Rateree v. Rockett

668 F. Supp. 1155, 9 Fed. R. Serv. 3d 232, 1987 U.S. Dist. LEXIS 8774
District Court, N.D. Illinois·Decided August 24, 1987·No. 85 C 4700·Published·Cited by 13 cases

Opinion

MEMORANDUM OPINION AND ORDER

SHADUR, District Judge.

This opinion deals with a post-judgment dispute in this action brought under 42 U.S.C. § 1983 (“Section 1983”) — a dispute as to plaintiffs’ right to recover attorney’s fees as part of costs under 42 U.S.C. § 1988 (“Section 1988”). Because this Court has explained the nature and background of the underlying action itself in an earlier published opinion (630 F.Supp. 763 (N.D.Ill.1986) 1 ), this opinion will assume familiarity with that background and proceed directly to the consideration of the current motion.

For current purposes, the relevant occurrences began shortly before the scheduled trial date of June 23, 1987 — which was known to counsel for both sides as a firm date, with this Court having reserved the anticipated trial time on its calendar and with no other case set for the same time period. 2 On June 11 the City Council of defendant City of Harvey (“City”) met in executive session 3 and resolved to try to settle the case.

On June 12 defendants’ counsel therefore telephoned plaintiffs’ counsel and said (1) City was offering $71,000 in settlement (the total amount authorized by the City Council, though plaintiffs’ counsel of course had no way of knowing the nature of the discussion that had taken place in the Council’s executive session) and (2) City had to have an answer by the end of that day. 4 Plaintiffs’ counsel said he could not assure a response to the offer before June 12 had passed (at least in part because of the logistical problems inherent in having to reach and confer with all four plaintiffs). Defendants’ counsel then decided to put the offer in a form and manner that would comply with Fed.R.Civ.P. (“Rule”) 68.

Defendants’ counsel did just that the very same afternoon (see Ex. C). On the next business day (Monday, June 15) plaintiffs accepted the Rule 68 offer unconditionally (see Ex. D). Defendants’ counsel then sought to obtain execution of a “settlement agreement and release” (Malciauskas Aff. 117), but plaintiffs’ counsel took the position that the Rule 68 offer and acceptance had disposed of the matter except for the award of costs (including reasonable attorney’s fees), which plaintiffs would then proceed to seek.

On June 19 the Clerk of this District Court entered judgment in accordance with the Rule 68 offer, as the Rule itself required:

IT IS ORDERED AND ADJUDGED that judgment is hereby entered in favor of plaintiffs Bonnie Rateree, Ken Vaughn, William Gardner and Leander Brown and against defendant City of Harvey pursuant to Rule 68, F.R.C.P. in the amount of $71,000.00.

Now the parties dispute the costs (and attorney’s fees) issue.

*1157 Rule 68 Principles

By chance two of this Court’s earlier cases have been at the cutting edge of the law of Rule 68. In the more important of those, Marek v. Chesny, 473 U.S. 1, 105 S.Ct. 3012, 87 L.Ed.2d 1 (1985), 5 the Supreme Court reversed our Court of Appeals’ reversal (720 F.2d 474 (7th Cir.1983)) of this Court’s decision (547 F.Supp. 542 (N.D.Ill.1982)). This Court had held, and the Supreme Court confirmed, that a plaintiff’s rejection of a Rule 68 offer did cut off the plaintiff’s recovery of post-offer attorney’s fees in a Section 1983 case where the ultimate judgment at trial proved to be less than the offer. And that of course is the main goal of a Rule 68 offer in the Section 1983 context. 6

Marek, 473 U.S. at 6, 105 S.Ct. at 3015-16 (citation omitted) states the operative rules for purposes of the current motion in unmistakable terms:

If an offer recites that costs are included or specifies an amount for costs, and the plaintiff accepts the offer, the judgment will necessarily include costs; if the offer does not state that costs are included and an amount for costs is not specified, the court will be obliged by the terms of the Rule to include in its judgment an additional amount which in its discretion ... it determines to be sufficient to cover the costs.

There is no question that defendants’ offer fit the second of those descriptions: It did not say that costs were included, nor did it specify an amount for costs. 7 What the immediately following language in Marek, id. (emphasis in original) makes plain (in accordance with Rule 68’s language, which makes costs a component of every valid offer under the Rule) is that defendants’ silence on that score is conclusive:

Accordingly, it is immaterial whether the offer recites that costs are included, whether it specifies the amount the defendant is allowing for costs, or, for that matter, whether it refers to costs at all. As long as the offer does not implicitly or explicitly provide that the judgment not include costs, a timely offer will be valid.

Thus plaintiffs must win here unless defendants can advance some predicate for an escape from Marek's teaching.

To that end defendants’ counsel evidences substantial creativity (albeit some disingenuity en route) in trying to extricate defendants from liability. None of the arguments works.

In large part defendants seek to draw on a distortion of contractual principles. For *1158 one thing they try to put the onus on plaintiffs (D.Mem. 4, citations omitted):

The Notice of Acceptance filed with this Court set forth no claim, counter-offer or demand for additional costs and fees above the $71,000____ If plaintiffs wished to obtain additional costs or fees before accepting the offer of judgment, they should have insisted that defendants so provide instead of unconditionally accepting the offer. 8

That of course is at war both with Marek and with the whole concept of Rule 68, which gives the defendant full control over defining the terms of its own offer. And consistently with the whole offer-and-acceptance notion, a plaintiff cannot do anything except simply say “I accept” if he or she expects to enforce the offer under Rule 68.

In much the same vein, defendants say plaintiffs cannot recover attorney’s fees because they failed to seek an amendment to the judgment under Rule 59(e) to specify such a recovery. But Rule 54(d) specifically provides:

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Rateree v. Rockett, 668 F. Supp. 1155, 9 Fed. R. Serv. 3d 232, 1987 U.S. Dist. LEXIS 8774 (N.D. Ill. 1987).

668 F. Supp. 1155 (Rateree v. Rockett) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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