Perez-Sosa v. Garland

22 F.4th 312
CourtCourt of Appeals for the First Circuit
DecidedJanuary 7, 2022
Docket20-2083P
StatusPublished
Cited by33 cases

This text of 22 F.4th 312 (Perez-Sosa v. Garland) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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

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

- 3 - 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

- 4 - 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.

- 5 - 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."

- 6 - Viewing the award as unreasonably low, the plaintiff

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