Heald v. Granholm

457 F. Supp. 2d 790, 2006 U.S. Dist. LEXIS 74646, 2006 WL 3019199
CourtDistrict Court, E.D. Michigan
DecidedSeptember 28, 2006
Docket2:00-cv-71438
StatusPublished
Cited by2 cases

This text of 457 F. Supp. 2d 790 (Heald v. Granholm) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heald v. Granholm, 457 F. Supp. 2d 790, 2006 U.S. Dist. LEXIS 74646, 2006 WL 3019199 (E.D. Mich. 2006).

Opinion

OPINION AND ORDER DENYING PLAINTIFFS’ MOTION TO COLLECT ATTORNEY FEES FROM INTERVENING DEFENDANT

FRIEDMAN, Chief Judge.

This matter is presently before the court on the sole remaining issue, which is contained within plaintiffs’ motion for attorney fees — namely, whether plaintiffs, as prevailing parties, are entitled to recover attorney fees and costs from the intervening defendant. Pursuant to E.D. Mich. LR 7.1(e)(2), the court shall decide this issue without oral argument. All other aspects of plaintiffs’ motions for attorney fees and costs have been settled.

The facts of the case are well known, as the case has been the subject of published opinions of the Supreme Court and the court of appeals. See Granholm v. Heald, 544 U.S. 460, 125 S.Ct. 1885, 161 L.Ed.2d 796 (2005); Heald v. Engler, 342 F.3d 517 (6th Cir.2003). Plaintiffs, as the prevailing parties, are entitled to attorney fees pursuant to 42 U.S.C. § 1988(b), 1 and they have negotiated the fee to be paid by defendants. However, plaintiffs also seek costs and fees from the intervening defendant, the Michigan Beer and Wine Wholesalers Association, which entered the case with the court’s permission in August 2000. At page 11 of their motion for attorney fees, plaintiffs indicate that

Most of the time, they [intervening defendant] have simply replicated arguments raised by the state defendants, and plaintiffs have saved time and expense whenever possible by filing joint responses and replies to briefs filed by both [intervening defendant] and the State defendants. However, plaintiffs have identified 50.5 hours of legal time and 12 hours of travel time that were devoted exclusively to responding to motions and briefs filed separately by [intervening defendant], and they also estimate that [intervening defendant’s] presence added approximately 50 hours to the time that would otherwise have been needed to respond to the briefs filed by the state officials alone.

Thus, the issue is whether plaintiffs are entitled to collect attorney fees from the intervening defendant for the additional time this party caused plaintiffs to expend in this litigation.

The clear answer to this question is provided by the Supreme Court’s decision in Indep. Fed’n of Flight Attendants v. Zipes, 491 U.S. 754, 109 S.Ct. 2732, 105 L.Ed.2d 639 (1989). In that case, female flight attendants brought a Title VII action against Trans World Airlines to challenge an allegedly discriminatory employment policy. The policy was abandoned and a proposed settlement was reached. A union representing flight attendants who had not been affected by the policy intervened to challenge the settlement. The settlement was approved over the intervenor’s objections. The district court then granted plaintiffs’ petition for an award of attorney fees against defendant and the Ínter- *792 venor pursuant to Title VII’s fee-shifting provision, 42 U.S.C. § 2000e-5(k), 2 and the court of appeals affirmed.

In reversing, the Supreme Court held that attorney fees may be assessed “against losing intervenors only where the intervenors’ action was frivolous, unreasonable, or without foundation.” Id. at 761, 109 S.Ct. 2732. In support of this conclusion, the Court noted that the purpose of the fee-shifting provision is to “vindicate the national policy against wrongful discrimination by encouraging victims to make the wrongdoers pay at law-assuring that the incentive to such suits will not be reduced by the prospect of attorney’s fees that consume the recovery.” Id. (emphasis added). It is the defendant, not the intervenor, “who has committed a legal wrong,” and it is therefore the defendant, not the intervenor, to whom a prevailing plaintiff must turn for fees. Id. In other words, “the logical place to look for recovery of fees is to the losing party — the party legally responsible for relief on the merits.” Id. at 763, 109 S.Ct. 2732, quoting Kentucky v. Graham, 473 U.S. 159, 164, 105 S.Ct. 3099, 87 L.Ed.2d 114 (1985) (regarding fee award pursuant to § 1988). The Court drew a distinction between wrongdoers, who are liable for fees because they have caused the violation at issue, and “innocent intervenors,” who cannot be held liable for fees because they have played no role in the violation. Id. at 761-63. The Court stressed that an inter-venor may have other rights, as compared to those of the defendant, and that an intervenor cannot be faulted for joining in litigation in an effort to protect those rights, even if the intervenor may “advance the same argument as a defendant.” Id. at 765. 3

The rule to be gleaned from Zipes is that a prevailing plaintiff may not obtain attorney fees from a losing intervening defendant, pursuant to a fee-shifting statute such as § 2000e-5(k) or § 1988, unless the intervening defendant’s position was frivolous, unreasonable, or without foundation. Plaintiffs have not shown, and the court does not believe, that intervening defendant’s position in this matter can be so characterized. This matter was heavily and legitimately litigated by all sides, and the issues were the subject of divergent views not only among various district courts around the country but also among various circuit courts of appeals. The central issues were not finally resolved until the Supreme Court decided the case (on a 5-4 vote), and even then the issue of the proper remedy was not easily resolved. In short, this was a case in which reasonable minds could, and did, differ, and in which good lawyers on all sides could, and did, make persuasive arguments on a num *793 ber of complex and difficult issues. The mere fact that the arguments of the defendants and those of the intervenor did not ultimately prevail does not make the positions frivolous, unreasonable, or without foundation. Nor may fees be assessed against the intervenors merely because their presence in the case “required the plaintiffs’ lawyers to spend additional time.” Democratic Party of Washington State v. Reed, 388 F.3d 1281, 1288 (9th Cir.2004).

Nor is the court persuaded that any of the case authority cited by plaintiffs justifies departing from the rule articulated in Zipes. Several of plaintiffs’ cases predate Zipes and must be disregarded on this basis alone. See Charles v. Daley, 846 F.2d 1057 (7th Cir.1988); S & R Wrecker Serv., Inc. v.

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Cite This Page — Counsel Stack

Bluebook (online)
457 F. Supp. 2d 790, 2006 U.S. Dist. LEXIS 74646, 2006 WL 3019199, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heald-v-granholm-mied-2006.