McClain v. Lufkin Industries, Inc.
2011 U.S. App. LEXIS 16352
5th Cir.2011Background
- McClain et al. v. Lufkin Industries, Inc. is a Title VII class action alleging employment discrimination against Lufkin; decades of litigation yielded a multimillion-dollar judgment, back pay, and injunctive relief.
- Plaintiffs were represented by Garrigan (Eastern District of Texas) and later by Goldstein Demchak; no Texas co-counsel were available or willing to join the case.
- District court awarded over $7.7 million in fees and about $3.3 million in back pay; Goldstein Demchak (California firm) participated as co-counsel.
- Court previously vacated and remanded the fee award; key issues include appropriate hourly rates (local vs. home district) for out-of-district counsel.
- Fifth Circuit vacates the Goldstein Demchak fee award on remand, but affirms back pay; discusses Perdue v. Kenny A and law-of-the-case considerations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the district court properly set attorney rates when out-of-district counsel were necessary | McClain contends home-district rates start point | Lufkin argues local rates should apply | Remand for recalculation using Goldstein Demchak's home rates as starting point |
| Whether Perdue v. Kenny A requires parity between plaintiff and defense counsel fees | Plaintiffs seek parity based on Perdue guidance | No strict parity required by Perdue | Remand not required to apply Perdue parity in this case (per majority) |
| Whether hours billed for unsuccessful claims should be excluded | Hours on unsuccessful Title VII claims should be counted | Unsuccessful claims' hours should be disallowed | Remand to reassess hours consistent with overall reasonable fee |
Key Cases Cited
- Blum v. Stenson, 465 F.2d 886 (Supreme Court, 1984) (reasonableness of fees based on prevailing market rates in the community)
- Hensley v. Eckerhart, 461 U.S. 424 (Supreme Court, 1983) (lodestar method; reasonable fee and hours; avoid windfalls)
- Johnson v. Georgia Highway Express, Inc., 488 F.2d 714 (5th Cir. 1974) (starting point for fee awards; local community rates)