Madigan v. Secretary of Health and Human Services, 14-1187

Petitioner filed a Vaccine Act claim alleging unilateral hearing loss after a December 9, 2011 influenza vaccination; case filed December 10, 2014.
Original counsel resigned from the New York bar; substitute counsel (Diana Stadelnikas) entered April 25, 2016 and later moved to withdraw with a stay (Oct. 2017).
Petitioner produced a treating physician’s expert report (Dr. Barry S. Erner) attributing hearing loss to vaccine/viral-triggered inflammation; the special master ordered a supplemental report.
On November 21, 2017 petitioner moved for interim attorneys’ fees and costs: $29,316.20 (fees) + $4,258.42 (costs) = $33,574.62.
Respondent opposed as to justification for interim relief but deferred to the special master’s discretion; petitioner argued delay would impede counsel’s recovery and create ethical issues.
Special Master Millman found interim fees permissible, reviewed billing, disallowed clerical and vague entries, reduced for excessive/duplicative billing, and awarded $29,092.48 jointly to petitioner and counsel.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether interim attorneys’ fees and costs are permissible under the Vaccine Act	Interim fees appropriate because (1) case is protracted (3+ years), (2) counsel will face hardship/ethical dilemma if payment delayed	No special showing; withdrawal alone does not automatically justify interim fees; defer to special master’s discretion	Interim fees permitted; special master found good faith, reasonable basis, and undue hardship from delay and awarded interim fees
Whether requested hourly rates are reasonable	Requested forum rates for counsel/paralegals are reasonable	Did not contest rates; reserved to special master	Hourly rates accepted as reasonable (forum/DC rates applied)
Whether all billed hours are compensable	Requested full hours billed by counsel and paralegals	Respondent objected to interim award scope but not specific billing entries	Special master reduced hours for clerical tasks, vague entries, and excessive/duplicative communications; applied a 10% reduction for excess billing
Quantum of award after reductions	Requested $33,574.62 total	Respondent urged discretion; no fixed alternative amount	After specific deductions ($4,482.14) and acceptance of costs, total award = $29,092.48 payable jointly to petitioner and counsel

Avera v. Secretary of Health & Human Services, 515 F.3d 1343 (Fed. Cir.) (interim fees permissible; appropriate when proceedings are protracted and costly experts required)
Shaw v. Secretary of Health & Human Services, 609 F.3d 1372 (Fed. Cir.) (reaffirmed permissibility of interim fee awards)
Rodriguez v. Secretary of Health & Human Services, 632 F.3d 1381 (Fed. Cir.) (forum rates apply for attorney fee determination)
Saxton v. Secretary of Health & Human Services, 3 F.3d 1517 (Fed. Cir.) (hours must be reasonable; exclude excessive/ redundant time)
Hensley v. Eckerhart, 461 U.S. 424 (U.S.) (reasonableness standard for hours billed)
Sabella v. Secretary of Health & Human Services, 86 Fed. Cl. 201 (Fed. Cl.) (special master may reduce fees sua sponte for inefficiency/duplication)
Broekelschen v. Secretary of Health & Human Services, 102 Fed. Cl. 719 (Fed. Cl.) (no requirement of line-by-line analysis when reducing fees)
Rochester v. United States, 18 Cl. Ct. 379 (Ct. Cl.) (clerical/secretarial tasks are noncompensable)
Savin v. Secretary of Health & Human Services, 85 Fed. Cl. 313 (Fed. Cl.) (fee applications must include contemporaneous, specific billing entries)