Kristopher Kelly v. Tennessee Valley Authority

2024 MSPB 1
CourtMerit Systems Protection Board
DecidedJanuary 5, 2024
DocketAT-0752-15-0064-A-1
StatusPublished
Cited by1 cases

This text of 2024 MSPB 1 (Kristopher Kelly v. Tennessee Valley Authority) is published on Counsel Stack Legal Research, covering Merit Systems Protection Board primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kristopher Kelly v. Tennessee Valley Authority, 2024 MSPB 1 (Miss. 2024).

Opinion

UNITED STATES OF AMERICA MERIT SYSTEMS PROTECTION BOARD 2024 MSPB 1 Docket No. AT-0752-15-0064-A-1

Kristopher D. Kelly, Appellant, v. Tennessee Valley Authority, Agency. January 5, 2024

Jennifer Morton , Esquire, and Pat Kelly , Knoxville, Tennessee, for the appellant.

Jennifer L. Grace , Knoxville, Tennessee, for the agency.

BEFORE

Cathy A. Harris, Vice Chairman Raymond A. Limon, Member

OPINION AND ORDER

¶1 The agency has filed a petition for review and the appellant has filed a cross petition for review of the addendum initial decision, which granted the appellant’s motion for attorney fees. For the reasons discussed below, we DENY the agency’s petition for review; GRANT the appellant’s cross petition for review; AFFIRM the addendum initial decision in part and VACATE it in part; MODIFY the administrative judge’s computation regarding the number of hours spent by the appellant’s attorneys and award for costs; and REMAND the appeal for further adjudication consistent with this Opinion and Order. 2

BACKGROUND ¶2 Effective September 11, 2014, the agency removed the appellant from his position as a Senior Nuclear Security Officer (NSO) at the Tennessee Valley Authority Watts Bar Nuclear Plant, based on a charge of failure to meet the requirements of the Senior NSO position due to medical restrictions. Kelly v. Tennessee Valley Authority, MSPB Docket No. AT-0752-15-0064-I-1, Initial Decision (Sept. 9, 2015). The appellant filed a Board appeal challenging the removal action, and the administrative judge issued an initial decision reversing the removal and finding that the agency discriminated against the appellant based on his disability. Id. ¶3 Following the issuance of the initial decision, on September 30, 2015, the appellant signed a “Retainer agreement for [F]ederal MSPB administrative process,” whereby he agreed to have his attorney and her associate represent him in his pending Board appeal. Kelly v. Tennessee Valley Authority, MSPB Docket No. AT-0752-15-0064-A-1, Attorney Fee File (AFF), Tab 1 at 24-26. The agreement provided that the appellant would pay his attorney a discounted rate of $300 per hour and her associate a rate of $250 per hour. Id. at 24. The agreement further provided that, should the appellant receive a monetary settlement or recovery, his attorney would reimburse the appellant any fees that he paid and seek payment for attorney fees from the agency at the “current market rate for attorneys’ fees in this area.” Id. ¶4 Thereafter, the agency filed a petition for review of the September 9, 2015 initial decision, to which the appellant filed a response. Kelly v. Tennessee Valley Authority, MSPB Docket No. AT-0752-15-0064-I-1, Petition for Review File, Tabs 1, 8. On June 16, 2016, the Board issued a final order affirming the administrative judge’s decision to reverse the appellant’s removal. Kelly v. Tennessee Valley Authority, MSPB Docket No. AT-0752-15-0064-I-1, Final Order (June 16, 2016). 3

¶5 On August 12, 2016, the appellant’s attorney filed the instant motion in connection with the removal action. AFF, Tab 1. The administrative judge granted the appellant’s motion for fees, finding that the appellant was the prevailing party, he incurred fees pursuant to an existing attorney-client relationship, and that an award of fees is warranted in the interest of justice. AFF, Tab 13, Addendum Initial Decision (AID) at 2-4. Regarding the reasonableness of the fees, the administrative judge found that the $350 hourly rate for the appellant’s attorney is the prevailing community rate. AID at 4-7. However, she reduced the prevailing hourly rate for the attorney’s associate from $300 to $250. Id. The administrative judge found that both attorneys spent a total of 102.95 hours on the appellant’s case from September 28, 2015, through August 12, 2016. AID at 8. Specifically, the administrative judge found that the appellant’s attorney had spent 52.25 hours on the case and that the associate had spent 50.80 hours. AID at 8-9. Based on the above, she found that the total amount of fees recoverable by the appellant was $30,987.50. AID at 9. The administrative judge declined to consider the appellant’s second supplement for attorney fees, finding that it was untimely filed after the close of the record below. AID at 8 n.5; AFF, Tab 10. Additionally, the administrative judge found that the appellant is entitled to claimed costs in the amount of $932.24. AID at 9-10. The administrative judge ordered the agency to pay attorney fees and costs in the amount of $31,590.50. 1 AID at 10. ¶6 The agency has filed a petition for review. Petition for Review (PFR) File, Tab 6. The appellant has filed a response and a cross petition for review. PFR File, Tab 11. The agency filed a reply to the appellant’s response to the petition for review and a response in opposition to the appellant’s cross petition for review. PFR File, Tabs 16-17.

1 This total does not include a hotel cost of $329.24, which the administrative judge awarded but neglected to include in her calculations. AID at 10. 4

ANALYSIS The administrative judge erred in failing to apply the attorney fee standard under 5 U.S.C. § 7701(g)(2), and we modify the addendum initial decision accordingly. ¶7 In finding that fees were warranted, the administrative judge applied the attorney fee standard under 5 U.S.C. § 7701(g)(1), which authorizes the award of fees under an interest of justice standard. AID at 1-4. However, in cases in which prohibited discrimination under 5 U.S.C. § 2302(b)(1) has been found, the award of attorney fees is properly made under 5 U.S.C. § 7701(g)(2). See Kelly v. Department of the Navy, 43 M.S.P.R. 430, 433 (1990). That provision states that, if an employee “is the prevailing party and the decision is based on a finding of discrimination prohibited under section 2302(b)(1) of [Title 5], the payment of attorney fees shall be in accordance with the standards prescribed under section 706(k) of the Civil Rights Act of 1964 (42 U.S.C. § 2000e-5(k)).” 5 U.S.C. § 7701(g)(2). In turn, 42 U.S.C § 2000e-5(k) states that a court “in its discretion, may allow the prevailing party . . . a reasonable attorney’s fee . . . and the United States shall be liable for costs . . . .” The Supreme Court has interpreted this provision to entitle a prevailing plaintiff to an award of attorney fees “in all but special circumstances.” Christiansburg Garment Co. v. Equal Employment Opportunity Commission, 434 U.S. 412, 417 (1978); see E.E.O.C. v. Harris Farms, Inc., EEOC Appeal No. CIV F 02-6199 AWI LJO, 2006 WL 1028755, at *1 (E.D. Cal. 2006); Agonafer v. Rubin, 35 F. Supp. 2d 300, 305 (S.D.N.Y. 1998); Perez v. Federal Bureau of Investigation, 707 F. Supp. 891, 927 (W.D. Tex. 1988). ¶8 Thus, the Board has authority under 5 U.S.C. § 7701(g)(2) to award fees in accordance with the broader standards prescribed under the Civil Rights Act of 1964. See Kelly, 43 M.S.P.R.

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2024 MSPB 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kristopher-kelly-v-tennessee-valley-authority-mspb-2024.