Balridge - Demel v. NicholsonBalridge - Demel v. Nicholson
Lead Opinion
HAGEL, Judge, filed the opinion of the Court. KASOLD, Judge, filed an opinion concurring in part and dissenting in part.
Before the Court is Stephen Baldridge’s May 28, 2004, application pursuant to the Equal Access to Justice Act, 28 U.S.C. § 2412(d) (EAJA), for an award of attorney fees and expenses in the amount of $11,597.04. Also before the Court is John M. Demel’s June 14, 2004, application for an award of attorney fees and expenses under EAJA in the amount of $3,922.91. In each case, the Secretary has filed a response in which he concedes that Mr. Baldridge and Mr. Demel are entitled to EAJA awards but disputes the amounts sought. Mr. Baldridge and Mr. Demel have filed replies to the Secretary’s response. Because Mr. Baldridge and Mr. Demel have satisfied the statutory requirements for awards, the Court will grant their applications. Because they have failed to justify the amounts sought, the Court, for the reasons that follow, will approve amounts significantly reduced from the amounts requested.
I. BACKGROUND
Although the original claims of Mr. Bal-dridge and Mr. Demel are factually distinct, both were resolved in a similar manner before the Court. Mr. Baldridge’s application for an award of attorney fees stems from a February 24, 2003, Board of Veterans’ Appeals (Board) decision, in which he was denied service connection for a psychiatric disability and for Valium dependence. On April 30, 2004, the Court
Both appellants also had similar representation before the Court. In Mr. De-mel’s case, a Notice of Appeal was filed with the Court in August 2003, and attorneys Daniel G. Krasnegor and Peter J. Meadows each filed a separate notice of appearance as counsel for Mr. Demel during September 2003. Similarly, Mr. Bal-dridge filed a Notice of Appeal in June 2003, and attorney Krasnegor filed a notice of appearance in late July; attorney Meadows filed a notice of appearance less than a week later. Attorney Krasnegor is a partner in the Washington, D.C., office of the firm Wright, Robinson, Osthimer & Tatum. Attorney Meadows is affiliated with the firm of Vose & Meadows in Ft. Laud-erdale, Florida.
The Secretary’s primary argument for reduction of the attorney fees in each of these cases concerns the nature of the dual representation by these two attorneys. Given the like nature of the issues to be resolved in determining the reasonableness of these fee awards, on January 5, 2004, the Court ordered the consolidation of these cases and submitted the matters to a panel. On March 1, 2005, the Court heard oral argument in the consolidated case.
A. Mr. Baldridge’s Application
Mr. Baldridge requests a total EAJA award of'$11,597.04: $9,758.23 in fees (64.8 hours at $150.59 per hour for attorney Meadows’s services) and $29.50 in expenses incurred by attorney Meadows and $1,803.31 in fees (11.2 hours at $149.76 per hour for the services of attorney Krasne-gor, 0.3 hours at $105.00 for Kisha D. Bush, and 0.9 hours at $105.00 for Erica M. Nantals) and $6.00 in expenses incurred by attorney Krasnegor. Baldridge Application, Exhibit A.
The Secretary, in his response, contends that the total fee awarded in the Baldridge case should be reduced to $6,181.10. Secretary’s Response, Baldridge, at 4. Specifically, the Secretary argues that the Court “should deny the entire $1,809.31 for attorney Krasnegor’s fees and expenses as being unreasonable, and reduce attorney Meadowsfs] fees by 4.7 hours that relate directly to telephone conferences with attorney Krasnegor.” Id. at 2. The Secretary further suggests that the Court reduce by one-half the 37.7 hours for time spent “conducting] legal research,” for “additional research,” and for “brief outline” and “brief revision.” Id. Finally, the Secretary urges the Court to deny the request for payment for 0.4 hours on April 4, 2003, for “detailed review of brief and litigation file” performed three weeks after the brief had been filed. Id. at 3-4. The Secretary argues that several factors are important for the determination of the reasonableness of fees in this case: (1) Both attorneys “are experienced practitioners in veterans benefits law,” (2) both attorneys are employed at different law firms, (3) this case “did not' involve any complex issues,” and (4) attorney Meadows billed his time in blocks of “multiple hours with vague descriptions.” Id. at 6. The Secre
On July 30, 2004, Mr. Baldridge filed a reply to the Secretary’s response in which he counters that, “[c]ontrary to the Secretary’s position, it is reasonable to allow two experienced attorneys the opportunity to represent an appellant before this Court.” Reply, Baldridge, at 4. He argues that “beyond the preparation of required pleadings, the time spent by attorney Krasne-gor was limited to a review of the original [Board] decision to identify all possible errors[] and discussion of the proposed [j]oint [m]otion for [r]emand” and that “[h]aving a second pair of eyes review pleadings and allowing for lead counsel to discuss his ideas about a case are important techniques used in diligently representing one’s client.” Id. at 5-6. In response to the Secretary’s argument that the resolution of Mr. Baldridge’s appeal lacked complexity, he contends that “[a]t the start of a case, it is not in any way apparent how the case will ultimately be resolved” and that “even if one simple basis for remand is identified at the start of a case, counsel must nevertheless be prepared to address and argue all errors identified.” Id. at 10-11.
B. Mr. Demel’s Application
Mr. Demel requests a total EAJA award of $3,922.91: $3,884.17 in fees (21.1 hours at $149.76 per hour fоr fees incurred by attorneys David E. Boelzner, Sandra W. Wischow, and attorney Krasnegor, 4.6 hours at $150.59 per hour for fees incurred by attorney Meadows, 0.3 hours at $105.00 per hour for fees incurred by Kisha D. Bush) and $38.74 in expenses. Mr. Demel asserts that his attorneys exercised billing judgment by excluding “time spent on administrative matters.” Demel Application at 2-3.
The Secretary opposes Mr. Demel’s application and argues that (1) the appeal was relatively simple, (2) the appeal did not involve complex issues, and (3) the work of attorneys Krasnegor and Meadows was duplicative because, given their high level of experience in veterans law, either attorney alone could have managed this appeal. Secretary’s Response, Demel, at 6. The Secretary also asserts that attorneys Krasnegor and Meadows are employed at different law firms and that it has become common practice for these two attorneys to enter appearances as co-counsel. Id. at 8.
Mr. Demel responded by arguing that the work performed by attorneys Krasne-gor and Meadows was reasonable and not redundant. He states that his attorneys have established a system for reviewing and developing cases that provides for more effective supervision of work and discussion of ideas and that the ultimate basis for the remand in this case does not render it unreasonable to have more than one attorney. Reply, Demel, at 5-8. He further argues that any restriction of attorney fees because his counsel work in different law firms would be arbitrary. Id. at 9.
II. ANALYSIS
The Court has jurisdiction pursuant to 28 U.S.C. § 2412(d)(2)(F) to award reasonable attorney fees and expenses. Mr. Bal-dridge and Mr. Demel each filed his re
The amount of the fee must be determined on the facts of each case. See Hensley v. Eckerhart,
A. Applicable Law
1. Reasonableness of Fees
The burden of demonstrating the entitlement to and reasonableness of fees for which reimbursement is sought rests with the party applying for the fee award. See Blum v. Stenson,
The applicant, however, is not necessarily entitled under EAJA to be compensated for all time spent on the case. See Ussery,
Reasonable fees that an EAJA applicant may recover have been defined as fees that would normally be charged to and paid by a private client. See Ramos,
2. Adequacy of Documentation
i. Detail and Specificity in the Billing Statement
Specific documentation is necessary to support an application for fees under EAJA. 28 U.S.C. § 2412(d)(1)(B) (providing that “[a] party seeking an award of fees and other expenses shall ... submit to the court an application for fees and other expenses ... including an itemized statement from any attorney or expert witness representing or appearing in behalf of the party stating the actual time expended and the rate at which fees and other expenses were computed”). Because of the importance of submitting evidence supporting the hours worked and rates claimed when a court determines reasonableness, the Supreme Court has stated that “[w]here the documentation of hours is inadequate,” the court charged with ordering the payment of attorney fees “may reduce the award accordingly.” Hensley,
This Court has similarly held that for EAJA fees to be awarded in full, an applicant must submit evidence of hours worked in the form of a billing statement that is specific and detailed. Andrews,
ii. Justifying Time Beyond What Is Normally Required for a Task
It is not enough, however, merely to provide detailed work records. In determining reasonableness, the Court must also scrutinize whether the time expended for any given, described task is appropriate. Therefore, appellants seeking fees from the government must justify any time in excess of what would be considered the normal time needed to accomplish a particular task by providing a detailed, specific explanation of why the time exceeded that norm. Ramos,
Even the total number of hours billed on any given workday may become subject to this kind of scrutiny. For example, in Ramos, the Tenth Circuit discussed the effect of billing practices in the industry on determining reasonableness of hours billed on any given workday:
In determining which hours reported were reasonably expended and hence are billable to the adversary, the court should examine the total number of hours reported by each lawyer. While some private firm lawyers bill more than 2000 hours per year, studies indicate that 1400 to 1600 billable hours per associate and 1200 to 1400 per partner represents the per annum norm that can actually be billed. These totals break down to six to seven billable hours per day for a five day week. During trials and other times of unusual stress the number of billable hours no doubt increases considerably. These studies re-*236 fleet that normal workdays for lawyers include time to read general mail and advance sheets, to engage in nonbillable conversations with other lawyers, and to indulge in coffee breaks and other personal activities. The court should question reported time significantly in excess of the norm.
iii. Billing for Non-attorney Work
Applicants are not permitted to bill for and collect fees for clerical work and the work of general support staff. Because of the assumption that “work done by librarians, clerical personnel and other support staff ... [is] generally considered within the overhead component of a lawyer’s fee,” costs for such work are not properly charged to the government under EAJA. Role Models,
Where they are not engaged in clerical or administrative work, those providing specialized services and paralegal services may be billed at an appropriate rate but such billing requires an explanation and justification that includes the education and experience of the individual for whom reimbursement is sought, the work performed, and the standard billing rate in that locale. Role Models,
Billing for those other than lead attorneys must also explain the role of each person who is working on that case, specifying who those persons are and what their connection to the case is. See Role Models,
3. Reimbursement for Multiple Attorneys under EAJA
i. Justification Requirements
Although we note that any appellant remains free to hire as many counsel as he or she wishes, the issue before the Court is not how many attorneys are permissible
We do not depart from the array of prior caselaw holding that there is no per se rule against the award of fees for multiple lawyers. For example, we have held that “the mere fact that two people researched the same motion does not indicate that they were researching the same issues, or that their efforts were duplica-tive.” Ussery,
However, while allowing for the possibility that “multiple representation can be productive,” we must also be mindful of the fact that along with multiple attorneys comes “the danger of duplication, a waste of resources which is difficult to measure.” Coulter v. Tennessee,
Several elements may be offered as justification for awards for multiple lawyers, including (1) the complexity of the case, (2) the need for specialized knowledge, (3) whether the case presents an important issue of first impression, (4) the
To illustrate this principle, the Third Circuit explains that it often disallows “compensation for more than one lawyer performing either trial or office work,” but it makes an exception for cases that present “multiple, complex legal questions” and that present issues of first impression. Planned Parenthood v. AG,
Complexity must also be measured against a practitioner with reasonable experience. If the inexperience of an attorney results in the need for supervisory assistance, the increase in time expended may not be properly billed to the government. See Ramos,
Considerations about the need for multiple counsel may also be impacted by the stage of the proceedings and the staffing praсtices of the adversary. We may look, for example, to how many lawyers the other side utilized in similar situations as an indication of the effort required. See Ramos,
An application for fees under EAJA where multiple attorneys are involved must also explain the role of each lawyer in the litigation and the tasks assigned to each, thereby describing the distinct contribution of each counsel. See Planned Parenthood,
The more lawyers representing a side of the litigation, the greater the likelihood will be for duplication of services.... The court should assess the possibility that reported hours include duplication by reviewing with particular care the number of lawyers present at hearings, depositions, and other discovery proceedings, and by evaluating the roles played by the lawyers in the litigation generally.
ii. Documentation in Multiple-Attorney Cases
Because of the danger of waste and duplication in multiple-attorney cases, the requirement of adequacy of billing documentation becomes heightened. We must therefore consider multiple representation in the following manner: Whether “something about this case required so many lawyers expending so many hours” and whether “the time records contain so little informatiоn, [that] we have no basis for concluding that hours that appear to be excessive and redundant are in fact any
For applications filed after the date of this opinion, the Court encourages applicants seeking EAJA fees in cases in which reimbursement is sought for the work of more than one attorney, to attach a single, consolidated, chronological billing statement to the full fee award requested. That single billing statement, to be most helpful to the Court, should further be in tabular form with entries listed in chronological order and depict the work done on the case on each date identifying the lawyer who did the work and must be signed by the lead counsel, who will be responsible for its accuracy and completeness. The lead counsel should sign under a certification that he or she has (1) reviewed the combined billing statement and is satisfied that it accurately reflects the work preformed by all counsel and (2) considered and eliminated all time that is excessive or redundant.
A single billing statement and signed certification by the lead counsel in a case with multiple-lawyer representation also provides the Court with an assurance that the counsel has made a final, coordinated attempt to ensure that the applicant has noted and eliminated any time, as is necessary, claimed for the work of a relatively inexperienced attorney or claimed for any other situation where work may be dupli-cative. See Sandoval,
The use of a single, consolidated billing statement is also in keeping with established principles concerning the importance of maintaining contemporaneous billing records. The federal circuit courts of appeals do not uniformly agree about whether or not contemporaneous billing records are required to support applications requesting attorney fees from the government. The First Circuit, for example, has held that “in eases involving fee applications ... the absence of detailed contemporaneous time records, except in extraordinary circumstances, will call for a substantial reduction in any award or, in egregious cases, disallowance.” Grendel’s Den, Inc. v. Larkin,
Although we decline to impose a requirement that where contemporaneous billing records are lacking, EAJA fees will automatically be reduced, we emphasize that, especially in multiple-attorney cases, the existence of meticulous and contemporaneous time records will facilitate the development of a single, complete, accurate, and specific billing statement for purposes of the fee application. These records would provide any lead counsel with the ability to supply evidence that the award sought is for time that is reasonably billed. See Chesser,
We further recognize that judgments about whether work is duplicative “must be made in light of the needs of the litigation as presented to the attorneys at the time the hours of service were performed” and not in terms of an “inquisition into exactly which hours were necessary for the precise result later obtained.” Roman,
I. Method of Award Reduction
Each case must be reviewed on its own merit, and the Court (whether by single judge or by panel) has wide discretion to reduce individual fee entries. Chesser,
Other courts have also followed this practice by reducing awards by percentage. See Role Models,
This Court has similarly held that a mathematical approach should be avoided in reducing hours. Vidal v. Brown,
However, although departure from the percentage reduction is not prohibited, we do suggest that reducing awards in this manner is more in keeping with the idea of avoiding a mathematical approach because it allows the Court to look at each individual case as a whole and frees it from tinkering with any necessary reductions by individual hours and tenths of hours. Although, as the dissenting judge suggests, this method may be less precise, given the level of discretion that judges have in awarding EAJA fees (including the option of applying a line-item method of reduction), and the analysis the Court must provide to explain why any given application is deficient, there is no reason to conclude that overall percentage reductions are less equitable than individual line-item reductions. The Court must apply the law and ensure a fair outcome, which does not necessarily entail combing through each billing statement and tallying up tenths of hours as a green-eye-shaded auditor would do. The percentage method of reduction is also predictable insofar as it correlates to the magnitude of the deficiencies of the application. It further reinforces the burden placed by the law on fee applicants and provides them with an added incentive to be more precise in explaining why time spent is properly chargeable and why the fees for which
We also believe that reducing the total amount by percentage is partiсularly appropriate here, where both applications contain billing statements from two different law firms, and in neither case do the attorneys make a declaration about having exercised billing judgment. Mr. Baldridge merely makes a vague statement about how “[a] reasonable attorney, exercising sound billing judgment, would charge for time spent on all matters included,” and Mr. Demel asserts — incorrectly, in the Court’s view — that “[i]n the exercise of sound billing judgment, no payment is requested for time spent on administrative matters such as copying, filing[,] or research into matters unrelated to the disposition of the case.” Baldridge Application at 3; Demel Application at 2-3. Where even the attorneys who submitted the billing statements have failed consistently or reliably to indicate that they have eliminated exact portions of their billing statements that may have been duplicative or are otherwise not billable, the Court can better judge the reasonableness of the fees as a whole than it can judge the reasonableness of the fees of individual hours billed. We will therefore evaluate the fee applications in these cases on the whole and reduce awards by percentage.
B. Mr. Baldridge’s Fee Award
The application for EAJA fees by Mr. Baldridge suffers from several of the deficiencies discussed above. Regarding attorney Krasnegor’s fee, the Court observes that the fees sought by attorney Krasnegor are for a total of 11.2 hours of attorney time and that the time spent on this appeal by attorney Krasnegor amounts to a small portion of the 64.8 hours of attorney time expended by^attor-riey Meadows.’ Although that fact alone certainly does not warrant granting Mr. Baldridge an EAJA award for the services of attorney Krasnegor, it may reflect, to some degree, that attorneys Meadows and Krasnegor attempted to avoid duplicative work. See Norman,
Each party in this case presents different arguments for why having two attorneys was or was not justified. Mr. Baldridge argues that having a second attorney working on the case made the process of “discussion” and “brainstorming” easier or more efficient, (Reply, Bal-dridge, at 6), but that fact alone does not justify the payment of the full fees. Such collaboration falls under the category of conferences that may (or may not) be neсessary, but because they constitute duplicative or redundant work, are certainly not necessary enough to be compensated under EAJA. See Roman,
Also, at the time that attorney Krasne-gor, on April 26, 2004, “[r]eview[ed]” the joint remand motion and “discuss[ed]” that motion with attorney Meadows, the parties had already agreed that сertain matters on appeal would be remanded for the Board to provide an adequate statement of reasons or bases regarding VA’s duty to notify. The motion merely formalized that agreement, and such motions are common and uncomplicated. Consequently, the Court finds attorney Krasnegor’s review and discussion of that motion duplicative of attorney Meadows’s work. See Medlock,
Furthermore, regarding attorney Meadows’s practice in this case of billing multiple hours at a time with vague descriptions of work performed during that time, the Court will reduce the amount awarded based on the fact that the billing statement contains intervals of time of three hours or more where the work performed is vaguely described. See Andrews,
Turning to the Secretary’s argument that it “smacks of unreasonableness” to bill 17.1 hours in one day, we agree with the Secretary to the extent that such billing is not justified without a specific explanation of why so many hours in one day were billed for the case given the factors discussed in Ramos in part II(A)(2)(ii) of this opinion. Although it may be possible that attorney Meadows performed these tasks precisely as listed, the Court cannot conclude that such billing is reasonable without adequate documentation to justify such an unusually large block of time billed in one day. See Ramos,
In addition, as discussed previously (supra at 236), we will reduce the amount to be awarded for time spent on clerical and administrative matters, including time spent receiving documents and “voicemail” and preparing forms. See Baldridge Application, Exhibit A (“[R]eceive ... [Board] decision,” “prepare representation forms, set up files,” “[r]eceive correspondence from client,” “[r]eceive [designation of the record] and calendar”, “[r]eceive ... [a]ppellee’s Motion for [r]emand,” “receive voicemail from 0[ffice of General Counsel] attorney regarding counterdesignation of the record],” “[r]eceive granted motion from [C]ourt,” “receive correspondence from client regarding] waiver,” “receive client’s c-file,” “[r]eceive correspondence from 0[ffice of General Counsel] regarding] c-file,” “[r]eceive [C]ourt order,” “[r]eceive ... [the transmittal of the record],” “[receive [n]otice to file brief,” “[r]eceive ... motion granted from [C]ourt,” “receive ... [C]ourt order regarding briefing conference],” “receive ... order for [briefing conference],” “[rjeceive ... proposed [joint motion for remand] and ease file,” “[rjeceive ... [joint motion for remand],” “[r]eceive ... Court [o]rder for [joint motion for remand]”). The government is not required to pay attorney Meadows—
We will also reduce the amount to be awarded based on hours billed by attorney Krasnegor for the services of Kisha D. Bush and Erica M. Nantals, whose roles are not identified anywhere in the application. See Baldridge Application, Exhibit A (“Receive message from client regarding] status of case,” “[telephone call to client regarding] status of case,” “[telephone call to client regarding] status and merits of case,” “[telephone call from client regarding] status of case,” “[telephone call to client regarding] status and procedural aspects of case,” “[c]ompile billing statement for EAJA [application]”); see also Role Models,
In sum, based on the totality of these deficiencies, we will, in our discretion, reduce the total amount requested, including fees and expenses, by one-third to account for hours that are duplicative, clerical', inadequately documented, or beyond the normal amount of work hours but lacking an explanation as to why those hours should be extended beyond thе norm. Accordingly, we will award Mr. Baldridge EAJA fees and expenses in the amount of $7,731.36.
C. Mr. Demel’s Fee Award
The application for EAJA fees by Mr. Demel is also deficient on several of the same grounds. Unlike the Baldridge application, the roles of the attorneys cannot be clearly delineated based on the number of hours each counsel worked. Four attorneys billed time in this case, and attorney Krasnegor, who appears to have performed the role of lead counsel, billed time for 6.7 hours in total. Two attorneys affiliated with his firm, David E. Boelzner and Sandra W. Wischow, each respectively performed 7.8 and 6.6 hours of work. For his part, attorney Meadows billed time for 4.6 hours in total. The relatively even distribution of hours among these four attorneys raises serious questions as to how much they attempted to avoid duplicative work. See Norman,
Further, this case appears to be one of relative simplicity, lacking complex issues or issues of first impression. Mr. Demel asserts that any conclusions about the complexity are made with the benefit of hindsight. However, he does not advance arguments as to why, even at the outset of the ease, a reasonable attorney would have thought this case was complex enough to warrant the work of four attorneys. See Grant,
As is the case in the Baldridge application, Mr. Demel includes in his application billing entries for administrative tasks, such as filing and serving documents, in combination with tasks properly billed to lawyers. See Demel Application, Exhibit A (“[Djraft and file [njotice of [ajppearance” “review and file notice of appearance,” “[cjhecking docket; drafting and filing [njotice of [ajppearance,” “draft, file, and serve counterdesignation of record,” “[pjhone message from VA counsel,” “[djraft and file extension motion,” “[rje-view VA counsel draft of joint motion, sign and return,” “[djraft and file EAJA application”); see also Demel Application, Exhibit B (“[Rjeceive ... [Board] decision,” “prepare representation forms, set up files, correspondence to client with enclosures,” “prepare, file[,J and serve [njotice of [ajppearance,” “[rjeceive ... [jjoint [mjotion for [rjemand”). As we did with the Baldridge application, we will reduce Mr. Demel’s award in part because the government is not required to compensate attorneys for clerical and administrative tasks. See Role Models,
Two other problems with Mr. DemeFs application concern inadequacy of documentation. Although the written application itself notes that services of a paralegal were included in the, billing statement (which is more information than the Bal-dridge application provides), that paralegal is not specifically identified, nor is any education or experience set forth to justify the paralegal work. See id. at 971-72. Also, as attorney Krasnegor admitted during oral argument, some attorneys who billed time included on the EAJA application worked out of the Richmond, Virginia, office of attorney Krasnegor’s firm. All three attorneys associated with that firm billed time in this case at a rate adjusted for'the Baltimore/Washington, D.C., area on the Consumer Pricing Index. However, given that Richmond is not included in that metropolitan area, not all attorneys may properly be entitled to collect fees at that higher Baltimore/Washington, D.C., rate. Mr. Krasnegor has conceded as much.
Given the similarity of the deficiencies between the Demel application and the Baldridge application, and noting that the Baldridge application contains deficiencies that the Demel application does not (including more time that is inadequately documented and time billed beyond the normal amount of work hours but lacking an explanation as to why those hours should be extended beyond the norm), the amount of the reduction in Mr. DemeFs case will be less than the reduction in Mr. Baldridge’s case. Based on the deficiencies discussed with respect to Mr. DemeFs application, we will reduce the total amount requested, including fees and expenses, by one-fourth to account for hours that are duplicative, clerical, inadequately documented, or billed at the improper rate. The fees and expenses awarded to Mr. Demel will therefore total $2,942.18.
D. Ethical Requirements for Multiple-Law-Firm Representation
When multiple lawyers seek EAJA fees in a single case, Rule 1.5(e) of the Model Rules of Professional Conduct may apply.
(e) A division of a fee between lawyers who are not in the same firm may be made only if:
1) the division is in proportion to the services performed by each lawyer or each lawyer assumes joint responsibility for the representation;
2) the client agrees to the arrangement, including the share each lawyer will receive, and the agreement is confirmed in writing; and
3) the total fee is reasonable.
Model Rules of Prof’l Conduct R. 1.5(e) (2003) (emphasis added). We recognize that there may be some question regarding whether this rule applies to fee division in pro bono cases. See ABA Cоmm, on Professional Ethics and Professional Responsibility, Formal Op. 93-374 (1993) (discussing applicability of ethical obligations when lawyers share fees in a pro bono context and where court-awarded fees are paid by the prevailing party; noting that “careful scrutiny [by the Court] of any fee paid eliminates any remaining possibility of speculation for financial gain” by the attorneys). Consequently, we stop short of holding today that Rule 1.5(e) applies strictly in cases like this one. However, we believe that the disclosure contemplated by the rule is good practice and is consistent with fully informing the client regarding the nature of the relationship among attorneys providing representation.
III. CONCLUSION
Upon consideration of the foregoing analysis and the pleadings of the parties, Mr. Baldridge’s EAJA application is GRANTED in the amount of $7,731.36. Mr. Demel’s application is GRANTED in the amount of $2,942.18.
Concurrence Opinion
concurring in part and dissenting in part:
Although I concur with much of the majority opinion, I respectfully do not believe it is appropriate in this case to apply an across-the-board percentage reduction to the requested EAJA fees; nor do I believe we should suggest detailed procedures for EAJA applications outside of our normal rule-making authority. For the reasons stated below, I dissent with respect to sections II.A.3.Ü and A.4, II.B, and II.C of the opiniоn.
At the outset, I re-emphasize the conclusion of the majority that the argument presented by both appellants — that the approach undertaken by counsel in managing these cases justified an award of attorney fees because the approach mirrored the internal working procedures of the Secretary in handling cases' — is unpersuasive. Ante at 239-40. The prudential requirement that the Secretary maintain consistent positions before the Court combined with the staffing needs of the Secretary’s General Counsel, who handles thousands of cases and supervises scores of attorneys, and who is charged by law with representing the Secretary before the Court, 38 U.S.C. § 7263(a), renders any comparison inapposite.
With regard to the across-the-board reduction of the entire EAJA fee sought, including expenses, that was applied in these cases by the majority, I note that
Although an across-the-board percentage reduction can be permissible as to attorney’s fees (as opposed to an entire EAJA fee request), it has been limited to situations where more focused reductions are not practical, such as when billing statements are extensive or have multiple deficiencies, see, e.g., Role Models Am., Inc. v. Brownlee,
I do not agree with the majority that our case law supports an across-the-board percentage reduction of the entire EAJA fee request in this case. Up until today, the precedential opinions of this Court have reserved the across-the-board percentage reduction for cases involving multiple claims for which success was not achieved on all of the claims, and then only as to the attorney fees requested. See, e. g., Jacobsen v. West,
Moreover, even when a percentage reduction of attorney fees is necessary as a practical matter, the Court has cautioned against using a straight mathematical formula; i.e., EAJA fees should not be reduced by one-third solely because one-third of the claims on appeal were denied. See id. (citing Smith,
I further note that, although the majority decision describes the deficiencies in the individual billing statements in each case, it is impossible to deduce how the majority arrived at the specific across-the-board percentage reduction it applies. Although we are told why one fee request is awarded at a lesser rate than the other, no basis for understanding is provided as to why one-third and one-fourth reductions are applied in these cases. Why not one-half and one-third? The continued application of this across-the-board percentage reduction in determining EAJA-fee reductions, particularly given our single-judge appellate authority, will inevitably lead to wholly unpredictable, and likely inequitable, results.
Finally, although I appreciate the majority’s desire to streamline the billing statements submitted in cases involving multiple attorneys, I question the appropriateness and effectiveness of suggesting in this case detailed procedures that two judges of the Court might prefer, particularly when the Court has established rule-promulgating procedures that generally include the participation of our Rules Advisory Committee and other interested parties. See 38 U.S.C. § 7264(a); 28 U.S.C. § 2071(b); U.S. Vet App. R. 40(a). I believe the Court, the bar, and the parties would be better served by following our normal practice.