Rita Lynne Terpstra v. State of Missouri, Department of Labor and Industrial Relations CommissionRita Lynne Terpstra v. State of Missouri, Department of Labor and Industrial Relations Commission
The Missouri Department of Labor and Industrial Relations Commission (“LIRC“), the Missouri Department of Employment Security (“DES“), and Robert Lambert (“Lambert“) (collectively “Defendants“) appeal from the trial court‘s judgment in an age discrimination action which awarded actual damages, punitive damages, attorneys’ fees, and costs to Rita Lynne Terpstra (“Terpstra“). The Defendants allege multiple errors occurred at trial involving questioning of the venire panel about issues of law, the
Factual and Procedural Background1
In January 2012, Terpstra filed suit against the Defendants. After years of discovery, Terpstra was granted leave to file an amended petition in March 2016. The amended petition alleged in Count One that the Defendants engaged in age discrimination in violation of the Missouri Human Rights Act (“MHRA“),
Terpstra‘s claims were tried to a jury beginning in November 2016. Terpstra presented evidence that she was denied two promotions to senior claims supervisor in 2010, and that the Defendants promoted two younger, less qualified persons to the positions.
The jury found in favor of Terpstra on Count One, and awarded her $20,000 in actual damages against DES and Lambert; $260,000 in punitive damages against DES; and $20,000 in punitive damages against Lambert. The jury found in favor of the Defendants on Count Two.
Terpstra filed a motion asking the trial court to award reasonable attorneys’ fees, costs, and post-judgment interest (“Terpstra‘s Motion for Attorneys’ Fees and Costs“). Terpstra‘s Motion for Attorneys’ Fees and Costs sought an award of attorneys’ fees in the amount of $1,175,248.90; costs and expenses in the amount of $27,200.26; and post-judgment interest at 5.5 percent on the total judgment. Terpstra later amended her request for costs and expenses to $15,000. Terpstra also filed a motion asking the trial court to conform the judgment and to enter judgment against the LIRC on Count One (“Terpstra‘s Motion to Conform the Judgment“). Terpstra‘s Motion to Conform the Judgment asserted that, because Lambert is an employee of the LIRC, and because DES is a division of the LIRC, the LIRC was legally responsible for the acts of age discrimination attributed by the jury to DES and Lambert on Count One.
On May 5, 2017, the trial court issued its judgment (“Judgment“) in conformance with the jury‘s verdicts, and ruling Terpstra‘s motions. The Judgment found that the jury‘s
Following the entry of Judgment, Defendants DES and Lambert filed a motion titled “Defendants’ Motions and Suggestions in Support of Judgment Notwithstanding the Verdict or, in the Alternative for a New Trial, or in the Alternative for an Elimination and/or Reduction in Fee Awards” (“Post-Trial Motion“).4 The Post-Trial Motion argued that entry of judgment notwithstanding the verdict or a new trial was required because the trial court erred in admitting testimony from “me-too” witnesses about discriminatory statements, actions, or conduct unrelated to the instant action; because Terpstra improperly instructed the venire panel on the law during voir dire; because the trial court erroneously admitted emails which led to the demotion of three employees that were not relevant; and because the trial court‘s award of attorneys’ fees was based on a misapplication of the law.5
The Defendants appeal. Additional facts will be discussed where relevant to the Defendants’ points on appeal.
Analysis
The Defendants assert six points on appeal alleging error during voir dire, in the admission of evidence, in the submission and award of punitive damages, and in the award of attorneys’ fees. We address each point separately.
Point One: Terpstra‘s Discussion of the Law During Voir Dire
The Defendants’ first point on appeal argues that the trial court erred “in permitting Terpstra‘s counsel to improperly instruct the venire panel on the law during voir dire because it was not relevant to identifying whether the potential jurors harbored any bias or prejudice against either party in that counsel could have determined the same information without invading the province of the court.” [Appellants’ Brief, p. 25]
The purpose of voir dire “‘is to determine which persons harbor bias or prejudice against either party which would make them unfit to serve as jurors.‘” Dieser v. St. Anthony‘s Med. Ctr., 498 S.W.3d 419, 436 (Mo. banc 2016) (quoting State v. Nicklasson, 967 S.W.2d 596, 608 (Mo. banc 1998)). “Counsel is afforded wide latitude in questioning ‘the venire panel to determine preconceived prejudices which would prevent them from following the court‘s instructions.‘” Id. (quoting Nicklasson, 967 S.W.2d at 608). As such, “‘the trial [court] is vested with the discretion to judge the appropriateness of specific
“‘Counsel may not tell prospective jurors what law will be applied in the case or what instructions will be given to them.‘” State v. Brown, 902 S.W.2d 278, 286 (Mo. banc 1995) (quoting State v. White, 722 S.W.2d 92, 94 (Mo. App. E.D. 1986)). Here, the Defendants contend that the trial court abused its discretion during voir dire on three occasions when it permitted Terpstra‘s counsel to violate this principle. We disagree.
First, the Defendants complain that Terpstra‘s counsel was permitted, over the Defendants’ objection, to ask whether members of the venire panel believed a person was required to file an internal grievance before filing suit for discrimination. After the Defendants’ objection was overruled, Terpstra‘s counsel briefly explained the process for filing a complaint with the MCHR. The next morning, the Defendants moved for a mistrial. The trial court denied the Defendants’ motion for a mistrial noting that “a short explanation of the law, just to clarify the jurors’ bias, is appropriate.”
Next, the Defendants complain that Terpstra‘s counsel was permitted to instruct the venire panel about the law regarding whether and how employers can take age into account when making hiring decisions. The record does not support this assertion. When Terpstra‘s counsel was addressing whether the venire panel believed an employer could consider age when making hiring decisions, the Defendants objected that Terpstra was asking the venire panel to opine on the ultimate issue to be determined by the jury. The trial court effectively sustained this objection, as it directed Terpstra to rephrase her voir dire questions as to avoid seeking a commitment from the venire panel. The Defendants do not explain how a sustained objection can support a finding of an abuse of discretion, even presuming,
After the Defendants’ objection was sustained, Terpstra‘s voir dire continued. The Defendants again objected, and this time asserted not only that Terpstra was seeking a commitment from the venire panel on an ultimate issue, but also that Terpstra was instructing the venire panel on the law. The Defendants also moved for a mistrial. The trial court denied the request for a mistrial, but once again effectively sustained the Defendants’ objection by advising Terpstra to “clean up” the questions of the venire panel. The Defendants do not explain how a sustained objection can support a finding of an abuse of discretion in permitting allegedly improper voir dire.
Later, during the Defendants’ voir dire, counsel advised the venire panel that it was the Defendants’ position that the most qualified person could be hired for a job for any reason, so long as it is not “because of that person‘s age, gender, [or] race.” A member of the venire panel asked for clarification, noting that the day prior, there had been discussion about sole versus contributing factors in making hiring decisions.6 The Defendants’
counsel responded that “The law says because of their age. You cannot discriminate against someone because of their age.” Terpstra‘s counsel objected and, outside the hearing of the jury, complained that the Defendants were misstating the law. The trial court agreed, and advised that references to age as a factor needed to refer to age as a “contributing factor.” When the Defendants’ voir dire continued, the Defendants responded to the venireperson‘s request for clarification by stating that age could not be a contributing factor in a hiring decision and that the trial court would later instruct the jury on the law applicable to the case. Terpstra did not instruct the venire panel on the law regarding this subject during the Defendants’ voir dire. Rather, the Defendants did as instructed by the trial court, rendering the Defendants’ discussion of this portion of voir dire irrelevant to the Defendants’ point on appeal.
Finally, the Defendants complain that Terpstra‘s counsel improperly instructed the venire panel about the burden of proof. However, it was the Defendants, during their own voir dire, who made the statement that the Defendants did not have the burden of proof. When Terpstra objected, the trial court instructed the venire panel that “the burden of proof to prove age was a contributing factor to the adverse employment action is on the plaintiff, not the defendant, [which] will be subject to any additional instructions that I will give you later.” It was thus the trial court, not Terpstra, who addressed (correctly, we observe) the subject of the burden of proof with the jury.
When viewed in light of the entire record, the Defendants’ summary allegation of prejudice is disingenuous and inaccurate. We have already explained that the Defendants’ assertion that Terpstra instructed the venire panel on the law is not supported by the record, and that instead, it was the trial court who either addressed legal issues with the venire panel, or advised the parties how to do so. In addition, before voir dire began, the trial court told the venire panel, “It is my job to instruct you in the law which you are to apply to those facts,” and cautioned the venire panel not to “discuss or attempt to research what
Moreover, the Defendants have not identified any legal discussion that allegedly occurred during voir dire that was inconsistent with the instructions later given to the jury by the trial court. Those instructions informed the jury of the burden of proof, instructing that “[t]he party who relies upon any disputed fact has the burden to cause you to believe that such fact is more likely true than not true.” Those same instructions informed the jury that the standard of causation for Terpstra‘s claim of age discrimination was that “Terpstra‘s age was a contributing factor in her being denied promotion,” and that the standard of causation for Terpstra‘s claim of retaliation was that “[Terpstra‘s] filing a complaint with the [MCHR] was a contributing factor to her being demoted.” A comparison of these instructions to the aspects of voir dire about which the Defendants complain on appeal reveals that the venire panel was not misled during voir dire. The Defendants have failed to demonstrate a real probability that they suffered prejudice based on an alleged (but
The Defendants’ first point on appeal is denied.
Point Two: Admission of Emails that Resulted in the Demotion of Three Employees
The Defendants’ second point on appeal argues that the trial court erred in admitting emails that resulted in the demotion of three DES employees who had been previously promoted to the position of senior claims supervisor. The Defendants describe the emails as “inappropriate” because they contained “some obscene language, [and discussions regarding] drinking outside work, and having hangovers at work.” [Appellants’ Brief, pp. 15, 35 n.2] The Defendants assert that the emails were not logically relevant to Terpstra‘s claim of employment discrimination in August 2010 because they resulted in demotions in September 2012. The Defendants further assert that the emails were not legally relevant because the subject matter of the emails served solely to prejudice the jury against the employees who were demoted and, by extension, the Defendants.8
Despite asserting that “[t]he trial court improperly admitted e-mail evidence that lacked relevance . . . [and] that served only to demonstrate that other employees had, in the past, engaged in prior bad acts that were not at all relevant to Terpstra‘s claims,” the Defendants do not indicate where in the record this alleged error was preserved for
The Defendants’ brief cites to a location in the transcript where they claim to have objected to admission of the emails based on Terpstra‘s failure to exhaust discovery remedies.9 This reference in the brief is not cited for the proposition that an objection to logical or legal relevance was preserved at trial. Our independent review of the cited objection, located at Vol. 9, pp. 127-28 of the transcript, reveals that the Defendants did make a cursory objection to the logical and legal relevance of the emails. However, when the emails were later discussed at trial during the testimony of several witnesses, no objection to discussion or admission of the emails on the basis of relevance was made by the Defendants. In the statement of facts, the Defendants’ brief cite to nearly seventy pages spanning three volumes of the transcript where Terpstra‘s counsel asked the three DES employees who were demoted about the content of the emails, but the Defendants have not advised us where, during this extended testimony, an objection to the admission of the testimony or the emails on the basis of relevance was ever made.
In addition, the Defendants have failed to deposit the emails they allege were improperly admitted into evidence with this court.
The Defendants’ second point on appeal is dismissed.
Point Three: Admission of Testimony from “Me-Too” Witnesses
The Defendants’ third point on appeal argues that the trial court erred in admitting testimony from three “me-too” witnesses: Scott Stimson (“Stimson“), Jeffrey Forrester
As discussed supra,
“‘After the denial of its motion in limine, a party is required to object at trial to the introduction of the evidence and to reassert the objection in post-trial motions.‘” Kerr v. Mo. Veterans Comm‘n, 537 S.W.3d 865, 880 (Mo. App. W.D. 2017) (quoting Wilkins v. Bd. of Regents of Harris-Stowe State Univ., 519 S.W.3d 526, 541 (Mo. App. E.D. 2017)). The Defendants’ brief alleges that the Defendants objected on the basis of relevance during the testimony of Stimson, Forrester, and Berendzen. The Defendants refer this court, however, to only a single record cite. At that point in the record, the Defendants objected that allowing Berendzen to testify as a “me-too” witness about a 2015 promotion she did not receive would confuse the issues at trial.11 The Defendants point this court to no instance where they objected at trial to Stimson‘s “me-too” testimony or Forrester‘s “me-too” testimony on the basis of relevancy. As we noted supra, compliance with
Our review of the Defendants’ third point on appeal is limited, therefore, to a review of whether the trial court abused its discretion in admitting Berendzen‘s “me-too” testimony regarding the 2015 promotion she did not receive. Our standard of review of a trial court‘s decision to admit evidence over an objection is for abuse of discretion. Hesse v. Mo. Dep‘t of Corr., 530 S.W.3d 1, 5 (Mo. App. W.D. 2017). A trial court abuses its discretion when the evidentiary ruling “‘is clearly against the logic of the circumstances . . . and is so unreasonable and arbitrary that it shocks the sense of justice and indicates a lack of careful, deliberate consideration.‘” Id. (quoting Cox, 473 S.W.3d at 114). If reasonable persons could disagree about the propriety of the trial court‘s ruling, then we will not conclude that the trial court abused its discretion. Reed v. Kansas City Mo. Sch. Dist., 504 S.W.3d 235, 240 (Mo. App. W.D. 2016).
Circumstantial evidence, like all other types of evidence, must be both logically and legally relevant to be admissible. Id. “‘Evidence is logically relevant if it tends to make the existence of any fact that is of consequence to the determination of the action more probable or less probable than it would be without the evidence, or if it tends to corroborate evidence which itself is relevant and bears on the principal issue of the case.‘” Id. (quoting State v. Tisius, 92 S.W.3d 751, 760 (Mo. banc 2002)). Legal relevance requires the trial court to “‘weigh the probative value, or usefulness, of the evidence against its costs, specifically the dangers of unfair prejudice, confusion of the issues, undue delay, misleading the jury, waste of time, or needless presentation of cumulative evidence.‘” Holdeman v. Stratman, 556 S.W.3d 46, 52 (Mo. App. W.D. 2018) (quoting Kroeger-Eberhart v. Eberhart, 254 S.W.3d 38, 43 (Mo. App. E.D. 2007)). If the probative value of the evidence outweighs its costs, then the evidence is legally relevant and should be
Cox v. Kansas City Chiefs Football Club examined the application of the concepts of logical and legal relevance to “me-too” testimony. In Cox, our Supreme Court reviewed the trial court‘s blanket exclusion of all evidence regarding the firings of other older employees, including evidence of their age, the fact of their termination by the employer, and of their pending lawsuits against the employer. 473 S.W.3d at 116. The Court held that the blanket exclusion of the “me-too” testimony was error because the evidence should have been “subject to an individualized balancing of probativeness with prejudice as to each such example of circumstantial evidence of discrimination.” Id. at 119, 118. An individualized assessment of legal relevance requires the trial court to consider carefully the logical relevance of each piece of “me-too” evidence as weighed against the evidence‘s prejudicial effect. Id. at 122. In determining the logical relevance of “me-too” testimony, the trial court must “look to and weigh aspects of similarity as appropriate given the facts, context, and theory of the specific case at issue.” Id. at 123. Factors to consider include geographic and temporal similarities; whether the same decision makers were involved; the similarity of treatment; and whether the witness and plaintiff were otherwise similarly situated. Id.
The Defendants claim that the trial court misapplied the law when it denied their objection to Berendzen‘s testimony. The Defendants assert that contrary to Cox, the trial court made a blanket ruling that all “me-too” testimony was admissible. They base this conclusion on the fact that when the trial court denied their objection to Berendzen‘s
We comfortably reach the conclusion that the trial court properly relied on Cox to overrule the Defendants’ objection to Berendzen‘s testimony based on the trial court‘s reference to Cox at other times during the proceedings. When the trial court denied the Defendants’ motion in limine seeking exclusion of “me-too” testimony, it did so for the express reason that Cox required an individualized assessment of the relevance of “me-too” evidence--an assessment that could not be made without the benefit of hearing the testimony in the context of a trial record. In fact, when the Defendants’ motion in limine was denied, the trial court told the Defendants that they would be required to make an objection to each “me-too” witness‘s testimony, addressing on each occasion the individualized basis for objecting to relevancy. In keeping with this guidance, when the Defendants objected to Stimson as a “me-too” witness before his testimony began, the trial court overruled the objection because it was not yet clear what Stimson would say, making it impossible for the trial court to conduct the individualized relevancy assessment required by Cox. It is plain, in light of these rulings and comments, that the trial court‘s reference to Cox when it overruled the Defendants’ objection to Berendzen‘s testimony reflected an accurate understanding and application of the law.
Berendzen was 58 years old at the time of trial, and like Terpstra, she worked for DES in the JCRCC. Berendzen testified that, while she had been promoted to senior claims supervisor approximately two months before trial, in 2015, she had applied for a promotion as a senior claims supervisor which she did not receive though a younger person was selected. Because Terpstra and Berendzen both worked for DES in the JCRCC, and because both applied for the same position for which they were rejected in favor of younger applicants, Berendzen‘s testimony was logical relevant as it corroborated Terpstra‘s claim of age discrimination and suggested that the Defendants possessed discriminatory intent. The difference in time and circumstance is not so significant as to render the probative value of Berendzen‘s testimony outweighed by its prejudicial effect, and would instead go to the weight of the testimony. The trial court did not abused its discretion in admitting Berendzen‘s testimony.
The Defendants’ third point on appeal is denied.
Point Four: Sufficiency of Evidence to Support the Punitive Damages Instruction
The Defendants’ fourth point on appeal argues that the trial court erred in submitting a punitive damages instruction because Terpstra failed to present evidence that the Defendants engaged in outrageous conduct stemming from an evil motive or reckless indifference.
With respect to the issue of preservation, the Defendants assert in their brief that, “As [they] argued in [their] directed verdict motions, at the jury instruction conference, at closing, and in [their] post-trial motion, the trial court . . . should not have submitted punitive damages to the jury.” [Appellants’ Brief, p. 43] Later in the argument portion of the brief, the Defendants provide specific citations to the record where they raised the issue of submissibility of punitive damages in their motion for a directed verdict and during the instruction conference, and where they argued to the jury that there was no evidence of evil
Our review of the Defendants’ Post-Trial Motion reveals that it devotes a single sentence to the topic of punitive damages: “Additionally, in lieu of JNVO or a new trial, and pursuant to [Rule] 78.10, Defendants move the court for an elimination of punitive damages and a more reasonable assessment of attorneys’ fees.” (Emphasis added.) The Post-Trial Motion did not contest the sufficiency of the evidence to submit punitive damages to the jury, and by its plain terms sought only the relief of remittitur (the subject of Rule 78.10) with respect to the award of punitive damages.13 Because the Post-Trial Motion did not claim error in the submission of punitive damages to the jury, the issue is not preserved for our review.
The Defendants’ fourth point on appeal is dismissed.
Point Five: Failure to Reduce the Punitive Damages Award
The Defendants’ fifth point on appeal argues that the trial court committed error “in denying a motion for remittitur of the punitive damages award because under the state rules of remittitur and the federal due process clause the punitive damages award was impermissibly excessive given that it was thirteen times [Terpstra‘s] compensatory damages and there is no other discrimination to deter at the workplace.” [Appellants’ Brief, p. 49] This point on appeal is necessarily limited in its application to DES. The punitive
DES asserts that it “argued . . . in its post-trial motion” that remittitur was appropriate because the punitive damages award was excessive.15 [Appellants’ Brief, p. 49] Later in the brief, however, DES asks us to review the issue of remittitur for plain error because the claim of error “was not included in the [Post-Trial Motion].” DES does not explain the contrary positions taken in its brief with respect to preservation of the claim of error relating to remittitur.
We have already explained, supra, that the Post-Trial Motion sought, “in lieu of JNOV or new trial, and pursuant to [Rule] 78.10, . . . an elimination of punitive damages.”
DES nonetheless asks us to review the trial court‘s failure to order remittitur of the punitive damages award for plain error. Plain error review is available, at our discretion, for “errors affecting substantial rights” if we “find[] that manifest injustice or miscarriage of justice has resulted therefrom.”
Though DES‘s point relied claims error based on the failure to remit the punitive damages award pursuant to Rule 78.10, the argument portion of the brief does not further develop the point on appeal, and is devoted exclusively to DES‘s claim that the punitive damages award was constitutionally excessive, a claim we discuss infra. We refuse to exercise our discretion to conduct plain error review of a claim of error regarding violation
DES‘s point on appeal separately argues that the punitive damages award was constitutionally excessive in violation of due process. “‘Remittitur and a constitutionally reduced verdict, though potentially achieving the same result, are in theory different.‘” Diaz v. AutoZoners, LLC, 484 S.W.3d 64, 89 n.28 (Mo. App. W.D. 2015) (quoting Blanks v. Fluor Corp., 450 S.W.3d 308, 412 n.71 (Mo. App. E.D. 2014)). “‘[R]emittitur is a substitution of the court‘s judgment for that of the jury regarding the appropriate award of damages.‘” Id. (quoting Blanks, 450 S.W.3d at 412 n.71); see also
To raise a constitutional challenge properly, a party must:
(1) raise the constitutional question at the first available opportunity; (2) designate specifically the constitutional provision claimed to have been violated . . . (3) state the facts showing the violation; and (4) preserve the constitutional question throughout for appellate review.
Mayes v. Saint Luke‘s Hosp. of Kansas City, 430 S.W.3d 260, 266 (Mo. banc 2014) (quoting United C.O.D. v. State, 150 S.W.3d 311, 313 (Mo. banc 2004)). “The purpose of
DES did not raise its constitutional question at the first available opportunity--in its Post-Trial Motion. Cognizant of this fact, DES requests plain error review. “Plain error review, however, rarely is granted in civil cases.” Id. at 269. Error, if any, in the award of $260,000 in punitive damages against DES is not evident, obvious, or clear. See Diaz, 484 S.W.3d at 91 (rejecting a preserved claim that a 13:1 ratio of punitive to compensatory damages violated due process violation). We are not persuaded that the unpreserved error about which DES complains is “‘so egregious as to weaken the very foundation of the process and seriously undermine confidence in the outcome of the case.‘” Riggs, 473 S.W.3d at 186 (quoting Snellen, 422 S.W.3d at 357). We decline to review DES‘s newly asserted, unpreserved claim of constitutional error for plain error.
The Defendants’ fifth point on appeal, which applied only to the award of punitive damages against DES, is denied.
Point Six: Award of Attorneys’ Fees
The Defendants’ sixth point on appeal argues that the trial court‘s award of attorneys’ fees constituted an abuse of discretion. The Defendants assert that the trial court erred in two respects. First, the Defendants claim that the trial court used an unreasonable hourly rate in calculating the award. And second, the Defendants contend that the trial court‘s use of a multiplier was unnecessary in that it created a windfall for Terpstra‘s counsel contrary to Missouri law.
We review the trial court‘s award of attorney‘s fees for abuse of discretion. Hoeper v. Liley, 527 S.W.3d 151, 158 (Mo. App. W.D. 2017). The trial court abuses its discretion when its “‘decision was against the logic of the circumstances and so arbitrary and unreasonable as to shock one‘s sense of justice.‘” Id. (quoting Howard v. City of Kansas City, 332 S.W.3d 772, 792 (Mo. banc 2011)). ““The trial court is considered an expert on fees, given its familiarity with all of the issues in the case and with the character of the legal services rendered,’ and ‘may determine attorney fees without the aid of evidence.‘” Id. (quoting Soto v. Costco Wholesale Corp., 502 S.W.3d 38, 55 (Mo. App. W.D. 2016)). “‘We will not reverse [the award of attorneys’ fees] unless we find that the amount was arbitrarily arrived at or is so unreasonable as to indicate indifference and a lack of proper
The general rule in Missouri is that “‘attorney fees are not awarded to every successful litigant.‘” Berry v. Volkswagen Grp. of Am., Inc., 397 S.W.3d 425, 431 (Mo. banc 2013) (quoting Lucas Stucco & EIFS Design, LLC v. Landau, 324 S.W.3d 444, 445 (Mo. banc 2010)). “However, attorneys’ fees may be awarded when they are provided for in a contract or when they are authorized statutorily.” Id. The MHRA provides that the trial court “may award . . . reasonable attorney fees to the prevailing party.”
“While the trial court has discretion to award reasonable attorneys’ fees, there are factors that may be considered to determine the amount of attorneys’ fees to award.” Berry, 397 S.W.3d at 431. Factors considered include: the rates customarily charged by the attorney in the case and other attorneys in the community for similar services; the number of hours reasonably expended on the litigation; the nature and character of services rendered; the degree of skill required; the nature and importance of the subject matter of the litigation; the amount involved or result achieved; and the vigor of the opposition. Id. The starting point in determining reasonable attorneys’ fees is the “lodestar.” Alhalabi v. Mo. Dep‘t of Nat. Res., 300 S.W.3d 518, 530 n.6 (Mo. App. E.D. 2009). The lodestar “is determined by multiplying the number of hours reasonably expended by a reasonable hourly rate.” Id. A reasonable hourly rate is established according to “the rates customarily charged by the attorneys involved and by other attorneys in the community for similar services.” Selleck v. Keith M. Evans Ins., Inc., 535 S.W.3d 779, 786 (Mo. App. E.D. 2017).
The Defendants argue that the trial court‘s calculation of the lodestar “[was] not reflective of rates awarded to other attorneys who have similar experience and expertise in employment litigation.” [Appellants’ Brief, p. 57] Here, Terpstra‘s Motion for Attorneys’ Fees and Costs acknowledged that counsel‘s usual and customary hourly rates were $325.00 for attorney Roger Brown, $210.00 for attorney Hong Chen, $185.00 for attorney Jason McClitis, and either $85.00 or $95.00 for paralegals. Nonetheless, Terpstra‘s Motion for Attorneys’ Fees asserted that the application of the lodestar factors would support a trial court setting a reasonable hourly rate for attorney Roger Brown at $475.00, for attorney Hong Chen at $300.00, for attorney Jason McClitis at $210.00, and for paralegals at $125.00. To support her request to use an hourly rate higher than the one customarily charged by her attorneys, Terpstra‘s Motion for Attorneys’ Fees attached affidavits from other attorneys with similar experience and similar knowledge of employment discrimination claims regarding their rates; billing statements showing the hours expended on the case; and judgments awarding attorneys’ fees in similar cases in Cole County.
The Judgment found that Terpstra‘s request to set an hourly rate above counsel‘s usual and customary rate was a reasonable request, as: litigation of the case took over four years, and involved fifteen days of trial over several weeks; billing statements revealed that
The Defendants argue that these hourly rates “are not reflective of rates awarded to other attorneys who have similar experience and expertise in employment litigation.” To support their claim, the Defendants refer to two Cole County and one DeKalb County employment cases wherein plaintiff‘s counsel was awarded attorneys’ fees. The Defendants presented the same argument, including citation to the Cole County and DeKalb County employment cases, to the trial court, and the trial court accepted it in part, setting hourly rates lower than those requested by Terpstra‘s Motion for Attorneys’ Fees. The Defendants argue on appeal that, in those cases, the total attorneys’ fees awarded were much less than those awarded by the trial court‘s Judgment. However, only one of those cases includes the hourly rates used by the trial court to calculate the total award. In that case, while the total attorneys’ fees awarded is lower than the trial court awarded in this case, the hourly rates are greater than the ones set by the trial court‘s Judgment.
The Defendants also complain about the trial court‘s use of a multiplier. After the trial court calculates the lodestar, it may also make “a finding that a multiplier [is] necessary to ensure a market fee that compensated . . . counsel for taking this case in lieu of working less risky cases on an hourly basis.” Berry, 397 S.W.3d at 433. In doing so, though, the court “should avoid awarding a multiplier based upon facts that it considered in its initial determination of the lodestar amount.” Id. at 432. The Defendants argue on appeal that usual hourly rate charged by Terpstra‘s counsel was adequate so that the trial court‘s use of the multiplier was unnecessary. The Defendants argue that Terpstra‘s Motion for
Terpstra‘s Motion for Attorneys’ Fees and Costs requested that the trial court apply a 2.0 multiplier, but suggested that if the trial court found the 2.0 multiplier too high under the circumstances, a multiplier between 1.25 and 2.0 would be appropriate. The trial court‘s Judgment concluded that a multiplier of 1.5 was appropriate. The Judgment reasoned that, in working on this type of public interest case on a contingent fee basis, Terpstra‘s counsel took the risk of not prevailing and endured the delay of payment for his services until the conclusion of litigation. The Judgment concluded that, in representing Terpstra in this litigation, Terpstra‘s counsel fronted expenses and turned down other cases that would generate an hourly fee due to time constraints. The Judgment further concluded that a multiplier was appropriate in order to encourage private attorneys to take these kinds of cases.
While the trial court also considered the contingent nature of the case in its determination of the lodestar, the trial court‘s consideration of other factors support application of the multiplier and demonstrate that the trial court did not abuse its discretion in setting a multiplier of 1.5. The trial court‘s conclusion that Terpstra‘s counsel declined representation of other cases that would generate hourly fees and its conclusion that a multiplier was appropriate to encourage private attorneys to take these kinds of cases is indicative of its careful consideration of whether a multiplier was necessary to ensure that Terpstra‘s counsel was compensated for representation of Terpstra. The Judgment‘s analysis demonstrates that the trial court did not arrive at the multiplier arbitrarily or
The Defendants’ sixth point on appeal is denied.
Conclusion
The trial court‘s Judgment is affirmed.
Cynthia L. Martin, Judge
All concur