P.-K. v. Department of Education, State of Hawai'i

CourtDistrict Court, D. Hawaii
DecidedMarch 28, 2023
Docket1:10-cv-00436
StatusUnknown

This text of P.-K. v. Department of Education, State of Hawai'i (P.-K. v. Department of Education, State of Hawai'i) is published on Counsel Stack Legal Research, covering District Court, D. Hawaii primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
P.-K. v. Department of Education, State of Hawai'i, (D. Haw. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF HAWAII E.R.K, through his legal ) CIVIL NO. 10-00436 SOM/RT guardian, R.K., et al., ) ) ORDER GRANTING IN PART AND Plaintiffs, ) DENYING IN PART PLAINTIFFS’ ) REQUEST FOR ADMINISTRATIVE vs. ) FEES AND ATTORNEYS’ FEES ) DEPARTMENT OF EDUCATION, ) State of Hawaii, ) ) Defendant. ) _____________________________ ) ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFFS’ REQUEST FOR ADMINISTRATIVE FEES AND ATTORNEYS’ FEES I. INTRODUCTION. This certified class action, originally filed in 2010, was filed to address the denial by the State of Hawaii Department of Education (“DOE”) of services under the Individuals with Disabilities Education Act (“IDEA”) to individuals that the DOE viewed as having “aged out” of being eligible to receive services. Originally assigned to a different district court judge, this case went to the Ninth Circuit, which held that the individuals had been prematurely denied services. On remand, this matter was settled, with the DOE agreeing to deposit $8,750,000.00 into an interest-bearing bank account (“Services Fund”) and to pay class counsel $1,500,000 in attorneys’ fees and costs, an additional $250,000 in attorneys’ fees with court approval, and such other attorneys’ fees as class counsel might request from the court with notice to DOE counsel. See ECF No. 486-1, PageID #s 7234-35. As of July 2022, the Services Fund had a balance of $285,779.15, with approximately $95,000 in pending disbursements at that time, and the court had before it the matters sought by the present motion. See ECF No. 706, PageID # 10722. The DOE argues, and this court agrees, that any additional attorneys’ fees must be paid out of the Services Fund because the DOE has no further obligation under the Settlement Agreement. See id., PageID # 10726-27; ECF 486-1, PageID # 7235 (“Should Class Counsel seek additional attorneys’ fees and costs from the Services Fund, Class Counsel shall make a written request to the Court with notice to HIDOE counsel.”). To date, Plaintiffs have received more than $2 million in attorneys’ fees. In the present motion, filed on July 1, 2022, Plaintiffs seek $238,241.50 in fees.1 See ECF No. 705. This amount covers the same fees that the court declined to award as administrative fees in ECF No. 700. The court now awards

Plaintiffs’ counsel a total of $143,291.40 from the Services Fund. This amount is calculated by adding an award of $2,425.50 of the $3,465.00 requested (70 percent of the requested amount)

1 Many of Plaintiffs’ prior requests for fees were handled by Magistrate Judge Rom Trader, either with the parties’ consent that he issue a final order or with review by the present district judge when objections were lodged. Although that process was initially followed with the present motion, the magistrate and district judges assigned to this case ultimately decided to collaborate and to have the district judge issue the resulting order. 2 for administrative work, plus an award of $140,865.90 of the $234,776.50 requested (60 percent of the requested amount) in attorneys’ fees. The fees awarded from the Services Fund shall not exceed the balance of the Services Fund. II. BACKGROUND. Because the parties and the court are familiar with the lengthy history of this case, the court provides only a synopsis of the relevant facts. On December 8, 2017, this court approved a settlement in this class action. See ECF No. 482. The Settlement Agreement provided for the funding of a Services Fund (a fund from which special education and related services were to be provided to eligible class members who had not previously been offered those services) in the amount of $8,750,000.00. The Settlement Agreement also provided for $1,500,000 in attorneys’ fees. ECF No. 486-1 at PageID # 7234-7235. The Settlement

Agreement provided that “an additional $250,000.00 may be awarded to Class Counsel out of the Services Fund upon application to and approval by the court.” Id., PageID # 7235. The Settlement Agreement additionally allowed class counsel to “seek additional attorneys’ fees and costs from the Services Fund” via a written request to the court with notice to the DOE. Id. The Settlement Agreement provided for the appointment of a Settlement Administrator. Id. On December 27, 2017, retired Hawaii Supreme Court Associate Justice James E. Duffy, 3 Jr., was appointed as the Settlement Administrator and given the task of managing and controlling the Services Fund. Id. at 7233- 35; ECF No. 493. The Settlement Administrator’s job was to handle the following matters: Promptly review and at his/her discretion approve payments/reimbursements when an ECM [eligible class member] submits an invoice for current Services, verification of payment for past Services, and/or treatment plan for future Services to the Settlement Administrator for approval. ECF No. 486-1, PageID # 7238. The Settlement Administrator was authorized to do the following: hire and supervise (1) a person or persons knowledgeable about the IDEA and related services; (2) a bookkeeper and/or an accounting service, which will be responsible for direct payment to providers and reimbursement payments to individuals; and/or, (3) staff persons to facilitate effective communication with ECMs. Id. The Settlement Administrator hired independent contractors, services coordinators, and Plaintiffs’ counsel to perform administrative tasks and to administer the Services Fund. See ECF No. 680-1, PageID # 9714-16. On March 1, 2016, this court awarded Plaintiffs $100,000 in interim attorneys’ fees, recognizing at that time that it had been more than five and a half years since the inception of this case and that there was no dispute that Plaintiffs had incurred at least $100,000 in additional attorneys’ fees awardable under the Settlement Agreement. See 4 ECF No. 345 at PageID # 6345-46. Because this court could foresee further motions seeking attorneys’ fees and had studied the nature of that initial request for fees, the court, as summarized below, provided Plaintiffs with guidance with respect to future motions seeking reasonable attorneys’ fees: 1. Plaintiffs were to exclude from future fee requests “overzealous and overreaching” work; 2. Plaintiffs were to seek only reasonable hourly rates; 3. The court would not award attorneys’ fees for time spent by staff other than paralegals; 4. The court would not award attorneys’ fees for clerical/ministerial tasks performed by attorneys, including contacting potential class members via phone, unless Plaintiffs demonstrated that attorneys had to be the ones performing such work; 5. Plaintiffs were to exclude duplicative fees; and 6. Any fee request should include timesheet descriptions that did not contain block billing. See id. at 6347-48. On November 8, 2018, and December 16, 2019, the court additionally awarded Plaintiffs $35,032.45 and $75,000.00 in interim attorneys’ fees. See ECF Nos. 510 and 550. In the 2019 order, the court reiterated, “This court previously warned class counsel that the court was likely to cut time for clerical or 5 ministerial tasks performed by attorneys.” ECF No. 550, PageID # 7724 (quotation marks and citation omitted). On February 25, 2022, Plaintiffs sought $456,437.29 in further attorneys’ fees. See ECF No. 675. The parties consented to having Magistrate Judge Trader decide that motion. See ECF No. 694. Magistrate Judge Trader ruled that Plaintiffs were not limited by the Settlement Agreement to an additional $250,000 of attorneys’ fees above the $1,500,000 already received as part of the settlement. Magistrate Judge Trader noted that the Settlement Agreement provided, “Should Class Counsel seek additional attorneys’ fees and costs from the Services Fund, Class Counsel shall make a written request to the Court with notice to HIDOE counsel.” See ECF No. 688, PageID #s 10139, 10141-43.

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Bluebook (online)
P.-K. v. Department of Education, State of Hawai'i, Counsel Stack Legal Research, https://law.counselstack.com/opinion/p-k-v-department-of-education-state-of-hawaii-hid-2023.