Demarco Nichols v. Illinois Department of Transp

Court of Appeals for the Seventh Circuit·Decided July 6, 2021·No. 19-1456·Published

Opinion

In the

United States Court of Appeals For the Seventh Circuit

No. 19-1456 DEMARCO NICHOLS, Plaintiff-Appellant,

and

LONGO & ASSOCIATES, LIMITED, et al., Appellants,

v.

ILLINOIS DEPARTMENT OF TRANSPORTATION, et al., Defendants-Appellees.

Appeal from the United States District Court for the Northern District of Illinois, Eastern Division. No. 1:12-cv-01789 — Thomas M. Durkin, Judge.

ARGUED JANUARY 22, 2021 — DECIDED JULY 7, 2021

Before RIPPLE, KANNE, and SCUDDER, Circuit Judges.

2 No. 19-1456

RIPPLE, Circuit Judge. Attorney Joseph Longo represented Demarco Nichols, the plaintiff in this employment discrimination action against the Illinois Department of Transportation (“IDOT”). When his client prevailed, Mr. Longo petitioned the district court for attorneys’ fees and costs under the fee-shifting provision of Title VII of the Civil Rights Act of 1964. See 42 U.S.C. § 2000e-5(k). The district court concluded that Mr. Longo, in his fee petition, inflated his hourly rate and grossly overstated the hours that an attorney reasonably could have expended litigating this action. In the end, the district court awarded Mr. Longo $774,584.50 in fees and $4,061.02 in costs. Mr. Longo now appeals. He contends that the district court applied an erroneous legal framework and abused its discretion when it reduced his rate and hours. Because the district court acted well within its discretion, we affirm its judgment.

I

BACKGROUND

The underlying discrimination case was tried to a jury and resulted in a judgment of $1.5 million in damages (later reduced to the statutory cap of $300,000) and $952,156 in equitable relief. Neither the jury’s verdict nor the equitable relief that Mr. Nichols received is at issue in this appeal. Instead , our task today is to resolve a dispute over the district court’s application of Title VII’s fee-shifting provision, 42 U.S.C. § 2000e-5(k).

Mr. Longo petitioned for $1,709,345 in attorneys’ fees and $4,460.47 in costs. He submitted that his hourly rate was $550 and that he had worked 3,107.9 hours on Mr. Nichols’s case. Mr. Longo also requested a 15% upward adjustment

No. 19-1456 3

based on (1) his assertion that Mr. Nichols’s case was “risky”1; (2) the successful outcome he achieved; and (3) the ability of a large fee award to act as a deterrent against future misconduct. For its part, IDOT vigorously contested Mr. Longo’s fee calculation. In IDOT’s view, an appropriate fee award was $286,931.02, which included a downward adjustment based on IDOT’s contention that Mr. Longo’s litigation conduct had inflated inappropriately his fee request.

The district court combed through Mr. Longo’s voluminous fee petition and ultimately awarded $774,584.50 in fees and $4,061.02 in costs. In its opinion, the district court explained why Mr. Longo’s requested rate and hours were both unreasonable. The district court first calculated the lodestar, which is the reasonable hourly rate multiplied by the reasonable hours worked. Relying on other then-recent fee awards for Mr. Longo, the court set the reasonable hourly rate at $360 for attorney work and $125 for paralegal work. Scrutinizing the hours submitted, the district court reduced Mr. Longo’s request by 962.1 hours. The court explained that the reduction included 109.2 hours that Mr. Longo had billed for trips from his office to the downtown Chicago courthouse; 18.5 hours for paralegal work billed at an attorney’s rate; a further 10% reduction (298.0 hours) for excessive billing for clerical work; and another 20% reduction (536.4 hours) for general excessive billing.

In the end, the court permitted Mr. Longo 2,145.8 hours at an attorney’s rate and 18.5 hours at a paralegal’s rate, which set the lodestar at $774,584.50. The district court then

1 R.290 at 18.

4 No. 19-1456

turned to the parties’ requests for adjustments and concluded that neither an upward nor downward adjustment was warranted. Lastly, the district court denied Mr. Longo’s request for fees for litigating the fee petition, noting that Mr. Longo’s lack of billing judgment and his overly voluminous fee petition made such an award inappropriate. As a result, the court awarded the lodestar amount to Mr. Longo, who now appeals that fee award.

II

DISCUSSION

Mr. Longo’s appellate brief touches on virtually every aspect of the district court’s decision to award him fees below the amount he requested.2 He claims that the district court committed both legal error and abused its discretion. All of Mr. Longo’s contentions in his appellate brief are meritless . Some are simply frivolous. Although we do not impose sanctions today for Mr. Longo’s apparent failure to heed past opinions critical of frivolous fee litigation conduct, we are unlikely to countenance such behavior in the future.3

2 The district court exercised its jurisdiction under 28 U.S.C. § 1331. We exercise ours under 28 U.S.C. § 1291. See Palmer v. City of Chicago, 806 F.2d 1316, 1318 (7th Cir. 1986) (“Attorney’s fees usually are awarded after the final judgment; since there is then nothing else pending in the district court, the fee award is a final order in an uncontroversial sense, appealable under 28 U.S.C. § 1291.”). Mr. Longo and his law firm are appropriate appellants for purposes of this appeal, which involves only the attorneys’ fees and costs award. See Mathur v. Bd. of Trs. of S. Ill. Univ., 317 F.3d 738, 741–42 (7th Cir. 2003). 3 Our warning today should come as no surprise to Mr. Longo, who has had his fee litigation conduct repeatedly criticized by district courts in (continued … )

No. 19-1456 5

With that, we will address Mr. Longo’s contention that the district court committed legal error, then turn to his assertion that the court abused its discretion.

A.

Mr. Longo submits that the district court “utilize[d] the wrong methodology/legal analysis” when it set his fee award.4 We review de novo whether the district court applied the correct legal framework for deciding a fee award. See Anderson v. AB Painting & Sandblasting Inc., 578 F.3d 542, 544 (7th Cir. 2009).

Mr. Longo’s argument is plainly frivolous. The analytical framework relevant here is well established and straightforward . “The award’s size is a function of three numbers: the hours worked, the hourly rate, and any overall adjustments up or down.” Sommerfield v. City of Chicago, 863 F.3d 645, 650 (7th Cir. 2017). A court starts by determining the “lodestar,”

( … continued) our circuit. See, e.g., Smith v. Rosebud Farm, Inc., No. 11-cv-9147, 2018 WL 4030591, at *4 (N.D. Ill. Aug. 23, 2018) (“Even a cursory review of the docket reveals that [Mr. Longo’s] submissions regularly cited incorrect and/or irrelevant authorities and often were of questionable necessity or utility.”); Sommerfield v. City of Chicago, 2012 WL 5354987, at *3 (N.D. Ill. Oct. 29, 2012), report and recommendation adopted, 2013 WL 139502 (N.D. Ill. Jan. 10, 2013), aff’d, 863 F.3d 645 (7th Cir. 2017) (“[Mr. Longo’s] willful misconduct time and time again results in needless and unreasonable expenditures of time for which he invariably seeks compensation through inflated fee awards and that courts have repeatedly condemned his behavior in published opinions that could not be more critical of a lawyer.”). 4 Appellant’s Br. 1.

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which is the attorney’s reasonable hourly rate multiplied by the hours the attorney reasonably expended on the litigation. Id. (quoting Johnson v. GDF, Inc., 668 F.3d 927, 929 (7th Cir. 2012)). Once the court calculates the lodestar, it then may determine whether an adjustment is warranted under the case-specific circumstances. Id. If a plaintiff requests fees for the fee award litigation, the court will also determine that after calculating the lodestar. See Batt v. Micro Warehouse, Inc., 241 F.3d 891, 894 (7th Cir. 2001); see also, e.g., Pennsylvania v. Del. Valley Citizens’ Council for Clean Air, 478 U.S. 546, 565–66 (1986).

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