Lead Opinion
Plaintiff Ohio Right to Life Society, Inc. appeals a January 22, 2014 Order of the United States District Court for the Southern District of Ohio (Smith, J.) reducing Plaintiffs requested 42 U.S.C. § 1988 attorneys’ fees award. Specifically, Plaintiff contests the district court’s (1) use of an hourly rate of $250 to calculate the attorneys’ fees award; (2) application of an 85% across-the-board reduction to Plaintiffs requested compensable hours; (3) direction that the attorneys’ fees award be paid to Plaintiffs former counsel rather than to Plaintiff itself; and (4) disallowance of requested costs and expenses without providing Plaintiff the opportunity to submit additionаl documentation to substantiate these expenses.
For the following reasons, we VACATE the district court’s order awarding attorneys’ fees and costs totaling $29,107, and REMAND the case to the district court for further proceedings consistent with this opinion, including a recalculation of Plaintiffs attorneys’ fees award. •
I. BACKGROUND
A. The Underlying Action
The instant appeal concerns the amount of attorneys’ fees and costs that the district court awarded to Plaintiff, pursuant to 42 U.S.C. § 1988, in connection with Plaintiffs action against Defendants, the Ohio Elections Commission (“OEC”), individual members of the OEC, and former Ohio Secretary of State Jennifer Brunner (collectively “Defendants”). In the underlying action, Plaintiff alleged that various Ohio campaign finance laws were unconstitutional, facially and as-applied to proposed advertisements that Plaintiff intended to run in the lead up to the 2008 and 2010 elections. The underlying action occurred in two major phases. The first occurred in 2008 and resulted in a preliminary injunction enjoining Defendants from enforcing Ohio’s “blackout” provisions as-applied to certain advertisements proposed by Plaintiff in the period preceding the November 4, 2008 election. The second occurred in 2010, in the wake of Citizens United v. Fed. Election Comm’n,
1. The 2008 Proceedings
On May 20, 2008, Plaintiff filed its initial complaint against Defendants chai-
On June 20, 2008, Plaintiff filed a motion for a preliminary injunction raising as-applied and facial challenges to Ohio’s blackout and disclosure provisions. Defendants challenged Plaintiff’s standing to seek relief, arguing that because of their concession and Plaintiff’s failure to take sufficient steps to produce their proposed advertisements, no recognizable controversy existed between the parties. On September 5, 2008, the district court rejected Defendants’ standing arguments, finding that Defendants’ concession regarding WRTL’s applicability to Ohio’s blackout provisions did not amount “to an agreement not to enforce Ohio’s blackout provisions against Plaintiff’s propоsed ads” and that Plaintiff had taken sufficient steps toward producing the advertisements to demonstrate injury when it filed suit. (R. 40, Opinion and Order,. Page ID # 335.) The district court granted Plaintiff’s motion for a preliminary injunction on the as-applied challenge to Ohio’s blackout provisions and enjoined Defendants from enforcing these provisions with regards to Plaintiffs proposed advertisements. The court rejected Plaintiff’s other claims.
2. The 2010 Proceedings
In the period between September 2008 and August 2010, Plaintiff alleges that its counsel monitored changes in First Amendment law and reviewed the briefs of the parties and numerous amicus briefs filed in Citizens United. In March 2010, Defendants mоved to dismiss the action on the theory that there was no longer a live dispute between the parties. Plaintiff then moved to amend its complaint to add a new claim based on Citizens United and to allege that it intended to run broadcast advertisements during the Fall 2010 election campaign. The district court permitted Plaintiff to amend its complaint and denied as moot Defendants’ motion to dismiss on the ground that the amended complaint would cure any jurisdictional deficiency. Plaintiff filed its amended complaint on August 24, 2010. Two days later, Plaintiff filed a motion for a temporary restraining order and preliminary injunction seeking to enjoin the enforcement of Ohio’s blackout and disclosure provisions.
Defendants replied to Plaintiff’s motion by conceding that, given the Supreme Court’s decision in Citizens United, Ohio could not apply some of the challenged statutes to Plaintiffs intended conduct. Following this concession, the parties entered into a consent decree on September 15, 2010 pursuant to which the parties agreed to the following: (1) Ohio’s blackout provisions, Ohio Revised Code §§ 3517.1011(H) and 3517.01(B)(6), are unconstitutional to the extent that they prohibit a corporation from using its corporate treasury dollars to pay for any broadcast, cable, or satellite communication that refers to a clearly identified candidate during the thirty days preceding a primary election or a general election; and (2) Ohio Revised Code § 3599.03(A) is unconstitutional to the extent that it prohibits a corporation from using the corporation’s money or property to make independent expenditures for or in aid of candidate elections in Ohio. This consent decree did not address Plaintiffs remaining claims. On Septem
B. Application for Attorneys’ Fees
Following the district court’s September 2010 decision, Plaintiff filed a motion seeking approximately $352,000 in attorneys’ fees and costs pursuant to 42 U.S.C.' § 1988. Plaintiff submitted eighty-eight pages of invoices to support its motion. Defendants filed a memorandum in opposition to Plaintiffs fee application asking the court to deny the motion or reduce the fees award to $35,250 and expenses to $460.
On October 22, 2013, the magistrate judge issued a forty-seven page report and recommendation regarding Plaintiffs attorneys’ fees application. In the report, the magistrate judge reduced the hourly rates requested by Plaintiff, ranging from $445 to $465, to $250 and applied a 90% across-the-board cut to Plaintiffs requested hours. Ultimately, the magistrate judge recommended that $19,520.62 in fees and costs be awarded, reducing the requested attorneys’ fees award by approximately 95%.
On January 22, 2014, following Plaintiffs timely objection to the magistrate judge’s report and recommendation, the district court issued an order adopting the reasoning of the magistrate judge but reducing the magnitude of the across-the-board reduction to Plaintiffs requested hours to 85%. This translates to an award of $29,107 in fees and costs or approximately 92% less than the requested attorneys’ fees award. Plаintiff filed a timely appeal to this Court.
II. DISCUSSION
A. Reduction of Plaintiffs Attorneys’ Fees Award
1. Standard of Review
This Court reviews a district court’s award of attorneys’ fees and costs for abuse of discretion, Singleton v. Smith,
2. Analysis
The Civil Rights Attorney’s Fees Awards Act of 1976, 42 U.S.C. § 1988, provides that a trial court, “in its discretion, may allow the prevailing party ... a reasonable attorney’s fee as part of the costs.” 42 U.S.C. § 1988(b).
A “reasonable” fee under § 1988 is one that is “sufficient to induce a capable attorney to undertake the representation of a meritorious civil rights case” but does not “produce windfalls to attorneys.” Perdue v. Kenny A. ex rel. Winn,
i. Reduction of Hourly Rate
This Court has held that a “district court has broad discretion to determine what constitutes a reasonable hourly rate for an attorney.” Wayne,
Although Plaintiff requested an hourly rate ranging from $445 to $465 per hour for the work performed by Plaintiffs lead attorney, the magistrate judge selected the lower hourly rate of $250 to calculate the lodestar. In choosing this rate, the magistrate judge relied on two election law cases from the Southern District of Ohio in which requested hourly rates of $400 to $450 and $450 were reduced to $250 and $300, respectively. Moore v. Brunner, Nos. 2:08-cv224 & 2:08-cv-555,
Plaintiff argues that the district court erred by relying on these decisions to identify the appropriate hourly rate to use in its lodestar calculation, rather than considering other cases in which courts applied higher hourly rates. See, e.g., Northeast Coalition for Homeless v. Brunner, No. 2:06-cv-896,
While courts have approved higher hourly rates, it was within the district court’s “broad discretion” to rely on the thorough analysis set forth in Moore to determine an appropriate hourly rate for calculating the lodestar. Wayne,
ii. Reduction of Requested Compensable Hours
In calculating a fee applicant’s lodestar, a district court should exclude hours that were not “reasonably expended” by counsel. Hensley v. Eckerhart,
In this case, the district court reduced Plaintiffs attorneys’ requested compensa-ble hours by 85%, adjusting the 90% reduction recommended by the magistrate judge while adopting the magistrate judge’s rationale for the overall reduction.’ As determined by the magistrate judge and accepted by the district court, the reduction was based on (1) Plaintiffs limited success; (2) Plaintiff’s counsel’s failure to properly exercise billing judgment; and (3) Plaintiffs counsel’s inadequate documentation of time expended.
Regarding Plaintiffs limited success, it is undisputed that Plaintiff is a prevailing party entitled to attorneys’ fees. A prevailing plaintiff may receive fees under § 1988 even if it is not victorious on every claim. The Supreme Court has held that a district court “should compensate the plaintiff for the time [its] attorney reasonably spent in achieving the favorable outcome, even if the plaintiff failed to prevail on every contention.” Fox,
With respect to Plaintiffs counsel’s billing deficiencies, Supreme Court and Sixth Circuit precedent clearly permit trial courts to reduce attorneys’ fees awards “[w]here the documentation of hours is inadequate.” Reed v. Rhodes,
The magistrate judge found that Plaintiffs counsel inappropriately billed for excessive and unnecessary hours and provided inadequate descriptions of the work conducted during the requested hours. The report and recommendation provides a plethora of examples of excessive, unnecessary, vague and/or inappropriate billing entries. Plaintiff concedes that an across-the-board reduction in attorneys’ fees is appropriate in light of Plaintiffs attorneys’ “accounting issues”; however, Plaintiff contends that the magnitude of the overall reduction is excessive, and a 10-15% reduction would be more appropriate. Appellant’s Reply Br. at 9.
We find that the explanation given in the magistrate judge’s report and recommendation provides a sufficient justification for reducing Plaintiffs requested hours in light of Plaintiffs limited success and Plaintiffs attorneys’ billing deficiencies. However, the magnitude of the district court’s reduction is unsupported by the record. The purpose of 42 U.S.C. § 1988 is to “ensure ‘effective access to the judicial process’ for persons with civil rights grievances.” Hensley,
We have identified no other cases in this Circuit in which a court reduced an attorney’s requested compensable hours by so high a percentage, and only two cases in which a court reduced an attorneys’ fees award by more than 75% overall. First, in Bell v. Prefix, Inc.,
Such large reductions are exceptionally rare, and, in the instant case, greater justification is needed to impose such an aberrational reduction. Neither the report and recommendation nor the district court’s order provides a sufficient basis for a reduсtion of this magnitude. Plaintiffs attorneys litigated the instant case over three years. Although they were unsuccessful on most of their claims, their efforts resulted in a preliminary injunction enjoining the enforcement of Ohio’s blackout provisions against Plaintiffs advertisements in the days preceding the November 4, 2008 election and a consent decree in which Defendants acknowledged the unconstitutionality of some of Ohio’s challenged campaign finance laws.
This Circuit has not articulated a clear requirement that when an across-the-
In sum, while it was not an abuse of discretion to reduce Plaintiffs attorneys’ fees award in light of Plaintiffs partial success and billing deficiencies, the district court abused its discretion in reducing Plaintiffs requested hours by 85%.
B. Plaintiff’s Request for Costs
1. Standard of Review
This court reviews a district court’s denial of costs and expenses for abuse of discrеtion. Andretti v. Borla Performance Indus., Inc.,
2. Analysis
As part of an attorneys’ fees award, § 1988 allows district courts to award “those incidental and necessary expenses incurred in furnishing effective and competent representation.” Waldo v. Consumers Energy Co.,
With the exception of one filing fee expense that the district court agreed to award, the magistrate judge found Plaintiffs documentation of its costs and expenses “woefully inadequate.” (R. 114, Report and Recommendation, Page ID # 1353.) Many of Plaintiffs requested expenses take the form of statements such as “Computer Research,” “Delivery Fee,” and “Document Reproduction” without further
Plaintiff does not argue that the magistrate judge erred in finding its explanation of expenses to be lacking, but rather argues that it should have been awarded an opportunity to provide further detail to substantiate its alleged expenses. As noted by the district court, “Plaintiff had several ppportunities to provide a detailed explanation of costs, in its original submission, its supplemental memorandum and even in the objections.” Ohio Right to Life Soc., Inc. v. Ohio Elections Comm’n, No. 2:08-CV-00492,
C. Recipient of Attorneys’ Fees Award
1. Standard of Review
We review de novo whether the district court erred in ordering that attorneys’ fees be paid to Plaintiff’s previous law firm rather than to Plaintiff directly, since this issue turns on a question of statutory interpretation. See Riley v. Kurtz,
2. Analysis
Plaintiff argues that the district court erred by, sua sponte, ordering that Defendants should pay the attorneys’ fees award to the law firm that had previously represented Plaintiff rather than to Plaintiff itself. The Supreme Court has held that “the term ‘prevailing party5 in fee statutes is a ‘term of art’ that refers to the prevailing litigant.” Astrue v. Ratliff,
CONCLUSION
For the foregoing reasons, we VACATE the district court’s order awarding attorneys’ fees and costs totaling $29,107, and REMAND the case to the district court for recalculation of the attorneys’ fees award and for further proceedings consistent with this opinion.
Notes
. Despite § 1988's seemingly discretionary language, "in the absenсe of special circumstances a district court not merely ‘may’ but must award fees to the prevailing plaintiff.”
. The Sixth Circuit has recognized that relevant factors to consider when adjusting the lodestar include:
(1) the time and labor required by a given case; (2) the novelty and difficulty of the questions presented; (3) the skill needed to perform the legal service properly; (4) the preclusion of employment by the attorney due to acceptance of the case; (5) the customary fee; (6) whether the fee is fixed or contingent; (7) time limitations imposed by the client or the circumstances; (8) the amount involved and the results obtained; (9) the experience, reputation, and ability of the attorneys; (10) the "undesirability” of the case; (11) the nature and length of the professional relationship with the client; and (12) awards in similar cases.
Reed v. Rhodes,
Concurrence Opinion
concurring in part and dissenting in part.
I agree with the majority’s conclusions in Parts II.B and II.C that the district court did not err in its determination of the reasonable attorney hourly rate, but did appear to err when it made the award payable to the law firm rather than Plaintiff Ohio Right to Life Society, Inc. (ORTL).
I.
“‘[T]he most critical factor’ governing the reasonableness of a fee award ‘is the degree of success obtained.’ ” Waldo v. Consumers Energy Co.,
II.
I do not agree that the district court failed to provide “a sufficient basis for a reduction of this magnitude.” Maj. Op. 604. The magistrate judge’s (MJ) forty-seven page report and reсommendation provides clear and detailed explanations of the reasons for the recommended reduction. Cf. Hensley,
Additionally, the majority suggests it could have affirmed portions of the award had the district court “articulatefd] what portion of the reduction was associated with the Plaintiffs limited success, lack of billing judgment, and inadequate billing documentation, respectively.” Maj. Op. 605. The MJ’s report states: “The Undersigned’s recommendation that the Court apply a ninety-percent reduction to the hours requested is not premised upon the consideration of Plaintiffs limited success alone. Rather, this recommendation is equally attributable [to] the Undersigned’s finding that Plaintiffs counsel
Further, the MJ’s finding that the total number of hours ORTL’s counsel spent on the litigation was excessive in relation to ORTL’s limited success is inextriсably intertwined with the finding of numerous billing errors. Id. at *10. The exercise of billing judgment requires counsel to exclude from its fee petition hours that are “‘excessive, redundant, or otherwise unnecessary.’ ” Binta B. ex rel. S.A. v. Gordon,
ORTL’s counsel failed to exclude from the fee request the hours spent on ORTL’s unsuccessful claims, leaving the task for the court. But as the MJ found, it was “impossible ... to ascertain the number of hours [ORTLj’s counsel expended on the successful claims due to counsel’s practice of lumping billing entries and utilizing vague descriptions.” ORTL,
. The record does not establish that ORTL "waive[d], settle[d], or negotiate[d],” or otherwise assigned, its fee claim. See Venegas v. Mitchell,
