Thomas Dewalt v. Davidson Surface Air and Donald Davidson
449 S.W.3d 401
Mo. Ct. App.2014Background
- DeWalt, a truck driver, sued his employer (Davidson Surface Air and owner Donald Davidson) under the Missouri Human Rights Act (MHRA) for constructive discharge based on disability; jury found Davidson individually liable but not the company and awarded $7,500.
- DeWalt sought $133,198.50 in trial attorneys’ fees under § 213.111.2 MHRA; trial court awarded $75,000 initially without explanation; this court previously reversed and remanded for findings.
- On remand the trial court made findings, excluded certain fee entries (including all time preparing the fee application), reduced some client-communication time, and applied a 30% reduction to discourage settlements after a small verdict, awarding $87,200.75 for trial fees and $15,000 for appellate fees.
- This appeal challenges (1) the trial court’s 30% reduction (argued to be improperly tied to the small verdict and settlement policy) and (2) exclusion of fees for preparing the fee petition and reduction of appellate fees.
- The appellate court affirms most fee findings but reverses the 30% reduction and the total exclusion of fee-application time, and remands both trial and appellate fee awards for additional findings and recalculation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether trial court abused discretion by reducing fees 30% to encourage settlement | 30% cut improperly bases award on small verdict and ignored MHRA public-purpose factor | Reductions tied to proportionality to damages and settlement policy to avoid fee windfalls | Reversed as abuse: court relied on settlement policy without factual findings and failed to consider nature/importance of MHRA claim |
| Whether fees for preparing fee application are compensable | Time preparing fee petition is reasonable and should be compensated | Time preparing fee petition may be excluded or reduced | Reversed exclusion: reasonable time for fee petitions is compensable; total exclusion was improper |
| Whether reductions for client/co-counsel communications were improper | Communication time is ethically required and compensable | Some communication time was excessive and reducible | Affirmed in part: modest reduction ($1,800) within court’s discretion |
| Whether appellate fee award improperly reduced | Appellate work took substantial time; court should consider full success on appeal and vigor of opposition | Appeal was not complex; over 100 hours was excessive | Reversed and remanded: trial court failed to make findings on complete success on appeal and importance of MHRA claim; must reconsider and explain adjustments |
Key Cases Cited
- DeWalt v. Davison Service/Air, Inc., 398 S.W.3d 491 (Mo. App. E.D. 2013) (prior appeal setting out MHRA fee factors and remanding for findings)
- Gilliland v. Missouri Athletic Club, 273 S.W.3d 516 (Mo. banc 2009) (courts must consider public-purpose/nature of MHRA claims when awarding fees)
- Coyle v. City of St. Louis, 408 S.W.3d 281 (Mo. App. E.D. 2013) (enumerating factors for MHRA fee awards; degree of success key)
- El-Tabech v. Clarke, 616 F.3d 834 (8th Cir. 2010) (reasonable time spent preparing fee petitions is compensable in civil-rights cases)
- Marek v. Chesny, 473 U.S. 1 (1985) (settlement encouragement and fee objectives are not inherently incompatible)
- Williams v. Trans States Airlines, 281 S.W.3d 854 (Mo. App. E.D. 2009) (trial court discretion in fee awards but must explain reductions)
- Pollock v. Wetterau Food Distribution Group, 11 S.W.3d 754 (Mo. App. E.D. 1999) (appellate hours are part of compensable MHRA fee award)
- Charles v. Daley, 846 F.2d 1057 (7th Cir. 1988) (settlement-policy considerations apply only when settlement conduct is at issue)
