This case, brought under the District of Columbia Human Rights Act (“DCHRA”), D.C.Code §§ 2-1401.01 to -1411.06 (2001), is before the court for the third time for review of issues arising from appellant Gaye Lively’s employment discrimination claims against her employer, appellee Flexible Packaging Association (FPA), and its president, the late Glenn Braswell. Her complaint, filed in 1993, alleged six claims for relief, four of which were ultimately presented to the jury. Those four were (1) Hostile Work Environment, (2) Unequal Pay, (3) Retaliation, and (4) Intentional Infliction of Emotional Distress. In 1996, at the conclusion of a jury trial, the jury returned verdicts in favor of Ms. Lively on all four of the claims, and awarded her a total of $458,158 in compensatory damages, of which $156,600 was awarded for the Hostile Work Environment claim. 1 The jury also awarded Ms. Lively punitive damages in the amount of $458,158 against FPA (the same amount as the jury awarded against FPA for compensatory damages) and $77,500 against Mr. Braswell. Thereafter, FPA and Mr, Braswell filed a motion seeking judgment notwithstanding the verdict (JNOV) with respect to all four claims. The trial court granted that motion and vacated the judgments.
The trial court’s decision was affirmed in all respects by a split panel of this court in 2001.
See Lively v. Flexible Packaging Ass’n,
On remand, with compensatory damages reduced to $156,600 to reflect the jury’s award solely on the Hostile Work Environment claim, FPA moved to remit the punitive damages. In 2005, the trial court granted the motion in part, remitting the punitive damages against FPA from $458,158 to $156,600 and the punitive damages against the Braswell Estate from $77,500 to $26,489.50. Ms. Lively accepted the remitted amount.
The trial court then set a filing schedule for post-judgment motions addressing attorneys’ fees and interest on the judgment. Ms. Lively filed a motion requesting $1,179,481.50 in attorneys’ fees and a motion requesting interest on the compensatory and punitive damages from the date of the jury’s decision. 2 On the same day Ms. Lively timely filed her reply to FPA and Braswell’s opposition, the trial court issued its order awarding her attorneys’ fees in an amount significantly less than she requested, limiting the interest on the compensatory damages awarded, and declining to provide for interest on the punitive damages awarded. 3
The court gave three reasons for reducing Ms. Lively’s $1,179,481.50 attorney fee request. The first reason was that Ms. Lively had calculated those fees based on the attorneys’ current level of experience, that is, their experience as of the time of the filing of the motion for attorneys’ fees, as opposed to their level of experience when the work was actually performed. This resulted in a reduction of $149,941. The second reason was that Ms. Lively had prevailed on only one of the four claims that were submitted to the jury. Based on this success (or lack thereof), the court reduced the attorneys’ fees requested by an additional 25%. The third reason was that the trial court concluded that the billing records that Ms. Lively provided were unreliable. To take account of this unreliability, the court reduced the fees an additional 8%. Thus, the amount of attorneys’ fees that the trial court actually awarded was $689,792.13. With respect to interest on the judgment, the court granted Ms. Lively 6% simple interest on the compensatory damages for the period between June 21, 1996 (the date of the verdict) and October 17, 2005 (the date when FPA offered to pay the portion of the judgment that was undisputed, an offer that Ms. Lively refused because FPA was unwilling to sign a stipulation proffered by Ms. Lively that acceptance of this payment was not a settlement of the matters that remained in dispute). Finally, the court
I. Attorneys’ Fees
“ ‘Our scope of review [of an award of attorney’s fees] is a limited one because disposition of such motions is firmly committed to the informed discretion of the trial court. Therefore, it requires a very strong showing of abuse of discretion to set aside the decision of the trial court.’ ”
Maybin v. Stewart,
A. The Laffey Matrix.
Ms. Lively claims that the trial court committed reversible error in declining to award attorneys’ fees based upon the rates for attorneys at the experience level attained when the petition for attorneys’ fees was filed, rather than their experience level at the time the work was actually done. As noted above, this ruling resulted in a reduction of her request for attorneys’ fees by $149,941. We are unpersuaded that the approach taken by the trial court constituted an abuse of discretion. Certainly, the trial court did not err in looking to the Laffey Matrix as a beginning point for calculating these fees, nor does any party so claim. 4
The
Laffey
Matrix, which has its origins in the case of
Laffey v. Northwest Airlines, Inc.,
Specifically, for each year going back to 1981-82, the Matrix sets out six different hourly rates for five different levels of attorney experience. As explained on the U.S. Attorney’s Office web site:
The column headed “Experience” refers to the years following the attorney’s graduation from law school. The various “brackets” are intended to correspond to “junior associates” (1-3 years after law school graduation), “senior associates” (4-7 years), “experienced federal court litigators” (8-10 and 11-19 years) and “very experienced federal court litigators” (20 years or more).
Matrices,
supra
note 5 at n. 2 (citing
Laffey, supra,
Ms. Lively argues that this procedure does not take into account the substantial delay in the payment of the fees. But there is no doubt that the Matrix has a built-in adjustment for inflation to compensate for that delay. The original rates for the Matrix were determined by the
Laffey
trial court for work performed in 1981-82. With respect to the yearly increase in the market hourly rates for each level of experience, the U.S. Attorney’s Office represents on the website showing the Matrix that the rates for subsequent yearly periods have been “determined by adding the change in the cost of living for the Washington, D.C. area to the applicable rate for the prior year and then rounding to the nearest $5.” Matrices,
supra,
note 5 at n. 3. It further represents that “[cjhanges in the cost of living are measured by the Consumer Price Index for All Urban Consumers (CPI-U) for Washington-Baltimore, DC-MD-VA-WV, as announced by the Bureau of Labor Statistics for May of each year.”
Id.
The use of the CPI-U is intended to adjust the figures for inflation. As the U.S. Department of Labor explains on its website, “The CPI is generally the best measure for adjusting payment to consumers when the intent is to allow consumers to purchase, at today’s prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period [and is] also the best measure to use to translate retail sales and hourly or weekly earnings into real or inflation-free dollars.”
8
Indeed, the ad
While there appears to be no case law from our court discussing application of the Laffey Matrix, we accept it as one legitimate means of calculating attorneys’ fees in those cases, such as this, where a prevailing party is statutorily entitled to attorney’s fees. In any event, the Laffey Matrix is merely a starting point, and an automatic application of its formula will not be appropriate in many cases and could result in an injustice to attorneys who had willingly taken on important public issues. The parties agree that the column of the Laffey Matrix for the year of 2004-05 provides the appropriate billing rates to be applied for the calculation of the attorneys’ fees to be awarded in this case. The dispute, however, arises from the issue of whether the experience level for each of Ms. Lively’s attorneys should have been determined by the year when the work was actually performed, or the year that the petition for fees was filed, that is, 2005. 9 Since the Laffey Matrix is designed to take account of inflation by providing attorneys with compensation based on their experience level at the time the work was done, but adjusted for the current market rate for an attorney of that experience level, it appears that to award fees based on current experience levels would provide the attorneys with a windfall-unless there are other factors that would justify such a windfall.
Ms. Lively directs us to a number of cases that she asserts support her position, but none address the issue she raises here, that is, whether it is an abuse of discretion for a trial judge to use the current hourly market rates for an attorney’s
experience level at the time the work was done,
instead of the attorney’s
current experience level
in calculating the fees to be paid. For example,
King v. Palmer,
285 U.S.App. D.C. 68,
The other cases relied upon by Ms. Lively to support her position are equally distinguishable.
10
Thus, we cannot accept
B. Limited Success
The trial court further reduced the attorney’s fees by 25% because, as the judge explained, Ms. Lively “was ultimately successful on only one of the four claims submitted to the jury,” that is, the Hostile Work Environment claim. Ms. Lively argues that this 25% reduction was improper because all of her claims revolved around a common core of facts. Indeed, citing
Goos v. Nat’l Ass’n of Realtors,
314 U.S.App. D.C. 329,
In
Goos,
a divided panel of the District of Columbia Circuit at least appeared to suggest that failure to succeed on “related” claims is not a sufficient reason to reduce attorneys’ fees. The subsequent history of that case, however, squarely undermines the principle for which Ms. Lively has cited it. In denying a petition for rehearing or rehearing en
While we acknowledge that all of Ms. Lively’s claims arose from her employment with FPA, it is not clear how much they actually overlapped. Indeed, Ms. Lively concedes that the Equal Pay Act claim did not overlap with the others, and represents that hours billed to that claim were redacted. The fact that a certain number of hours could clearly be linked solely to the Equal Pay Act claim, however, does not by itself sufficiently link the remaining hours to the Hostile Work Environment claim, and Ms. Lively provides us little explanation for why that would necessarily be. 11 Moreover, her inability to demonstrate that there was sufficient evidence to overcome a JNOV after jury verdicts in her favor on all of the three claims other than the Hostile Work Environment claim is clearly troubling.
We easily conclude that Ms. Lively’s success on only one of the four counts sent to the jury — or 25% of her claims— does not in itself require a reduction in her attorneys’ fees by 75%, nor did the trial court do so. As the Supreme Court stated in Hensley:
We agree with the District Court’s rejection of “a mathematical approach comparing the total number of issues in the case with those actually prevailed upon.” Such a ratio provides little aid in determining what is a reasonable fee in light of all the relevant factors. Nor is it necessarily significant that a prevailing plaintiff did not receive all the relief requested. For example, a plaintiff who failed to recover damages but obtained injunctive relief, or vice versa, may recover a fee award based on all hours reasonably expended if the relief obtained justified that expenditure of attorney time.
Hensley, supra,
Ms. Lively further argues that the trial court reached the 25% figure without examination of the billing records she submitted in support of her fee petition. She presumes that no examination occurred because the trial court stated in its order that “[i]t is almost impossible to review in any kind of principled manner the voluminous time records submitted by plaintiff.” Leaving aside the question of whether the trial court reviewed the records, however,
Here, the trial court has provided no in-depth explanation of how it reached the conclusion that 25% appropriately reflected Ms. Lively’s lack of success. Bather, the order simply cited
Jackson v. Byrd,
Where, as here, the judge addressing the fee petition is the same judge who conducted the pre-trial conference and presided over the trial of the case, substantial deference is owed on the issue of relative success of the litigation and the overlapping nature of the claims.
See Hensley, supra,
C. Unreliable Billing Records
The trial court also reduced Ms. Lively’s attorneys’ fee request by an additional 8% on the grounds that the billing records were unreliable. The sole evidence of this unreliability cited by the trial court is a single settlement negotiation letter dated February 12, 2004, that was written by Ms. Lively’s counsel to FPA’s counsel in an effort to reach a settlement of all matters still outstanding, including the payment of attorneys’ fees. In this letter, Ms. Lively’s counsel estimated that the total attorneys’ fees logged up to that date were $809,000.00. In the petition for attorneys’ fees, however, which was filed on October 3, 2005, Ms. Lively’s counsel sought fees in the amount of $1,179,481.50. The trial court found that such an increase, amounting to $370,481.50, could not have resulted from the minimal litigation of the intervening months. Thus, it was apparently on that basis alone that the trial court concluded that the billing rec
Ms. Lively’s counsel now argues that the trial court should not have taken into account the information in the settlement letter. 13 We agree and conclude that the trial court abused its discretion in reducing the attorneys’ fees award by 8% based upon a statement made in a settlement letter.
As a matter of evidentiary admissibility, our case law provides, as does Fed.R.Evid. 408(a)(1), that as a general rule, statements and admissions made by a party during the course of settlement negotiations are not admissible at trial. The purpose behind the rule precluding such statements and admissions made during settlement negotiations is “to encourage unfettered dialogue in negotiations, so as to further the underlying policy favoring out-of-court settlement of disputes.”
Wayne Insulation Co. v. Hex Corp.,
D. Supplemental Fees
Ms. Lively also claims the right to attorneys’ fees associated with the filing of her petition for attorneys’ fees. Her original petition for fees and costs makes a clear assertion of her right to be compensated for these fees, and that right is certainly well supported.
See, e.g., General Fed’n of Women’s Clubs v. Iron Gate Inn, Inc.,
Ms. Lively argues that the trial court’s failure to address these fees in its order constitutes a denial of these fees. We disagree. Ms. Lively filed a supplement to her petition which fully explained the situation to the trial court the same day she filed this appeal. We therefore decline to rule on this issue before the trial court has the opportunity to make its ruling on Ms. Lively’s supplemental petition.
See New 3145 Deauville, L.L.C. v. First Am. Title Ins. Co.,
II. Interest on Compensatory Damages
Ms. Lively also asserts that the trial court abused its discretion in denying her interest after October 17, 2005, on the compensatory damages owed to her by FPA on her Hostile Work Environment claim. This ruling was grounded in a letter sent to Ms. Lively’s counsel on October 17, 2005, wherein FPA requested “instructions on how the check is to be styled and ... a tax identification number or social security number” for Ms. Lively. It further stated that “[s]hould the court rule in your favor on the question whether interest accrues on a punitive damages award, we can write your client a second check at that time.”
Ms. Lively’s counsel replied that “accepting partial payment at this time poses substantial risks to Plaintiff,” and proposed that FPA draft a stipulation addressing potential risks that such acceptance might pose to Ms. Lively’s remaining claims. The next day, FPA’s counsel sent a letter which stated that such a stipulation was unnecessary. In an email dated October 25, 2005, Ms. Lively’s counsel nonetheless sent FPA’s counsel a proposed stipulation that appears to suggest that the concern of Ms. Lively’s counsel pertained to the outstanding issues of costs, interest and attorney’s fees. FPA did not agree with the stipulation and thus made no further offer to pay the compensatory damages at that time.
Although we have not had occasion to address the issue of whether a party can stop the accrual of interest on an award of damages by offering to pay the damages in full, other jurisdictions that have done so have held that an unconditional offer to make partial payment stops interest from running on the amount offered.
E.g., Welch v. McClure,
Ms. Lively argues that the offer was not unconditional. We disagree. It was Ms. Lively who insisted on conditions for the offer; FPA merely asked to whom the check should be 'written. Ms. Lively insists that accepting the payment without
III. INTEREST ON PUNITIVE DAMAGES
The trial court also denied Ms. Lively interest on her punitive damages, reasoning that the purpose of punitive damages is to punish the defendant, not compensate the plaintiff. Ms. Lively, however, argues that she is entitled to interest from the date of the entry of judgment, June 21,1996, and we agree.
“The twofold purpose of punitive damages is ‘to punish unlawful conduct and to deter its repetition.’ ”
Chatman v. Lawlor,
IV. Conclusion
We affirm the trial court’s reduction of the requested fee amount reflecting historic experience levels and limited success on the merits, and we affirm the trial court’s ruling with respect to interest on compensatory damages. We reverse and remand with respect to the trial court’s reduction of attorneys’ fees reflecting unreliable billing records, as well as the trial court’s ruling with respect to interest on punitive damages. Finally, we make no ruling on the issue of supplemental fees, on which the trial court has yet to rule.
So ordered.
Notes
. The jury awarded $155,135 on the unequal pay claim, $91,823 on the retaliation claim, and $54,600 on the intentional infliction of emotional distress claim.
. The motions also petitioned for costs, which were ultimately awarded in full and are not in dispute.
. Unfortunately, the sequence was that the trial court issued its decision earlier in the day. Thus, Ms. Lively’s timely filing of her reply brief was not available to the trial court before its ruling. Having had the advantage of full briefing for this appeal, we conclude that Ms. Lively has not been prejudiced by that sequence of events.
. It is worth noting that this is not the only valid method for an equitable determination of attorneys’ fees. For example, in
Johnson v. Georgia Highway Express,
. The Laffey Matrices, for the years 1992-2003 and 2003-2008 respectively, are available at:
http://www.usdoj.gov/usao/dc/Divisions/ CiviLDivision/LaffeyJMatrix_2.html and http://www.usdoj.gov/usao/dc/Divisions/ Civil_Division/Laffey_Matrix_7.html (hereinafter "Matrices”).
.The entitlement to attorneys’ fees under the D.C. Human Rights Act derives from D.C.Code § 2-1403.13(a)(1)(E) (2001).
See also Goos v. Nat’l Ass’n of Realtors,
314 U.S.App. D.C. 329, 332,
. Each period runs from June 1 to May 31. Matrices, supra note 5.
. United States Department of Labor, Bureau of Labor Statistics, Consumer Price Indexes: Frequently Asked Questions, available at http:// www.bls.gove/cpi/cpifaq.htm.
. Thus, under the trial court’s ruling, an attorney who had 5 years experience in 1995 would be entitled to $235 an hour — the 2005 rate for an attorney with 4-7 years of experience — for any work performed in 1995. Under the rule urged by Ms. Lively, the same attorney would be entitled to $360 an hour, which is the 2005 rate for an attorney with 11-19 years of experience, under a presumption that the attorney had 15 years of experience in 2005.
.
See, e.g., Loranger v. Stierheim,
. It would have been interesting to know, for example, whether the jury was instructed that they could take the employer’s actions relating to the Retaliation and Intentional Infliction of Emotional Distress claims into account in determining whether she had prevailed on her claim of a Hostile Work Environment.
. Regardless of whether the trial court was required to review the billing records, we conclude that any review of the records would have been fruitless. The billing statements refer only to vague tasks such as memos, depositions, telephone calls, meetings, and research. Based on these records, there is no way to determine which billing lines pertain to the Hostile Work Environment claim.
. Ms. Lively further represents that the discrepancy between the $809,000 figure and the later request for $1,179,481.50 resulted from the fact that in their effort to achieve a settlement of all pending matters, the firm calculated their attorneys’ fees at a below market rate. Because of our resolution of the issue of the disclosure of the settlement discussions, we need not address this separate issue.
. We note that an exception to this policy is found in Super. Ct. Civ. R. 68, permitting disclosure of an offer made by a defending party (here FPA and Braswell-not Ms. Lively) to the adverse party “to allow judgment to be taken against the defending party for the money or property or to the effect specified in the offer, with costs then accrued.”
.FPA argues that Ms. Lively "placed the settlement negotiations at issue in her petition for fees, and thereby opened the door to FPA to rebut her characterization of the negotiations.” We have examined the portions of the records that FPA relies on for its claim that Ms. Lively “opened the door” to FPA’s disclosure of the representations concerning the amount of attorneys’ fees claimed in the letter and find this argument without merit. The portions of the record cited do no more than accuse FPA in general terms of "makfing] this litigation as complex and expensive as possible,” and thus “forcfingj Plaintiff to incur substantial attorneys’ fees,” and point out that a settlement offer made by Ms. Lively was rejected by FPA.
.Ms. Lively does not argue, nor could she, that acceptance of FPA’s check would extinguish her claims to interest and attorneys’ fees under the principles of accord and satisfaction. "This is not a breach of contract case; hence the concept of accord and satisfaction is irrelevant.”
Eagle Maint. Servs., Inc. v. District of Columbia Contract Appeals Bd.,
. FPA also argues that we are bound by the ruling in
Riss & Co. v. Feldman,
. In this case, we realize that FPA attempted to pay the principal of the punitive damages, in the October 17, 2005 letter, before the litigation concluded. We must, however, consider how the similarly situated party would act.
. We note that interest on the punitive damages owed by FPA should run only until October 17, 2005, the date on which FPA made an offer to pay the principal in full. We have been presented with no record of such an offer made with respect to the punitive damages owed by the Braswell Estate, and interest on that amount should therefore continue to run.
