MEMORANDUM OPINION AND ORDER
Plaintiffs American Canoe Association, Inc. and the Sierra Club filed a motion for attorney fees and expenses, R. 175, pursuant to 33 U.S.C. § 1365(d). They request fees of $1,195,769.90 and expenses of $262,499.54 through October 28, 2009. R. 177 at 15. Defendant City of Louisa responded, challenging the application, and proposing an award of $56,850 and expenses of $5,550.90. R. 176 at 39. For the reasons stated below, American Canoe will receive $418,720.09 in attorney fees and $62,165.96 in expenses.
I. FACTUAL SUMMARY
On March 19, 2001, Plaintiffs American Canoe Association, Inc. and the Sierra Club (collectively, “American Canoe”) notified the Louisa Water Treatment Plant and the City of Louisa Water & Sewer Commission of their violations of 33 U.S.C. § 1251
et seq.
(“Clean Water Act”). The City of Louisa processes drinking water from the Big Sandy River through a water treatment plant. R. 1 at 6. In 2001, the plant operated under a National Pollution Discharge Elimination System (“NPDES”) permit that the Commonwealth of Kentucky re-issued in 1996 under the Clean Water Act.
Id.
at 7. On April 19, 2001, the Commonwealth of Kentucky’s Natural Resources and Environmental Protection Cabinet initiated an administrative enforcement action against Louisa. R. 105, Ex. 1. Negotiations between the Commonwealth and Louisa produced a settlement on August 7, 2001.
Id.
Louisa planned to renovate its water treatment plant to comply with the permit by March 31, 2003.
Id.
at 2. Defendants also paid the Commonwealth a $3,000 civil penalty.
Id.
American Canoe played no part in these negotiations although Louisa updated it
In the meantime, American Canoe filed a citizen suit under 33 U.S.C. § 1365 (“Clean Water Act”) based on the Louisa Water Treatment Plant and the City of Louisa Water & Sewer Commission’s repeated violations of the NPDES permit. See R. 1. Terris, Pravlik & Millian, LLP (“TPM”), a Washington, D.C.-based environmental law firm, represented American Canoe. See id. American Canoe sought a declaratory judgment, injunctive relief, civil penalties, and costs, including attorney fees and expert witness fees, for the permit violations. Id. On August 17, 2001, American Canoe added the City of Louisa as a Defendant. R. 8. On June 11, 2002, the Court dismissed this case for lack of standing. R. 19. On November 29, 2004, the Sixth Circuit reversed and remanded this case to the Court. R. 31. The Court dismissed the Louisa Water Treatment Plant and the City of Louisa Water & Sewer Commission, leaving the City of Louisa (“Louisa”) as the only Defendant. R. 114,137.
On February 27, 2009, Louisa won partial summary judgment, and the Court dismissed American Canoe’s claims for civil penalties for the alleged post-2001 violations. See R. 137. American Canoe won partial summary judgment for civil penalties arising out of proven pre-2001 violations. See Id. On July 20, 2009, the Court ordered Louisa to pay $30,000 in civil penalties and denied American Canoe’s request for injunctive relief. See R. 163.
Now, pursuant to § 1365(d), American Canoe asks Louisa to pay $1,160,117.20 in attorney fees, which it calculated based on Washington, D.C. billing rates, and $261,720.42 in expenses incurred through September 10, 2009. R. 175 at 1. American Canoe also seeks an additional $35,652.70 in fees and $779.12 in expenses incurred from September 10, 2009, to October 28, 2009, for preparing its reply brief to its attorney fee petition. R. 177 at 15. Louisa disputes whether American Canoe should receive any attorney fees at all, and also challenges American Canoe’s number of hours worked, its hourly rate, and its expense calculations. See R. 176.
II. SUBSTANTIALLY PREVAILING PARTY
Under the Clean Water Act, a court may award costs of litigation “to any prevailing or substantially prevailing party, whenever the court deems such an award is appropriate.” 33 U.S.C. § 1365(d). The bulk of attorney fee case law comes from claims under 42 U.S.C. § 1988(b), the statute for attorney fees in civil rights actions. The Supreme Court has applied those standards to attorney fees in environmental law cases.
See City of Burlington v. Dague,
As a threshold matter, American Canoe is entitled to attorney fees under the Clean Water Act because it substantially prevailed in this lawsuit. “[A] plaintiff ‘prevails’ when actual relief on the merits of his claim materially alters the legal relationship between the parties by modifying the defendant’s behavior in a way that directly benefits the plaintiff.”
Farrar v. Hobby,
Further, American Canoe prevailed in its litigation by holding Louisa accountable for its monitoring and reporting violations in addition to its discharge violations. The Sixth Circuit, when considering the appeal to the standing decision, held that even if the renovation project made it substantially likely that the discharge violations would not recur, that would not mean that the monitoring and reporting violations would end as well.
American Canoe Ass’n v. City of Louisa Water & Sewer Comm’n,
Louisa argues that since American Canoe’s success was
de minimis,
it did not substantially prevail and, thus, it should not receive an award of attorney fees. R. 176 at 6-7. This is incorrect. The degree of American Canoe’s success does not affect its status as a prevailing party, so long as American Canoe achieved “some of the benefit the parties sought in bringing suit.”
Hensley v. Eckerhart,
III. LODESTAR ANALYSIS
“ ‘The primary concern in an attorney fee case is that the fee awarded be reasonable,’ that is, one that is adequately compensatory to attract competent counsel yet which avoids producing a windfall for lawyers.”
Adcock-Ladd v. Sec’y of Treasury,
A. Reasonable Hourly Rate
American Canoe seeks compensation based on its attorneys’ hourly rate in Washington, D.C. R. 175 at 19-24.
3
The first step in determining a reasonable rate is to look at the “ ‘the prevailing market rate in the relevant community.’”
Adcock-Ladd,
Then, the burden shifts to plaintiffs to try to prove that the standard local rates should not apply. American Canoe must show that: (1) hiring an out of town attorney was reasonable and (2) the rates sought are reasonable for an attorney of his or her degree of skill, experience, and reputation.
Hadix v. Johnson,
One aspect of the reasonableness analysis is whether “it is necessary to retain outside, non-local counsel after a good-faith effort to locate local counsel fails.”
Sigley v. Kuhn,
Nos. 98-3977, 99-3531,
1. Very competent attorneys in Kentucky were available. There are multiple counsel in Kentucky that handle environmental law matters and did so in 2001. David O. Welch, a practitioner in Ashland, Kentucky, has handled environmental work in asbestos cases throughout Kentucky at the state and federal level since before 2001. See R. 182, Ex. 2 (“Supp. Welch Aff.”). The Ashland law firm of VanAntwerp, Monge, Jones, Edwards and McCann, LLP, has handled administrative and litigation matters involving environmental issues including NPDES permits since before 2001. See R. 176, Ex. 10 (“Monge Aff.”); R. 182, Ex. 3 (“Supp. Monge Aff.”). The Kirk Law Firm, in Eastern Kentucky, represented 523 plaintiffs in a civil action relating to a Martin County Coal slurry spill. See R. 176, Ex. 13 (“Salyer Aff.”). That litigation lasted from 2000 through 2005. See R. 182, Ex. 1 (“Supp. Salyer Aff.”). Ned Pillersdorf has practiced environmental law in Preston-burg, Kentucky, since 1985, and he also represented plaintiffs in the Martin County Coal litigation. See R. 182, Ex. 4 (“Supp. Pillersdorf Aff.”).
American Canoe submits affidavits from four Kentucky environmental law attorneys who state that they do not know any Kentucky counsel that could have taken this case in 2001. R. 175, Exs. 24-27. Given the counsel discussed above, these affidavits are not credible. Not only were Kentucky counsel available, the Court has had regular interaction with the counsel mentioned above and has no question that they are competent to handle a case involving these issues.
See Harmon v. McGinnis, Inc.,
Moreover, there is no evidence that American Canoe ever tried to locate local environmental law counsel and that such counsel declined representation. Indeed, the evidence shows that TPM sought out clients and not the converse. For example, Sierra Club’s chair stated, “attorneys at Terris, Pravlik & Millian, LLP and attorney Hank Graddy recommended to Sierra Club that it initiate this Clean Water Act enforcement suit.” R. 17, Ex. 6 at 3. There is evidence that TPM looked for clients who had standing (i.e., clients that had a concrete and real interest in this suit); TPM billed hours for “calls to possible standing affiants” in American Canoe’s fee petition. R. 175, Ex. 7 at 2-3. There is no such evidence that American Canoe contacted any counsel in Kentucky to see if they could handle a case like this. The fact that TPM initiated the case corroborates the fact that American Canoe made no effort to consult with local counsel before filing this lawsuit.
“[I]t is within the discretion of the district court to determine what the relevant jurisdiction is and how much compensation is reasonable.”
Sigley,
More importantly, “[p]roof that [an attorney] has a national reputation for expertise in this kind of litigation does not constitute proof that her expertise was necessary in this phase of the present litigation.”
Hadix,
American Canoe argues that no Kentucky law firms have even close to TPM’s experience in Clean Water Act cases. R. 166 at 7. Section 1365(d), however, does not guarantee plaintiffs the best counsel, it guarantees competent counsel.
See Hadix,
2. Kentucky counsel handle expensive, complex litigation. American Canoe’s contentions that Kentucky counsel would not take this case because of the potential of lengthy, costly, or complex litigation are not credible. American Canoe submits affidavits from Kentucky counsel who state that no Kentucky counsel would have taken this case. See R. 175 at 17-18; R. 177 at 12-13; R. 184. The Ashland docket itself has current examples of local counsel handling large, complex cases without any guarantee of recovery. For example, in Caudill v. E.I. Dupont De Nemours and Co., No. 04-CIV-229 (E.D.Ky) plaintiffs’ counsel all hail from Kentucky and Cincinnati, Ohio. Caudill is a tort case with over 170 plaintiffs who allege injuries from a release of toxic chemical gas. The case was filed in 2004 and will possibly involve 17 jury trials when it is complete. At present, that case is a contingency case with a ten-year horizon and no guarantee of recovery for plaintiffs counsel.
At the beginning of this case in 2001, no one could have predicted its ultimate outcome or that this litigation would last eight years. American Canoe’s affiants have the benefit of hindsight; something no attorney has at the outset of a case. Further, several Kentucky environmental law attorneys (including American Canoe’s affiant Joe Childers) represented plaintiffs in the Camp Branch Coal Mining case, which lasted from 2002 to 2008. See R. 183, Ex. 1 (“Second Supp. Pillersdorf Aff.”). That case involved environmental damage to property and water wells caused by the removal of coal pillars in underground coal mining. Id. The plaintiffs, represented by Kentucky environmental law counsel, won this case in Letcher Circuit Court after six years of litigation, and counsel was compensated by a fee-shifting statute only after the litigation ended. Id.
Finally, American Canoe relies on its longstanding and close relationship with TPM as a reason for selecting out-of-town counsel. R. 175 at 16-17. American Canoe cites two cases for the proposition that relationship with counsel is an important factor in the analysis.
See Graceland
American Canoe cites many cases where defendants in Kentucky environmental cases retained out of town counsel. R. 175 at 18-19. However, these cases do not deal with attorney fee awards or whether retention of out of town counsel was reasonable. Instead, they are cases where defendants, not plaintiffs, chose to hire out of town counsel. Thus, they do not affect the Court’s analysis here.
Therefore, the appropriate rates are the hourly rates for a Kentucky law firm. After considering the affidavits from Kentucky environmental attorneys, reasonable hourly rates are: $300 for partner work, $150 for associate level work, and $75 for paralegal work. In 2008, the Kentucky Circuit Court awarded these rates to Pillersdorf and other Kentucky environmental attorneys in the Camp Branch Coal Mining case mentioned above. See Second Supp. Pillersdorf Aff. The attorney fee award was under a fee-shifting statute similar to § 1365(d). Thus, the Kentucky Circuit Court has approved these as fair rates for Kentucky attorneys. The rates also fall at the upper end of the range proposed by the Kentucky environmental law counsel. 4
The Court applied current market rates, because “using current market rates rather than those applicable at the time services were rendered” is an appropriate way to compensate counsel for their delay in payment in multi-year litigation.
Missouri v. Jenkins,
B. Hours Reasonably Expended
American Canoe is only entitled to hours “reasonably expended.”
Hensley,
1. Time spent on unsuccessful claims
American Canoe seeks payment for all of the hours spent on this litigation. R. 175 at 3-13. Louisa argues that American Canoe should not recover attorney fees for the time it spent litigating its unsuccessful claims, namely, its claims for injunctive relief. R. 176 at 3-5. The Supreme Court in
Hensley,
however, expressly forbid a district court from determining fees based on the success or the failure of individual claims when the claims arise from a common core of facts or related legal concepts.
American Canoe’s claims all have the same legal theories since they all arose under the same Clean Water Act violations. American Canoe asked for injunctive relief, declaratory relief, and civil penalties due to Louisa’s violation of its NPDES permit. R. 8 at 9. The injunctive and civil penalties claims were all under the Standards and Enforcement section of the Clean Water Act. Fees are rarely split because work was on unrelated successful and unsuccessful claims; however, they can be split when the claims were so different that the lower court bifurcated the trial.
Smiljanich v. General Motors Corp.,
The underlying facts of each of American Canoe’s Clean Water Act claims are also the same. The claims all arise from Louisa’s violations of its NPDES permit and, thus, should be treated as related for attorney fees. Claims are related even when their legal arguments vary widely, as long as they arise from a common set of facts. For example, in
Jordan v. City of Cleveland,
the plaintiff prevailed on retaliation and harassment claims, but lost on racial discrimination and racial harassment claims.
Because American Canoe’s claims were based on the same facts and legal theories, they are all related under Hensley and their fees are not subject to division.
2. Time spent pursuing relief for post-2001 violations
Louisa argues that American Canoe should not be compensated for
any
of its work on the posL-2001 violations because
Louisa cites
Greater Detroit Resource Recovery Authority v. EPA,
While the Clean Water Act provides an independent grant of jurisdiction, it also provides that “no action may be commenced ... prior to sixty days after the plaintiff has given notice of the alleged violation.” 33 U.S.C. 1365(b). American Canoe’s notice letter covered violations only up until April 2001. R. 1, App’x A. It never provided notice of suit for the violations after April 2001, though it pursued relief for them throughout this litigation.
Thus, if those claims were wholly unrelated and could be divided easily from the meritorious claims, the Court could reduce the fee accordingly. Claims are related for the purposes of an attorney fee calculation “when counsel’s time is ‘devoted generally to the litigation as a whole, making it difficult to divide the hours expended.’”
Barnes,
However, there is one area where American Canoe spent time only on the post-2001 violations, and these hours can be eliminated from the hours reasonably expended. On May 9, 2008, Louisa filed a motion for partial summary judgment arguing that American Canoe could not recover for the post-2001 violations. See R. 85. TPM attorneys spent 75.16 hours working on American Canoe’s response to Louisa’s motion for summary judgment, arguing that they were entitled to relief on the post-2001 violations. See R. 175, Ex. 6 at 11 (PL Opposition Brief and Oral Argument). The Court dismissed the post-2001 violation claims for failure to provide notice as required under the Clean Water Act. See R. 137.
For American Canoe to spend 75.16 hours disputing the notice issue was unreasonable. Based on the plain language of the Clean Water Act, American Canoe should have known it had no hope of obtaining relief on the post-2001 claims. Therefore the 75.16 hours spent on the response to the motion for summary judgment are deducted from the reasonable hours expended.
3. Time spent on the case after Louisa’s 2004 compliance with the NPDES permit
Louisa argues that American Canoe should not be compensated for time spent on this litigation after 2004. R. 176 at 14-17. By the time the Sixth Circuit held that American Canoe had standing and remanded this case to the district court in
It is unclear what Louisa expected American Canoe to do at this point. Presumably, Louisa believes that once the water treatment plant was built, American Canoe should have brought the litigation to a swift end. But Louisa waited until its 2008 motion for summary judgment — five years after opening the new water treatment plant — to argue that no further meaningful relief was available. R. 85 at 21-24. Louisa “cannot litigate tenaciously and then be heard to complain about the time necessarily spent by the plaintiff in response.”
City of Riverside v. Rivera,
American Canoe, however, did try to end the litigation. Throughout the course of this litigation American Canoe has made settlement offers. It offered to settle the lawsuit for $25,000 in 2001, shortly after the case was filed, with several subsequent offers well below the fees now sought. R. 177 at 5-7;
see also
R. 177, Ex. 29 (Second Terris Aff.). In August 2007, before expert depositions began, American Canoe proposed settlement for a $75,000 fee and $375,000 attorney fees.
See
Second Terris Aff. Further, American Canoe filed three summary judgment motions that the Court denied. R. 45, R. 77, R. 114. This case did not involve novel issues under the Clean Water Act. This was a strict liability case.
See
R. 167 at 3; R. 137 at 20. Once the standing issue was resolved, this case should have moved to a swift end. The fact that it did not cannot be laid solely at the feet of American Canoe. Stated differently, “[t]he defendants cannot now escape the consequences of their litigation choices.”
ACLU v. McCreary County, Ky.,
No. 99-507,
The Sixth Circuit also considered this mootness argument as part of the standing issue on appeal.
American Canoe Ass’n,
Thus the ultimate question is whether American Canoe’s approach was reasonable.
Thurman,
4. Time spent searching for standing affiants
American Canoe includes in its fee petition hours that TPM spent searching for potential standing affiants. R. 175, Ex. 7 at 2-4. Some of these calls were made in May 2001, before or contemporaneously with the filing of the complaint in this case.
Id.
These calls were to potential plaintiffs other than American Canoe. Presumably, TPM was searching for other citizens or organizations to include in the complaint along with American Canoe. TPM also bills for calls to standing affiants made in June, July, and August 2001, after filing the complaint.
Id.
Again, the overarching concern in attorney fee awards is “the significance of the overall relief obtained by the plaintiff in relation to the hours reasonably expended on the litigation.”
Thurman,
5. Other
Louisa objects to the amount of time TPM attorneys spent on each specific task in its billing records, such as a Rule 26(f) meeting, oral argument, and its summary judgment motions. R. 176 at 22-25. When American Canoe should not have been pursuing certain tasks at all, the Court has deducted hours as explained above. After carefully reviewing the billing records submitted, the Court finds TPM spent a reasonable amount of time on its other tasks. Further, TPM’s Terris provides detailed responses to each of American Canoe’s assertions and thorough explanations for the hours billed. See Second Terris Aff.
After deducting the 75.15 hours spent on response to Louisa’s 2008 motion for summary judgment, and the 23.5 hours spent searching for other standing affiants, American Canoe petitions for 3,857.18 hours. 6 Having reviewed all the hours and calculated the reasonable hourly rates of $300 for partners, $150 for associates, and $75 for paralegals, the lodestar figure for attorneys fees is: $585,622.50. 7
“The primary concern in an attorney fee case is that the fee awarded be reasonable;” that is, a fee that is adequately compensatory to attract competent counsel yet which avoids producing a windfall for lawyers.
Reed,
A. Degree of Success
After calculating the lodestar, a court may adjust the fee upward or downward depending on other considerations, though the Sixth Circuit has cautioned that such adjustments are “proper only in certain ‘rare’ and ‘exceptional’ cases supported by both ‘specific evidence’ on the record and detailed findings by the lower courts.”
Adcock-Ladd,
“Where a plaintiff has obtained excellent results, his attorney should recover a full compensatory fee; if a plaintiff obtains ‘limited success, the district court should award only that amount of fees that is reasonable in relation to the success obtained.’ ”
Isabel,
Louisa cites
DeLeon v. City of Ecorse
in support of its argument that American Canoe’s success on its claims was
de minimis.
Louisa also argues that another appropriate measure of success would be to look at the relationship between the relief requested and relief obtained and points out that the $30,000 penalty is only 2.6% of the $1,150,950 penalty asked for by American Canoe. R. 176 at 6-7.
8
Louisa is correct that this can be an appropriate measure.
See Farrar,
Again, however, these cases are distinguishable. In
Dowling,
the Sixth Circuit only noted that since the plaintiff obtained her entire damages demand, a full attorney fee award was appropriate.
Id.
It stated nothing about cases where plaintiffs do not receive their entire desired award. In
Farrar,
the Supreme Court noted that the victory was a technical one because the jury awarded no damages for the plaintiffs’ civil rights violations.
While Louisa’s arguments that the success was minimal do not have merit, Louisa is correct that this is one of the rare and exceptional cases where the lodestar amount does not accurately reflect the degree of success obtained. District courts may “adjust the fee upward or downward” and consider the ultimate “results obtained” in determining the appropriate adjustment.
Hensley,
This case has two important stages of the litigation that must be considered when determining the amount of success achieved in relation to the amount of fees expended. As discussed above, a significant amount of American Canoe’s success was directly tied to the notice letter— which ultimately cost American Canoe little — and not the lawsuit itself — where American Canoe incurred a significant amount of fees. Indeed, American Canoe’s notice letter led to Louisa’s settlement with the Kentucky Division of Water. R. 105, Ex. 1. American Canoe sent the notice letter on March 19, 2001. Kentucky initiated its enforcement against Louisa on April 19, 2001. American Canoe filed this lawsuit on May 21, 2001. Louisa reached a settlement with Kentucky by August 7, 2001. Though the threat of litigation may have encouraged Louisa to settle, American Canoe did not take part in any of the settlement negotiations. Louisa ultimately fulfilled its obligations under the settlement to build a new water treatment plant. The settlement Louisa undertook with the Kentucky Division of Water brought about the major changes in how Louisa treats its water.
In contrast, American Canoe’s many hours spent on this case after Louisa completed its water treatment facility achieved significantly less success. It obtained no injunctive relief whatsoever. It recovered no relief for the post-2001 violations. And for the pre-2001 violations, the Court found that these violations caused no permanent damage. R. 167 at 27. American Canoe, however, did ultimately recover for the pre-2001 violations (albeit in 2009) and that is success on the merits.
So, how does the Court determine the “degree of success” and in turn the appropriate reduction? Unfortunately, “[t]here
The Sixth Circuit also gives guidance. In
Kentucky Restaurant Concepts,
the Sixth Circuit affirmed an award that reduced the lodestar amount 35% for partial success.
Like Kentucky Restaurant Concepts, an adjustment is appropriate. In this case, the Court believes that a 25% reduction is necessary. First, the majority of American Canoe’s success cost the least. When judging reasonableness, at first blush this appears startling. So, why not reduce the amount by 75% instead of 25%? There are many reasons. First, as the Court has noted before, American Canoe’s lawsuit clearly had a positive effect on Louisa’s water quality. Before the lawsuit, Louisa basically ignored the Clean Water Act. R. 167 at 4-5 (“the Superintendent of the Water Commission between 1975 and 2007, testified that they — from the outset of the Clean Water Act, that they were in violation but did nothing to change that.”). Moreover, American Canoe did not persist in this litigation just to prolong the inevitable. 9 Instead, it filed numerous motions for summary judgment in an effort to speed up the litigation. Those efforts were not successful, but the blame for that cannot be laid solely on American Canoe. Like the plaintiff in Kentucky Restaurant Concepts, American Canoe achieved good, but not excellent, results after the prolonged litigation. In fact, on the claims in which they persisted — related to the discharge and reporting violations — they won. Thus, when considering the totality of the relief obtained versus the amount of time and fees expended, a 25% reduction is appropriate.
A 25% reduction is also justified if you look at it from the overall success perspective of the litigation as a whole. American Canoe caused Louisa to build a water
B. Duplicative billing
Besides the degree of success, the Court may consider a number
of
other factors when determining an overall downward adjustment.
Isabel,
Louisa argues that the fee award should not be many times more than the $30,000 civil penalty.
See
R. 176. at 4. However, the Supreme Court “rejected] the proposition that fee awards [] should necessarily be proportionate to the amount of damages a[] plaintiff actually recovers.”
City of Riverside,
Finally, Louisa asks for a large overall reduction in fees because this case was “overstaffed and over lawyered.” R. 176 at 22-25. Specifically, it challenges the fact that twelve lawyers and seventeen paralegals have worked on this case over
The determination that an indefinite number of hours are excessive or duplicative is a finding of fact, and the Sixth Circuit has repeatedly approved across the board reductions of 25% for what courts found to be duplicative billing.
See Auto Alliance,
Under
Adcock-Ladd,
reductions are made from the lodestar amount. Accordingly, the 10% reduction for duplicative efforts and the 25% for limited success are combined into one 35% reduction.
V. FEE PETITION
In addition to the lodestar figure calculated above, American Canoe requests $129,418 in fees for the time spent working on the attorney fee petition itself.
See
R. 177, Ex. 37. This, of course, is using Washington, D.C. rates. When converted to Kentucky rates, American Canoe is still requesting $77,078. In any event, Louisa argues that this amount should be reduced. “In the absence of unusual circumstances, the hours allowed for preparing and litigating the attorney fee case should not exceed 3% of the hours in the main case when the issue is submitted on the papers without a trial and should not
American Canoe argues that exceptional circumstances exist here, because only an attorney familiar with the case could review the 2,200 time slips for eight years of litigation. R. 177 at 11-12. Its own actions show that this is incorrect. Through the eight years of litigation in this case, TPM maintained computerized billing records. See R. 175, Ex. 7, 10, 13. Using these records, determining the hours for the fee award should not have taken an unreasonable amount of time.
However, the fee petition did involve complicated legal issues on both sides, such as determining the prevailing party and degree of success. One Kentucky court recognized exceptional circumstances and awarded 10% of the main litigation fees for preparing the fee petition.
Jaguar Cars v. Cottrell,
No. 94-78,
Therefore, like in Jaguar Cars, the fee award for time spent calculating the attorney fee petition is 10% of the underlying award, or $38,065.46. This is a substantial decrease from American Canoe’s request of 34%, but accounts for the exceptional amount of time that was necessary to fully brief these issues and to submit 37 corresponding exhibits. The final attorney fee award (excluding expenses) is $418,720.09.
VI. EXPERT FEES
33 U.S.C. § 1365(d) specifically allows recovery for expert witness fees. The statute calls for “reasonable attorney and expert witness fees ... whenever the court determines such an award is appropriate.”
Id.
Louisa argues that American Canoe should not recover any fees for their experts, because they did not provide “any useful testimony for the Court to consider.” R. 176 at 32-34. American Canoe requests $212,938.78 in expert fees. American Canoe hired two experts: Dr. Bruce Bell, an environmental expert who consulted with TPM throughout the litigation, arid Dr. Michael Kavanaugh, an economist.
See
Second Terris Aff. The award for expert fees, as part of the fee award, must reflect the overall reasonableness standard of
Thurman,
Dr. Bell’s testimony was not valuable and did not add anything to the litigation. R. 167 at 6 (“Dr. Bruce Bell did not in any credible way refute Dr. Armstead’s analysis”). Specifically, the Court did not find his theory on harm to the river to be credible because Dr. Bell “is not a biologist, [ ] never studied the river, and just made general assumptions.” Id. at 21. His criticism of Louisa’s treatment plant ignored a key fact about the chemicals in the water. Id. at 24. American Canoe argues that the Court considered Dr. Bell’s work in its liability determination. R. 177 at 8. But the Clean Water Act is a strict liability statute, and thus, no expert opinion was required to determine that Louisa was liable for its violations. It was not reasonable or appropriate to employ an environmental expert who is not a biologist and never visited the site of the Clean Water Act violations. R. 167 at 21. For these reasons, the Court will not award expert fees for Dr. Bell’s work in this litigation.
American Canoe’s use of Dr. Bell resembles the expert use in
Student Pub. Interest Research Group of N.J., Inc. v. Monsanto Co.,
another Clean Water Act case.
On the other hand, American Canoe’s economic expert, Dr. Kavanaugh, did assist the Court. The Court could not reach a conclusion regarding Louisa’s economic benefit from its violations. R. 167 at 8 (“what became clear during the hearing is that the murkiness of the benefits in capital costs is as murky as the Big Sandy River.”). This was because Louisa and American Canoe’s experts presented conflicting, credible evidence. While the Court found that Louisa’s economic expert “did an effective job of pointing out how the plaintiffs’ calculations were faulty,” it also did not accept the assumptions of Louisa’s expert.
Id.
Thus, although the Court did not adopt Dr. Kavanaugh’s testi
American Canoe submits the invoices for Dr. Kavanaugh as part of its reply to the motion for attorney fees. See R. 177, Ex. 31. The invoices, dated from November 2001 to August 2009, total $25,392.30. Thus, American Canoe receives expert fees in that amount.
VII. OTHER EXPENSES
American Canoe requests $47,043.34 for other expenses. R. 175, Exs. 19, 21. Like attorney fees, the Court can only award a reasonable amount of expenses. 33 U.S.C. § 1365(d). These “costs incurred by a party to be paid to a third party ... have long been recoverable in the Court’s discretion.”
Sigley,
Louisa argues that payment for attorney travel expenses of $10,269.68 should not be awarded because American Canoe should have hired local counsel. R. 176 at 38. Louisa is correct. The Court recognizes that reduction of the hourly rate seems to sufficiently lower American Canoe’s fee based on its choice of out of town counsel. However, it is not logical to award out of town travel expenses after determining that American Canoe’s choice of Washington, D.C. counsel was unreasonable. See supra III.A. Therefore, the expense fees for TPM to travel to Kentucky will not be awarded. The Court deducts $10,269.68 from American Canoe’s expense request.
Louisa also argues that American Canoe should not receive compensation for its overnight fax and delivery charges, photocopying, scanning and printing, and transcript reporting, because these expenses were only incurred for American Canoe’s own convenience or were part of the firm’s overhead expenses. Id. at 38-39. However, the filings for this case were not in electronic form. Thus, higher printing, fax and delivery charges from 2001 to 2009 than what would be awarded in a more recently filed case are reasonable and will be awarded.
Louisa challenges overtime payments for staff as unreasonable, and only for American Canoe’s own convenience.
Id.
at 39. In its reply, American Canoe submits an affidavit from Bruce Terris stating that overtime costs were only incurred when absolutely necessary to meet a court deadline.
See
Second Terris Aff. The Third Circuit supports such an expense award, holding that “in a complex, multi-year action such as this, a certain amount of overtime is inevitable.”
Interfaith Cmty. Org. v. Honeywell Int’l, Inc.,
American Canoe also requests reimbursement for its electronic legal research costs. Louisa challenges the West-law and Lexis/Nexis billing, arguing that fees for electronic research should be part of the overall firm overhead and not billed to particular clients. R. 176 at 38. A circuit split exists on whether electronic legal research is already factored into attorney billing rates, or should be awarded as a separate fee.
See Trs. of the Constr. Indus. and Laborers Health and Welfare
Therefore, American Canoe receives $36,773.66 for other expenses incurred during the litigation. This includes $2,222.47 in expenses that American Canoe accumulated while preparing its fee petition. See R. 177, Ex. 37. Combined with the expert fees, American Canoe receives an expense award of $62,165.96.
VIII. CONCLUSION
To award attorney fees under 33 U.S.C. 1365(d), the significance of the overall relief obtained by American Canoe is considered in relation to the hours reasonably expended on the litigation. For the reasons explained above, the Court awards Plaintiffs American Canoe and Sierra Club $418,720.09 in attorney fees and $62,165.96 in expenses under § 1365(d).
Appendix A
Lodestar Calculations
[[Image here]]
Hourly Rate
Attorney billing level (i.e. partner or associate) are from TPM attorney resumes, R. 175, Ex. 3
Hours Reasonably Expended
DCT = Horn's spent on district court litigation, see R. 175, Ex. 5
CTA = Hours spent on court of appeals litigation, see R. 175, Ex. 8
Deductions = Time excluded for response to the defendant’s motion for summary judgment, R. 175, Ex. 6 at 11 Time excluded for search for standing affidavits, 175, Ex. 6 at 1
Total Fee Amount
Hourly Rate X Hours Reasonably Expended
$ 0* = American Canoe chose not to bill for that individual’s work
Notes
. In this case, it could be argued that the change in the behavior did not "directly benefit” two organizations-neither of which reside in the Commonwealth of Kentucky. The Sixth Circuit resolved this issue when it found that American Canoe and Sierra Club's "claims rest upon their organizational interests which are negatively affected by the defendants' failure to fulfill its monitoring and reporting obligations.”
See American Canoe Ass’n v. City of Louisa Water & Sewer Comm’n,
. American Canoe also argues it should recover attorney fees for work on its unsuccessful claims under the catalyst theory of liability.
See Gwaltney of Smithfield, Ltd. v. Chesapeake Bay Found., Inc.,
. American Canoe asks for attorney fees based on the Laffey matrix, an accurate and updated schedule of attorney fees in the District of Columbia as approved by the D.C. Circuit. R. 175 at 20.
. Kyle Salyer states that he charges between $100 and $150 per hour. R. 183, Ex. 2. David O. Welch states that his hourly rate has been $150 per hour since 2005. R. 182, Ex. 2. Gregory L. Monge states that the current hourly rates at his law firm, VanAntwerp, Monge, Jones, Edwards & McCann, LLP, are: $275 per hour for partners, $200 per hour for associates, $95 per hour for paralegals. R. 183, Ex. 4.
. Louisa further argues that if American Canoe had conducted a proper investigation before filing suit, it would have discovered that it had no claim for environmental harm. R. 176 at 20-21. For this proposition Louisa cites
Sierra Club v. Cripple Creek and Victor Gold Mining Company,
. The hours spent on each of these tasks, R. 175, Ex. 6, was deducted from each individual attorney's total billing hours, R. 175, Exs. 5, 8.
. See Appendix A Lodestar Calculations.
. While American Canoe initially requested $1,150,950, it noted that it would not object to a much less significant penalty of $200,000. See R. 167 at 3.
. Obviously, American Canoe could have abandoned the litigation after the water treatment plant was built in 2004. Indeed, that might have been the "right” thing to do, and if the plaintiffs were local they very well may have counseled dismissal to protect the City of Louisa. That did not happen, and the Court does not have the authority to compel dismissal without a basis in the law.
. The Sixth Circuit has not spoken on this issue. Though the courts have not developed case law on expert fees as thoroughly as they have for attorney fee calculations, the statutory standard is the same for both. Both awards must be "reasonable” when the court determines they are "appropriate.” Other district courts within the Sixth Circuit have applied a reasonableness analysis to expert fees.
See Disabled Patriots of America, Inc. v. Odco Invs., Ltd.,
. American Canoe also cites Dr. Kavanaugh for his work as an economist on the Laffey Matrix, the formula used to calculate attorney fees for Washington, D.C. law firms, though it does not appear to have submitted bills for that time. R. 175 at 19-23. If it had the Court would not have awarded fees for this work, since these calculations served no purpose in the resolution of this litigation.
