Felten v. William Beaumont Hospitals

District Court, E.D. Michigan·Decided September 1, 2021·No. 2:10-cv-13440·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

UNITED STATES OF AMERICA and STATE OF MICHIGAN, Case No. 2:10-cv-13440

Plaintiffs, HONORABLE STEPHEN J. MURPHY, III ex rel. DAVID L. FELTEN, M.D., Ph.D., et al.,

Plaintiffs/Relators

v.

WILLIAM BEAUMONT HOSPITALS, et al.,

Defendants. /

OPINION AND ORDER GRANTING MOTION FOR ATTORNEYS' FEES AND COSTS TO RELATOR HOUGHTON [111]

More than two years ago, the Court issued an omnibus order and denied Relator Carbone's motion for attorneys' fees; the Court also granted Relator Houghton's motion for attorneys' fees. ECF 152, PgID 2978–79. The Court ruled that "Houghton can recover attorneys' fees only for work related to her TIM [Troy Internal Medicine] claim." Id. at 2979. But the Court did not award a specific attorneys' fees amount because Houghton's timekeeping records failed to show how much time her counsel spent on the TIM claim. Id. The Court therefore ordered Houghton to provide more specific briefing on the fees issue and allowed Beaumont to respond to the supplemental brief. Id. Since then, the parties submitted supplemental briefs and exhibits to resolve the attorneys' fees amount. ECF 153; 154; 156; 157. But the Court has not issued a ruling because the Court was divested of jurisdiction when the case went on

interlocutory appeal. ECF 164. Now that the Sixth Circuit has returned a mandate, ECF 175, the Court will resolve the attorneys' fees amount for Houghton. The Court has reviewed the parties' briefs and a hearing is unnecessary. See E.D. Mich. L.R. 7.1(f). For the reasons below, the Court will grant $127,557.76 to Houghton in attorneys' fees and costs. BACKGROUND In the interest of judicial economy, the Court will adopt the background section

of the Court's omnibus order. ECF 152, PgID 2969–70. In Houghton's supplemental brief, she argued that the Court should award $115,850 for her lead counsel's work related to the TIM claim, ECF 154-1, PgID 3004, and $21,240 for the associates' work related to the TIM claim, ECF 154-2, PgID 3011. Houghton also argued that the Court should award fees for a third of her counsel's general prosecution work that occurred before she knew about the other relators' False Claims Act claims against Beaumont.

ECF 153, PgID 2985. Beaumont, however, argued that Houghton is entitled only to $12,169 for the work directly related to the TIM claim plus $2,763.32 for general prosecution work. ECF 156, PgID 3019–20. The parties did not dispute that Houghton is entitled to $1,297.96 for costs incurred during the litigation. ECF 111, PgID 1548; see generally ECF 122. LEGAL STANDARD "In an attorneys' fee case, the primary concern is that the fee awarded be 'reasonable.' A reasonable fee is 'adequately compensatory to attract competent

counsel yet . . . avoids producing a windfall for lawyers.'" Gonter v. Hunt Valve Co., 510 F.3d 610, 616 (6th Cir. 2007) (quoting Reed v. Rhodes, 179 F.3d 453, 471 (6th Cir. 1999) and Geier v. Sundquist, 372 F.3d 784, 791 (6th Cir. 2004)) (emphasis and internal citation omitted). The Court possesses substantial discretion to award fees, but "must provide a clear and concise explanation of its reasons for the fee award." Adcock-Ladd v. Sec'y of Treasury, 227 F.3d 343, 349 (6th Cir. 2000) (quotation and citation omitted).

The Court begins its attorneys' fee award calculation by multiplying "the number of hours reasonably expended on the litigation" by "a reasonable hourly rate." Hensley v. Eckerhart, 461 U.S. 424, 433 (1983). The calculation provides the Court with the "fee applicant's 'lodestar.'" Adcock-Ladd, 227 F.3d at 349 (citations omitted). The Court may, "within limits, adjust the 'lodestar' to reflect relevant considerations peculiar to the subject litigation." Id. (citation omitted).

Twelve factors influence the Court's adjustment of a fee award. Perry v. AutoZone Stores, Inc., 624 F. App'x 370, 372 (6th Cir. 2015) (citing Johnson v. Ga. Highway Express, Inc., 488 F.2d 714, 717–19 (5th Cir. 1974)). The twelve factors are: (1) the time and labor required; (2) the novelty and difficulty of the questions involved; (3) the skill requisite to perform the legal service properly; (4) the preclusion of other employment by the attorney due to acceptance of the case; (5) the customary fee; (6) whether the fee is fixed or contingent; (7) time limitations imposed by the client or the circumstances; (8) the amount involved and the results obtained; (9) the experience, reputation, and ability of the attorneys; (10) the 'undesirability' of the case; (11) the nature and length of the professional relationship with the client; and (12) awards in similar cases.

Disabled Patriots of Am., Inc. v. Taylor Inn Enterps., Inc., 424 F. Supp. 2d 962, 965– 66 (E.D. Mich. 2006) (quotation and citation omitted); see also Blanchard v. Bergeron, 489 U.S. 87, 94 (1989) ("The Johnson factors may be relevant in adjusting the lodestar amount, but no one factor is a substitute for multiplying reasonable billing rates by a reasonable estimation of the number of hours expended on the litigation."). The Court's analysis may subsume many of the factors. See Hensley, 461 U.S. at 434 n.9 (recognizing that a court's lodestar calculation may tacitly consider some of the Johnson factors). DISCUSSION The "fee applicant bears the burden of establishing entitlement to an award and documenting the appropriate hours expended and hourly rates." Hensley, 461 U.S. at 437. To carry the burden, attorneys must maintain time records detailed enough to enable courts to review the reasonableness of the hours expended. Wooldridge v. Marlene Indus. Corp., 898 F.2d 1169, 1177 (6th Cir. 1990), abrogated

on other grounds by Buckhannon Bd. & Care Home, Inc. v. W. Va. Dep't of Health & Hum. Res., 532 U.S. 598 (2001). Courts then review the billing claims for, and exclude, "[e]xcessive, redundant, or otherwise unnecessary hours." Butcher v. Bryson, No. 3:12–00251, 2014 WL 4385876, at *3 (M.D. Tenn. Sept. 5, 2014) (citing Hensley, 461 U.S. at 434). The Court will first address the two lodestar factors: reasonableness of hourly rate and reasonableness of hours. Hensley, 461 U.S. at 433. Then, the Court will consider any other relevant factors. Adcock-Ladd, 227 F.3d at 349.

I. Reasonable Hourly Rate Beaumont did not object to the reasonableness of the hourly rates for Houghton's counsel. See ECF 122; ECF 134, PgID 2442 ("Defendant does not dispute that the hourly rate of $500 per hour requested for Relator Houghton's counsel is reasonable . . . [and] Defendant [does not] dispute the reasonableness of the hourly rates for associates."). In any event, the $500 hourly rate for Houghton's lead counsel and the $240 hourly rate for associates are reasonable.

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Felten v. William Beaumont Hospitals, (E.D. Mich. 2021).

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Related

Hensley v. Eckerhart
461 U.S. 424 (Supreme Court, 1983)
Blum v. Stenson
465 U.S. 886 (Supreme Court, 1984)
Blanchard v. Bergeron
489 U.S. 87 (Supreme Court, 1989)
Bamerilease Capital Corp. v. Eugene E. Nearburg
958 F.2d 150 (Sixth Circuit, 1992)
Gonter v. Hunt Valve Co., Inc.
510 F.3d 610 (Sixth Circuit, 2007)
United States v. Swanson
618 F. Supp. 1231 (E.D. Michigan, 1985)
Shana Perry v. Autozone Stores, Inc.
624 F. App'x 370 (Sixth Circuit, 2015)
Geier v. Sundquist
372 F.3d 784 (Sixth Circuit, 2004)
Reed v. Rhodes
179 F.3d 453 (Sixth Circuit, 1999)