Anthony Caros v. Department of Homeland Security

2015 MSPB 16
CourtMerit Systems Protection Board
DecidedFebruary 23, 2015
StatusPublished

This text of 2015 MSPB 16 (Anthony Caros v. Department of Homeland Security) is published on Counsel Stack Legal Research, covering Merit Systems Protection Board primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anthony Caros v. Department of Homeland Security, 2015 MSPB 16 (Miss. 2015).

Opinion

UNITED STATES OF AMERICA MERIT SYSTEMS PROTECTION BOARD 2015 MSPB 16

Docket No. PH-0752-12-0402-A-2

Anthony Caros, Appellant, v. Department of Homeland Security, Agency. February 23, 2015

Rosemary Dettling, Esquire, Washington, D.C., for the appellant.

Jeane Yoo, Esquire, and Laurel L. Poe, Esquire, Baltimore, Maryland, for the agency.

BEFORE

Susan Tsui Grundmann, Chairman Anne M. Wagner, Vice Chairman Mark A. Robbins, Member

OPINION AND ORDER

¶1 The appellant has filed a petition for review and the agency has filed a cross petition for review of the addendum initial decision, which awarded attorney fees in the amount of $67,765.88. We DENY the petition for review and the cross petition for review and AFFIRM the addendum initial decision.

BACKGROUND

¶2 The agency removed the appellant from service. See Caros v. Department of Homeland Security, MSPB Docket No. PH-0752-12-0402-I-2, Initial Decision (Jan. 18, 2013). However, after holding a hearing, the administrative judge 2

reversed the removal and ordered the appellant’s reinstatement. Id. at 2, 21. The agency filed a petition for review of that decision. See Caros v. Department of Homeland Security, MSPB Docket No. PH-0752-12-0402-I-2, Final Order (Feb. 25, 2014). We affirmed the initial decision to the extent that it found that the agency failed to meet its burden of proving the charges, and reversed it to the extent that it found that the appellant proved his claim of retaliation for his prior equal employment opportunity (EEO) activities. 1 Id. at 1-2. ¶3 While the agency’s petition for review in the underlying appeal was pending, the appellant filed a petition for attorney fees. See Caros v. Department of Homeland Security, MSPB Docket No. PH-0752-12-0402-A-1 (A-1), Attorney Fee File (AFF), Tab 1. The administrative judge dismissed the petition as premature. A-1, AFF, Tab 4. At a more appropriate time, the appellant filed a second petition for attorney fees. See Caros v. Department of Homeland Security, MSPB Docket No. PH-0752-12-0402-A-2 (A-2), AFF, Tab 1. ¶4 In his fee petition, the appellant sought compensation for 268 hours at a rate of $510 per hour, as well as $1,385.53 in costs, for a total of $138,380.03. Id. at 2, 6, 8. The administrative judge approved an award in the amount of $67,765.88. A-2, AFF, Tab 6, Addendum Initial Decision (AID) at 1. He did so after finding that $250, rather than $510, was the reasonable billing rate, and after finding that $765.88 for the cost of a deposition transcript was not recoverable. 2 See AID at 9-11. The appellant has filed a petition for review. A-2, Petition for Review (PFR) File, Tab 1. The agency has filed a response and cross petition for review. PFR File, Tab 3. The appellant has not filed a response.

1 Although not relevant to the instant fee petition, the appellant has also filed a petition for enforcement regarding the appropriate back pay award, which remains pending. See Caros v. Department of Homeland Security, MSPB Docket No. PH-0752-12-0402-C-1. 2 Neither party has challenged the administrative judge’s award of costs, and therefore we do not revisit it here. 3

ANALYSIS

¶5 To establish entitlement to an award of attorney fees under 5 U.S.C. § 7701(g)(1), an appellant must show that: (1) he was the prevailing party; (2) he incurred attorney fees pursuant to an existing attorney-client relationship; (3) an award of fees is warranted in the interest of justice; and (4) the amount of fees claimed is reasonable. Driscoll v. U.S. Postal Service, 116 M.S.P.R. 662, ¶ 7 (2011). At no point has the agency disputed the first three elements. See A-2, AFF, Tab 4; PFR File, Tab 3. Accordingly, we limit our discussion to the element in dispute—the reasonableness of the amount of fees claimed.

The appellant failed to demonstrate any error in the administrative judge’s finding that $250 was a reasonable hourly rate. ¶6 The appellant argues that the administrative judge erred in awarding fees at an hourly rate of $250, rather than the $510 requested. PFR File, Tab 1 at 7-11. The agency argues that the administrative judge’s use of $250 as the hourly rate was appropriate. PFR File, Tab 3 at 4, 9-10. We find no reason to disturb the initial decision on this point. 3 ¶7 As stated above, the appellant must show that the attorney fees claimed are reasonable. See Driscoll, 116 M.S.P.R. 662, ¶¶ 7, 10. Where it is agreed that a specific fee be paid to an attorney for legal services rendered on behalf of an

3 The appellant argues that the administrative judge erred in failing to adjust the hourly rate for inflation. PFR File, Tab 1 at 10-11. However, the appellant d id not argue below that he was entitled to an adjusted award, and the administrative judge therefore did not address this issue. A-2, AFF, Tab 1; see AID; see also Banks v. Department of the Air Force, 4 M.S.P.R. 268, 271 (1980) (the Board generally will not consider an argument raised for the first time in a petition for review absent a showing that it is based on new and material evidence not previously available despite the party’s due diligence). In any case, the Board has held that attorney fees awarded under 5 U.S.C. § 7701(g)(1), as is the case here, may not be enhanced, either by applying an attorney’s current rate retroactively or by granting interest on fees, to account for delay in payment. Krape v. Department of Defense, 97 M.S.P.R. 430, ¶ 10 (2004). Therefore, we do not find such an adjustment appropriate. 4

appellant in a Board case, the Board presumes that the amount agreed upon represents the maximum reasonable fee which may be awarded. Krape, 97 M.S.P.R. 430, ¶ 12. This presumption is rebuttable by convincing evidence that the agreed-upon rate was not based on marketplace considerations and that the attorney’s rate for similar work was customarily higher, or by showing that she had agreed to such a rate only because of the employee’s reduced ability to pay and that her customary fee for similar work was significantly higher. Id. ¶8 The fee agreement between the appellant and his attorney lists two options for structuring legal fees—an hourly rate or a flat fee. A-1, AFF, Tab 1 at 31-32. 4 Next to the hourly rate option, “N/A” is inserted, and next to the flat fee option, the appellant’s name is inserted. Id. Therefore, it is evident that the appellant and his attorney agreed to the flat fee option for payment. Nevertheless, both options are relevant. ¶9 The hourly rate option, which was not selected, included a minimum retainer fee of $3,500, and an hourly billing rate of $250. Id. It would have required the appellant to seek lodestar fees from the agency if he prevailed, without any mention of the Laffey Matrix. 5 Id. at 32. The lodestar is the scheme

4 The retainer agreement is available in both the initial request for attorney fees, wh ich was dismissed as premature, and the second request, which is currently before us. A-1, AFF, Tab 1 at 31-35; A-2, AFF, Tab 1 at 30-34. The copy contained in the second request is distorted where it discusses requesting the agency to pay fees at the current Laffey rate. A-2, AFF, Tab 1 at 31. Therefore, we cite to the copy contained in the first request. A-1, AFF, Tab 1 at 32. 5 The Laffey Matrix is a schedule of hourly rates allowed by the U.S. District Court for the District of Columbia in Laffey v. Northwest Airlines, Inc., 572 F. Supp. 354, 371, 374-75 (D.D.C. 1983), reversed in relevant part, 746 F.2d 4, 24-25 (D.C. Cir.

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2015 MSPB 16, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anthony-caros-v-department-of-homeland-security-mspb-2015.