Cleopatra DELEON; Nicole Dimetman; Victor Holmes; Mark Phariss, Plaintiffs-Appellees v. Greg ABBOTT, in his official capacity as Governor of the State of Texas; Ken Paxton, in his official capacity as Texas Attorney General; John Hellerstedt, in his official capacity as Commissioner of the Texas Department of State Health Services, Defendants-Appellants
No. 15-51241
United States Court of Appeals, Fifth Circuit
April 18, 2017
Before DAVIS, ELROD, and HIGGINSON; Circuit Judges.
Accordingly, the court applied a three-level health-care-fraud enhancement, which applies for intended loss between $7 and $20 million.
As stated, Iglehart maintains the court did not follow the burden-shifting methodology for calculating intended loss. See
The Government counters that the court followed the proper methodology articulated in Isiwele and Valdez by acknowledging that the prima facie evidence (i.e., the billed amount) overstated Iglehart‘s intent. The Government further maintains the court did not err by considering Iglehart‘s knowledge and subjective expectations regarding the Medicare billing process in order to conclude she intended loss in excess of $9.5 million.
Although the court did not articulate a step-by-step methodology (which it‘s not required to do), it explained its reasoning for the applicability of each enhancement: it rejected the prima facie evidence; considered evidence of Iglehart‘s subjective knowledge; and made a factual finding for the range of her intended loss. Especially given the “wide latitude” courts are afforded in calculating loss, the conclusion that Iglehart‘s intended loss was between $9.5 and $20 million was “plausible in light of the record as a whole“. Jones, 475 F.3d at 705; Valdez, 726 F.3d at 692. Accordingly, the court did not err in applying the enhancements under Guidelines
III.
For the foregoing reasons, the judgement is AFFIRMED.
Summer Rayne Lee, Assistant Attorney General, Office of the Attorney General, General Litigation Division, Austin, TX, Michael P. Murphy, Office of the Attorney General, Office of the Solicitor General, Austin, TX, for Defendants-Appellants
PER CURIAM:*
Cleopatra DeLeon, Nicole Dimetman, Victor Holmes, and Mark Phariss were awarded $585,470.30 in attorneys’ fees and $20,202.90 in costs arising from their successful challenge to Texas‘s constitutional and statutory provisions limiting marriage to opposite-sex couples. On appeal, Texas argues that the fees and costs awarded are excessive and are composed of non-compensable amounts. We find no abuse of discretion and AFFIRM.
I.
The plaintiffs were successful in obtaining a judgment invalidating Article I, § 32 of the Texas Constitution and Texas Family Code §§ 2.001(b) and 6.204(b), which limited marriage in Texas to opposite-sex couples. Following the Supreme Court‘s decision in Obergefell v. Hodges, U.S., 135 S.Ct. 2584, 192 L.Ed.2d 609 (2015), recognizing a constitutional right to same sex marriage, this court affirmed the district court‘s preliminary injunction and directed the judgment be entered in plaintiffs’ favor.
After judgment was entered, plaintiffs sought to recover their attorney‘s fees under
II.
We review awards of attorney‘s fees “for abuse of discretion, reviewing factual findings for clear error and legal conclusions de novo.” Davis v. Abbott, 781 F.3d 207, 213 (5th Cir.), cert. denied, U.S., 136 S.Ct. 534, 193 L.Ed.2d 427 (2015). The reasonableness of attorney rates and hours expended are questions of fact reviewed for clear error. La. Power & Light Co. v. Kellstrom, 50 F.3d 319, 324 (5th Cir. 1995). A district court abuses its discretion if its award is “based on an erroneous view of the law or a clearly erroneous assessment of the evidence.” Walker v. City of Bogalusa, 168 F.3d 237, 239 (5th Cir. 1999) (internal quotation marks omitted).
As we have said before, “[w]e cannot overemphasize the concept that a district court has broad discretion in determining the amount of a fee award.” Associated Builders & Contractors of La., Inc. v. Orleans Par. Sch. Bd., 919 F.2d 374, 379 (5th Cir. 1990). Our deferential review is “appropriate in view of the district court‘s superior understanding of the litigation and the desirability of avoiding frequent appellate review of what essentially are factual matters.” Id. (quoting Hensley v. Eckerhart, 461 U.S. 424, 437, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983)); see also Cantu Servs., Inc. v. Frazier, et al., No. 16-31035, 682 Fed.Appx. 339, 341, 2017 WL 1089508, at *2 (5th Cir. Mar. 22, 2017) (” ‘Due to the district court‘s superior knowledge of the facts and the desire to avoid appellate review of factual matters, the district court has broad discretion in setting the appropriate award of attorney[‘s] fees. ‘“) (quoting Watkins v. Fordice, 7 F.3d 453, 457 (5th Cir. 1993); Hopwood v. Texas, 236 F.3d 256, 277 (5th Cir. 2000) (“Appellate courts have only a limited opportunity to appreciate the complexity of trying any given case and the level of professional skill needed to prosecute it.“). However, this deferential review is appropriate only if the district court “‘provide[s] a concise but clear explanation for its reasons for the fee award.‘” Associated Builders, 919 F.2d at 379 (quoting Hensley, 461 U.S. at 437) (alteration in original).
Under
III.
The district court‘s order reflects that it carefully reviewed the plaintiffs’ claim for attorney‘s fees and costs under the proper legal standards. It also carefully considered the state‘s many objections to the plaintiffs’ claimed fees and costs. After considering those objections, the district court accepted a substantial 35 percent reduction in the total hours expended to account for non-compensable time and determined that the remaining hours were both reasonable and reasonably expended. See Kellstrom, 50 F.3d at 324. We recently reiterated that, “[i]n determining reasonable attorney‘s fees, the district court is not required ‘to achieve auditing perfection,’ as ‘[t]he essential goal in shifting fees (to either party) is to do rough justice.‘” Cantu, 682 Fed.Appx. at 343, 2017 WL 1089508, at *4 (quoting Fox v. Vice, 563 U.S. 826, 838, 131 S.Ct. 2205, 180 L.Ed.2d 45 (2011)) (second alteration in original). Instead, “[d]istrict courts may ‘take into account their overall sense of a suit, and may use estimates in calculating and allocating an attorney‘s time.‘” Id. (quoting Fox, 563 U.S. at 838). As the Supreme Court has warned, “trial courts need not, and indeed should not, become green-eyeshade accountants.” Fox, 563 U.S. at 838.
Here, we find that the district court acted well within its broad discretion in making the appropriate reductions and reasonableness determinations. See id. (“We can hardly think of a sphere of judicial decisionmaking in which appellate micromanagement has less to recommend it.“). In sum, after a careful review of the record, we are satisfied that the district court acted well within its discretion in its award of fees and costs.
AFFIRMED.
JENNIFER WALKER ELROD, Circuit Judge, concurring in part and dissenting in part:
I agree that the bulk of the fee award should be affirmed. However, the district court awarded fees for tasks that are not, in my view, compensable. The majority opinion erroneously affirms the award for these non-compensable tasks, and in so doing it ignores our precedent and creates at least one, and arguably more, circuit splits. Because I would remand for the district court to exclude fees based on non-compensable tasks, I respectfully dissent.
I.
Section 1988 authorizes district courts to award a “prevailing party” its “reasonable attorney‘s fee[s].”
A.
First, the district court awarded compensation for time expended in relation to a failed third-party motion to intervene. The majority opinion affirms this award, but violates our rule of orderliness by failing to follow, or even address, our precedent prohibiting recovery for intervention-related time and simultaneously creates a circuit split on this issue.
Hopwood prohibits awarding intervention-related fees in this case. As in Hopwood, Texas took no position on the motion to intervene, and so Plaintiffs did not “prevail on this issue vis-à-vis Texas.” Hopwood, 236 F.3d at 280. Thus, the same basis for affirming the district court‘s exclusion of such fees in Hopwood—absence of prevailing-party status—prohibits an award of intervention-related fees in this case. As was true in Hopwood, “[n]either logic nor equity supports taxing Texas under these circumstances.” Id. This is all the more true here given that Plaintiffs have not argued that intervention-related fees are recoverable. Despite this, the majority opinion affirms the award with nary a mention of Hopwood. Cf. United States v. Fields, 777 F.3d 799, 807 (5th Cir. 2015) (“Under our rule of orderliness, one panel may not overrule the decision of a prior panel absent an intervening change in the law....“).
Not only does the majority opinion depart from our precedent, it creates a split with at least one other circuit. In Rum Creek Coal Sales, Inc. v. Caperton, 31 F.3d 169 (4th Cir. 1994), the Fourth Circuit considered a district court‘s exclusion of attorneys’ fees “incurred in opposing [a third-party‘s] intervention.”2 Id. at 176. Affirming this exclusion, the Fourth Circuit held that “intervention-related fees and expenses ... are not recoverable ... by a prevailing plaintiff against a losing defendant.” Id. at 178. The majority opinion is at odds with Rum Creek. Yet despite our normal hesitation to contradict one of our sister circuits, the majority opinion does so without explanation. See Home Port Rentals, Inc. v. Int‘l Yachting Grp., Inc., 252 F.3d 399, 407 (5th Cir. 2001) (“Moreover, we are reluctant to create a circuit split by holding differently....“).
B.
Second, the district court awarded fees for time expended interacting with the media, and the majority opinion affirms. Because time spent interacting with the media is not compensable under Section 1988, I would hold that the district court abused its discretion.
It is well-established that
Our chariness in awarding fees for media-related activities is not unique. Two of our sister circuits have disallowed fees for such tasks. In Davis v. San Francisco, 976 F.2d 1536 (9th Cir. 1992), reh‘g denied, vacated in part, and remanded, 984 F.2d 345 (9th Cir. 1993), the Ninth Circuit held that time expended on “press conferences and public relations” was compensable only when it is “directly and intimately related to the successful representation of a client.” Id. at 1545; see id. (media-related time compensable only when prevailing party demonstrated that it “contribute[d], directly and substantially, to the attainment of [its] litigation goal“). Similarly, in Rum Creek, the Fourth Circuit (though declining to adopt the Ninth Circuit‘s rule) concluded that “[t]he legitimate goals of litigation are almost always attained in the courtroom, not in the media.” 31 F.3d at 176. And so the court disallowed the media-related fees at issue there because they were not “aimed ... at achieving litigation goals.” Id.
Under any standard, the awarding of media-related fees in this case is improper: Plaintiffs have offered no explanation for how the media-related tasks included in the fee award were “directly and intimately related to [their] successful representation,” Davis, 976 F.2d at 1545, or were “aimed at achieving [their] litigation goals.” Rum Creek, 31 F.3d at 176 (alteration omitted). I would therefore hold that because Plaintiffs have failed to demonstrate how the media-related time included in the fee award was “expended on the litigation” Hensley, 461 U.S. at 433, they should not recover fees for that time. Accord Watkins, 7 F.3d at 458 (affirming exclusion of media-related time where the district court‘s opinion stated that time spent on press conferences is not spent on the litigation and where “[prevailing party] did not present any evidence regarding the efficacy of the press conferences“).
The Plaintiffs have not argued that media-related time is compensable; in fact, they concede that it is not. Instead, they defend the district court‘s award of these fees because: (1) the media-related activities are a small portion of the tasks included in the relevant entries; and (2) Plaintiffs excluded 35 percent of time expended from their fee request.
Neither argument justifies affirmance. First, it may well be true that the relevant
C.
Finally, the district court included in its fee award time spent in connection with supporting amici. Contrary to the majority opinion, I would hold that a prevailing party may not recover fees for time expended soliciting or coordinating with supporting amici, or reviewing amicus briefs before they are filed.
In Glassroth v. Moore, 347 F.3d 916 (11th Cir. 2003), the Eleventh Circuit considered whether a party could recover under Section 1988 for work done “in relation to a number of amicus briefs filed in support of plaintiffs’ position,” including time enlisting organizations to appear as amici, suggesting potential signatories for the briefs, working on, supervising, and reviewing the amicus briefs, and seeing that they were mailed on time. Id. at 918-19. The Eleventh Circuit reasoned that because amici are not entitled to attorneys’ fees as a “prevailing party,” it would not allow this result to be changed “by the simple expedient of having counsel for a party do some or all of the amicus work.”
I agree with the approach taken by our sister circuit. Only prevailing parties may recover under Section 1988, and amici are not parties. See
The attorneys’ fee award in this case undoubtedly contains time that is non-compensable under the Eleventh Circuit‘s approach. The majority opinion, however, offers no explanation for its affirmance of these fees, nor does it attempt to justify the circuit split it creates with the Eleventh Circuit.7
II.
I am no more interested in nickel and diming attorneys’ fee awards than is the majority opinion. We defer to the district court in this context precisely because it is better positioned to assess the reasonableness of a fee request and to avoid converting requests for attorneys’ fees into “a second major litigation.” Hensley, 461 U.S. at 437. For this reason, I agree that the bulk of the fee award should be affirmed. But deference is not a blank check: where the district court has awarded fees for non-compensable tasks, we should correct the error. The majority opinion unfortunately declines to do so, and in the process it ignores our binding precedent and generates at least one circuit split, and arguably more—all without explanation. I respectfully dissent.8
UNITED STATES of America, Plaintiff-Appellee, v. Rogelio RINCON-GOMEZ, Defendant-Appellant.
No. 16-41114
United States Court of Appeals, Fifth Circuit.
April 20, 2017
Summary Calendar
Before JOLLY, SMITH, and GRAVES, Circuit Judges.
Rogelio Rincon-Gomez, Pro Se
PER CURIAM: *
Rogelio Rincon-Gomez appeals the sentence imposed on his conviction of possession with intent to distribute approximately 487 kilograms of a mixture or substance containing a detectable amount of marihuana in violation of
