Perez-Sosa v. Garland

22 F.4th 312
Court of Appeals for the First Circuit·Decided January 7, 2022·No. 20-2083P·Published·Cited by 33 cases

Opinion

United States Court of Appeals For the First Circuit

No. 20-2083 NELSON JOSÉ PÉREZ-SOSA,

Plaintiff, Appellant,

v.

MERRICK B. GARLAND,*

UNITED STATES ATTORNEY GENERAL,

Defendant, Appellee.

APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF PUERTO RICO

[Hon. William E. Smith,** U.S. District Judge]

Before

Barron, Selya, and Lipez, Circuit Judges.

Judith Berkan, with whom Mary Jo Méndez and Berkan/Méndez were on brief, for appellant.

Mónica P. Folch, Assistant United States Attorney, Southern District of New York, with whom Audrey Strauss, United States Attorney, Southern District of New York, and Benjamin H. Torrance, Assistant United States Attorney, Southern District of New York, were on brief, for appellee.

* Pursuant to Fed. R. App. P. 43(c)(2), Attorney General Merrick B. Garland has been substituted for former Attorney General William P. Barr as the defendant-appellee.

** Of the District Court of Rhode Island, sitting by designation.

January 7, 2022

SELYA, Circuit Judge. Once the parties had resolved this bitter employment discrimination dispute, a secondary squabble erupted over the amount of attorneys' fees due to the prevailing party (plaintiff-appellant Nelson Pérez-Sosa). The district court reviewed detailed submissions from the parties and awarded the plaintiff $170,331.56 in attorneys' fees. The plaintiff challenges the architecture of the fee award and argues that it does not reasonably compensate the attorney for her time.

Stripped to its essentials, the plaintiff's appeal challenges the structural integrity of the fee award on the basis of seven distinct rulings. After careful consideration, we affirm all but two of those rulings, reverse those two rulings, vacate the fee award, and remand for further proceedings consistent with this opinion. I. BACKGROUND For several years, the plaintiff headed the appellate practice of the United States Attorney's Office for the District of Puerto Rico (the Office). During that time frame, the plaintiff appeared as a witness in support of two colleagues, Carmen Márquez- Marín (Márquez) and Francisco Reyes Caparrós (Reyes), each of whom had complained of discriminatory or otherwise improper conduct by the Office, in violation of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. §§ 2000e-2000e-17. In separate proceedings, Márquez and Reyes both won jury verdicts against the

Office. See Márquez-Marín v. Barr, 463 F. Supp. 3d 165, 172 (D.P.R. 2020); Reyes Caparrós v. Barr, No. 15-2229, 2020 WL 1487267, at *1 (D.P.R. Feb. 28, 2020), appeal docketed, No. 20- 1792 (1st Cir. Aug. 19, 2020). In addition, Márquez brought a further suit, which is still pending. See Márquez-Marín, 463 F. Supp. 3d at 288 (denying summary judgment).

Some details are helpful. In 2006, the plaintiff testified against the Office at trial in Márquez's original action, which arose from the termination of her employment at the Office. As a result of that action, Márquez was reinstated by court order. Márquez's return to her duties was stormy, and the plaintiff provided testimony favorable to her in further proceedings before the Department of Justice's Equal Employment Opportunity (EEO) officers. The plaintiff also provided testimony favorable to Reyes with respect to his EEO complaint against the Office.

In April of 2016, the plaintiff was passed over for reappointment as Chief of the Appellate Division of the Office (a position he had held, under one title or another, for over twenty years). Having not been reappointed to his leadership role — a demotion that he believed was linked to his earlier testimony — the plaintiff reverted to the position of line attorney. He proceeded to file his own EEO complaint against the Office, alleging constructive discharge in retaliation for his support of his complaining colleagues, and then resigned that December. After

that proceeding ran its course, the plaintiff filed suit in the district court, alleging discrimination and retaliation under Title VII.1 See 42 U.S.C. § 2000e-16(a); see also Green v. Brennan, 578 U.S. 547, 551 n.1 (2016) ("assum[ing] without deciding that it is unlawful for a federal agency to retaliate against a civil servant for complaining of discrimination"). For this purpose, the plaintiff retained Maricarmen Almodóvar-Díaz (Attorney Almodóvar), a sole practitioner in Puerto Rico who has handled civil rights and employment discrimination matters since 1992.

From the outset, a visiting judge was assigned to preside over the plaintiff's case — and that same judge continued to preside over the ancillary fee-award proceedings. For nearly three years, the parties sparred over discovery and other issues. Progress was slow: no significant depositions were taken and no dispositive motions were filed.

In February of 2020, the parties negotiated a settlement. Under the terms of the settlement, the plaintiff received a lump-sum payment of $450,000 plus reasonable attorneys' fees. The amount of the fee award was left open, to be resolved by further negotiation or — in default of an agreement — by the district court.

1The plaintiff named the Attorney General of the United States as the defendant. See 42 U.S.C. § 2000e-16(c). For ease in exposition, we treat the Office as if it were the named defendant.

With the fee amount still up in the air, the plaintiff moved for an award of $385,043.75. In support, he urged the district court to endorse a rate of $325 per hour for Attorney Almodóvar's time and to apply that rate to almost 1,200 hours of claimed work. The Office filed an opposition, and the plaintiff made a further filing in response.

The district court, in an unpublished rescript, set out its findings and awarded the plaintiff a total of $170,331.56 in attorneys' fees. We sketch the parameters of that award.

Employing the lodestar method, the court fixed Attorney Almodóvar's hourly rate at $275 for time expended on core legal work and $165 for time expended on non-core work (including travel). In the process, it eliminated all time spent on settlement negotiations and in connection with the Márquez and Reyes matters. It proceeded to subtract hours that it deemed excessive or unproductive and discounted hours too vaguely recorded. Then, the court applied "an across-the-board 25% cut" for what it perceived as "inflated" billing. Finally, the court rejected the Office's suggestion that the fee award be slashed due to the munificence of the settlement. The court explained that "[t]he settlement award was reasonable for this case" and, thus, reducing the fee because of the size of the award "would . . . disincentivize an efficient settlement process in future Title VII cases."

Viewing the award as unreasonably low, the plaintiff appealed. II. ANALYSIS We review a challenge to an award of attorneys' fees for abuse of discretion. See Gay Officers Action League v. Puerto Rico (GOAL), 247 F.3d 288, 292 (1st Cir. 2001). Of course, a material error of law is perforce an abuse of discretion. See id. Absent a material error of law, "we will set aside a fee award only if it clearly appears that the trial court ignored a factor deserving significant weight, relied upon an improper factor, or evaluated all the proper factors (and no improper ones), but made a serious mistake in weighing them." Id. at 292-93.

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Perez-Sosa v. Garland, 22 F.4th 312 (1st Cir. 2022).

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