630 N.E.2d 19 | Ohio Ct. App. | 1993
[EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *548 [EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *549 Crown City Mining, Inc. appeals from a judgment entered by the Gallia County Court of Common Pleas awarding Charles and Maudie Freeman $60,252.14 in attorney and expert fees in connection with the determination that Crown City Mining, Inc. had violated Ohio mining and water pollution laws.
Appellant assigns the following errors:
"I. The trial court abused its discretion and erred to the prejudice of the defendant-appellant by failing to limit attorney fees to those billable hours which were reasonably expended on the litigation.
"II. The trial court abused its discretion and erred to the prejudice of the defendant-appellant by calculating attorney fees at an hourly rate which was excessive for the prevailing market rates in the relevant community.
"III. The trial court abused its discretion and erred to the prejudice of the defendant-appellant in awarding excessive amounts of attorney fees which were not calculated in accordance with applicable law.
"IV. The trial court abused its discretion and erred to the prejudice of the defendant-appellant by awarding an enhancement of the attorney fees claimed in the amount of $16,765.00.
"V. The trial court abused its discretion and erred to the prejudice of the defendant-appellant by awarding expert fees which were not related to the matter in litigation.
"VI. The trial court abused its discretion and erred to the prejudice of the defendant-appellant by awarding expert fees which included the time for experts to remain at trial after they had testified to act as consultants to the plaintiffs' counsel."
The Freemans ("appellees") filed a complaint against Crown City Mining, Inc. ("appellant"), which alleged that appellant's strip mining operation caused a spring located on the Freemans' property to become contaminated with various pollutants. Appellees' amended complaint set forth claims for relief based upon intentional trespass, nuisance, nuisance per se, negligence, negligence per se, and violations of the Ohio Coal Strip Mine Land Reclamation Act (R.C. Chapter 1513). They sought damages and injunctive relief, as well as attorney and expert witness fees pursuant to R.C.
Appellees filed a motion for partial summary judgment, asserting that the factual issue of whether appellant's activities had caused the contamination of their spring had been previously resolved in appellees' favor by the Ohio Reclamation Board of Review. The trial court agreed and granted appellees' motion, holding that appellant was collaterally estopped from relitigating the causation issue. However, the trial court also granted appellant's cross-motion for partial summary judgment concerning any statutory violations asserted by appellees which the Reclamation Board of Review had already determined did not occur. As a result of the latter ruling, appellees dismissed one of their statutory violation claims.
After a trial on the remaining issues, the jury determined that appellees were entitled to $75,000 in compensatory damages. The jury, in its answers to interrogatories, determined that (1) appellant violated Ohio's mining and water pollution laws; (2) as a result of appellant's violation of Ohio law, appellees incurred damages; and (3) appellant had failed to properly reclaim appellees' spring. On September 2, 1992, the trial court entered a judgment on the jury verdict in favor of appellees in the amount of $75,000.
Shortly thereafter, appellees filed a petition for an award of attorney and expert witness fees pursuant to R.C.
The fee petition included affidavits of three other attorneys, one of them noting that his hourly rate was $170 per hour and that such rate was equal to or less than the amount charged by lawyers with similar experience employed at firms which represent parties in coal mine litigation in Ohio. Another attorney, Stephen P. Samuels, opined that a reasonable range of hourly rates for attorneys *551 with comparable experience to Shostak who concentrate their practice in environmental litigation in medium to large law firms in Ohio would be $210 to $240 per hour. Appellees later filed an amendment to their petition which requested an additional $1,511 for expert expenses.
Appellant filed a memorandum in opposition to the fee petition which asserted that (1) the hourly rate utilized by Shostak was grossly in excess of the hourly rate for skilled trial counsel in the relevant community; (2) over $6,500 of the billing by Shostak and Kodish was duplicative; (3) the attorney fees should be reduced because appellees only succeeded on a portion of their claims; (4) one expert should not be reimbursed because his billing was not related to appellees' case; (5) one expert expended a portion of his time on a well complaint that was not related to the case; and (6) the two experts who testified at trial should not have charged for time spent at trial in which they did not testify. Attached to appellant's memorandum was the affidavit of its attorney, James L. Mann, who stated that the usual and customary hourly rates for experienced trial litigators in the area ranged from $75 to $100 per hour. In another affidavit, attorney Steven T. Sloan of Athens, Ohio stated that the customary rates for Gallia County were $75 to $125 per hour. Appellees subsequently filed a reply to appellant's memorandum.
On November 5, 1992, the trial court awarded appellees $60,252.14 in attorney and expert fees which consisted of:
Attorney Fees $33,530.50 Enhancement (1.5 multiplier) 16,765.00 Expenses 1,182.53 Expert Fees 8,249.11 Fee Petition Work 525.00 TOTAL $60,252.14
The trial court expressly determined that Shostak's hourly rate of $175 was reasonable and that enhancement by a multiplier was warranted because "the case was severely hampered by the prior binding factual rulings of the Reclamation Board of Review," the "unclear state of the law," and appellees' "noteworthy" success. An entry nunc pro tunc was subsequently filed by the trial court which journalized the court's overruling of appellees' pending motion for prejudgment interest.
Appellant's first, second, and third assignments of error assert that the trial court abused its discretion by (1) failing to limit attorney fees to those billable hours which were reasonably expended on the litigation; (2) calculating attorney fees at an hourly rate which was excessive for the prevailing market rates in the relevant community; and (3) awarding excessive amounts of attorney fees which were not calculated in accordance with applicable law. We will consider these assignments of error jointly. *552
"`As a general rule, the costs and expenses of litigation, other than the usual court costs, are not recoverable in actions for damages, and ordinarily no attorney fees are allowed.'"Vinci v. Ceraolo (1992),
"Any person who is injured in his person or property through the violation by any operator of any rule, requirement, order or permit issued pursuant to Chapter 1513. of the Revised Code may bring an action for damages, including reasonable attorney and expert witness fees, in the court of common pleas of Franklin county or in the court of common pleas of the county in which the coal mining operation complained of is located. * * *"
Normally, where attorney fees are authorized by statute, the entitlement to and the amount of an award lies within the sound discretion of the trial court. Meacham v. Miller (1992),
The parties and the trial court applied the following analysis in computing a reasonable attorney fee:
"The first step in the analysis necessitates the calculation of the `lodestar' figure. Akron Center for Reproductive Healthv. Akron (N.D. Ohio 1985), *553
Ohio courts that have applied the "lodestar" analysis have invariably done so only where the prevailing party brought a federal constitutional claim, normally in a civil rights context, and prevailed on either that claim or a state law claim which shared a common nucleus of operative fact with the federal claim. Cincinnati ex rel. Kuntz v. Cincinnati (1992),
Appellant initially contends that the hours billed by Shostak and Kodish were not reasonable because many of their charges were duplicative, i.e., both attorneys billed for consultations they had with each other pertaining to the case. "[C]ourts have frequently pointed out that time spent in doing the work is not a controlling factor in assessing the value of the services. * * * The time must be fairly and properly used." (Footnote omitted.) 1 Speiser, Attorneys' Fees (1973) 305, 308, Section 8.6. A lawyer basing his fee on the hours expended may not employ wasteful procedures in an effort to increase the number of billable hours. Rotunda, Professional Responsibility (2 Ed.1988) 89, T IV(A)(1). Unnecessary and duplicative efforts by counsel should not be utilized in calculating reasonable hours. See,e.g., Zimmie v. Zimmie (Feb. 3, 1983), Cuyahoga App. Nos. 43299, 44803, and 44804, unreported, 1983 WL 5747.
As noted by appellant, the federal appellate court inCopeland v. Marshall (C.A.D.C.1980),
"Compiling raw totals of hours spent, however, does not complete the inquiry. It does not follow that the amount of timeactually expended is the amount of time reasonably expended. In the private sector, `billing judgment' is an important component in fee setting. It is no less important here. Hours that are not properly billed to one's client also are not properly billed to one's adversary pursuant to statutory authority. Thus, no compensation is due for nonproductive time. For example, where three attorneys are present at a hearing when one would suffice, compensation should be denied for the excess time. * * *" (Emphasis sic.) See, also, Citizens Organized Against Longwallingv. Div. of Reclamation (Jan. 31, 1989), Meigs App. No. 416, unreported, 1989 WL 11818 (Stephenson, J., dissenting). *555
However, as appellees assert, prevailing parties are not necessarily barred from fees for the presence of a second attorney or hours spent by collaborating attorneys. See,e.g., New York State Assn. for Retarded Children v. Carey
(C.A.2, 1983),
Appellant next contends that Shostak's rates of $150 per hour until January 1, 1992 and $175 per hour thereafter were excessive for the prevailing market rates in the relevant community. The fee customarily charged in the locality for similar services is a pertinent factor in determining the reasonableness of the fee. See by analogy DR 2-106(B)(3); Rotunda, supra, at 89, T IV(A)(1). However, custom and prevailing rates are by no means conclusive, and may be disregarded where the litigation is highly specialized. Speiser,supra, at 326-327, Section 8.13. Furthermore, "[t]he attorney's standing in the profession for learning, ability, skill, and integrity is recognized as a proper matter for consideration in assessing the value of his services." (Footnote omitted.) Id. at 311, Section 8.8; see, also, DR 2-106(B)(7). The materials filed by appellees in support of their fee petition indicated that Shostak specialized in environmental litigation and possessed recognized skill and expertise in that area. Affidavits of attorneys with similar experience indicated that his hourly rates were reasonable. The trial court could properly have accorded more weight to the affidavits filed by appellees than those filed by appellant. The trial court did not abuse its discretion in determining that Shostak's hourly rates were reasonable,i.e., that they were comparable to fees customarily charged by attorneys with similar experience in the pertinent community.
Appellant further contends that the amount awarded for attorney fees was excessive where appellees only succeeded on a portion of their claims. The results obtained are pertinent considerations in determining the reasonableness of the fee. See DR 2-106(B)(4); Fenton v. Query (1992),
Appellant's fourth assignment of error asserts that the trial court abused its discretion in awarding an enhancement of $16,765 to the reasonable fee award. Courts have allowed enhancement of the fee award in cases involving enforcement of federal claims or state claims which share a common nucleus of operative fact with asserted federal claims. Hensley v.Eckerhart (1983),
Assuming, arguendo, that enhancement of the reasonable fee computation is allowable in Ohio where purely state law claims are involved, Hensley states:
"Where a plaintiff has obtained excellent results, his attorney should recover a fully compensatory fee. Normally this will encompass all hours reasonably expended on the litigation, and indeed in some cases of exceptional success an *557
enhanced award may be justified. * * *" Id.,
As noted previously, since acknowledgement of the "results obtained" generally is already contained in the determination to calculate a reasonable fee, it normally should not provide an independent basis for increasing the fee award. Blum at 900,
The trial court determined that use of the enhancement multiplier was warranted because appellees were "severely hampered" by prior binding factual findings of the Reclamation Board of Review, the unclear state of the law, and their success was "noteworthy." However, as appellant notes, appellant was likewise hampered by the prior Reclamation Board of Review finding that it had caused the contamination of appellees' spring. The trial court apparently granted the enhancement because of the purported difficulty of establishing the merits of appellees' case. Appellees contended in their reply memorandum during the proceedings below that "[g]iven the significant risk of nonpayment, a risk multiplier is appropriate in this case to encourage, as a matter of public policy, cases arising from violations of mining and pollution laws."
In Burlington v. Dague (1992), 505 U.S. ___,
"We note at the outset that an enhancement for contingency would likely duplicate in substantial part factors already subsumed in the lodestar. The risk of loss in a particular case (and, therefore, the attorney's contingent risk) is the product of two factors: (1) the legal and factual merits of the claim, and (2) the difficulty of establishing those merits. The second factor, however, is ordinarily reflected in the lodestar — either in the higher number of hours expended to overcome the difficulty, or in the higher hourly rate of the attorney skilled and experienced enough to do so. Blum, supra [465 U.S.] at 898-899 [
"The first factor (relative merits of the claim) is not reflected in the lodestar, but there are good reasons why it should play no part in the calculation of the award. It is, of course, a factor that always exists (no claim has a 100% chance of success), so that computation of the lodestar would never end the court's inquiry in contingent-fee cases. See id., at 740 [
Analogously, assuming that enhancement is allowable for violations of Ohio law with no concomitant federal claim, we are persuaded that, as a matter of law, appellees failed to establish the level of "exceptional success" required by Hensley and Blum to warrant enhancement. More particularly, the factors relied upon by appellees and the trial court, i.e., the difficulty of establishing the merits, were already subsumed in the computation of the "lodestar." Burlington, supra. Therefore, the trial court abused its discretion in awarding the fifty percent enhancement in the attorney fee award. Appellant's fourth assignment of error is sustained.
Appellant's fifth assignment of error asserts that the trial court abused its discretion by awarding expert fees which were not related to the matter in litigation. Appellant objected to the $457 invoice of geologist Eberhard Werner and the $1,582.65 invoice of geologist Richard S. diPretoro on the basis that all of Werner's and most of diPretoro's billings were not related to the case.
Without statutory authorization, a trial court should not tax an expert's fee as costs to be paid by the losing party.Moore v. Gen. Motors Corp. (1985),
Appellant claims Werner's fees were not related to the litigation since he did not testify at trial and did not have his samples or tests introduced into evidence. Appellees contend that Werner's samples and tests were relied upon by their experts who testified at trial. Since appellant failed to order any transcript of the jury trial, we presume that the trial court had sufficient information before it to support a determination that Werner's fees were related to the case.
Appellant further asserts that much of diPretoro's work was spent on an unrelated well complaint. However, as stated by appellees, both below and on appeal, appellees' fee petition expressly reduced diPretoro's fees by $50 for the time spent on the well complaint issue. The trial court did not abuse its discretion in rejecting appellant's argument that Werner's and diPretoro's expenses were not related to the case. Appellant's fifth assignment of error is overruled.
Appellant's sixth assignment of error asserts that the trial court abused its discretion by awarding expert fees which included the time for experts to remain at trial to act as consultants at trial after they had testified. Appellant challenges only those portions of EEI Geophysical's and Gary D. Storrick's invoices which included $1,000 each for expert witness testimony and not their expenses related to preparation for trial.
As noted by appellees, experts can serve vital interests by remaining present at trial following testimony, e.g., availability for rebuttal testimony in addition to acting in a consulting capacity. Therefore, in the absence of any cited authority to the contrary, we are not persuaded that the trial court abused its discretion in allowing these expert fees. Appellant's sixth assignment of error is overruled.
Accordingly, in that we have sustained appellant's fourth assignment of error, we reverse that portion of the judgment awarding appellees a $16,765 enhancement of their attorney fees and remand the cause to the trial court for entry of a judgment in accordance with this opinion. In all other respects, the judgment is affirmed.
Judgment affirmed in part,reversed in partand cause remanded in part.
PETER B. ABELE and STEPHENSON, JJ., concur.
"(1) The time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly.
"(2) The likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer.
"(3) The fee customarily charged in the locality for similar legal services.
"(4) The amount involved and the results obtained.
"(5) The time limitations imposed by the client or by the circumstances.
"(6) The nature and length of the professional relationship with the client.
"(7) The experience, reputation, and ability of the lawyer or lawyers performing the services.
"(8) Whether the fee is fixed or contingent."
Ohio courts have consistently utilized these factors in determining the reasonableness issue. Villella v. Waikem Motors,Inc. (1989),