Huffman v. Associated Management Ltd

CourtDistrict Court, E.D. Arkansas
DecidedJuly 22, 2021
Docket4:20-cv-01296
StatusUnknown

This text of Huffman v. Associated Management Ltd (Huffman v. Associated Management Ltd) is published on Counsel Stack Legal Research, covering District Court, E.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Huffman v. Associated Management Ltd, (E.D. Ark. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS CENTRAL DIVISION KRISTINA HUFFMAN PLAINTIFF VS. NO. 4:20-cv-01296-BRW ASSOCIATED MANAGEMENT LTD, ET AL. DEFENDANTS ORDER Pending is Plaintiff’s Motion for Costs and Attorneys’ Fees (Doc. No. 12). Defendants have responded.1 For the reasons set out below, the motion is GRANTED IN PART and DENIED IN PART. Plaintiff’s lawyers (“SLF”2) are entitled to $2,250 in lawyers’ fees and $400 in costs from Defendants. I. BACKGROUND Plaintiff filed this FLSA case on October 30, 2020.3 The parties settled liability in June of 2021.4 With the parties unable to agree on lawyers’ fees, Plaintiff filed a motion seeking

$13,801.70 in fees and $500 in costs. II. DISCUSSION The Fair Labor Standards Act allows for reasonable lawyers’ fees upon successful litigation of the claim.5 Congress included the fee-shifting language so citizens would have

1Doc. No. 15. 2Sanford Law Firm. 3Doc. No. 1. 4Doc. Nos. 8, 9. 529 U.S.C.A. § 216 (“The court in such action shall, in addition to any judgment awarded to the plaintiff or plaintiffs, allow a reasonable attorney’s fee to be paid by the defendant, and costs of the action.”). access to the courts to enforce their federal rights.6 While that concept is good in theory, it has become apparent that, in practice, lawyers’ fees are the driving force in many FLSA cases.7 The lodestar method is the “most useful starting point for determining the amount of a reasonable fee.”8 It requires the court to consider “the number of hours reasonably expended on

the litigation multiplied by a reasonable hourly rate.”9 Then, the court should “adjust the fee upward or downward on the basis of the results obtained.”10 “[T]he lodestar method produces an award that roughly approximates the fee that the prevailing attorney would have received if he or she had been representing a paying client who was billed by the hour in a comparable case.”11 “A reasonable fee is one that is adequate to attract competent counsel, but . . . [does] not produce windfalls to attorneys.”12

6Morales v. Farmland Foods, Inc., No. 8:08CV504, 2013 WL 1704722, *5 (D. Neb. April 18, 2013) (The “purpose of the FLSA attorney’s fee provision is to insure (sic) effective access to the judicial process,” and “encourage the vindication of congressionally identified policies and rights.”). 7See Jones v. RK Enterprises of Blytheville, Inc., No. 3:13-CV-00252-BRW, 2016 WL 1091094, at *6 (E.D. Ark. Mar. 21, 2016), aff’d, 672 F. App’x 613 (8th Cir. 2016) (“The fact that a case involves fee shifting does not open the door to unwarranted billing that would otherwise never be incurred. Additionally, a lawyer is still required to do a cost-benefit analysis when considering whether to proceed to trial or settle a case, just as lawyer in a non-fee-shifting case would.”); Goss v. Killian Oaks House of Learning, 248 F. Supp. 2d 1162, 1168 (S.D. Fla. 2003) (holding that “an entitlement to attorney’s fees cannot be a carte blanche license for Plaintiffs to outrageously and in bad faith run up attorney fees without any threat of sanction” after finding that the plaintiff “leveraged a small sum as a stepping-stone to a disproportionately large award of attorney’s fees”). 8Hensley v. Eckerhart, 461 U.S. 424, 433 (1983). 9Id. 10Wheeler v. Missouri Highway & Transp. Comm’n, 348 F.3d 744, 754 (8th Cir. 2003). 11Perdue v. Kenny A. ex rel. Winn, 559 U.S. 542, 551(2010) (emphasis in original). 12Hendrickson v. Branstad, 934 F.2d 158, 162 (8th Cir. 1991) (internal quotations omitted). “An attorney[s’] fees award under a fee-shifting statute should be comparable to what is traditionally paid to attorneys who are compensated by a fee-paying client.”13 Hours that were not “reasonably expended” must be excluded.14 “Cases may be overstaffed, and the skill and experience of lawyers vary widely. Counsel for the prevailing party should make a good faith

effort to exclude from a fee request hours that are excessive, redundant, or otherwise unnecessary, just as a lawyer in private practice ethically is obligated to exclude such hours from his fee submission.”15 A. Requested Hourly Rates SLF requests the following hourly rates in this case: $383 (Josh Sanford); $300 (Anna Stiritz, Vanessa Kinney); $285 (Steve Rauls); $240 (Stacy Gibson); $220 (Thomas Odom); $210 (Courtney Lowery); $150 (Samuel Brown); $75 (law clerk); and $60 (staff).16 According to Mr. Sanford’s affidavit, the rates are consistent with lawyers in the area

who work on similar cases. I disagree. Recently I noted that “there appear to be just as many cases rejecting Mr. Sanford’s $325 an hour rate as there are approving it.”17 In fact, just a few months ago, Judge Baker held that $325 an hour was too high.18 Undeterred, Mr. Sanford has

13Morales, 2013 WL 1704722, at *7 (citing Missouri v. Jenkins by Agyei, 491 U.S. 274, 287 (1989)). 14Hensley, 461 U.S. at 434. 15Id. 16Doc. No. 45. 17Burton v. Nilkanth Pizza Inc., et al, No. 4:19-CV-00307-BRW, Doc. No. 48 (E.D. Ark. Aug. 24, 2020) (citing cases). 18Smith v. OM Purshantam, LLC, et al., No. 4:18-CV-00797-KGB, 2021 WL 1239468, at *3 (E.D. Ark. March 31, 2021) (“Second, defendants claim that Ms. Smith has proposed hourly rates that are excessive and unjustified. The Court agrees. Mr. Sanford’s request for $325.00 per hour has repeatedly been rejected by judges in both the Eastern and Western Districts of increased his rate to $383 an hour, an increase of over 15% than the previous $325-rate that repeatedly has been deemed too high. Additionally, the rates appear to be entirely arbitrary and unreliable. For example, in other cases litigated by this firm during the same time period, the rates were lower:

Attorney Hourly Rate Claimed Here Hourly Rate Contemporaneous Cases Josh Sanford $383 $325 Anna Stiritz $300 $250 and $27519 Vanessa Kinney $300 $25020 Steve Rauls $285 $22521 Thomas Odom $220 $17522 Courtney Lowery $210 $100 and $15023 Samuel Brown $150 N/A I am not the only judge who has noticed this issue. In August 2020, Judge Brooks, of the Western District of Arkansas, held that “[j]ust a few months ago, however, the Sanford Law Firm submitted invoices requesting $125 an hour for work done by Ms. Matlock. No explanation is given for why Ms. Matlock’s rate should have increased 50 percent since June.”24 19Vines, et al v. Welspun Pipes Inc, et al, No. 4:18-cv-00509-BRW; Whitehead v. Conway Cycle Shop LLC, et al, No. 4:20-cv-00234-BRW. 20Bryan v. Mississippi County Arkansas, No. 3:18-cv-00130-DPM. 21Beasley, No. 4:19-CV-00471-JM; Whitehead, No. 4:20-cv-00234-BRW. 22Whitehead, No. 4:20-cv-00234-BRW. 23Whitehead, No. 4:20-cv-00234-BRW; Oden v. Shane Smith, No. 4:19-cv-00693-BRW. 24Hill-Smith v. Silver Dollar Cabaret, Inc., No. 5:20-CV-5051, 2020 WL 4741917, at *4 (W.D. Ark. Aug. 14, 2020). See also, Smith, 2021 WL 1239468, at *3 (“Further, SLF’s billing records indicate that, in May 2019, Mr. Sanford’s hourly rate increased from $225.00 an hour to $325.00 an hour, a 44 percent increase. Around that same time, Mr. West’s rate went from SLF provided no evidence of what it has ever charged an actual fee-paying client.25 It relies on hourly rates previously awarded by courts, but “[p]rior awards are not direct evidence of market behavior; the court is not a legal souk.”26 That’s because most lawyers would provide only the previously-awarded rates that support a higher rate, which, once again, is what

happened here. SLF contends that “[b]ecause Mr. Sanford is reducing his hours, voluntarily, by 37.29% and Ms.

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Related

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Huffman v. Associated Management Ltd, Counsel Stack Legal Research, https://law.counselstack.com/opinion/huffman-v-associated-management-ltd-ared-2021.