Edward L. Richardson v. Chuck Penfold and Edward Dyer

900 F.2d 116, 1990 U.S. App. LEXIS 6131, 1990 WL 45662
CourtCourt of Appeals for the Seventh Circuit
DecidedApril 19, 1990
Docket88-3311
StatusPublished
Cited by53 cases

This text of 900 F.2d 116 (Edward L. Richardson v. Chuck Penfold and Edward Dyer) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edward L. Richardson v. Chuck Penfold and Edward Dyer, 900 F.2d 116, 1990 U.S. App. LEXIS 6131, 1990 WL 45662 (7th Cir. 1990).

Opinion

POSNER, Circuit Judge.

The defendants in a prisoner’s civil rights suit appeal from an order awarding attorney’s fees under 42 U.S.C. § 1988 to the plaintiff’s appellate counsel, Candice Li-chtenfels, for her efforts in persuading us to reverse a judgment by the district court dismissing the suit. 839 F.2d 392 (7th Cir.1988). Technically the award of attorney’s fees under section 1988 is to the party, not to his lawyer, but it is common to make the award directly to the lawyer where, as in this case, the lawyer’s contractual entitlement is uncontested. Hutto v. Finney, 437 U.S. 678, 693, 98 S.Ct. 2565, 2575, 57 L.Ed.2d 522 (1978); Rosenfeld v. United States, 859 F.2d 717, 721 (9th Cir.1988).

Our decision remanded the case for trial; no trial date has yet been set. The award of fees to attorney Lichtenfels is an interlocutory order, the underlying litigation not having wound up, and is appealable now only if it fits within the collateral order doctrine of Cohen v. Beneficial Industrial Loan Corp., 337 U.S. 541, 546-47, 69 S.Ct. 1221, 1225-26, 93 L.Ed. 1528 (1949), or the closely related doctrine of practical finality, illustrated by our recent opinion in Crowder v. Sullivan, 897 F.2d 252 (7th Cir.1990). We think the award of fees is ap-pealable, though barely so.

The merits of the fee award are separate from those of the underlying litigation. Lichtenfels’ entire claim is premised on the proposition that she is entitled to fees for her successful appeal whatever the ultimate outcome of the case. What is more, there is no chance of her seeking fees for any further services in the litigation, for she withdrew from representing the plaintiff after the appeal, and we understand her to have waived any right to seek retroactive enhancement of her interim fee on the basis of the eventual outcome of the suit. In such a case, In re Yermakov, 718 F.2d 1465, 1469 (9th Cir.1983), and In re Spillane, 884 F.2d 642, 644-45 (1st Cir.1989), hold that the fee award is appeal-able as a collateral order, though both are bankruptcy cases and take pains to emphasize the peculiarities of bankruptcy procedure, where orders that would be final in an ordinary litigation may be nonfinal — yet may be treated as final in recognition of their practical finality. In re Wagner, 808 F.2d 542, 544-45 (7th Cir.1986); In re Morse Electric Co., 805 F.2d 262, 264 (7th Cir.1986); In re Saco Local Development Corp., 711 F.2d 441, 444 (1st Cir.1983).

If Yermakov and Spillane cannot be confined to bankruptcy cases, they may seem to drive a big hole through the principle that interim awards of attorney’s fees are, in general, not appealable. Palmer v. City of Chicago, 806 F.2d 1316, 1317-20 *118 (7th Cir.1986); Lac Courte Oreilles Band v. Wisconsin, 829 F.2d 601 (7th Cir.1987) (per curiam); Sandwiches, Inc. v. Wendy’s International, Inc., 822 F.2d 707, 710 (7th Cir.1987); Shipes v. Trinity Industries, Inc., 883 F.2d 339 (5th Cir.1989); Rosenfeld v. United States, supra, 859 F.2d at 720-22. (Rosenfeld was decided after Yerma-kov, but did not cite it, though both are Ninth Circuit cases.) An interim fee award does not cease to be such merely because the attorney receiving the award has withdrawn from the case, although In re Stable Mews Associates, 778 F.2d 121, 123 n. 3 (2d Cir.1985), says that this is the critical feature of Yermakov. In the case of withdrawal as in the more common case where the same attorney represents a party throughout the litigation, an essential element of the collateral order doctrine is missing. It is missing even though the merits of the award may be distinct from whatever live issues remain on the merits, even though the award may be fixed and definitive, and even though there is no pressing reason to postpone appeal to the end of the case — for there may be no appeal then to consolidate the fee appeal with, and even if they are consolidated, there may be no savings in judicial time if the issues in the fee appeal are indeed separate from and unrelated to those on the merits. The element of the collateral order doctrine that is nonetheless missing is the requirement that postponement of the appeal to the end of the case cause irrevocable harm to the appellant. It is an element rightly regarded as essential. Mulay Plastics, Inc. v. Grand Trunk Western R.R., 742 F.2d 369 (7th Cir.1984); M.A. Mortenson Co. v. United States, 877 F.2d 50 (Fed.Cir.1989). For normally there will be some economy from consolidation of appeals, and that economy, however small, must outweigh a zero cost of postponement. Anyway, sufficient unto the day is the evil thereof: the case may settle, and any disputes over interim fee awards may be settled too.

But there are exceptions to the general principle that interim fee awards are not collateral orders. Palmer illustrates one: the interim award was to a class of prisoners, and the state was understandably concerned that if the award could not be reviewed until the end of the case, the prisoners would have dissipated the money and it would be impossible to recover it. Here the award is being made directly to the prisoner’s lawyer, but she is no longer his lawyer and therefore should the award eventually be reversed the defendants may find it necessary to bring an independent action against her to get the fee back. Suppose Richardson goes on to lose on the merits. The state, though it will have won, may want to appeal merely to challenge the interim fee award to Lichtenfels, but neither Richardson nor his final attorney will have any interest in defending the award, and Lichtenfels herself will be neither a party to nor a lawyer in the suit.

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900 F.2d 116, 1990 U.S. App. LEXIS 6131, 1990 WL 45662, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edward-l-richardson-v-chuck-penfold-and-edward-dyer-ca7-1990.