McGill v. Faulkner

144 F.R.D. 82, 1992 WL 281982
CourtDistrict Court, N.D. Indiana
DecidedJuly 22, 1992
DocketNo. S85-70 (RLM)
StatusPublished
Cited by2 cases

This text of 144 F.R.D. 82 (McGill v. Faulkner) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McGill v. Faulkner, 144 F.R.D. 82, 1992 WL 281982 (N.D. Ind. 1992).

Opinion

MEMORANDUM AND ORDER

MILLER, District Judge.

The defendants in this action seek relief from the judgment entered on September 20, 1990, awarding plaintiff Herbert McGill costs and attorney fees in the amount of $39,654.91 pursuant to 42 U.S.C. § 1988. The defendants also seek an award of the costs incurred on appeal and sanctions pursuant to Fed.R.Civ.P. 11. Mr. McGill asks the court to enter judgment on the pendent state law negligence claim upon which the jury returned a verdict in Mr. McGill’s favor.

Motion for Relief from Judgment

Following the judgment in Mr. McGill’s favor and the denial of motions to stay in this court and the Court of Appeals, the defendants deposited $40,778.11 with the clerk of the court to satisfy the judgment and interest. These funds were disbursed to Mr. McGill’s counsel on March 12, 1991.

On September 17, 1991, 944 F.2d 344, the Court of Appeals reversed the judgment of the defendants’ liability that formed the basis for the award of costs and attorney fees. The defendants ask the court to order restitution of the funds disbursed on March 12, 1991, and the interest accrued from that date until payment at a fluctuating interest rate.

The defendants claim that because Mr. McGill no is longer the prevailing party under 42 U.S.C. § 1983, he is not entitled to attorney fees under § 1988. In Mother Goose Nursery Schools, Inc. v. Sendak, 770 F.2d 668, 675-76 (7th Cir.1985), cert. denied, 474 U.S. 1102, 106 S.Ct. 884, 88 L.Ed.2d 919 (1986), the Seventh Circuit reversed the summary judgment in the plaintiff’s favor, and determined that the attorney fees award under § 1988 must therefore be vacated. To leave a § 1988 award intact after a reversal of a § 1983 judgment would be an abuse of discretion if the party seeking relief from the § 1988 award sought relief from judgment under Fed.R.Civ.P. 60(b) within a reasonable time after the reversal of the § 1983 decision. Mother Goose Nursery Schools v. Sendak, [84]*84770 F.2d at 676. See also Palmer v. City of Chicago, 806 F.2d 1316, 1323-24 (7th Cir.1986), cert. denied, 481 U.S. 1049, 107 S.Ct. 2180, 95 L.Ed.2d 836 (1987); Harris v. Pirch, 677 F.2d 681, 689 (8th Cir.1982) (“The district court’s grant of attorney’s fees is nullified by this reversal.”). The defendants argue that to allow Mr. McGill’s counsel to retain the fees after the Seventh Circuit reversed the judgment would constitute unjust enrichment.

Mr. McGill argues that once a judgment is paid and satisfied, it is extinguished for all purposes, citing 49 C.J.S. Judgments § 577. Although Mother Goose Nursery Schools v. Sendak, 770 F.2d 668, treats Rule 60(b) as an appropriate remedy, it does not state whether the fees had been paid before the fee award was vacated. Mr. McGill claims that the defendants could have appealed the fee award, or they could have declined to pay the judgment until the appeal process was exhausted, but having satisfied the judgment and not appealing the award, the defendants have foreclosed other relief.

The defendants note that Mr. McGill took a different position when the Seventh Circuit considered the defendants’ motion to stay. Mr. McGill stated in response to the motion to stay, “If the Defendants would in fact pay the judgment awarding costs and attorneys fees and the principal case were overruled by this Court, the judgment would simply be repaid to the Defendants.” Now that the Court of Appeals has reversed the district court’s judgment, Mr. McGill has not repaid the defendants.

The defendants also note that the C.J.S. passage Mr. McGill cites is followed by § 578, Recovery of Payments, which states in part, “The restitution of money paid where a judgment is reversed is considered in the title Appeal and Error §§ 1980-1985.” As 5B C.J.S. Appeal and Error, § 1980 states:

Generally, a successful litigant on appeal has a right to restitution of benefits received by his adversary at the expense of the successful litigant under color of an erroneous judgement or decree. Accordingly, although the merits of the controversy between the parties may in no way be determined thereby, the reversal of a judgment or decree gives rise to a right in favor of the party who has lost money or property by reason of the judgment or decree to have restitution made thereof, and a corresponding duty or obligation on the part of the party who has received the benefits of the money or property to make the restitution to the adverse party.
* * * * * *
Although it has been held that if a judgment is reversed it is the duty of the court to restore the parties to their rights, it has also been held that it is within the discretion of the court to deny restitution where justice or equity does not require it. Hence, the power to compel restitution may not be exercised where there is another sufficient and available remedy, where the party in possession of the money or property in question is equitably entitled to retain it, or where the money has been paid or property taken otherwise than in pursuance of the judgment or decree which has been reversed.

Therefore, it appears that payments made in satisfaction of a judgment may be repaid if the judgment is reversed. Palmer v. City of Chicago, 806 F.2d at 1323, and Mother Goose Nursery Schools v. Sendak, 770 F.2d at 676, indicate that if Mr. McGill’s counsel were allowed to retain the funds disbursed to him pursuant to the § 1988 award, he would be unjustly enriched. The cases make no distinction between awards that are paid and those that are not. Accordingly, the defendants are entitled to repayment of the fees paid pursuant to § 1988.

The defendants claim that their motion for relief from judgment was filed within a reasonable time. The Seventh Circuit’s mandate issued on October 31, 1991, and the motion was filed within the 90-day period allowed by District Rule 43, which provides: “Following a final decision of the court, except as otherwise provided by statute or rule, parties shall have ninety (90) days in which to file requests for taxing [85]*85costs and requests for attorney fees.” The motion for relief from judgment is timely, as it was filed within a reasonable time after the Seventh Circuit’s decision.

The defendants ask the court to order the payment of interest accrued during the time Mr.

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Bluebook (online)
144 F.R.D. 82, 1992 WL 281982, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcgill-v-faulkner-innd-1992.