Liberles v. Daniel

619 F. Supp. 1016, 39 Fair Empl. Prac. Cas. (BNA) 277, 1985 U.S. Dist. LEXIS 17295, 40 Empl. Prac. Dec. (CCH) 36,269
CourtDistrict Court, N.D. Illinois
DecidedJuly 31, 1985
DocketNo. 73 C 3217
StatusPublished
Cited by2 cases

This text of 619 F. Supp. 1016 (Liberles v. Daniel) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Liberles v. Daniel, 619 F. Supp. 1016, 39 Fair Empl. Prac. Cas. (BNA) 277, 1985 U.S. Dist. LEXIS 17295, 40 Empl. Prac. Dec. (CCH) 36,269 (N.D. Ill. 1985).

Opinion

MEMORANDUM OPINION AND ORDER

ASPEN, District Judge:

After eleven years of litigation, the class in this Title VII ease was awarded and has been paid a judgment of more than $13 million — one of the largest race discrimination money judgments ever paid in this country. Presently before the Court is the petition of plaintiffs’ counsel (“petitioners”) for attorney’s fees and costs. For the reasons set forth below, we find that petitioners are entitled to an award of $451,208.69 in fees and costs from the State defendants.1

[1017]*1017I.

Title VII of the Civil Rights Act of 1964 provides that a court, “in its discretion, may allow the prevailing party ... a reasonable attorney’s fee as part of the costs____” 42 U.S.C. § 2000e-5(k). Pursuant to this statutory provision, petitioners request a total award of $960,424.75 in attorney’s fees and out-of-pocket costs from the State. Petitioners reach the attorney’s fee figure through a two-step calculation. First, they multiply the number of hours they worked by their requested hourly rates to obtain a “lodestar fee.” Second, petitioners increase most of the lodestar fee by a multiplier of 3.5, which they contend is appropriate here. The State concedes that petitioner’s lodestar fee is reasonable. Thus, the only contested issue is what, if any, multiplier is proper to yield an attorney’s fee that is reasonable under the circumstances of this ease.

Both the Supreme Court and the Seventh Circuit have recently discussed the use of multipliers in civil rights cases.2 In Blum v. Stenson, 465 U.S. 886, 104 S,Ct. 1541, 79 L.Ed.2d 891 (1984), the Supreme! Court reaffirmed its holding that although the “product of reasonable hours times a reasonable rate” normally provides a “reasonable” attorney’s fee, “in some cases of exceptional success an enhanced award may be justified.” Id., 465 U.S. at-, 104 S.Ct. at 1548, quoting Hensley v. Eck-erhart, 461 U.S. 424, 435, 103 S.Ct. 1933, 1940, 76 L.Ed.2d 40 (1983). The Court then discussed some of the factors which might be used to increase the lodestar figure.

The Blum Court first rejected the use of the novelty or complexity of the issues to enhance a fee award. The Court reasoned that these factors presumably are reflected already in the number of billable hours recorded by counsel. Moreover, any special skill of the attorney in handling novel or complex issues should be reflected in the reasonableness of the attorney’s hourly rates. Blum, 465 U.S. at-, 104 S.Ct. at 1548-49.

Similarly, the Court noted that the quality of representation is generally reflected in the reasonable hourly rate. However, this factor may warrant an upward adjustment in rare cases where the fee applicant offers specific evidence that the quality of legal services rendered was superior to that one reasonably should expect in light of the hourly rates charged and that the success was “exceptional.” Id., 465 U.S. at -, 104 S.Ct. at 1549.

The Court also considered whether a fee award should be increased because of the “results obtained.” In Hensley, the Court had noted that this factor was especially important in determining reasonable attorney’s fees where the plaintiff prevailed only on some of his claims for relief. Hensley, 461 U.S. at 436, 103 S.Ct. at 1940. However, in Blum the Court held that the results obtained “normally should not provide an independent basis for increasing the fee award” because the results generally will be subsumed within other factors used to calculate a reasonable fee. Blum, 465 U.S. at-, 104 S.Ct. at 1549.3

The Court mentioned one other factor sometimes used to justify an upward adjustment of fees: the risk of not prevailing and thus not recovering any attorney’s [1018]*1018fees. The majority opinion did not resolve the question whether this factor may be used properly to enhance an award of attorney’s fees. Id., 465 U.S. at-n. 17, 104 S.Ct. at 1550 n. 17. Justice Brennan, on the other hand, in a concurring opinion reaffirmed his view that the risk of not prevailing is indeed a proper factor. Id., 465 U.S. at -, 104 S.Ct. at 1550-51 (Brennan, J., concurring).

Thus, in Blum the Supreme Court repeated its statement that the use of a multiplier may be justified in “some cases of exceptional success,” and it left open the possibility that the risk of nonpayment may require an upward adjustment to provide a reasonable fee. Unfortunately, the Court did not explain what constitutes a case of exceptional success. Rather than defining the term, the Court simply ruled out certain factors which do not justify using a multiplier: novelty, complexity and, in most cases, quality of representation and the results obtained.

Although the Seventh Circuit Court of Appeals has not had occasion to define “cases of exceptional success” subsequent to Hensley and Blum, earlier Seventh Circuit opinions have discussed at some length the use of multipliers. In In re Illinois Congressional Districts Reapportionment Cases, 704 F.2d 380 (7th Cir.1983), the Seventh Circuit noted that although the award of attorney’s fees is committed to the sound discretion of the district courts, they should not lightly employ multipliers in making fee awards. Rather, multipliers “should be given only in cases that are significant and where the quality of the attorney’s work is considerably above average.” Id. at 384.

In that case, the Seventh Circuit approved the use of a multiplier based upon several factors. These included: the contingent nature of the attorney’s fee,4 the magnitude and complexity of the case, the excellent quality of the attorneys’ work, the public interest served by plaintiff’s counsel and the preclusion of plaintiff’s attorneys from other employment because of the case. Id. at 382-83. This approach is consistent with that established by the Seventh Circuit in previous cases — after calculating the lodestar fee, the court may make adjustments for various other factors set out in the Code of Professional Responsibility as adopted by the American Bar Association.5 E.g., Chrapliwy v. Uniroyal, Inc., 670 F.2d 760, 763-64 n. 5, 769 (7th Cir.1982), cert. denied, 461 U.S. 956, 103 S.Ct. 2428, 77 L.Ed.2d 1315 (1983); Muscare v. Quinn, 614 F.2d 577, 579 (7th Cir. 1980).

After the Supreme Court’s opinion in Blum, however, some of the factors previously considered by the Seventh Circuit should no longer be used to justify the use of a multiplier. For example, the Blum Court clearly barred the use of the complexity or novelty of the issues. Blum, 465 U.S. at-, 104 S.Ct. at 1549.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Shakman v. Democratic Organization of Cook County
677 F. Supp. 933 (N.D. Illinois, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
619 F. Supp. 1016, 39 Fair Empl. Prac. Cas. (BNA) 277, 1985 U.S. Dist. LEXIS 17295, 40 Empl. Prac. Dec. (CCH) 36,269, Counsel Stack Legal Research, https://law.counselstack.com/opinion/liberles-v-daniel-ilnd-1985.