Applegate v. United States

52 Fed. Cl. 751, 2002 U.S. Claims LEXIS 166, 2002 WL 1483200
CourtUnited States Court of Federal Claims
DecidedJune 27, 2002
DocketNo. 92-832 L
StatusPublished
Cited by43 cases

This text of 52 Fed. Cl. 751 (Applegate v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Applegate v. United States, 52 Fed. Cl. 751, 2002 U.S. Claims LEXIS 166, 2002 WL 1483200 (uscfc 2002).

Opinion

ORDER ON ATTORNEYS FEES

ALLEGRA, Judge.

Blind Plaintiff, lame Defendant, share the Friendly Laws impartial care, A Shell for him, A shell for thee, The Middle is the Lawyer’s Fee.1

Before the court are the remnants of a hotly-contested taking action stemming from the erosion of Cocoa Beach and other beach holdings south of Cape Canaveral, Florida, allegedly caused by the construction, maintenance and operation of the Port Canaveral jetties. The substantive merits of this case have been resolved via a settlement agreement. That same agreement provides the backdrop for the matter at hand — plaintiffs’ entitlement thereunder to a “reasonable” attorneys fee. Perhaps not surprisingly, given the high stakes, the parties’ views of what is “reasonable” diverge dramatically and, following extensive briefings and an evidentiary hearing, it falls upon this court to decide how much plaintiffs are owed. For the reasons that follow, the court concludes that plaintiffs shall be awarded attorneys fees in the sum of $1,803,575.

I. Background

To put matters in perspective, a little background is in order.

On December 4, 1992, numerous plaintiffs filed suit in this court seeking compensation for alleged losses due to beach erosion on their properties in Brevard County, Florida, caused allegedly by defendant’s construction, operation and maintenance of Canaveral Harbor and, in particular, its jetties. Plaintiffs retained the firm of Gray, Harris, Robinson, Kerschenbaum & Peeples (Gray Harris). Under the retainer agreement, each plaintiff agreed, as follows:

The court will first determine whether a ‘taking’ has occurred. You are obligated to us for fees and costs ONLY if a ‘taking’ is found to have occurred AND a recovery is made. In such circumstances, our fee will be one-third (1/3) of the value of the benefits obtained (40% if an appeal is involved) or the court award of fees, whichever is greater, but not both. In addition, your proportional fair share of the costs will be paid out of your recovery.

The retainer agreement further provided that “[i]f the court finds no taking has occurred we have the right to dismiss and discontinue working the case and you will owe us nothing.”

On June 14, 1993, this court (Judge Miller) dismissed plaintiffs’ complaint on the ground that it was barred by the applicable statute of limitations. Applegate v. United States, 28 Fed.Cl. 554 (1993). On appeal, the Federal Circuit determined that the complaint was not barred because the landowners’ claim did not accrue more than six years before its filing. The court of appeals reversed and remanded for further proceedings. Applegate v. United States, 25 F.3d 1579 (Fed.Cir.1994). After various forms of procedural wrangling, including one particularly contentious discovery matter,2 as well as the denial [754]*754of a motion for summary judgment, the settlement of this action began to take form following the passage of the Water Resources Development Act of 1996, Pub.L. No. 104-303, section 101(b)(7) of which authorized a shore protection project for Brevard County. The Project was to be developed in accordance with certain plans, and subject to certain conditions, recommended in a report authored by the United States Army Corps of Engineers and submitted to the Secretary of the Army on December 23,1996.

That report defined what came to be known as the “Brevard County Shore Protection Project” (the Project), which it described as including beach fill placement along two shoreline reaches. The most northern of these reaches, bounded by the south jetty of Canaveral Harbor to the north and Patrick Air Force Base to the south, involved properties that are the subject of this lawsuit. This area was to receive beach fill along 9.4 miles of shoreline, requiring approximately 2.5 million cubic yards of beach fill. According to the report, the estimated total construction cost for the north reach plan would be approximately $18,126,000, including $17,892,000 for initial construction and $234,000 for project monitoring. In addition, the report anticipated that additional renour-ishment would be provided at 6-year intervals over the 50-year life of the Project, with an associated cost of each future nourishment of $4,895,000.

Spurred by the passage of the Water Resources Development Act, and subsequent actions taken by the Corps in furtherance of the Project, the parties, on October 29, 1999, entered into a Settlement Agreement (the Agreement) and Stipulation to Entry of Final Judgment in the above-referenced matter. Pursuant to the Agreement, defendant agreed to pay plaintiffs $5 million, plus interest from October 29, 1999, and to construct the Project, as defined in the Agreement, upon the appropriation of the necessary funds by the Congress. In addition, paragraph II.l.B of the settlement agreement provided:

For purposes of this Settlement Agreement, Plaintiffs are entitled to recover reasonable attorneys’ fees and costs. An award to Plaintiffs for Plaintiffs’ attorney fees and costs ... incurred in connection with the Lawsuit as of the date of this Agreement shall be made in an amount to be agreed to by the parties within (30) days subsequent to the date of the appropriation described in paragraph II.1.A. above, or failing agreement, as determined to be reasonable by the United States Court of Federal Claims Judge Lawrence S. Margolis following the submission of documentation of said costs and fees, subject to review by appeal upon petition by either party as provided by law.

Plaintiffs further agreed to endeavor, for three years subsequent to the date of the Agreement, to obtain Congressional appropriations for the Project. Under the Agreement, the full terms of the settlement would become operative only once appropriation bills were passed that committed not less than 40 percent of the Federal funds estimated to be needed for the initial construction of the Project.3 Once the Agreement took effect, the Corps agreed to construct the Project within a defined period of time.

In 1999, $5 million was appropriated for the Project. Then, on October 27, 2000, President Clinton signed into law H.R. 4635, which contained an appropriation for an additional $6 million for the Project, bringing the total appropriations to $11 million and thereby triggering the conditions for the Agreement to take effect, including the recovery of attorneys fees. See Pub.L. No. 106-377, 114 Stat. 1441 (2000). The actual cost for Phase I of the Project is $23.1 million, of which the Federal share is $14.3 million. Phase I of Project was completed in early 2002. The cost of Phase II of the Project is projected to be $18 million, of which the Federal share is projected to be $11.2 million. The total cost of the Project is now expected to be approxi[755]*755mately $42 million, of which the Federal share is projected to be $25.5 million.

As noted above, under the Agreement, Senior Judge Margolis was assigned the responsibility of ascertaining a “reasonable” fee should the parties be unable to agree as to an amount. After no such agreement materialized, on November 13, 2000, Gray Harris filed a motion for fees and costs, seeking $1,990,189.00 in attorneys fees and $190,752.13 in costs, as well as expert fees in the amount of $1,020,405.21.

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Bluebook (online)
52 Fed. Cl. 751, 2002 U.S. Claims LEXIS 166, 2002 WL 1483200, Counsel Stack Legal Research, https://law.counselstack.com/opinion/applegate-v-united-states-uscfc-2002.