Case Information
*1 Before McMILLIAN, JOHN R. GIBSON, and MAGILL, Circuit Judges.
___________
JOHN R. GIBSON, Circuit Judge.
The Cody class [1] in this long-running prison civil rights litigation seeks attorneys’ fees for counsel’s work that culminated in a private settlement agreement dismissing the case without prejudice. Because the class had earlier obtained a consent decree lasting more than a decade, and because the parties’ earlier practice had been for the defendants to pay the class’s legal fees, the district court [2] awarded fees. The State appeals, and we affirm.
I.
The class members are South Dakota prisoners. Defendants are that state’s
main prison officials, whom we refer to as the State. In 1980 the class sued under 42
U.S.C. § 1983 to challenge conditions of confinement in several South Dakota
prisons as violative of the Eighth and Fourteenth Amendments. After a bench trial,
the district court held that numerous conditions in the prison system were
unconstitutional. Cody v. Hillard,
In the years that followed, the State paid attorneys’ fees to the class on multiple occasions beginning at least as early as 1985. The State did not dispute the class’s entitlement to fees, though the parties sometimes negotiated the reasonableness of particular fee and expense requests.
*3 The court held evidentiary hearings in 1987 and 1992 to monitor the State’s compliance with the consent decree. After the 1987 hearing the court entered a supplemental order outlining procedures to identify “deficiencies in compliance.” After the 1992 hearing the court found that the State had failed to comply with the decree in certain respects relating to sanitary conditions in the prison and inmate fire safety. It entered supplemental remedial orders.
On April 16, 1996, the State, arguing that it was now in substantial compliance, moved under Fed. R. Civ. P. 60(b) to dissolve the consent decree and supplemental orders. The class opposed the motion. After submissions, but without an evidentiary hearing, the district court entered a two-paragraph order terminating the decree. The class appealed. We remanded, holding that the district court’s order had not provided a sufficient factual or legal basis to explain its decision. Cody v. Hillard, 139 F.3d 1197, 1199-1200 (8th Cir. 1998). We noted that the record suggested “there [we]re still at least some violations of the [consent] decree.” Id. at 1199.
After remand, before the district court entered any further ruling, the parties entered into a settlement agreement stipulating that the case would be dismissed without prejudice. Most of the agreement consists of promises by the State to take specific steps to improve prison conditions. The agreement contains no provision expressly discussing attorneys’ fees.
The district court approved the settlement agreement on February 17, 2000.
Cody v. Hillard,
The State appeals this award. It presents the same arguments it raised below: (1) that with respect to most of the work at issue here, the class was not a “prevailing party” under 42 U.S.C. § 1988; (2) that the award was contrary to the Prison Litigation Reform Act, which limits fees not “directly and reasonably incurred” in proving a violation, see 42 U.S.C. § 1997e(d)(1)(A) (2000); and (3) that the class waived any right to seek attorneys’ fees by entering into a settlement agreement silent about fees. We consider each argument in turn.
II.
Under 42 U.S.C. § 1988, district courts may award attorneys’ fees to the
“prevailing party” in suits brought under 42 U.S.C. § 1983 and other civil rights
statutes. A plaintiff who prevails under a statute covered by § 1988 is normally
entitled to fees. Wray v. Clarke,
The Supreme Court recently clarified the meaning of “prevailing party” in Buckhannon Bd. & Care Home, Inc. v. West Va. Dep’t of Health & Human Resources, 532 U.S. 598 (2001). That case held that a plaintiff must secure a “judicially sanctioned change in the legal relationship of the parties” to qualify as a *5 prevailing party. Id. at 605. [3] Buckhannon affirmed that a plaintiff who obtains either an enforceable judgment on the merits or a court-ordered consent decree has established the required judicially sanctioned change in legal relationship, and so is a prevailing party. Id. at 604.
Here, the class obtained a court-ordered consent decree which governed the operation of the prison for twelve years. This was clearly a “judicially sanctioned change” in the parties’ relationship that conferred prevailing party status on the class under Buckhannon. Id. at 605.
Nevertheless, that a plaintiff has once established prevailing party status does
not make all later work compensable. Compensability is subject to several
limitations. First, the award of fees should take into account the degree of a
plaintiff’s success in the case as a whole. Jenkins,
It is helpful to divide the period of time for which the class seeks fees into three
phases. See Pennsylvania v. Delaware Valley Citizens’ Council,
One of the State’s arguments against prevailing-party status applies to the entire period at issue. The district court’s 1997 order said it “vacated” the consent decree and remedial orders in the case, rather than saying it “terminated” them. Some courts have expressly distinguished these terms. In construing the automatic termination provisions of the Prison Litigation Reform Act, the First Circuit stated that “‘terminate’ means ‘to put an end to’ or ‘to end,’ whereas ‘vacate’ means ‘to annul’ or ‘to render . . . void.’ ” Inmates of Suffolk County Jail v. Rouse, 129 F.3d 649, 662 (1st Cir. 1997) (internal citation omitted) (quoting Black’s Law Dictionary 1471, 1548 (6th ed. 1990)). The court thought this distinction “may well possess practical significance” in the context of prison civil rights litigation. Id. “While terminating a consent decree strips it of future potency,” it observed, “the decree’s past puissance is preserved. . . . Vacating a consent decree, however, wipes the slate clean . . . and, indeed, cast[s] a shadow on past actions taken under the decree’s imprimatur.” Id. Citing Rouse, the State argues that because the district court said *7 “vacate,” its order wiped away the earlier existence of the consent decree, depriving the class of its prevailing-party status, which is based on the decree.
We are reluctant to consider this argument since it was not clearly articulated
until the State’s reply brief. See Akeyo v. O’Hanlon,
The State does argue, however, that the class members fail to qualify as prevailing parties with respect to the second and third phases, which begin with the *8 State’s motion to vacate the decree. The State maintains that this part of the litigation was not “inextricably intertwined” with the constitutional violations recognized in the class’s consent decree, because the settlement agreement the parties finally entered into after remand addressed issues not contained in the decree. Hence the class cannot claim fees unless it “prevailed” anew on these issues under Buckhannon’s standards. Securing the settlement agreement, the State further argues, was not enough to do this.
We reject the State’s contention with respect to the second phase, resisting the
motion to vacate. We have held before that work done to defend a remedy for a
constitutional violation is inextricably intertwined with the litigation that yielded that
remedy. See Jenkins,
Similar reasoning justifies compensating class counsel’s activity in the third phase, negotiating the settlement agreement after remand. The settlement *9 agreement’s provisions correspond to the more general provisions of the original consent decree and the supplemental remedial orders. As the district court earlier observed, the agreement
contain[s] more specific language than is found in the 1985 Consent Decree. For example, the Consent Decree provides that defendants “shall provide proper medical screening for newly admitted inmates” while the Settlement Agreement specifies diagnostic and infection control procedures consistent with Center for Disease Control guidelines. In addition, the Consent Decree states that “adequate ventilation” must be provided in the West Hall shower, while the Settlement Agreement specifies that defendants shall provide at least ten air exchanges per hour.
Cody,
III.
Because the class members are prisoners, their civil rights suit is also subject to the Prison Litigation Reform Act of 1996, Pub. L. No. 104-134, 110 Stat. 1321- 1371, or PLRA, which imposes special limitations on fee awards. It provides:
(1) In any action brought by a prisoner who is confined to any jail, prison or other correctional facility, in which attorney’s fees are *10 authorized under [42 U.S.C. § 1988], such fees shall not be awarded, except to the extent that –
(A) the fee was directly and reasonably incurred in proving an actual violation of the plaintiff’s rights protected by a statute pursuant to which a fee may be awarded under [42 U.S.C. § 1988]; and (B)(i) the amount of the fee is proportionately related to the court ordered relief for the violation; or
(ii) the fee was directly and reasonably incurred in enforcing the relief ordered for the violation.
42 U.S.C. § 1997e(d)(1) (2000). The State argues that this provision bars any award of fees for the work done by class counsel after March 13, 1997, when the district court entered its order vacating the consent decree. The State claims that because the work after this event yielded only a private settlement agreement, it was not “directly and reasonably incurred in proving an actual violation of the plaintiff’s rights,” § 1997e(d)(1)(A), and so is not compensable.
To evaluate this argument we must interpret § 1997e(d)(1), which, like other parts of the PLRA, “is not a paragon of clarity.” Rouse, 129 F.3d at 654. The language of subsection (B)(ii) envisions that fees will sometimes be available for legal work that “enforc[es] . . . relief” ordered for constitutional violations. Yet (B)(ii) is connected by an “and” to subsection (A), which authorizes only fees that are “incurred in proving” a violation. Read in isolation, subsection (A) might be thought to forbid any fees for legal work done to enforce previously established relief. One would not ordinarily say that a lawyer performing such work is “proving” a violation.
Statutes are to be interpreted as a whole, however. United States v. Talley, 16 F.3d 972, 976 (8th Cir. 1994). In particular, courts should not interpret one provision *11 “in a manner that renders other sections of the same statute inconsistent, meaningless, or superfluous.” United States v. Fiorillo, 186 F.3d 1136, 1153 (9th Cir. 1999) (quotation marks omitted). Here, subsection (A) and subsection (B)(ii) are flatly inconsistent unless (A) permits some fee awards for enforcement work, thus allowing some effect to (B)(ii).
A reasonable reading of the statute accomplishes this. Under the PLRA,
attorneys’ fees can be awarded in a prisoner civil rights case only if the prisoner
“prov[es] an actual violation of . . . rights” protected by a relevant statute. §
1997e(d)(1)(A). Once a violation has been proven, later work is compensable if it is
“directly and reasonably incurred in enforcing the relief ordered” for the violation.
§ 1997e(d)(1)(B)(ii).
[4]
Accord Webb v. Ada County,
The first phase is routine monitoring prior to the filing of the state’s motion to
vacate. This work was performed before the PLRA’s effective date of April 26, 1996,
so the statute does not apply to it. Hadix,
The second phase is the class’s litigation from April 16, 1996 to March 27, 1998, opposing the motion to vacate. The PLRA governs most of this work. *12 However, this work satisfies the PLRA’s requirements. The class members “prov[ed] . . . actual violation[s] of [their] rights” at the start of the litigation by obtaining a bench verdict in their favor and a consent decree. Cf. Siripongs v. Davis, 282 F.3d 755, 758 (9th Cir. 2002) (holding that prisoner was not eligible for fees under § 1997e(d)(1)(A) when district court issued only a temporary restraining order and never finally adjudicated the question of whether prisoner’s rights were violated). The district court’s remanded order vacating the decree did not wipe the slate clean, requiring the class to prove a new violation from scratch, as the State argues. The order ended the prospective effect of the consent decree but did not deem it void from the start. Hence it did not change the fact that the class members had proven actual violations of their rights.
Awarding fees is thus authorized to the extent that class counsel directly and
reasonably incurred them in enforcing the relief ordered for the violations. §
1997e(d)(1)(B)(ii). There is little precedent applying this requirement. One authority
states: “The implication of the provision . . . is that only services calculated to
enforce, by noncompliance or contempt motion, for example, the judgment and not
merely to monitor the defendant’s compliance with it, may be compensable under §
1988.” 2 Martin A. Schwartz & John E. Kirklin, Section 1983 Litigation § 2.8, at p.
39 (3d ed. 1997). We agree, but note that noncompliance and contempt motions are
not the only types of work compensable under § 1997e(d)(1)(B)(ii). We hold that the
class’s effort to prolong the efficacy of the remedial decree was time spent
“enforcing” that decree, and is fully compensable. Whether a plaintiff is pressing a
contempt motion or defending against a motion to vacate, in both cases the point is
to give effect to an existing remedy, suggesting that the two circumstances should be
treated alike. The Supreme Court has suggested such an equivalence. In Delaware
Valley, the Court considered a victorious plaintiff’s counsel’s participation in a
separate administrative proceeding that threatened to curtail the remedy the client had
gained in court. The Court held this administrative litigation to be compensable. It
observed that “[p]rotection of the full scope of relief afforded by the consent decree
*13
was . . . crucial to safeguard the interests asserted by [the plaintiff],” describing this
effort as “enforcement of the decree.”
We also hold that the work in the third phase of litigation, securing the settlement agreement, is compensable under the PLRA. As discussed in Part II supra, the settlement agreement sets forth specific responses to constitutional violations that were acknowledged in the trial court’s decision and the consent decree. It is reasonable to regard the work class counsel did to secure these parts of the agreement as work “incurred in enforcing” the decree. § 1997e(d)(1)(B)(ii).
IV.
The State’s final argument, applicable to all three phases of class counsel’s
work, is that the class waived its right to seek fees by entering into the private
settlement agreement. As support the State cites Young v. Powell,
Young was an employment discrimination suit and Wray a prisoner civil rights
suit, but their procedural facts were the same. In both cases the parties settled before
trial and the plaintiff obtained no consent decree. The parties entered into a
settlement agreement that purported to resolve all disputed issues and said nothing
about plaintiff’s entitlement to attorneys’ fees. Young,
Wray and Young imply that if the parties to a civil rights litigation enter into a settlement agreement before entry of an enforceable judgment or consent decree, and the agreement purports to resolve all issues in the case, then it will be presumed to exclude an award of attorneys’ fees to plaintiff unless the parties expressly provide to the contrary. This rule has added force after Buckhannon, since that case clarifies that a plaintiff is rarely, if ever, legally entitled to court-awarded fees unless he or she has gained a consent decree or judgment.
However, no presumption against fees applies here. The settlement we
interpret was reached after the class won a consent decree, clearly establishing its
status as a prevailing party. In addition, the agreement here, unlike the agreements
at issue in Wray and Young, nowhere purports to resolve all disputed issues. We
must therefore determine the parties’ intent from other features of the agreement. We
analyze settlement agreements according to general contract law principles. Gilbert
v. Monsanto Co.,
The class argues that the text of the agreement implicitly preserves its right to
seek fees. One provision permits plaintiffs to inspect the South Dakota State
Penitentiary for three years after the date of the agreement. It specifies that “[t]he
cost of any such inspection will be borne by the plaintiffs.” The class submits that
this provision only makes sense against a background assumption that it would be
compensated for the time and effort that its counsel put into the case. We agree that
this provision tends to support the class’s reading of the document. See Crowley v.
Texaco, Inc.,
This argument is at least sufficient to establish that the agreement is textually
ambiguous with respect to fees. In such a circumstance the district court could
properly consider extrinsic evidence of the parties’ prior conduct, as it did. A course
of dealing between the parties may explain or supplement an agreement’s meaning
in matters left ambiguous by its express language. See Swiden Appliance &
Furniture, Inc. v. Nat’l Bank of S.D., E. Branch, 357 N.W.2d 271, 274-75 (S.D.
1984); 2 E. Allan Farnsworth, Farnsworth on Contracts § 7.13, at pp. 307-09 (2d ed.
1998). The existence of a course of dealing is an issue of fact reviewed for clear
error. Towers Hotel Corp. v. Rimmel,
The State also points to a letter of May 14, 1997, shortly after the district court’s termination order, in which class counsel told the State that “we will delay our action on plaintiffs’ attorneys’ fees claim until the court of appeals has acted.” This terse document sheds little light on the issues. At most it suggests that the State had reservations about the fees claim. Again, this would show only that the issue of fees was in dispute, not that it was resolved against the class by the agreement.
The district court’s conclusion was consistent with the text of the agreement, and its interpretation of the extrinsic evidence was not clearly erroneous. There was no waiver of the right to seek fees.
For the foregoing reasons, we affirm the district court’s order awarding the class $106,877.74 in attorneys’ fees.
A true copy.
Attest:
CLERK, U.S. COURT OF APPEALS, EIGHTH CIRCUIT.
Notes
[1] Class representative William Cody also proceeds here individually, and is represented by the same counsel as the class.
[2] The Honorable Lawrence L. Piersol, Chief United States District Judge for the District of South Dakota.
[3] The claims before the Supreme Court in Buckhannon involved the “prevailing
party” provisions of the Fair Housing Amendments Act of 1988 and the Americans
with Disabilities Act of 1990. However, Buckhannon’s analysis of the meaning of
“prevailing party” was general. The Court stated that it was interpreting “a legal term
of art,” id. at 603, employed “in numerous statutes in addition to those at issue here,”
id. at 602 (citing 42 U.S.C. § 1988). We agree with our sister circuits that
Buckhannon applies broadly to fee-shifting statutes that employ the “prevailing
party” language. See, e.g., Richardson v. Miller,
[4] Enforcement work under subsection (B)(ii) is not governed by subsection (B)(i) (which is connected to (B)(ii) by an “or”), so the PLRA does not require courts to reduce fees for enforcing relief in proportion to the relative success of the claims the plaintiff originally asserted.
