Edward D. Torres v. Metropolitan Life Insurance Company

189 F.3d 331, 1999 U.S. App. LEXIS 13869, 80 Fair Empl. Prac. Cas. (BNA) 104, 1999 WL 635646
CourtCourt of Appeals for the Third Circuit
DecidedJune 24, 1999
Docket97-5709
StatusPublished
Cited by15 cases

This text of 189 F.3d 331 (Edward D. Torres v. Metropolitan Life Insurance Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edward D. Torres v. Metropolitan Life Insurance Company, 189 F.3d 331, 1999 U.S. App. LEXIS 13869, 80 Fair Empl. Prac. Cas. (BNA) 104, 1999 WL 635646 (3d Cir. 1999).

Opinions

OPINION OF THE COURT

SCIRICA, Circuit Judge.

This is a motion for an award of attorney’s fees and expenses arising from the settlement of an employment discrimination lawsuit by Edward D. Torres against Metropolitan Life Insurance Company (“MetLife”). For the reasons that follow, we will grant Torres’s motion but refer the matter to a Magistrate Judge for determination of the appropriate amount of fees.

I.

In March 1996, Edward Torres commenced a pro se employment discrimination suit against MetLife under Title VII of the CM Rights Act of 1964, 42 U.S.C.A. § 2000e to 2000e-17 (West Supp.1999). Torres alleged that MetLife unlawfully discriminated against him because he is Hispanic and terminated his participation in MetLife’s Pre-Appointment Training Program in retaliation for reporting the discrimination to several MetLife officers. The District Court granted Torres’s motion to proceed in forma pauperis. In September 1997, MetLife filed a motion for summary judgment, which the District Court granted on the basis that Torres lacked standing to sue under Title VII because he was not an “employee” of Met-Life while enrolled in the training program.

Torres filed a notice of appeal and moved for appointment of counsel. On March 17, 1998, a motions panel of this Court granted Torres’s motion and appointed attorneys Carl Oxholm III and Jerry L. Tanenbaum, both of the law firm Connolly, Epstein, Chicco, Foxman Ox-holm and Ewing (“Connolly Epstein”), as co-counsel to Torres. In an engagement letter signed by Torres and his new attorneys, Torres agreed that Connolly Epstein would represent him pro bono publico but assigned to Connolly Epstein all right and title to any legal fees that a court might require MetLife to pay.

Subsequently, Connolly Epstein prepared Torres’s appeal while attempting to negotiate a settlement with MetLife. On July 16, 1998, the parties orally agreed to settle their dispute and MetLife’s attorneys began drafting a settlement agreement. Shortly thereafter Torres and Met-Life executed an Agreement and Release in which MetLife agreed to pay Torres $45,000 in settlement of all claims. The settlement agreement does not contain any reference to attorneys’ fees. The parties also executed a Stipulation of Dismissal with Prejudice of the Pending Lawsuit and filed it with this Court.

Torres now moves for an order requiring MetLife to pay Connolly Epstein attorney’s fees and expenses in the amount of $30,427.14, representing the work done by Connolly Epstein in preparing Torres’s appeal and negotiating and executing the settlement, as well as the cost of preparing this motion.1 By order of this Court, Torres’s motion was referred to this merits panel for disposition.2

II.

A prevailing party is entitled to recover its reasonable attorney’s fees unless special circumstances would render such an award unjust. See 42 U.S.C.A. § 2000e-5(k) (West Supp.1999) (providing for recovery of fees in Title VII employment discrimination lawsuits); Independent Fed’n of Flight Attendants v. Zipes, [333]*333491 U.S. 754, 761, 109 S.Ct. 2732, 105 L.Ed.2d 639 (1989); Newman v. Piggie Park Enterprises, Inc., 390 U.S. 400, 402, 88 S.Ct. 964, 19 L.Ed.2d 1263 (1968). A “prevailing party” is one that “succeeded] on any significant issue in the litigation which achieves some of the benefit the parties sought in bringing the suit.” Hensley v. Eckerhart, 461 U.S. 424, 433, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983) (citation omitted). MetLife does not dispute that Torres qualifies as a prevailing party. Instead, MetLife argues Torres’s motion must be denied because the settlement agreement was a “global agreement” extinguishing all of Torres’s claims against MetLife, including a claim for attorney’s fees. In support, MetLife offers extrinsic evidence of the parties’ intent, including statements from Mr. Tanenbaum (who has since left Connolly Epstein) that he believed the agreement settled all of his client’s claims against MetLife, including a potential claim for attorney’s fees.

When the parties to a settlement agreement dispute whether the prevailing party waived its statutory right to attorney’s fees, “the burden is on the losing party to show that the settlement agreement clearly waived” such right. El Club Del Barrio, Inc. v. United Community Corps., 735 F.2d 98, 99 (3d Cir.1984). In El Club Del Barrio, which similarly involved a claim for recovery of attorneys fees in a Title VII suit, we expressly rejected a “silence equals waiver” rule and held that “extrinsic evidence such as the course of negotiations” is irrelevant. Id. at 100. A suit for recovery of attorney’s fees is foreclosed only upon express stipulation in the settlement agreement: “If the parties cannot agree on counsel fees and the losing party wishes to foreclose a suit ... for attorneys fees, it must insist that a stipulation to that effect be placed in the settlement agreement. We so hold.” Id. at 101.

The settlement agreement here contains no such stipulation. In fact, it does not mention attorney’s fees at all. MetLife cites the section of the agreement entitled “Plaintiffs Release And Waiver of Claims,” which states in part:

Without limitation, Plaintiff specifically releases all claims, charges, or demands asserted or assertable in the Pending Lawsuit, and all claims, charges, or demands arising from or relating to Plaintiffs relationship of any kind with the Released Parties, including without limitation any rights or claims Plaintiff may have under Title VII of the Civil Rights Act of 1964, as amended, and the Civil Rights Act of 1991.

This language, although broad, does not expressly stipulate that Torres’s claim for attorney’s fees is waived.3 As El Club Del Barrio makes clear, that is the end of the analysis. It is irrelevant whether Mr. Tanenbaum and the other attorneys believed the release extinguished a claim for fees, as MetLife contends. A settlement agreement that is silent as to attorney’s fees will not be deemed to constitute a waiver, regardless of the course of negotiations. See El Club Del Barrio, 735 F.2d at 100; Ashley v. Atlantic Richfield Co., 794 F.2d 128, 139 (3d Cir.1986) (“[W]here a defendant seeks to settle its total liability on a claim, it shall be incumbent upon the defendant to secure an express waiver of attorney’s fees. Silence will not suffice.”) (citation omitted). To hold otherwise would be to embrace the “silence equals waiver” rule that we have repeatedly rejected since El Club Del Barrio. If the parties to a settlement agreement wish to extinguish the prevailing party’s claim for attorney’s fees, they must do so specifieal[334]*334ly and expressly in the terms of the agreement. Because the parties here did not do so, Torres’s claim for attorney’s fees was not waived.

MetLife relies on Conrad v. Bergen Community College, 1996 WL 903946 (D.N.J. Dec.12, 1996), in which the District Court denied the plaintiffs request for attorney’s fees even though the settlement agreement contained no express waiver.

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Bluebook (online)
189 F.3d 331, 1999 U.S. App. LEXIS 13869, 80 Fair Empl. Prac. Cas. (BNA) 104, 1999 WL 635646, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edward-d-torres-v-metropolitan-life-insurance-company-ca3-1999.