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Sylvester J. VAUGHNS, Jr., by his father and next friend, Sylvester J. VAUGHNS; Toika E. Wheatfall, by her father and next friend, Walter E. Wheatfall; James R.L. Brooks, Jr., by his father and next friend, James R.L. Brooks; Reginald Wiggs, by his father and next friend, Hosca D. Wiggs; Reginald A. Jackson, Jr., by his father and next friend, Reginald A. Jackson; Denise A. Ligón, by her father and next friend, Dennis J. Ligón, Jr.; Carolyn Gilmore, by her father and next friend, Sterling K. Gilmore; John A. Williams, by his father and next friend, John J. Williams, individually and on behalf of all other persons similarly situated; Jesse Alexander Eller; Martha Street Eller; Brendan Edward Lynch; Marjorie Elaine Lynch; Kenneth Phillip Whittemore; Bette Ann Whittemore; Arthur Emanuel Dinerman; Janet Avin Dinerman; Morris Edward Sampson; Thelma Olinda Sampson; William Raymond Leer; Margaret Street Leer; Leo Paul Chabot; Wanda Maxine Chabot; John Eugene Spaulding; Bernadine Lane Spaulding; National Association for the Advancement of Colored People, Prince Georges County Chapter, an Unincorporated Association; Mr. and Mrs. Thomas Newman; Robert and Delores J. Williams; Mr. and Mrs. Glenn J. Sterling; and John and Florence Rosser, Appellees, v. BOARD OF EDUCATION OF PRINCE GEORGES COUNTY; A. James Golato, President of the Board of Education of Prince Georges County; and Chester E. Whiting; Joanne T. Goldsmith; Dr. Rodney W. Johnson; Sue V. Mills; Dr. J. Righton Robertson; Jesse J. Warr, Jr.; Phyllis E. Williams; Ruth S. Wolf; Members of the Board of Education of Prince Georges County and Dr. Carl W. Hassel, Superintendent of Schools of Prince Georges County; Thomas John Grenchik; Josephine Snarich Grenchik; Thomas Joseph Grenchik; Martin James Grenchik; Robert Donkis; Shirley Grace Donkis; Robert Donkis, II; Michael Robin Donkis; Raymond Walter Jenkins, Sr.; Geneva Stone Jenkins; Raymond Walter Jenkins, Jr.; Lorelie Lee Crabill; Heidi Crechen Crabill; Gwendalyn Cravens Pierce; and Roderick Cravens Pierce; The Honorable Marvin Mandel, Governor of the State of Maryland; The Honorable Francis B. Burch, Attorney General, State of Maryland; Arthur A. Marshall, Jr., States Attorney, Prince Georges County; State Department of Education, State of Maryland; J. Jerome Frampton, Jr., School Board President, State Department of Education and James A. Sensenbaugh, Superintendent of Schools, State Department of Education; Prince Georges County, Maryland; Maryland State Board of Education and State of Maryland; Jo Ann T. Bell, Chairman, and Edward J. Feeney, Superintendent, Board of Education of Prince Georges County, Appellants

United States Court of Appeals for the Fourth Circuit1985-08-22No. No. 85-1097
770 F.2d 1244

Summary

Holding. The court affirmed the district judge's award of attorney's fees including a 7.5% contingency enhancement, finding no abuse of discretion where the judge carefully reduced both billable hours and hourly rates before adding the enhancement based on exceptional circumstances including the intensive commitment of resources over a brief period despite jurisdictional uncertainty.

The Board of Education of Prince George's County appealed a district court award of approximately $372,942 in attorney's fees and costs, challenging the inclusion of a 7.5% contingency fee enhancement. The district judge had carefully reviewed and substantially reduced the plaintiffs' fee application through multiple steps: first accepting a 27% reduction in billable hours, then making an additional reduction to allow only certain hours, and then individually adjusting downward the hourly rates for most of the fifteen lawyers involved. After these reductions, the judge added back a modest contingency enhancement, finding exceptional circumstances justified this adjustment.

The appellate court found no abuse of discretion in the district judge's decision. The court emphasized that while contingency enhancements should generally be reserved for cases with exceptional outcomes, determining whether such exceptional circumstances exist falls within the trial judge's discretionary authority. Here, the exceptional circumstances included the massive commitment of resources—over 6,000 billable hours in approximately ten months—undertaken despite substantial legal uncertainty regarding the court's jurisdiction that threatened to undermine all relief sought by the plaintiffs.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Propriety of contingency fee enhancements in attorney's fee awards
  • Trial court discretion in determining exceptional circumstances justifying fee adjustments
  • Reduction of claimed billable hours and hourly rates in lodestar calculations

Procedural posture

The Board of Education appealed from a district court award of attorney's fees and costs to prevailing plaintiffs' counsel in an educational rights case.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

MURNAGHAN, Circuit Judge:

The Board of Education of Prince George’s County appeals from an award of $372,942.00 in attorney’s fees and costs to counsel for plaintiffs. It complains that there has been an abuse of discretion by the district judge insofar as the fee included an enhancement amount to allow for the contingency nature of representation by counsel for the plaintiffs. Our review of the record satisfies us that there was no abuse of discretion.

The plaintiffs’ original request covered 6,053.3 hours at hourly rates ranging from $70.00 to $175.00 an hour for the several lawyers, $40.00 to $60.00 per hour for law clerks, and $35.00 to $50.00 per hour for paralegals. The average per hour rate overall worked out to $104.20 per hour. Subsequently, however, the application for an award of fees was amended by the plaintiffs to reflect elimination of all time devoted solely to unsuccessful unrelated claims. The amended request incorporated an across-the-board reduction of 27% in the number of hours for which compensation was claimed, bringing them down to approximately 4,418.9 hours. The district court thereupon proceeded to make a further reduction in billable time, allowing 3,556.58 hours for lawyers and 369.45 hours for the paralegals. All in all, the reduction in hours amounted to approximately 37% overall.

Having determined what he considered an appropriate number of hours, the district judge thereupon proceeded to apply his scalpel to hourly rates for fifteen lawyers who participated on the plaintiffs’ behalf. In four instances, he concluded that the requested hourly rate was appropriate. For all the others, he made reductions ranging from $10.00 an hour to $45.00 an hour in the rate requested depending upon the individual attorney’s expertise in the field of civil rights litigation.

Having thus carefully considered, on an individualized basis, the appropriateness of a lodestar fee determined by simple application of a major law firm’s standard hourly fee schedule, regularly employed in setting fees for clients on a customary basis, and having achieved substantial reduction, the district judge adjusted upward the fee which had been substantially reduced so that it included an enhancement of 7V2% describable as a contingency fee allowance. The fee awarded was $355,550.00 (plus $17,392.00 in expenses).

While a contingency fee is to be reserved for the case producing exceptional success, see Blum v. Stenson, 465 U.S. 886, 104 S.Ct. 1541, 1548, 79 L.Ed.2d 891 (1984); Murray v. Weinberger, 741 F.2d 1423,1428 (D.C.Cir.1984), the determination of when justifying exceptional circumstances exist is likewise a matter inevitably committed to the trial judge’s discretion.

We are simply not prepared to upset the rationale behind the district judge’s conclusion that there were exceptional circumstances:

When the suit was instituted, repetitive emphasis placed by counsel for defendants upon the impropriety of resumption of jurisdiction by this court, which threatened any and all relief, had to be coped with by plaintiffs’ counsel and addressed by this court. In the face of such uncertain prospects, plaintiffs’ counsel committed the substantial resources of their firm in a massive effort. In preparing this opinion, this court has had occasion to review numerous other cases involving attorney’s fee issues. In none of those cases has this court noted such an intensive effort by the prevailing party over such a short period of time. In the within litigation, plaintiffs’ counsel committed over 6,000 hours of time over a period of approximately ten months. The commitment of hundreds of thousands of dollars of time, not over the course of many years, as is frequently the case, but over the course of less than a year, constitutes, in this court’s opinion, an “exceptional” circumstance in the context of the risk involved. Vaughns v. Board of Education of Prince George’s County, 598 F.Supp. 1262, 1286 (D.Md.1984).

AFFIRMED.