Rupert ex rel. Rupert v. Secretary of the Department of Health & Human Services

52 Fed. Cl. 684, 2002 U.S. Claims LEXIS 129, 2002 WL 1141768
CourtUnited States Court of Federal Claims
DecidedMay 30, 2002
DocketNo. 99-0774V
StatusPublished
Cited by34 cases

This text of 52 Fed. Cl. 684 (Rupert ex rel. Rupert v. Secretary of the Department of Health & Human Services) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Rupert ex rel. Rupert v. Secretary of the Department of Health & Human Services, 52 Fed. Cl. 684, 2002 U.S. Claims LEXIS 129, 2002 WL 1141768 (uscfc 2002).

Opinion

OPINION

MILLER, Judge.

Before the court is respondent’s appeal of Special Master John F. Edwards’s award of attorneys’ fees and costs to petitioner. In determining the lodestar calculation of a reasonable fee, the special master utilized his experience with cases brought under the National Childhood Vaccine Injury Act of 1986. 42 U.S.C. §§ 300aa-l to 300aa-34 (1994 & Supp. V 1999) (the “Vaccine Act”), and his familiarity with the attorneys who prosecute these claims to set the rate at which fees were awarded. At issue is whether the special master properly awarded attorneys’ fees at the prevailing market rate. Argument is deemed unnecessary.

FACTS

On September 20, 1999, Andrea Rupert (“petitioner”), on behalf of her son Holden Rupert, filed a claim for compensation under the Vaccine Act. Rupert v. Sec’y of HHS, No. 99-9774V, 2002 WL 360005, at *1, 2002 U.S. Claims LEXIS 48, at *4 (Fed.Cl.Spec.Mstr. Feb. 14, 2002). Petitioner voluntarily withdrew her case on October 30,2000. Id. at *3, 2002 U.S. Claims LEXIS 48, at *3. Petitioner then sought an award of attorneys’ fees and costs under the Vaccine Act’s mandatory fee-shifting provisions, which confer the special master with discretion to award compensation to a claimant who filed a petition in good faith and upon a reasonable basis, regardless of whether the petitioner prevailed. See 42 U.S.C. § 300aa-15(e)(l); Martin v. Sec’y of HHS, 62 F.3d 1403, 1405 (Fed.Cir.1995). The special master awarded petitioner $11,687.50 in attorneys’ fees, representing 14.50 hours of work by Kevin Conway, Esq., [686]*686at $250.00 per hour; 15.00 hours by Ronald Homer, Esq., at $225.00 per hour; 62.50 hours of paralegal work at $75.00 per hour; and $2,160.00 in costs. Rupert, 2002 WL 360005, at *11, 2002 U.S. Claims LEXIS 48, at *37-38.1

The special master’s decision must be set aside if it is found “arbitrary, capricious, an abuse of discretion or otherwise not in accordance with the law.” 42 U.S.C. § 300aa-12(e)(2)(B). Respondent seeks review, arguing first that the special master applied the incorrect legal standard in determining the hourly rates. This is a question of law subject to de novo review. Munn v. Sec’y of HHS, 970 F.2d 863, 869-70 & n. 10 (Fed.Cir.1992). Second, respondent challenges certain of the special master’s findings as not supported by the evidentiary record. On this issue the court must apply a deferential standard. Cucuras v. Sec’y of HHS, 993 F.2d 1525, 1527 (Fed.Cir.1993).

DISCUSSION

1. Lodestar standard for fee awards

The Vaccine Act allows recovery of “reasonable attorneys’ fees and other costs.” 42 U.S.C. § 300aa-15(e)(l). The court uses the “lodestar” method for determining the reasonable fee to be awarded. Doe v. Sec’y of HHS, 19 Cl.Ct. 439, 452-53 (1990); Greene v. Sec’y of HHS, 19 Cl.Ct. 57, 64 (1989). See generally Penn. v. Del. Valley Citizens’ Council for Clean Air, 478 U.S. 546, 565, 106 S.Ct. 3088, 92 L.Ed.2d 439 (1986) (lodestar approach is consistent with fee-shifting statutes aimed at enabling parties to enforce federal laws). The lodestar method is a two-step process. Hensley v. Eckerhart, 461 U.S. 424, 433-44, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983). First, the court determines the lodestar, an initial estimate of reasonable attorneys’ fees. Id. at 433, 103 S.Ct. 1933. This lodestar is presumed to be the reasonable fee to which the applicant’s attorney is entitled. Blum v. Stenson, 465 U.S. 886, 897, 104 S.Ct. 1541, 79 L.Ed.2d 891 (1984). The burden is on the fee applicant to establish the lodestar. Id. at 895-96 n. 11, 104 S.Ct. 1541. In the second step, the court may make upward or downward adjustments necessary to keep the fee in line with the nature of the services rendered in the particular case. Blanchard v. Bergeron, 489 U.S. 87, 94, 109 S.Ct. 939, 103 L.Ed.2d 67 (1989); Hensley, 461 U.S. at 434, 103 S.Ct. 1933. The burden is on the applicant to justify an upward adjustment, the necessity of which must be supported by specific record evidence. Blum, 465 U.S. at 898, 901-02, 104 S.Ct. 1541. Conversely, the burden is on the party seeking a reduction of the lodestar to prove the necessity of a downward adjustment. Id. at 897, 104 S.Ct. 1541. Because the lodestar is presumed reasonable, adjustments are the exception rather than the rule. Del. Valley, 478 U.S. at 565, 106 S.Ct. 3088.

These two steps are separate and distinct. The appropriate factors to examine in each step, however, are not well-established. The Supreme Court has held that a court commits error by adjusting a particular award based on the “novelty [and] complexity of issues,” the “special skill and experience of counsel,” the “quality of representation,” or the “results obtained.” Blum, 465 U.S. at 898-900, 104 S.Ct. 1541; accord Del. Valley, 478 U.S. at 565, 106 S.Ct. 3088 (explaining that these factors presumably are reflected in the lodestar figure). Furthermore, a court errs by adjusting the lodestar to reflect customary fees charged in other cases; such customary fees are “not even a routine reason for market rates, but rather [are] a description of market rates.” Pierce v. Underwood, 487 U.S. 552, 573, 108 S.Ct. 2541, 101 L.Ed.2d 490 (1988). No general rule or formula governs the reasons for an adjustment. Hensley, 461 U.S. at 436, 103 S.Ct. 1933.2 The primary concern of a reviewing [687]*687court in any fee award decision must be whether the lower court double-counted any particular factor by considering it both in the determination of the lodestar and in the making of an upward or downward adjustment. E.g., Green v. Adm’rs of Tulane Educ. Fund, 284 F.3d 642, 661 (5th Cir.2002); Romberg v. Nichols, 970 F.2d 512, 522 (9th Cir.1992).

Respondent predicates its request for review on the argument that, although the special master adopted the lodestar method, he failed to apply it properly. Specifically, respondent faults the special master for not making an appropriate determination of the reasonable rate for petitioner’s attorneys’ fees.

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52 Fed. Cl. 684, 2002 U.S. Claims LEXIS 129, 2002 WL 1141768, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rupert-ex-rel-rupert-v-secretary-of-the-department-of-health-human-uscfc-2002.