Hamilton v. Bruce

552 F. Supp. 649, 1982 U.S. Dist. LEXIS 16526
CourtDistrict Court, W.D. Virginia
DecidedNovember 23, 1982
DocketCiv. A. No. 80-0181(H)
StatusPublished
Cited by2 cases

This text of 552 F. Supp. 649 (Hamilton v. Bruce) is published on Counsel Stack Legal Research, covering District Court, W.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hamilton v. Bruce, 552 F. Supp. 649, 1982 U.S. Dist. LEXIS 16526 (W.D. Va. 1982).

Opinion

MEMORANDUM OPINION

MICHAEL, District Judge.

This matter comes on the motion of counsel for plaintiff for an allowance of attorney’s fees, which motion is brought under 42 U.S.C. § 1988, on which section the jurisdiction of the court to hear and determine this matter is predicated.

Under the terms of § 1988, a first matter to be determined is whether the moving party asking for attorney’s fees is the prevailing party in the litigation.

In this case, it is clear that a settlement was reached between plaintiff and at least one of the defendants, this being the defendant Elliot. However, the benefits of the settlement accrued to all defendants, and, at oral argument it was conceded that the settlement fund was paid under an insurance policy coverage which covered all of the defendants. Because the settlement agreement released all defendants, the court is not of opinion to place great weight on the fact that the “settling party”, so to speak, was Mr. Elliot.

The ad damnum in this case, as shown in the complaint, was for the sum of $125,000, whereas the settlement figure was $6,000. Counsel for the defendants point to the great disparity between the sums set out in the ad damnum clause and the amount of the settlement figure, arguing vigorously that the settlement figure was agreed to by the defendants solely on an economic basis, asserting that the costs of retrieving the various witnesses now scattered throughout the penal system, and out of state in many instances, together with counsel costs, were such that it was economically a better matter to settle the case for $6,000 than to go to trial.

The court is of opinion that economic considerations practically always enter into settlement negotiations. However, it is equally apparent that there is in a successful settlement negotiation a purchase of the opportunity for an adverse result, and the court finds no basis in this case to believe that both factors were not present in the settlement reached here. Whether the two factors can be assigned arithmetic percentages to make up the 100 percent of the affirmative decision to agree to settlement is, practically speaking, impossible, but it is certainly true that both factors enter into any successful settlement negotiation. Further, the court cannot say that settlement for $6,000 is settlement for a nominal sum. Even under today’s inflationary economy, $6,000 is still a substantial sum. The fact that the ad damnum may have been laid at a much higher figure is more than likely a reflection of the caution of the plaintiff in trying to assure a maximum verdict, in the event that the plaintiff might be successful. Such a setting of the ad damnum does not of necessity indicate [651]*651the view of the plaintiff as to the precise amount he will be able to prove in the way of damages. Further, it should be noted that the case involved a complaint which was filed pro se by Hamilton, the attorney, Mr. Clark, coming in to represent Mr. Hamilton at a later time. See, Fluhr v. Roberts, 463 F.Supp. 745 (D.C.Ky.1979).

Under the authority of Maher v. Gagne, 448 U.S. 122, 100 S.Ct. 2570, 65 L.Ed.2d 653 (1980); Foster v. Gloucester County Board of Chosen Freeholders, 465 F.Supp. 293 (D.C.N.J.1978) it seems obvious to the court that Mr. Hamilton must be classed as the “prevailing party” in reaching the settlement which was reached in this case.

Having reached this conclusion, the next issue for resolution deals with the discretion granted to the court under § 1988 to award a fee. The claim for fees under § 1988 has been held to be sufficiently independent of the case in which the services were rendered to permit the separate application for fees. See White v. New Hampshire, 455 U.S. 445, 102 S.Ct. 1162, 71 L.Ed.2d 325 (1982); Levin v. Parkhouse, 484 F.Supp. 1091 (1980). Essentially, the only portion of the case in chief which is important to the determination of the issues raised by this motion for fees is to determine whether the plaintiff was “the prevailing party”; thereafter, the matter of the application for fees proceeds essentially on an independent basis.

It seems that this matter may have come to this pass principally because of a basic misunderstanding of the meaning and thrust of § 1988 on the part of counsel for both parties. While there is disagreement between the parties as to the meaning of a paragraph in the order tendered to dismiss the suit following the settlement, it is clear that that order contains a paragraph setting out a provision for the allowance of a fee. Obviously, it must have been in the minds of counsel for both parties that the question of a fee, left blank in the tendered order, was under consideration, or at least known to, counsel for each of the parties. It appears that there was considerable doubt in the minds of counsel for plaintiff and for defendants, as to the source of payment of any fee which might be awarded. Counsel for the defendants was of the belief that any such fee would be paid from the proceeds of the settlement, whereas counsel for the plaintiff was of the belief that there might be a separate fee allowed over and above the sum of the settlement, or that there might be, in the words of counsel, a “government slush fund” from which the fee might be paid. To this court’s knowledge, there is no such fund, and the question of payment of the fee from the settlement proceeds rests in the sound discretion of the court, under the provisions of § 1988.

Counsel for the defendants suggests in argument that the allowance of a fee from any source other than the settlement proceeds would in fact amount to a fraud in the inducement in leading the defendants into making the settlement. Under the provisions of § 1988, it does not seem to the court that a request for fee brought under that section could in any way be construed as a fraud of any sort, whether in the inducement or otherwise. Counsel for the defendants further goes on to assert that should the court in its exercise of discretion, award a fee from some source other than the proceeds of the settlement, the court should then set aside the settlement and revert the parties to their former position and prepare them to go forward to trial.

Under the authority of Foster, supra, the fact that settlement has been reached is the material fact, with the question of fee to be determined collaterally to the matter of dismissing the action because of settlement. The Supreme Court’s opinion in White v. New Hampshire, supra, indicates clearly that setting aside a settlement under circumstances remarkably similar to those in this case is not a proper action. This court declines to accept counsel’s invitation to set aside the settlement and to order the case to go to trial.

A social policy sought to be effectuated by the fee allowance provision in § 1988 is to assure, to the extent feasible, [652]*652that civil rights violations are properly and adequately prosecuted. Mid-Hudson Legal Services v. G & U., Inc., 578 F.2d 34 (2nd Cir.1978).

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Cite This Page — Counsel Stack

Bluebook (online)
552 F. Supp. 649, 1982 U.S. Dist. LEXIS 16526, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hamilton-v-bruce-vawd-1982.