De Souza v. Secretary of Health and Human Services

CourtUnited States Court of Federal Claims
DecidedJanuary 2, 2019
Docket17-100
StatusPublished

This text of De Souza v. Secretary of Health and Human Services (De Souza v. Secretary of Health and Human Services) 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
De Souza v. Secretary of Health and Human Services, (uscfc 2019).

Opinion

In the United States Court of Federal Claims No. 17-100V (Filed Under Seal: December 14, 2018 | Reissued: January 2, 2019)

) Keywords: Vaccine Act; Attorneys’ Fees; EUGENIO PAULO DE SOUZA, ) Reasonable Attorneys’ Fees; Costs; ) Lodestar; Forum Fee; Abuse of Petitioner, ) Discretion; Davis County Exception. ) v. ) ) SECRETARY OF HEALTH AND HUMAN ) SERVICES, ) ) Respondent. ) )

Carol L. Gallagher, Carol L. Gallagher, Esquire LLC, Linwood, NJ, for Petitioner.

Voris E. Johnson, Jr., Senior Trial Attorney, Torts Branch, Civil Division, U.S. Department of Justice, Washington, DC, with whom were Chad A. Readler, Acting Assistant Attorney General, C. Salvatore D’Alessio, Acting Director, and Catharine E. Reeves., Deputy Director, for Defendant.

OPINION AND ORDER

KAPLAN, J.

Petitioner Eugenio Paulo De Souza (“Mr. De Souza” or “Petitioner”) seeks review of an attorneys’ fee award issued by Special Master Christian J. Moran which arose out of a claim that Mr. De Souza filed under the National Childhood Vaccine Injury Act of 1986, 42 U.S.C. §§ 300aa-1 to -34 (“the Vaccine Act”). In his claim, Mr. De Souza alleged that he developed Guillain-Barré syndrome as a result of an influenza vaccination. The case was ultimately settled on the merits, after which the special master issued an award of attorneys’ fees and costs.

On July 27, 2018, Petitioner filed a motion for review of the special master’s decision regarding attorneys’ fees and costs. In his motion, Petitioner challenges (1) the special master’s

 This opinion was previously issued under seal on December 14, 2018. The parties were given the opportunity to propose redactions on or before December 28, 2018. Having received no proposed redactions from either party, the Court resissues its decision without redactions. failure to award fees calculated on the basis of forum rates; and (2) the special master’s decision to reduce by 35% the number of hours claimed for the services of his attorney, Carol Gallagher.

For the reasons set forth below, the Court finds that the special master erred in failing to use the forum rate claimed for Ms. Gallagher’s services but that he acted within his considerable discretion in reducing her claimed hours by 35%. Petitioner’s motion for review is, accordingly, GRANTED-IN-PART and DENIED-IN-PART.

BACKGROUND

I. Procedural Background

Mr. De Souza filed his petition for compensation with the Secretary of Health and Human Services on January 23, 2017. ECF No. 1. The case was initially assigned to Chief Special Master Nora B. Dorsey. ECF No. 4.

On July 21, 2017, the government filed a response to Mr. De Souza’s petition pursuant to Vaccine Rule 4(c), Appendix B of the Rules of the Court of Federal Claims (“RCFC”). ECF No. 16. It recommended that the petition be denied. Id. at 9.

On August 2, 2017, the case was reassigned to Special Master Moran. ECF No. 18. The parties then engaged in settlement discussions throughout the fall of 2017. See ECF Nos. 25, 32. On December 5, 2017, they informed the special master that they had reached a tentative settlement agreement. ECF No. 32. The parties then filed a stipulation for award on January 24, 2018. ECF No. 35. Per that stipulation, the government denied that the influenza vaccine caused Mr. De Souza’s injuries, but nonetheless agreed to pay a lump sum of $70,000 to Mr. De Souza. Id. at 2. Special Master Moran adopted the stipulation in a January 26, 2018 decision. ECF. No. 36.

II. The Special Master’s Award of Attorneys’ Fees and Costs

On March 15, 2018, Mr. De Souza filed a motion for an award of attorneys’ fees in the amount of $32,993.50. ECF No. 41 & Ex. A, ECF No. 41-1. He also requested reimbursement of $135.37 in costs he incurred and $514.55 in costs borne by his attorney. Id. Ex. B & C, ECF Nos. 41-2 & 41-3.

On July 3, 2018, Special Master Moran issued a decision on the motion. Unpublished Decision Awarding Att’ys’ Fees & Costs (“SM Decision”), ECF No. 43. In his decision, the special master awarded costs in full but significantly reduced the amount of attorneys’ fees below that requested by Petitioner. See generally id.

Special Master Moran began his opinion by observing that in Vaccine Act cases, the special master must apply the “lodestar approach,” under which he “multiplies the number of hours reasonably expended on the litigation by a reasonable hourly rate.” Id. at 2 (quoting Avera v. Sec’y of Health & Human Servs., 515 F.3d 1343, 1348 (Fed. Cir. 2008)). He noted that under applicable precedent, special masters are generally required to use the forum (i.e., District of Columbia) rate in the lodestar calculation. Id. (citing Avera, 515 F.3d at 1349). He explained, however, that there is “an exception (the so-called Davis County exception) to this general rule

2 when the bulk of the work is done outside of the District of Columbia and the attorneys’ rates are substantially lower.” Id. at 3 (citing Davis Cty. Solid Waste Mgmt. & Energy Recovery Special Serv. Dist. v. EPA, 169 F.3d 755, 758 (D.C. Cir. 1999) (forum rate does not apply “where the bulk of the work is done outside the jurisdiction of the court and where there is a very significant difference in compensation favoring D.C.”)). Special Master Moran then observed that in this case Ms. Gallagher’s work was done outside of the District of Columbia. Id.

Mr. De Souza had requested that the special master apply the forum rates set forth in the Office of Special Masters Attorneys’ Forum Hourly Rate Fee Schedules (“OSM Fee Schedule”).1 The special master, however, did not do so. Instead, he noted that the hourly rates claimed ($350, $363, and $400 for work in 2016, 2017, and 2018 respectively) “exceed[ed] what some special masters have awarded” for Ms. Gallagher’s services in other cases. Id. at 3. In his view, it was appropriate to treat Gonzalez v. Secretary of Health and Human Services, No. 14- 1072V, 2015 WL 10435023 (Fed. Cl. Spec. Mstr. Nov. 10, 2015) as “[t]he foundational decision for Ms. Gallagher’s hourly rate.” SM Decision at 3.

In Gonzalez, the parties had agreed that “the generally prevailing local billing rate [for the Linwood, New Jersey market in which Ms. Gallagher practices] is considerably lower than the forum rate” and that, because the work in the case had been performed outside of the forum, the local rate should be used. 2015 WL 10435023, at *9. The special master in Gonzalez found $315 per hour a reasonable local rate for Ms. Gallagher’s services for work performed in 2015. Id. at *12. In Special Master Moran’s view, the Gonzalez decision was more persuasive than others in which a higher rate was awarded for Ms. Gallagher’s services because the other decisions “lack[ed] the detailed analysis found in Gonzalez.” Id. at 3 n.2.

Special Master Moran determined Ms. Gallagher’s 2016–2018 rates by starting with Gonzalez’s $315 per hour rate as a baseline and then adjusting upwards according to the PPI-OL calculation. Id. at 3–4 (finding $318 a reasonable hourly rate for 2016, $327.30 a reasonable hourly rate for 2017, and $338.33 a reasonable hourly rate for 2018).2

In determining a reasonable number of hours worked, the second factor in the lodestar formula, Special Master Moran found that “Ms. Gallagher’s timesheets present little information that demonstrates the reasonableness of her activities.” Id. at 5.

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