National Ass'n for Mental Health, Inc. v. Weinberger

68 F.R.D. 387, 1975 U.S. Dist. LEXIS 16328
CourtDistrict Court, District of Columbia
DecidedSeptember 4, 1975
DocketCiv. A. No. 1812-73
StatusPublished
Cited by6 cases

This text of 68 F.R.D. 387 (National Ass'n for Mental Health, Inc. v. Weinberger) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Ass'n for Mental Health, Inc. v. Weinberger, 68 F.R.D. 387, 1975 U.S. Dist. LEXIS 16328 (D.D.C. 1975).

Opinion

MEMORANDUM

FLANNERY, District Judge.

This matter is before the court on petition of plaintiffs’ counsel, Jerome S. Wagshal, for the award of an appropriate attorney fee from the benefiting plaintiff classes. This case on the merits involved defendants’ impoundment of funds appropriated by Congress for mental health and alcoholism research and for training, prevention, treatment and rehabilitation of alcoholism. The case also involved defendants’ discontinuance of certain statutorily authorized programs. On February 7, 1974, the court found that the impoundments and other actions were illegal and ordered obligation of all impounded funds and cessation of all inconsistent actions by defendants. On September 4, 1974 petitioner filed the instant application for attorney fees. The application has been opposed by the United States to the extent that any fee is sought from grant funds. Opposition also has been filed by some members of each of the plaintiff classes. The class members’ opposition focuses largely on whether the court can order an in personam fee award to be paid by class members and on whether the eleventh amendment bars a fee assessment against certain class members. The court also has received substantial comment from other class members in support of Mr. Wagshal’s petition. The court has considered the extensive memoranda and comments filed by the participants and held a day-long hearing into this matter. This litigation has been lengthy and complex and has been described fully in previous papers filed by counsel and by the court, particularly the court’s Findings of Fact and Conclusions of Law, filed February 7, 1974. The court will not repeat a description of these matters except as relevant to the instant proceeding.

Petitioner rests his fee application primarily upon the principles enunciated in Sprague v. Ticonic National Bank, 307 U.S. 161, 59 S.Ct. 777, 83 L.Ed. 1184 (1939), and its progeny. He seeks an attorney fee from the three benefiting classes and has suggested different mechanics for payment of the fee, depending upon which class is involved. Generally, Mr. Wagshal suggests that the court order the fee paid from the grant funds currently under control of the court or that the court enter in personam orders directing individual class members to pay pro rata shares of the fee directly to him. Class 1 included all persons who had submitted or who would submit applications for mental health or alcoholism research or training grants which were to be funded pursuant to fiscal 1973 or fiscal 1974 appropriations under the Public Health Service Act. There are approximately 470 Class 1 members who benefited from this court’s final Order and Judgment. The class members could not be identified until after the court’s final Order and Judgment. As to Class 1 members petitioner does not seek a fee in personam but rather seeks a fee only from the funds cur[390]*390rently held by order of the court and from other funds which might remain unexpended by Class 1 grantees. Class 2 included all persons who have submitted or shall submit applications for alcoholism project grants which were to be funded in fiscal 1973 and 1974 under the Community Mental Health Centers Act. As with Class 1, the final grantees in Class 2 and thus the benefiting plaintiffs could not be determined until after the court’s Final Order and Judgment. There are approximately 250 Class 2 members. Class 3 is made up of all states entitled to allotment of fiscal 1973 and 1974 alcoholism formula grant appropriations under the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970. There were 55 total awards to states for fiscal 1973 and 1974. The Class 3 grantees .could have been determined prior to the court’s Final Order and Judgment. As to Classes 2 and 3 petitioner seeks a fee either from funds held by court order or a fee assessed in personam against the class members. All members of each class have been given notice of the pendency of the instant fee application.

In the case on the merits, substantial benefits were conferred upon each class. The suit sought release of fiscal 1973 funds and a declaratory judgment that 1974 funds also had to be released at the appropriate time. For Class 1, $53,351,-000 in 1973 funds and $204,739,000 in 1974 funds were released. For Class 2 the same year’s figures were $39,-319,000 and $71,556,000. For Class 3 the figures were $30,000,000 and $45,-600,000. Thus, the benefits for the three Classes amounted to $444,565,000. Further, the final judgment in this action halted defendants’ illegal attempts to curtail statutorily authorized programs.

This action on the merits was commenced on September 24, 1973, on behalf of 33 named plaintiffs. The principal funding plaintiff was the National Association for Mental Health [NAMH]. The NAMH agreed to pay Mr. Wagshal $35 per hour with the understanding that if Mr. Wagshall obtained relief for plaintiffs, then Mr. Wagshal would petition the court for a fee from the benefiting plaintiff classes. The court was not informed of this fee arrangement until the present fee application was filed. To date Mr. Wagshal has billed NAMH $27,580.10 and has been paid $24,344.64. Mr. Wagshal proposes that out of any fee awarded by the court, NAMH should be reimbursed for its substantial expenses since NAMH itself was not a grantee in the sense of receiving any of the released funds. NAMH, in papers filed with this court, joins in this suggestion that it be reimbursed.

The present application presents a variety of issues, many of which have been addressed by the court in the case of National Association of Regional Medical Programs v. Weinberger, 396 F.Supp. 842 (D.D.C.1975), appeal pending [hereinafter sometimes referred to as RMP]. Where identical or substantially similar matters have been addressed in the RMP case, the court will not repeat its analysis in this ease. In RMP the court held that attorney fees could be paid from the grant funds ordered released by the court. The court rejected defendants’ argument that payment of such a fee would violate 28 U.S. C. § 2412 and the Public Health Service Act. Defendants, in their final prehearing memorandum in this case, have admitted that the courts’ ruling in RMP on the power to use grant funds to pay a fee is dispositive of the same issue in this case.1 The court recognizes that the statutes involved in the instant case differ somewhat from those involved in RMP but nevertheless the same basic reasoning and analysis leads to the con-[391]*391elusion that the court can order a fee paid from grant funds, including those grant funds currently held by defendants pursuant to earlier order of this court. See Order Reserving Funds Pendente Lite, filed Feb. 12, 1975; RMP, supra at 3-8 and cases cited therein. See also Ojeda v. Hackney, 452 F.2d 947 (5th Cir. 1972) (welfare monies in fund under control of court could be used to pay attorney fee).

At pages 9-11 of the RMP opinion, the court held that that ease was a proper one in which to award attorney fees. Similarly, in this ease Mr. Wagshal represented three large Classes which have benefited greatly from the litigation brought on their behalf.

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68 F.R.D. 387, 1975 U.S. Dist. LEXIS 16328, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-assn-for-mental-health-inc-v-weinberger-dcd-1975.