Rayna P. v. Campus Cmty. Sch.
This text of 390 F. Supp. 3d 556 (Rayna P. v. Campus Cmty. Sch.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
MCHUGH, J.
This is an IDEA case where Plaintiffs, having prevailed on most issues, seek counsel fees. The Defendant charter school objects generally to the amount of fees sought and seeks a reduction based upon its purported inability to pay. Plaintiffs' attorneys prevailed for their clients by providing competent and diligent representation in this multi-year, complicated, highly specialized state administrative and federal litigation, and they are entitled to reasonable fees. For the reasons that follow, I grant Plaintiffs' motions in large part.
I. Factual and Procedural Background
Rayna P. and M.C., siblings, are children with disabilities. Their parents filed two separate suits in this Court on each child's behalf, appealing decisions by Delaware Special Education Due Process Hearing Officers under the Individuals with Disabilities Education Act (IDEA). I granted the majority of parents' requested relief in both cases, thereby diverging significantly from the Due Process Panel decisions. In Rayna P.'s case, I decided that the Due Process Panel was wrong to cap relief at two years prior to May 27, 2014-the reasonable discovery date-because there is no retrospective limit on relief under the IDEA. I also granted one full day of compensatory education for every day she was present in school and 2.5 *561hours for each day she was absent. This contrasts with the Panel's denial of compensatory education for days on which Rayna P. was present in school and its grant of just 1 hour of compensatory education per day for days on which she was absent. I denied Rayna P.'s request for compensatory education for three summers of summer school (extended school year or ESY). In M.P.'s case, I decided that the Due Process Panel was wrong to excuse as "reasonable" a denial of free appropriate public education (FAPE) for a period of a year. I also increased the panel's allotted hourly rate for compensatory education from $17.50 to $70 and I rejected the Panel's order creating a four-year time limit on M.P.'s use of compensatory education funds, ordering instead that M.P. had until the end of his 21st year (he was 13 at the time I decided the case) to use the funds. But I upheld the Panel's denial of compensatory education for summer school (ESY).
II. Discussion
A. Legal Standard
The IDEA, which formed the basis of Plaintiffs' prevailing cases and therefore applies here, is a fee-shifting statute. See
A "prevailing party" is a party that succeeds on any significant issue in litigation which achieves some of the benefit sought in bringing suit. See Hensley ,
Reasonable attorneys' fees are determined by "multiplying the number of hours reasonably expended by a reasonable hourly rate." Maldonado v. Houstoun ,
*562Plaintiffs seek an award of attorneys' fees and costs for both cases in the total amount of $375,869.86, to which Defendant objects.
B. Number of Hours Reasonably Expended
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MCHUGH, J.
This is an IDEA case where Plaintiffs, having prevailed on most issues, seek counsel fees. The Defendant charter school objects generally to the amount of fees sought and seeks a reduction based upon its purported inability to pay. Plaintiffs' attorneys prevailed for their clients by providing competent and diligent representation in this multi-year, complicated, highly specialized state administrative and federal litigation, and they are entitled to reasonable fees. For the reasons that follow, I grant Plaintiffs' motions in large part.
I. Factual and Procedural Background
Rayna P. and M.C., siblings, are children with disabilities. Their parents filed two separate suits in this Court on each child's behalf, appealing decisions by Delaware Special Education Due Process Hearing Officers under the Individuals with Disabilities Education Act (IDEA). I granted the majority of parents' requested relief in both cases, thereby diverging significantly from the Due Process Panel decisions. In Rayna P.'s case, I decided that the Due Process Panel was wrong to cap relief at two years prior to May 27, 2014-the reasonable discovery date-because there is no retrospective limit on relief under the IDEA. I also granted one full day of compensatory education for every day she was present in school and 2.5 *561hours for each day she was absent. This contrasts with the Panel's denial of compensatory education for days on which Rayna P. was present in school and its grant of just 1 hour of compensatory education per day for days on which she was absent. I denied Rayna P.'s request for compensatory education for three summers of summer school (extended school year or ESY). In M.P.'s case, I decided that the Due Process Panel was wrong to excuse as "reasonable" a denial of free appropriate public education (FAPE) for a period of a year. I also increased the panel's allotted hourly rate for compensatory education from $17.50 to $70 and I rejected the Panel's order creating a four-year time limit on M.P.'s use of compensatory education funds, ordering instead that M.P. had until the end of his 21st year (he was 13 at the time I decided the case) to use the funds. But I upheld the Panel's denial of compensatory education for summer school (ESY).
II. Discussion
A. Legal Standard
The IDEA, which formed the basis of Plaintiffs' prevailing cases and therefore applies here, is a fee-shifting statute. See
A "prevailing party" is a party that succeeds on any significant issue in litigation which achieves some of the benefit sought in bringing suit. See Hensley ,
Reasonable attorneys' fees are determined by "multiplying the number of hours reasonably expended by a reasonable hourly rate." Maldonado v. Houstoun ,
*562Plaintiffs seek an award of attorneys' fees and costs for both cases in the total amount of $375,869.86, to which Defendant objects.
B. Number of Hours Reasonably Expended
"Counsel for the prevailing party should make a good faith effort to exclude from a fee request hours that are excessive, redundant, or otherwise unnecessary, just as a lawyer in private practice ethically is obligated to exclude such hours from his fee submission." Hensley ,
Defendant challenges Plaintiffs' billing records for vagueness and lack of specificity. I find the items listed in Plaintiffs' attorneys' billing records sufficiently specific to allow me to determine whether the hours claimed are unreasonable for the work performed. Plaintiffs' attorneys bill for items such as "research case law governing statute of limitations," "review of file materials regarding strategy" and "preparation of correspondence to Hearing Officer," and "in-person discussion with counsel." Such entries are sufficiently specific. See Washington ,
Hours Spent on Intraoffice Communications
Defendants protest that Plaintiffs seek to generate an inordinate amount of presumably unnecessary "fees for excessive intraoffice communications and fees for communications with clients, none of which would ordinarily be passed on to clients." I disagree. By Defendant's count, Plaintiffs' attorneys' billing records contain 768 references to "intraoffice communications. While this number appears high at first glance, a closer look at Plaintiffs' billing records suggests an appropriate amount of time spent on internal communications.
Plaintiffs' billing records are organized by date, not by task or attorney. I note that this is far from ideal, requiring the court to expend time tallying the hours spent on intraoffice communications." Having undertaken that tally, I calculate that Plaintiffs' attorneys billed 183.48 hours in the Rayna P. matter and 187.025 hours in the M.P. matter for intraoffice communications over a course of 4.5 years or approximately 236 weeks of litigation. That amounts to approximately 1.5 hours per week. Plaintiffs explain that most of the intraoffice communications involved more junior attorneys consulting with more senior supervisory attorneys, an assertion supported by my review of the billing records. A junior attorney consulting more senior attorneys about a complicated special education matter for a total of 1.5 hours per week seems perfectly reasonable. The records reflect that lower-billing junior attorneys did the bulk of the work on both matters and relied on the work and contributions of senior-more expensive-attorneys only when necessary. That had the effect of mini mizing the total fees *563generated. For these reasons I reject Defendant's argument that Plaintiffs' attorneys' fees should be discounted for time spent on intraoffice communications.
Duplication Across Cases
Defendant also suggests-again without identifying the numbers it relies upon to reach its mathematical conclusion-that only 54% of Plaintiffs' attorneys' work on these two cases was unique. That is, Defendants suggest that 46% of the work done on each individual case was identical to the work done on the other case and therefore redundant. I fail to see how this could be.
" 'A reduction for duplication is warranted only if the attorneys are unreasonably doing the same work.' " Damian J. v. Sch. Dist. of Phila. ,
"A reduction for duplication is [ ] warranted when a single attorney bills twice for the same work." Sch. Dist. Phila. v. Kirsch ,
That being said and having reviewed the separate billing records for Rayna P. and M.P. in great detail, a question can fairly be raised about overlapping time entries with identical descriptions such as when Plaintiffs' attorneys corresponded with the children's parents. There are identical time logs for such entries across the two billing records (e.g., 0.13 hours for "telephone communication with client" billed by "BS" to Rayna P. on 5/15/2014 and 0.13 hours for "telephone communication with client" billed by "BS" to M.P., also on 5/15/2014). It makes sense that, with respect to such entries, Plaintiffs' attorneys or paralegals made one call to the children's parents about both cases and then split the time in half between the two billing records. I therefore credit counsel's assertion that, where the same task benefited both children, the time was divided between the billing records.
I do so with sensitivity to Defendant's assertion that "it is also possible that substantially similar time entries reflect a double counting of the hours spent, particularly where the majority of the billing descriptions do not specify whether the work identified was performed" just for Rayna P., M.P., or both. Kirsch, at *7. I am able to dismiss Defendant's assertion because Plaintiffs' attorneys dealt with this possibility by conceding that there may have been some inadvertent duplication, leading them to build in an across-the-board 5% discount in their fees to account for possible double billing. I am impressed by Plaintiffs' counsel's candor and persuaded that their 5% discounting appropriately and sufficiently accounts for any inadvertent double billing across these two distinct cases.
*564C. Hourly Rates
Plaintiffs bear the burden of establishing their attorneys' reasonable rate. Maldonado ,
The court must "assess the experience and skill of the prevailing party's attorneys and compare their rates to the rates prevailing in the community for similar services by lawyers of reasonably comparable skill, experience, and reputation." Rode ,
Plaintiffs' attorneys have provided an affidavit from the principal and founder of the law firm in which they practice. Dennis McAndrews, a highly regarded practitioner of special education law with 36 years experience, attests that he is familiar with the hourly rates charged by experienced and capable special education lawyers practicing in Delaware and the Third Circuit and that the hourly rates requested by Plaintiffs' attorneys-his subordinates-are reasonable. He underscores his conclusion by noting that "[s]pecial education litigation, both at the administrative level and in federal courts, is a complex, highly specialized field of law in which relatively few attorneys practice." I recognize Mr. McAndrews as an expert and leader in the field of special education law.
An attorney's showing of reasonableness must rest on evidence other than the attorney's own affidavits. Blum v. Stenson,
Plaintiffs have provided the most recent-July 2018-fee schedule for Community Legal Services of Philadelphia (CLS). As an initial matter, I note that, with the exception of Attorney Mahler's rate, all of the requested rates fall with the CLS schedule. Furthermore, Defendant does not challenge the hourly rates for all of Plaintiffs' attorneys but only of Attorneys Gehring, Konkler-Smith, Ryan, and Mahler. As to them, Defendant contends that the hourly rates sought are unreasonable, but it provides no counter-evidence of appropriate hourly rates.
The CLS Fee Schedule outlines the fees charged by CLS in cases where the law permits the award of attorneys' fees. See Cmty. Legal Servs. Of Phila., Attorney Fees: Explanatory Notice to the Public (July 1, 2018), http://clsphila.org/about-cls/attorney-fees (last visited July 10, 2018). Courts widely accept it as an appropriate benchmark. The Court of Appeals itself has explicitly endorsed its use: "The fee *565schedule established by Community Legal Services, Inc. ("CLS") has been approvingly cited by the Third Circuit as being well developed and has been found by the Eastern District of Pennsylvania to be a fair reflection of the prevailing market rates in Philadelphia." Maldonado ,
In fact, in the special education context, several courts have recognized that the CLS Schedule may well understate the expertise of practitioners. See, e.g., E.C. v. Sch. Dist. of Phila. ,
I therefore follow the many district judges in the Circuit and the Third Circuit itself in adopting the CLS Fee Schedule as an appropriate benchmark against which to evaluate a fee request, particularly where, as here, the defense disputes the rates sought by Plaintiffs, but does not submit evidence. See Maldonado ,
I do this cognizant of the fact that CLS is based in Philadelphia and this case was litigated in Delaware, for the following reasons. First, Defendant does not assert a regional difference between Philadelphia and Delaware, and fees should not be discounted for reasons not raised by the opposing party. McKenna v. City of Phila. ,
Defendant relies heavily upon Sch. Dist. of Phila. v. Williams ,
But in arguing that the Williams case should be viewed as controlling authority setting upward limits on fees in IDEA cases, the defense ignores precedent to the contrary. See I.W. v. Sch. Dist. of Phila. ,
Thus, using the CLS Fee Schedule as an appropriate basis for comparison, I note that all except for Attorney Mahler's requested hourly rates fall well within that schedule. Attorney Gehring has 29 years of litigation experience, 7 of which were in special education law. He requests an hourly rate of $495. This is well below *567CLS's rate for attorneys with more than 25 years of experience ($650-700). Attorney Ryan has practiced law for 33 years and has 1.5 years of experience practicing special education law. She also requests an hourly rate of $495. Although her experience in special education is limited, I have reviewed her previous experience, which involved complex shareholder class actions at well-respected firms, culminating in the establishment of her own firm where she practiced for seven years before joining McAndrews Law Offices. I find this experience in sophisticated litigation worthy of recognition in determining her appropriate rate and note that at $495 it remains well below CLS's rate for attorneys with more than 25 years of experience ($650-700). These requested rates for Attorneys Gehring and Ryan are also within the range of rates awarded by my colleagues in the Circuit in I.W. and in Kirsch . Attorney Konkler-Goldsmith has 20 years of experience in special education law and her requested hourly rate of $495 is at the low end of the CLS schedule for attorneys with 16-20 years' experience ($475-530).
Attorney Mahler has 6-7 years of experience practicing special education law and a year of experience as a judicial law clerk. But her requested hourly rate of $395 is above the CLS schedule for attorneys with 6-10 years of experience ($280-360). But I do not have sufficient evidence in the record before me to permit a divergence from my guiding benchmark here: the CLS Fee Schedule. I therefore limit Attorney Mahler's hourly rate to $350, near the top end of the CLS Fee Schedule for attorneys with 6-10 years of experience to account for her special education specialization. See M.W. v. Sch. Dist. of Phila. ,
I note again that Plaintiffs' billing records are organized by date, not by task or attorney. This left the Court to spend considerable time tallying the hours Attorney Mahler spent on the two cases. By my calculation, Ms. Maher spent 166.86 hours on Rayna P.'s case and 177.375 hours on M.P.'s case. Her proposed rate of $395 per hour therefore generated $65,909.70 in Rayna P.'s case and $70,063.13 in M.P.'s case. But under the $350 hourly rate that I deem appropriate for an attorney with her skills and experience, she is entitled to only $58,401.00 for Rayna P.'s case and only $62,081.25 for M.P.'s case. I will therefore deduct the difference-$7,508.7 in Rayna P.'s case and $7,981.88 in M.P.'s case-from the total attorneys' fee award requested by Plaintiffs.
D. Downward Departure for Partial Success
The lodestar "is presumed to be the reasonable fee." Blum,
Defendant does not argue that the total fee award should be reduced because Plaintiffs were unsuccessful in their claims for summer school (ESY). Nor could they.
Downward departures are appropriate to account for the degree of the prevailing party's success. Hensley ,
Plaintiffs' attorneys here obtained excellent results, obtaining nearly complete relief for their clients. They lost only on the one minor claim for compensatory summer school education (ESY), a nonfrivolous claim interrelated to the other claims and not raised in bad faith. It arose out of the same set of facts involving the Defendant's failures. Much of counsel's time was devoted to the litigation as a whole and the hours spent on the summer school (ESY) claim cannot be divided. See Hensley ,
E. Costs
Plaintiffs request an award of $1,533 in costs for the Rayna P. matter and $818.62 for the M.P. matter for line items such as "postage" and "photocopies" and "mileage to/from Sir Speedy - Due Process Binders" and "filing fee - Complaint." The District argues that Plaintiffs' request should be denied because they fail to identify their costs with sufficient specificity. I agree in large part.
Copying costs are reimbursable under
But "[t]he party seeking reimbursement for copying costs must describe the purpose of the [copying] charge with sufficient specificity." E.C.,
Plaintiffs contend that while their billing records are not specific, one need only compare the billing records to their time sheets to know what exactly was being photocopied, mailed, etcetera. If that is done line-by-line, it will identify the specifics of what is being claimed as costs. Having expended substantial time computing hours, the Court declines to spend additional time computing copying and postage costs.
To the extent Plaintiffs seek reimbursement for mileage and parking, "[c]osts for parking, train fare, mileage, and travel expenses are not authorized by § 1920." Neena S. ex rel. Robert S. v. Sch. Dist. of Phila. ,
F. Contingency Fee Issue
As a result of prior proceedings in this matter, Plaintiffs obtained judgments for Rayna P. of $169,687.50 and for M.P. of $208,740.00 to be placed in educational special needs trusts. In securing representation from counsel, Plaintiffs entered into a representation agreement that provided for a contingency fee in the amount of one-third (1/3) of any monetary award obtained for the family and, separately, that counsel would be entitled to seek hourly fees from the Defendant pursuant to the IDEA's fee-shifting provision.
Defendant suggests that counsel's separate recovery of fees under a contingency fee agreement with Plaintiffs should serve to reduce statutory attorney fees but does not develop that position with specific arguments. The existence of a contingent fee agreement does not by itself require reduction of a fee award. The Supreme Court has consistently maintained that attorneys' fees may be awarded to plaintiffs regardless of whether they were able to retain counsel on a fee-paying or pro bono basis. Venegas v. Mitchell ,
More importantly for purposes of this case, the Court has also specifically held that "[t]he attorney's fee provided for in a contingent-fee agreement is not a ceiling upon the fees recoverable in § 1988," Blanchard v. Bergeron,
Blanchard charges district judges to use good judgment to assess what a reasonable fee is under the circumstances of the case.
In many instances, counsel carry those costs for a period of years, and case costs can be particularly daunting following Arlington Cent. School District v. Murphy,
In short, enforceable contingent fee agreements address risk in a way that statutory fee awards do not. They remain vital to the availability of counsel in IDEA cases. Consequently, the Supreme Court's conclusion in Blanchard is as important today as it was when the decision was issued. Counsel's compensation pursuant to a contingent fee agreement does not require a reduction in a statutory fee award. On the other hand, it is equally clear that Blanchard requires consideration of other compensation received by counsel. On the record here, notwithstanding the risks undertaken by counsel in any contingent case, I am persuaded that some reduction in statutory fees is appropriate because of other compensation received, specifically, a reduction of $27,832 in the case of M.P., and a reduction of $22,652 in the case of Rayna P.
G. Defendant's Ability to Pay
Defendant argues that it has exhausted its ability to pay any fee award and that any judgment obtained by Plaintiffs' attorneys will affect the resources available to Defendant's other students. This is not a relevant consideration. "[T]he losing party's financial ability to pay is not a special circumstance," to consider in determining a fee award. Inmates of Allegheny Cty. Jail v. Pierce ,
*571Plaintiffs' attorneys engaged in effective advocacy in these matters and prevailed on nearly all counts. Quality advocacy requires time and effort and that effort should be commended, not penalized. So taking into account the adjustments identified above, I award parents a total of $157,804.80 in attorneys' fees for the Rayna P. matter and $149,691.99 in attorneys' fees for the M.P. matter5 and $800 total in costs for filing fees. The attorneys' fees granted are discounted only on the basis of Attorney Mahler's suggested rate but otherwise Plaintiffs' attorneys' fees request is granted in full.
III. Conclusion
For the foregoing reasons, I grant Plaintiffs' motions in large part. An appropriate Order follows.
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