Alexander v. Chicago Park District

927 F.2d 1014, 1991 WL 36627
CourtCourt of Appeals for the Seventh Circuit
DecidedMarch 21, 1991
DocketNos. 89-3440, 90-1807
StatusPublished
Cited by3 cases

This text of 927 F.2d 1014 (Alexander v. Chicago Park District) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alexander v. Chicago Park District, 927 F.2d 1014, 1991 WL 36627 (7th Cir. 1991).

Opinion

MANION, Circuit Judge.

Attorney Rufus Cook appeals two district court decisions regarding his expenses following settlement of a civil rights action against the Chicago Park District (“Park District”). This dispute between Cook and his former clients relates to the appropriate disbursement of funds obtained by the settlement agreement. Cook sought enforcement of contingent fee agreements contrary to the disbursement ordered by the district court. The district court ordered the settlement money distributed according to the settlement agreement. When Cook failed to properly disburse the award, the district court held him in contempt and imposed a daily fine. Cook appeals the district court’s ruling on expenses and its decision to place him in contempt. We affirm both district court orders.

I.

We must recount the lengthy history of this litigation to explain the present legal entanglement which pits a civil rights attorney against the class action members he formerly represented.

In 1979 plaintiffs Silas J. Alexander, et al., represented by Rufus Cook of Cook Partners Law Offices, Ltd., filed a seven-count amended complaint charging the Chicago Park District and Park District officials with racial discrimination in the allocation of recreational resources and in various employment practices. Count II of the complaint alleged that the Park District administered a racially and culturally biased examination for the position of “physical instructor” that resulted in lost wages, benefits, job security and employment opportunities.

In 1980 Judge George N. Leighton certified several classes, including a “Count II subclass” that included black and Hispanic “physical instructors” who took the allegedly discriminatory test in 1977 and 1978 and whose employment status was thereafter adversely affected. Over the next eight years most of the plaintiffs’ claims were resolved in favor of the Park District,1 but Count II and one other count remained unresolved. In 1987 Judge Leighton retired, and Judge llana D. Rov-ner was assigned to the case. In April of 1988 the parties entered into a proposed [1016]*1016settlement agreement on the remaining counts, which provided injunctive relief to each subclass and an award of $500,000 to the Count II subclass. In May of 1988 the parties jointly moved the district court for approval of the proposed agreement.

Paragraphs 1, 2(a) and (5) of the agreement described the settlement’s key terms, leaving final decisions on fee disbursement squarely in the hands of the district court:

1. Settlement Fund. Within five days after final judicial approval (as hereinafter defined) of this Settlement Agreement, the Park District shall pay into a settlement fund to be controlled and administered by counsel for the plaintiffs, as trustees for the class, the sum of five hundred thousand dollars ($500,000.00). This settlement fund, plus any interest that accrues on it after its creation, shall be used as hereinafter described for the payment of settlement claims by members of the Count II class and for the payment of attorney’s fees and costs to counsel for plaintiffs. The transfer of this sum by the Park District into such fund shall fully and forever discharge it and all other defendants from all monetary obligations they have under this Settlement Agreement or under this lawsuit.
2. Claims against the Settlement Fund.
(a) There shall be initially paid from the Settlement Fund to plaintiffs’ counsel such amounts as the Court shall hereinafter award, pursuant to paragraph 5 below, in attorney’s fees and costs.
% ¡¡C * ¡j! H*
5. Fees and Costs. Upon execution of this Settlement Agreement, counsel for plaintiffs shall file a petition to be paid reasonable fees and costs out of the Settlement Fund. The Court shall dispose of this petition as it deems proper. The defendants shall not participate in that disposition. The defendants shall have no liability whatsoever for any fees and costs incurred, in the past or hereinafter, by plaintiffs’ counsel in the prosecution of any part of this lawsuit or in the administration of the Settlement Agreement.

(Emphasis added).

A proposed notice to class members was also presented for approval to the district court. Under a section titled “Cash Payments,” the proposed notice stated that from the fund amount of $500,000, “plaintiffs’ counsel will be paid such attorney’s fees and costs as the Court directs. (See paragraph 7 below.) After payment of those fees and costs, the amount remaining in the Fund will be paid to eligible per-sons_” Paragraph 7, entitled “Attorneys’ Fees and Costs,” stated that “[c]oun-sel for plaintiffs has filed a petition to be paid reasonable fees and costs out of the Settlement Fund. Counsel for plaintiffs have petitioned the Court for fees and costs totalling $350,000. The Court will determine what amount it will award to counsel.”

Cook also sent a personal letter to class members urging them to accept the settlement agreement. The eight-page letter recounted the history of the litigation, and under a section entitled “Partial Reimbursement of Costs and Expenses Advanced by Our Firm,” described Cook Partners’ monetary request:

[Ujnder the terms of the proposed settlement agreement, our law firm is to petition the court in order to be reimbursed a portion of costs and expenses our firm has advanced in pursuing this case, and for attorneys’ fees. Unfortunately, notwithstanding the fact that our firm has pursued the litigation on behalf of each of you and the class as a whole for nine years now without any class member paying our firm one cent, we are not seeking so much as a dollar in attorneys’ fees. We will seek only to be reimbursed approximately $350,000, representing a small portion of the expenses and costs we have incurred.

Consistent with the proposed agreement, Cook filed a petition for partial reimbursement of expenses. The petition listed total expenses of $776,773.01 incurred in prosecuting the Count II and Count IV claims, including: about $413,000 for “project [1017]*1017management, computer operations and computer printing costs by the Law Data Centre”; approximately $111,000 for “personnel costs advanced to programmers at the ... Law Data Centre”; and approximately $100,000 for “personnel costs advanced to the Chicago Project Administrator and support personnel of Policy Research Consultants”. On June 10, 1988, the district court conducted a hearing on Cook Partners’ expense petition. The court was concerned that several items in the petition lacked sufficient “descriptive and explanatory detail” to support an award. In particular, Judge Rovner was curious about the huge payments to Policy Research Consultants and the Law Data Centre. After Cook explained that Policy Research Consultants was a Washington, D.C. consulting organization hired to do statistical research that assisted in devising the case’s statistical framework, the following colloquy occurred:

The Court: Now, who is Junerous Cook?
Mr. Cook: Junerous Cook is my former wife from whom I have been divorced for some 20 years now. She is also a statistician and a research specialist. And she was with Policy Research Consultants.

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Related

Warnell v. Ford Motor Co.
205 F. Supp. 2d 956 (N.D. Illinois, 2002)
In the Matter of Rufus Cook, No. D-217
49 F.3d 263 (Seventh Circuit, 1995)
Alexander v. Chicago Park District
927 F.2d 1014 (Seventh Circuit, 1991)

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Bluebook (online)
927 F.2d 1014, 1991 WL 36627, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alexander-v-chicago-park-district-ca7-1991.