Keener v. Department of Army

136 F.R.D. 140, 1991 U.S. Dist. LEXIS 4936, 55 Fair Empl. Prac. Cas. (BNA) 200, 1991 WL 54113
CourtDistrict Court, M.D. Tennessee
DecidedFebruary 8, 1991
DocketNo. 3-87-0647
StatusPublished
Cited by16 cases

This text of 136 F.R.D. 140 (Keener v. Department of Army) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keener v. Department of Army, 136 F.R.D. 140, 1991 U.S. Dist. LEXIS 4936, 55 Fair Empl. Prac. Cas. (BNA) 200, 1991 WL 54113 (M.D. Tenn. 1991).

Opinion

MEMORANDUM

JOHN T. NIXON, District Judge.

Presently before the Court is an action brought by the plaintiff’s attorney1 to recover fees and expenses incurred in his representation in the above-styled employment discrimination action. Also before the Court is a motion by the defendants for sanctions against the plaintiff’s counsel under Rule 11 of the Federal Rules of Civil Procedure. Upon the stipulations of the parties and testimony of each parties’ witnesses, the Court conducted a bench trial on this matter on June 7-8, 1990 and October 4, 1990. The Court has considered the record in this case, which includes the pleadings, the stipulations of the parties, and the exhibits and statements of counsel. Pursuant to Rule 52 of the Federal Rules of Civil Procedure, the Court hereby makes and enters the following Findings of Fact and Conclusions of Law as a final adjudication of this action.

I. FINDINGS OF FACT

This suit arises from the employment discrimination claim brought by the plaintiff, Mary C. Keener, against the defendants, the United States Army [“the Army”] and the Secretary of the Army, under Title VII, 42 U.S.C. §§ 2000e to 2000e-17 (1982). In September of 1983, Ms. Keener submitted a formal Title VII administrative charge against the defendants alleging sexual harassment by Army personnel at Fort Campbell, Kentucky, where she had been employed. Shortly thereafter, the Army dismissed Ms. Keener’s administrative charge. Ms. Keener appealed this decision to the Equal Employ[142]*142ment Opportunity Commission [“EEOC”] which, on March 11, 1985, reversed the Army’s dismissal and remanded the case to the Army for a non-adversarial investigative proceeding. A few days later, the Army’s investigator, an official of the United States Army Civilian Appellate Review Agency [“USACARA”], issued a decision finding that Ms. Keener had been constructively discharged from the Army because of sexual harassment. The investigator recommended that the Army take corrective action in the form of make-whole relief which it agreed to do in a settlement agreement reached with Ms. Keener on May 8, 1986. Pursuant to the agreement, the Army provided make-whole relief which included a payment of $24,820.08 to cover Ms. Keener’s back-pay.

Although Counsel and his client never reduced their fee arrangement to writing, they agreed that Counsel would split with Ms. Keener, up to fifty (50) percent, any recovery she might receive in the Title VII action, plus any attorney’s fees he might receive.2 Trial Testimony of Counsel, Oct. 4, 1990; Deposition of Counsel, Vol. 1, at 22, 42, 45, 47, 52, Defendant’s Trial Exhibit # 6, Oct. 4, 1990 [hereinafter Counsel’s Deposition Vol. I.]; Deposition of Mary C. Keener, at 7, Defendant’s Trial Exhibit # 4 [hereinafter Keener Deposition]. Under this fee arrangement, Ms. Keener paid one-half of the settlement award she received from the.Army, or $13,649.59, to Counsel. Defendant’s Trial Exhibit # 1, Oct. 4, 1990; Keener Deposition at 23, 24; Counsel’s Deposition Vol. I at 49.

Under the administrative settlement, the Army also agreed to pay reasonable attorney’s fees pursuant to Army regulations. Counsel submitted a fee petition to the Army for 898.5 hours of work on Ms. Keener’s behalf at a rate of $100.00 per hour. Fee Petition of Counsel, Exhibit #3 to Defendant’s Pre-Trial Brief [hereinafter Counsel’s Fee Petition]. Specifically, Counsel sought $89,850.00 in fees and $3,216.11 in expenses for a total of $93,066.11.3 Id. Counsel advised the Army in his fee petition that he planned to split any award of fees with his client. Id. The Army refused to award any fees or expenses to Counsel because the Army considered his fee petition to be excessive, misleading and in bad faith. Supporting Brief for the Denial of Attorney Fees at 9, June 20, 1986, Plaintiff’s Trial Exhibit # 21, Oct. 4, 1990. After an appeal by Ms. Keener, the EEOC reversed the Army’s decision and remanded the case to the Army to decide upon a reasonable fee.

After a second review of Counsel’s petition, the Army determined that a reasonable award would be $12,159.97. Letter of Assistant Secretary of the Department of the Army, Sept. 15, 1986, Plaintiff’s Trial Exhibit # 21, Oct. 4, 1990. However, the Army proposed to pay only half of this amount to Counsel in light of his fee-splitting arrangement with Ms. Keener. Id. In addition, the Army refused to pay the other half of the fee award to Ms. Keener because it considered Counsel’s fee arrangement with Ms. Keener to be unethical. Id.

Counsel refused the Army’s offer and Ms. Keener filed suit in this Court, seeking the enforcement of the settlement agreement between the plaintiff and the Army. Her Complaint prays that Counsel be reimbursed for: 1,200 hours of work at a rate of $100 per hour plus the expenses incurred in representing the plaintiff in her Title VII claim against the Army adjusted upward by one-third; 101 hours at a rate of $100 and all expenses incurred in appealing the Army’s decision not to pay him any fee to the EEOC; and all attorney’s fees and expenses incurred in bringing this lawsuit.

The Army continues to object to Counsel’s fee petition for $93,066.11 on the [143]*143grounds that it is grossly excessive and constitutes an unconscionable exercise of billing judgement. The Army objects to Counsel’s hourly rate of $100 and objects to the number of hours Counsel claims he spent on the administrative claim. The Army contends that the record supports an award of no more than $15,375. The Army has requested that the Court deny Counsel’s fee request in light of the special circumstances the Army asserts are present in this case, i.e., his unconscionable billing judgment, grossly excessive fee petition, and bad faith multiplication of this litigation. Finally, the defendant contends that Counsel filed the complaint in this case in violation of Rule 11 of the Federal Rules of Civil Procedure.

Counsel did not keep contemporaneous time records for large portions of the work he performed for the Title VII claim. Counsel’s Deposition, Vol. I at 27-29. Pri- or to 1987, notations on legal pads, a small tear-off desk calendar and the inside of file folders served as the means by which Counsel kept track of his time. Id. at 19, 21, 26, 31, 179. Depending on whether the matter on which he was working was “significant,” he would compile a record of time spent for a matter on a daily, weekly, monthly or yearly basis. Id. at 29. He did not keep the originals that he used to make his compilations. Id. At trial, Counsel introduced what appears to be his entire case file on Ms. Keener’s Title VII claim, with documents dating back to the time Counsel began his representation of Ms. Keener in this matter. See Plaintiff’s Trial Exhibits, 1, 3, 6, 7, 8, 11, 12, 17-20.

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136 F.R.D. 140, 1991 U.S. Dist. LEXIS 4936, 55 Fair Empl. Prac. Cas. (BNA) 200, 1991 WL 54113, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keener-v-department-of-army-tnmd-1991.