conclusory/insufficient; prior awards support lower rate $360/hr reasonable; district court did not abuse discretion
Travel and hours billed (including paralegal/clerical billing) Travel and hours were compensable as billed Many entries were excessive, unnecessary, or clerical; some travel was unnecessary Court properly reduced hours (specified cuts) and denied unreasonable travel/time entries
Upward adjustment and fees for fee-stage litigation 15% upward adjustment warranted for risk, success, deterrence; fees for litigating fee petition should be awarded Lodestar sufficient; fee-stage was overbilled and lacked billing judgment Denied upward adjustment (not exceptional) and denied fees for fee-stage litigation; district court within discretion

Key Cases Cited

  • Sommerfield v. City of Chicago, 863 F.3d 645 (7th Cir. 2017) (describes lodestar framework and appellate deference)
  • Perdue v. Kenny A. ex rel. Winn, 559 U.S. 542 (2010) (lodestar presumptively sufficient; upward enhancements rare)
  • Henry v. Webermeier, 738 F.2d 188 (7th Cir. 1984) (travel time may be billed if reasonable; unnecessary travel excluded)
  • Batt v. Micro Warehouse, Inc., 241 F.3d 891 (7th Cir. 2001) (fees for fee-stage are separately considered)
  • Montanez v. Simon, 755 F.3d 547 (7th Cir. 2014) (abuse-of-discretion standard for fee awards)
  • Small v. Richard Wolf Med. Instruments Corp., 264 F.3d 702 (7th Cir. 2001) (district court may discredit conclusory affidavits on rates)
  • Tomazzoli v. Sheedy, 804 F.2d 93 (7th Cir. 1986) (approves lump-sum reductions where line-by-line review is impractical)
  • Jeffboat, LLC v. Dir., Off. of Workers' Comp. Programs, 553 F.3d 487 (7th Cir. 2009) (prior fee awards are useful benchmarks for market rate)
  • Pickett v. Sheridan Health Care Ctr., 664 F.3d 632 (7th Cir. 2011) (illustrates lodestar adjustments and analysis)
Read the full case

Case Details

Case Name: Demarco Nichols v. Illinois Department of Transp
Court Name: Court of Appeals for the Seventh Circuit
Date Published: Jul 6, 2021
Docket Number: 19-1456
Court Abbreviation: 7th Cir.