Nephew v. City of Aurora ex rel. Mayor

830 F.2d 1547
CourtCourt of Appeals for the Tenth Circuit
DecidedOctober 19, 1987
DocketNo. 83-2053
StatusPublished
Cited by1 cases

This text of 830 F.2d 1547 (Nephew v. City of Aurora ex rel. Mayor) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nephew v. City of Aurora ex rel. Mayor, 830 F.2d 1547 (10th Cir. 1987).

Opinions

McKAY, Circuit Judge.

We consider, en banc, the issue of an appropriate measure of attorney’s fees under 42 U.S.C. § 1988 when the sole recovery to the prevailing party in the underlying action is an award of nominal damages.

Plaintiffs, Jewell Nephew, Rafus Perkins, Elaine Neloms and Charles Fulton, filed suit against two Aurora police officers and the City of Aurora for infringing upon their constitutional rights in violation of 42 U.S.C. §§ 1981, 1983, 1985 (1982). Plaintiffs alleged they had been assaulted, battered and subjected to false arrest by the police officers pursuant to discriminatory policies against blacks sanctioned by the Mayor, City Council and City of Aurora. Plaintiffs sought compensatory damages, punitive damages and injunctive relief. The district court directed a verdict in favor of the Mayor and City Council at the end of plaintiffs’ case. The jury subsequently found in favor of the police officers with respect to two plaintiffs but found the constitutional rights of the remaining plaintiffs had been violated. The jury awarded each of the prevailing plaintiffs nominal damages of $1.

Plaintiffs then moved for attorneys’ fees under 42 U.S.C. § 1988 (1982).1 The district court reduced the number of hours requested by a portion of time spent on a related state case2 and because only two of the four parties prevailed. The court awarded $12,500 in fees to plaintiffs for 100 hours work at a rate of $125 per hour. On appeal, a divided court held that when a plaintiff seeks substantial damages but is awarded only nominal damages, the award must be discounted to compensate for plaintiffs’ very limited success. Nephew v. City of Aurora, 766 F.2d 1464, 1467 (10th Cir.1985). Upon petition for rehearing, we decided to reconsider the issue en banc in light of the recent Supreme Court decision in City of Riverside v. Rivera, 477 U.S. 561, 106 S.Ct. 2686, 91 L.Ed.2d 466 (1986).

I.

Section 1988 was created by the Civil Rights Attorney’s Awards Act of 1976, Pub.L. No. 94-559, 1976 U.S.Code Cong. & Admin.News p. 5908 (90 Stat.) 2641. The legislative history behind the bill refers to the appropriate standard for determining fees as the twelve-factor test set forth in Johnson v. Georgia Highway Express, Inc., 488 F.2d 714, 717-19 (5th Cir.1974).3 See H.R.Rep. No. 1558, 94th Cong.2d Sess. 8; S.R. No. 1011, 94th Cong.2d Sess. 4, reprinted in 1976 U.S.Code Cong. & Admin.News 5908, 5913. The Senate Report also states that attorneys’ fees should not be reduced because the rights involved may be nonpecuniary in nature. That accords with comments in Johnson that consideration of the amount of damages awarded [1549]*1549should not “obviate court scrutiny of the decision’s effect on the law.” 488 F.2d at 718.

The Supreme Court’s first opinion in the area, Hensley v. Eckerhart, 461 U.S. 424, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983), considered whether “a partially prevailing plaintiff [could] recover an attorney’s fee for legal services on an unsuccessful claim.” Id. at 426, 103 S.Ct. at 1936. The lodestar incorporates many of the Johnson factors and is considered the reasonable fee required by section 1988. Once determined, however, the figure can be adjusted upward or downward, according to certain factors, one of the most important of which is the “results obtained.” Id. at 434, 103 S.Ct. at 1940. In Hensley the Court remanded the case because the district court had not properly considered the results obtained. Although the Supreme Court held that the extent of a plaintiff’s success is a crucial factor in determining attorneys’ fees, the court did not bar the award of fees for unsuccessful claims. Instead it cautioned that “the district court should award only that amount of fees that is reasonable in relation to the results obtained.” Id. at 440, 103 S.Ct. at 1943.

In Rivera, the Court affirmed the application of the lodestar to a civil rights action in which a plaintiff recovers only monetary damages. Plaintiffs initially sued the City of Riverside, its police chief and thirty police officers on several state claims and alleged violations of their constitutional rights. Plaintiffs sought compensatory and punitive damages and injunctive relief. The court dismissed suits against seventeen of the officers on motion. The jury found in favor of plaintiffs and against the City and five of the officers. It awarded plaintiffs $33,350 in compensatory and punitive damages. The district court awarded attorneys’ fees of $245,456,25 to plaintiff: 1,946.75 hours at $125 per hour and 84.5 hours at $25 per hour for law clerks. The Supreme Court remanded the trial court’s initial award for reconsideration in light of Hensley. The district court arrived at the same conclusion and was affirmed on appeal. Defendants appealed again to the Supreme Court.

A five-member majority affirmed the trial court’s fee award, but the majority was divided in its analysis. Justice Brennan, writing for the plurality, initially focused on Hensley’s characterization of the nature of “results obtained,” “[wjhere a plaintiff has obtained excellent results, his attorney should recover a full compensatory fee ... the fee award should not be reduced simply because the plaintiff failed to prevail on every contention raised in the lawsuit.” Rivera, 106 S.Ct. at 2692 (quoting Hensley, 461 U.S. at 435, 103 S.Ct. at 1940). Extending the Hensley analysis to Rivera, the opinion explicitly rejected defendant’s contention that the lodestar approach was inappropriate to a civil rights action in which monetary damages are the only recovery. Id. 106 S.Ct. at 2694. The opinion also rejected a requirement that attorneys’ fees be conditioned on, or proportionate to, a monetary damages award. Id. at 2694, 2698. Although it noted that the amount of damages is relevant to the fee awarded, the opinion distinguished a civil rights action from private tort litigation because the civil rights plaintiff also vindicates “important civil and constitutional rights that cannot be valued in monetary terms.” Id. at 2694. That vindication often can include important social benefits that are not reflected in nominal damages. Thus, a proportionality rule would focus the fee evaluation on only one result obtained. It would also undermine the legislative intent underlying the Act: providing adequate compensation to attorneys to encourage them to accept civil rights cases in which monetary recovery might be limited.

Justice Powell, concurring, did not interpret Hensley’s analysis as broadly as did the plurality. Nevertheless, he also did not reject the lodestar approach when plaintiff's only recovery is monetary damages. Instead, he implicitly used the lodestar when he wrote: “the most critical factor [in the final

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830 F.2d 1547, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nephew-v-city-of-aurora-ex-rel-mayor-ca10-1987.