Goldstein v. Costco Wholesale Corp.

337 F. Supp. 2d 771, 2004 U.S. Dist. LEXIS 26741, 2004 WL 2203751
District Court, E.D. Virginia·Decided September 15, 2004·No. CIV.A. 02-1520-A·Published·Cited by 5 cases

Opinion

*773 OPINION & ORDER

DOUMAR, District Judge.

In an Opinion and Order dated June 16, 2004, this Court determined that Defendant Costco Wholesale Corporation (“Costco”) was entitled to an award of legal fees and expenses. The Court reached this conclusion because Plaintiff Disability Rights Council of Greater Washington (“DRC”) disregarded its pre-filing obligations of investigating the factual bases underlying its claim and exhibited a deficient standard of professional conduct by allowing a disability rights claim to be filed unreasonably. This Opinion and Order addresses the amount of legal fees and expenses DRC must pay Costco.

I. Facts and Procedural Background

When this suit commenced, Plaintiff Peter Goldstein was a 67 year old epileptic who lived in Arlington, Virginia. He experienced seizures resulting from his epilepsy every two to three days, and he took several prescription medications as treatment for this condition. Beginning in 1998, Mr. Goldstein obtained his medications from the pharmacy located in Defendant Costco’s Pentagon City warehouse store.

On October 13, 2001, Pentagon City Costco banned Mr. Goldstein from returning to their premises. Mr. Goldstein had demonstrated a history of outrageous behavior within the store, including threatening others with violence. Mr. Goldstein subsequently contacted Linda Royster, the Executive Director for DRC. After meeting with Mr. Goldstein five or six times, Ms. Royster recommended to the DRC board of directors that DRC join Mr. Goldstein in a lawsuit against Costco.

Mr. Goldstein and DRC sued Costco for (1) violation of the Americans with Disabilities Act (“ADA”), 42 U.S.C. § 12182; (2) violation of the Rehabilitation Act, 29 U.S.C. § 794; (3) the common law tort of false imprisonment; and (4) the common law tort of intentional infliction of emotional distress. After hearing the matter, and upon the verdict of a jury for Defendant, this. Court entered a final judgment on July 23, 2003 that: (1) Plaintiffs take nothing, (2) the action be dismissed on the merits, and (3) Defendant recover its costs from Mr. Goldstein. On August 5, 2003, the Court amended its Judgment to reflect that Costco may recover its costs from both Mr. Goldstein and DRC.

On August 22, 2003, Costco filed a Motion for Award of Attorney’s Fees as a Prevailing Party pursuant to 42 U.S.C. § 12205. After the hearing on this matter, this Court, on June 16, 2004, ordered DRC to compensate Costco for reasonable attorney’s fees. The Court also ordered Costco to submit an itemized list of attorney’s fees, along with affidavits, and demonstrate that the fees were reasonable and necessarily incurred. The list was to be submitted within 21 days of. the Opinion and Order. DRC was given 21 days thereafter to file any objections.

On July 9, 2004, the Court granted a Joint Motion For Scheduling Order and ordered that, if settlement talks failed, Costco must file its legal fees and expenses no later than July 21, 2004. DRC would be given 21 days from that date to file any objections. On July 21, 2004, Costco filed a Memorandum in Support of an Award of Attorney’s Fees. On July 26, 2004, Costco filed a Corrected Memorandum in Support of an Award of Attorney’s Fees. The Court then extended DRC’s deadline to file a responsive brief to Costco’s Memorandum to August 19, 2004. On August 19, 2004, DRC filed its Opposition to Costco’s Memorandum. Costco filed its Reply in Support of Award of Attorney’s Fees on August 25, 2004.

In the meantime, on August 20, 2004, DRC filed a Motion for Reconsideration of the Court’s June 16, 2004 Opinion and *774 Order Granting Defendant’s Motion for Award of Attorney’s Fees. On August 31, 2004, DRC wrote a letter requesting the Court to require Costco to file an opposition to the Motion and that DRC be given the opportunity to reply. DRC also requested a hearing on its Motion for Reconsideration. On September 3, 2004, Costco filed its Response. DRC filed its Reply on September 14, 2004.

II. Legal Analysis

1. Attorney’s Fees

Under the Americans with Disabilities Act, this Court, “in its discretion, may allow the prevailing party ... a reasonable attorney’s fee, including litigation expenses and costs .... ” 42 U.S.C. § 12205. Because this provision borrows its fee-shifting language from other civil rights statutes, several courts have held that the Christiansburg standard for fee-shifting by prevailing defendants applicable in civil rights cases also applies to § 12205. Parker v. Sony Pictures Entm’t, Inc., 260 F.3d 100, 111 (2d Cir.2001); Small v. Dellis, 211 F.3d 1265, 2000 WL 472873 (4th Cir.2000)(unreported opinion); Bercovitch v. Baldwin Sch, Inc., 191 F.3d 8, 10-11 (1st Cir.1999); Summers v. Teichert & Son, Inc., 127 F.3d 1150, 1154 (9th Cir. 1997). There is little doubt, therefore, that the same policies underlying awarding attorney’s fees in civil rights claims apply to disability rights claims.

While an award of legal fees is appropriate in a civil rights action only in extraordinary circumstances, the Court has broad discretion to award such fees upon a finding that the plaintiffs action was “frivolous, unreasonable, or without foundation, even though not brought in subjective bad faith.” Christiansburg Garment Co. v. EEOC, 434 U.S. 412, 421, 98 S.Ct. 694, 54 L.Ed.2d 648 (1978). When awarding attorney’s fees to prevailing defendants, the United States Court of Appeals for the Fourth Circuit has instructed courts to strike a careful balance between not chilling civil rights claims and protecting the judicial process from abuse. Blue v. United States Dept. of the Army, 914 F.2d 525, 535 (1990).

If an award of legal fees is warranted in a civil rights action, determining the award amount consists of a two-step analysis. Chaplin v. Du Pont Advance Fiber Sys., 303 F.Supp.2d 766, 775 (E.D.Va.2004). The Court first must ascertain what constitutes a reasonable fee for the services performed related to the matter. The Court accomplishes this by multiplying the number of hours reasonably expended on the case by the reasonable or customary hourly rate. Arnold v. Burger King Corp., 719 F.2d 63, 67 (4th Cir.1983).

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Goldstein v. Costco Wholesale Corp., 337 F. Supp. 2d 771, 2004 U.S. Dist. LEXIS 26741, 2004 WL 2203751 (E.D. Va. 2004).

337 F. Supp. 2d 771 (Goldstein v. Costco Wholesale Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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