Coulter v. TennesseeCoulter v. Tennessee
Lead Opinion
This is аn attorney fee appeal arising from a Title VII case. Robert Belton, a Vanderbilt University law professor who teaches in the employment discrimination field, was associated by another lawyer as co-counsel for a plaintiff who ultimately won her case. Mr. Belton challenges the District Court’s order reducing his separate attorney fee award against the losing defendants from $22,532 to $14,167. The appeal raises significant issues respecting the applicable hourly rate to be used under the “lodestar” approach to attorney’s fees
FACTUAL BACKGROUND
Aleta Arthur and Robert Belton represented plaintiff Coulter in a Title VII sex discrimination suit against the State of Tennеssee and certain Tennessee agencies and officials. District Judge Morton ruled in favor of plaintiff on the issue of liability. The parties by agreement then submitted a consent order which disposed of all the remedial issues, awarded plaintiff a promotion and a small amount of compensation, awarded Ms. Arthur $13,621.25 in attorney’s fees at the rate of $85 an hour, and reserved the question of attorney’s fees due Mr. Belton for later determination.
Mr. Belton subsequently petitioned the District Court for an attorney fee award of $22,532.90 calculated on a total of 185.59 hours worked at rates of $110 per hour for services rendered during 1982 (4.25 hours) and at $125 per hour for 1983 (60.92 hours) and 1984 (120.42 hours). Judge Morton reduced the hourly rate to $85 for 1982 and $110 for 1983 and 1984, and he refused to award Mr. Belton a fee for 55.83 hours, which he considered unreasonably expended. Taking these reductions into account, Judge Morton ordered the defendants to pay Mr. Belton attorney’s fees in the amount of $14,167.35. Judge Morton found that Ms. Arthur was the “lead” lawyer, a seasoned and effective trial lawyer, who conducted all of the trial and all the deposition examinations. Mr. Belton аssisted in legal research and conceptualization of the case and in the review of documents and preparation of court papers. Judge Morton characterized the case as “simple,” “tried in less than half a day,” and “decided from the bench.”
HOURLY RATES
In adopting some 131 attorney fee shifting statutes,
Mr. Belton requested that his fee be calculated on an hourly rate of $100 per hour for services rendered in 1982 and $125 per hour in 1983 and 1984. Judge Morton reduced the hourly rates to $85 for 1982 and $110 for 1983 and 1984 as reasonably reflecting the prevailing market rates for lawyers in this field in Nashville, Tennessee, the community in which both Mr. Bel-ton and Ms. Arthur practice.
This finding is supported by the fact that Mr. Belton requested and was awarded fees based on an $85 rate for services rendered in 1982 in another Title VII action before Judge Morton. Perkins v. State Board of Education, No. 77-3552 (M.D.Tenn. March 11, 1983) [available on WESTLAW, DCTU database]. Mr. Belton argues that his hourly rate was low in Perkins because Perkins was decided before the Supreme Court’s decision in Blum v. Stenson,
The reduction in Mr. Belton’s rates is also supported by the fact that in this case Ms. Arthur requested an attorney fee calculated at the rate of $85 per hour for all three years. The parties agree that under the consent order Ms. Arthur was paid $85 per hour for all of the work she did. Mr. Belton argues that this reference to Ms. Arthur’s rate constitutes the admission of a “settlement ... to reduce the amount of a claim” in contravention of
HOURS EXPENDED
The second issue — the reasonableness of the hours claimed by Mr. Belton — illustrates an obvious inadequacy in the “lodestar” method of calculation. The rates-times-hours approach is a sufficient standard when there is no problem about the hours of service performed, but it does not solve the problem of excessive hours. See Report of Third Circuit Task Force,
Mr. Belton requested fees for 185.59 hours. Judge Morton cut out 55 hours. The District Judge eliminated as excessive or unnecessary 8 of the 13 hours claimed for preparing his fee request; all of the 16.75 hours claimed for preparing, filing, and arguing what the District Judge characterized as a “futile” summary judgment motion; 22 of the 44 hours in preparing the stipulations and the pretrial brief; and 9 of 18 hours claimed for trial preparation.
Three very different kinds of issues can arise concerning excessive hours: (1)
On the question of excessive hours we have three issues, none of which involve a question of padding, misrepresentation, or dishonest accounting. The first question involves the time spent in preparing and presenting the attorney fee petition and accompanying documentation after the civil rights case was over. The second involves preparation of the summary judgmеnt motion. Both raise legal questions of com-pensability. The third involves the preparation of documents and raises a question of billing judgment.
Preparation of Fee Application. — Although time spent in preparing, presenting, and trying attorney fee applications is com-pensable; some guidelines and limitations must be placed on the size of these fees. Otherwise the prospect of large fees latеr on may discourage early settlement of cases by rewarding protracted litigation of both the civil rights case and the attorney fee case.
The cases from this and other circuits uniformly hold that a lawyer should receive a fee for preparing and successfully litigating the attorney fee case after the original case is over, although in the private market place, lawyers do not usually charge, and clients do not usually pay, for the time it takes lawyers to calculate their fees. See cases collected and discussed in In re Nucorp Energy, Inc.,
Judge Morton struck the right balance. He limited these hours to approximately 3% of the hours allowed in the main case. 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 mаin case when the issue is submitted on the papers without a trial and should not exceed 5% of the hours in the main case when a trial is necessary. Such guidelines and limitations are necessary to insure that the compensation from the attorney fee case will not be out of proportion to the main case and encourage protracted litigation.
Summary Judgment Motion. — On summary judgment mоtions and other similar motions that go to a particular issue in a case, the question should be whether the person seeking compensation prevailed cn the motion or in the end prevailed on the issue raised in the motion in part as a result of the motion. This particular summary judgment motion advanced Mr. Bel-ton’s case and was a factor in winning. His summary judgment motion showed thаt his client had made out a prima facie employment discrimination case and that the state had failed to plead or otherwise come forward with a valid reason for the failure to promote the plaintiff as rebuttal to the prima facie case. As a result of the motion the state amended its pleading to allege a justification, and Ms. Arthur and Mr. Belton were then able to show that the justification the state advanced was a pretext. Thus Mr. Belton’s summary judgment motion narrowed the issue in the case and helped his client win at the trial. The
Preparation of Stipulations, Pretrial Brief, and for Trial. — When the issue is a question of the lawyer’s judgment in billing for a particular number of hours on a piece of work, we must depend in larger measure on the fairness of the District Court in assessing the needs of the case. Under the circumstances presented here, we do not believe the District Court acted arbitrarily or irrationally in reducing the pretrial preparation hours from 62 to 31. Ms. Arthur was lead trial counsel and conducted the trial itself. Mr. Belton prepared extensive stipulations of fact, based in major part on answers to previous interrogatories he had prepared, and an able trial brief. His conceptualization of the case and his stipulations and brief contributed to a successful outcome, but we defer to the view of the trial judge that 31 hours or approximately 4 working days was sufficient for these tasks. Judges will differ on questions of this kind, but our own experience as lawyers and judges tells us that the District Judge has not exercised his discretion and expertise on this mixed question of law and fact in an arbitrary or unfair way. Judge Morton gave Mr. Belton credit for all of the more than 3 days time he spent at the depositions and short trial conducted altogether by Ms. Arthur. He did so on the theory that multiple representation can be productive. But there is also the dаnger of duplication, a waste of resources which is difficult to measure. Where duplication of effort is a serious problem, as in this case, the District Court may have to make across the board reductions by reducing certain items by a percentage figure, as Judge Morton did here in reducing this item by 50%.
Accordingly, the decisions of the District Court as to the hourly rate and the hours allowed for the preparation of the attorney fee case and the pretrial stipulations and brief are affirmed. The decision on the hours allowed on the motion for summary-judgment is reversed and the case remanded to the District Court to recalculate the fees to include these hours.
Notes
. The rate-times-hours method of calculation, often referred tо as the "lodestar" method, has been approved, in modified form, though not mandated, by the Supreme Court. See Pennsylvania v. Delaware Valley Citizens’ Council for Clean Air, — U.S. —,
. 9 Att'y Fee Awards Reporter 2-3 (1986) (See Appendix A).
. These quotations are from the legislative history of
. "These statutes were not designed as a form of economic relief to improve the financial lot of attorneys, nor were they intended to replicate exactly the fee an attorney could earn through a private fee arrangement with his client. Instead, the aim of such statutes was to enable private parties to obtain legal help in seeking redress for injuries resulting from the actual or threatened violation of specific federal laws. Hence, if plaintiffs, such as Delaware Valley, find it possible to engage a lawyer based on the statutory assurance that he will be paid a "reasonable fee,” the purpose behind the fee-shifting statute has been satisfied.
Moreover, when an attorney first accepts a case and agrees to represent the client, he obligates himself to perform to the best of his ability and to produce the best possible results commensurate with his skill and his client's interests. Calculating the fee award in a manner that accounts for these factors, either in determining the reasonable numbеr of hours expended on the litigation or in setting the reasonable hourly rate, thus adequately compensates the attorney, and leaves very little room for enhancing the award based on his post-engagement performance. In short, the lodestar figure includes most, if not all, of the relevant factors comprising a "reasonable” attorneys fee, and it is unneсessary to enhance the fee for superior performance in order to serve the statutory purpose of enabling plaintiffs to secure legal assistance.”
Pennsylvania v. Delaware Valley Citizens’ Council, supra, n. 1,
Concurrence in Part
concurring in part and dissenting in part.
I agree with Judge Merritt’s well considered opinion with respect to all aspects of this fee controversy except with that part dealing with the summary judgment motion. (Page 151.) Judge Morton had first hand opportunity to consider the role and significance of this motion in making his ruling. In my judgment, it had little to do with the final outcome except perhaps to “narrow the issue in the case” as found by Judge Merritt. I would therefore on remand to the district court allow that court to determine on further consideration what portion of the hours spent on the summary judgment should be allowed to Mr. Belton for his sеrvices after taking into account the rationale expressed by this court herein.
APPENDIX A
Federal Statutes Authorizing the Award of Attorney Fees
Act to Prevent Pollution from Ships,
Age Discrimination Act of 1975 (as amended by Pub.L. 95-478, § 401) U.S.C. § 6104(e)
Age Discrimination in Employment Act of 1967,
Agricultural Unfair Trade Practices
Alaska Native Claims Settlement Act,
Alien Owners of Land,
Atomic Energy Act of 1954,
Bank Holding Company Act,
Bankruptcy Act,
Bankruptcy Reform Act (Pub.L. 95-598),
Black Lung Benefits Act,
Civil Rights Act of 1964, Title VII,
Civil Rights Attorney’s Fees Awards Act of 1976,
Civil Service Reform Act of 1978 (Pub.L. 95-454, §§ 205, 702),
Clayton Act,
Clean Air Act (as amended by Pub.L. OS-OS),
Coal Mine Safety Act,
Coast Guard Act,
Commodity Futures Trading Commission Act of 1974,
Communications Act of 1934,
Condominium and Cooperative Abuse Relief Act of 1980,
Consumer Leasing Act,
Consumer Product Safety Act,
Contract Disputes Act of 1978,
Copyright Act,
Counsel’s Liability for Excessive Costs,
Criminal Code,
Deep Seabed Hard Mineral Resources Act,
Deepwater Ports Act,
Economic Opportunity Act of 1964,
Electronic Fund Transfer Act (Pub.L. OS-OSO, Title XX),
Employee Retirement Income Security Act,
Endangered Species Act,
Energy Policy and Conservation Act,
Energy Reorganization Act of 1974 (as amended by Pub.L. 95-601),
Equal Access to Justice Act, 5 § 504,
Equal Credit Opportunity Act,
Ethics in Government Act of 1978 (Pub.L. 95-521, § 710(d)),
Fair Credit Reporting Act,
Fair Debt Collection Practices Act (Pub.L. 95-109, § 813-(a)),
Fair Housing Act of 1968,
Fair Labor Standards Act,
Federal Contested Electron Act,
Federal Credit Union Act,
Federal Deposit Insurance Act,
Federal Employment Compensation for Work Injuries,
Federal Mine Safety and Health Act,
Federal Power Act (as amended by Pub.L. 95-617, § 212),
Federal Rules of Appellate Procedure, App. Rule 38 (28 U.S.C.)
Federal Rules of Civil Procedure, App. Rules 37, 56(g), (28 U.S.C.)
Federal Trade Commission Improvement Act,
Federal Water Pollution Control Act Amendment of 1972,
Fees and Costs,
Foreign Intelligence Surveillance Act of 1978 (Pub.L. 95-511, § 110),
Freedom of Information Act,
Government in the Sunshine Act,
Guam Organic Act (Pub.L. 95-134, § 204),
Hart-Scott-Rodino Antitrust Improvements Act of 1976,
Hobby Protection Act,
Housing and Community Development Amendments of 1979 (Pub.L. 96-153, § 405),
Indian Claims Commission Act,
Indian Contract Act,
Indian Reorganization Act,
International Claims Settlement Act,
Interstate Commerce Act,
Japanese-American Evacuation Claims Act of 1948, 50 U.S.C. App. § 1985
Jewelers Hall-Mark Act,
Jury System Improvements Act of 1978 (Pub.L. 95-972, § 6),
Labor-Management Reporting and Disclosure Act of 1959,
Legal Services Corporation Act,
Longshoremen’s and Harbor Workers’ ‘ Compensation Act,
Magnuson-Moss Warranty Act,
Marine Protection, Research, and Sanctuaries Act, 33 U.S.C. 1415(g)(4)
Merchant Marine Act of 1936,
Mexican-American Chamizal Convention Act of 1946,
Military Personnel and Civilian Employees Claims Act of 1964,
Mobile Home Construction and Safety Standards Act,
Motor Vehicle Information and Cost Savings Act,
National Guard Act,
National Historic Preservation Act,
National Housing Act,
National Traffic and Motor Vehicle Safety Act of 1966,
Natural Gas Pipeline Safety Act,
Noise Control Act of 1972,
Norris-LaGuardia Act,
Ocean Dumping Act,
Ocean Thermal Energy Conservation Act of 1980,
Omnibus Crime Control and Safe Streets Act of 1968,
Organized Crime Control Act of 1970,
Outer Continental Shelf Lands Act (as amended by Pub.L. 95-372),
Packers and Stockyards Act,
Patent Infringement,
Perishable Agricultural Commodities Act,
Petroleum Marketing Practices Act (Pub.L. 95-297, § 105(d)),
Plant Variety Act,
Privacy Act,
Powerplant and Industrial Fuel Use Act of 1978,
Public Utility Holding Company Act of 1935,
Public Utility Regulatory Policies Act of 1978 (Pub.L. 95-617, § 122),
Railroad Revitalization and Reform Act,
Railroad Unemployment Insurance Act,
Railway Labor Act,
Real Estate Settlement Procedures Act of 1974,
Rehabilitation Act of 1973 (as amended by Pub.L. 95-602, § 120),
Right to Financial Privacy Act of 1978 (Pub.L. 95-630 §§ 1117(a), 1118),
Securities Act of 1933,
Securities Exchange Act of 1934,
Securities Investor Protection Act,
Servicemen’s Group Life Insurance Act,
Sex Discrimination Prohibition (Title IX of Pub.L. 92-318),
Social Security Act Amendments of 1965,
Solid Waste Disposal Act,
State and Local Fiscal Assistance Amendment of 1976,
Surface Mining Control and Reclamation Act (Pub.L. 95-87),
Tax Reform Act of 1976,
Toxic Substances Control Act,
Trademark Act,
Trading With the Enemy Act, 50 U.S.C. App. § 20
Trust Indenture Act,
Truth in Lending Act,
Unfair Competition Act,
Uniform Relocation Assistance and Real Property Acquisition Policies Act,
United States as a Party,
Veterans’ Benefits Act,
Voting Rights Amendment of 1975,
War Hazards Compensation Act,
Water Pollution Prevention and Control Act,
Wire Interception Act,