Save Our Cumberland Mountains, Inc. v. Donald P. Hodel, Secretary of the Interior

857 F.2d 1516, 273 U.S. App. D.C. 78, 18 Envtl. L. Rep. (Envtl. Law Inst.) 21419, 28 ERC (BNA) 1469, 1988 U.S. App. LEXIS 12889, 47 Fair Empl. Prac. Cas. (BNA) 1363, 1988 WL 95672
CourtCourt of Appeals for the D.C. Circuit
DecidedSeptember 16, 1988
Docket85-5984
StatusPublished
Cited by285 cases

This text of 857 F.2d 1516 (Save Our Cumberland Mountains, Inc. v. Donald P. Hodel, Secretary of the Interior) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Save Our Cumberland Mountains, Inc. v. Donald P. Hodel, Secretary of the Interior, 857 F.2d 1516, 273 U.S. App. D.C. 78, 18 Envtl. L. Rep. (Envtl. Law Inst.) 21419, 28 ERC (BNA) 1469, 1988 U.S. App. LEXIS 12889, 47 Fair Empl. Prac. Cas. (BNA) 1363, 1988 WL 95672 (D.C. Cir. 1988).

Opinions

Opinion for the Court filed by Circuit Judge SENTELLE.

Dissenting Opinion filed by Circuit Judge STARR, in which Circuit Judges SILBERMAN and BUCKLEY concur.

SENTELLE, Circuit Judge:

The panel opinion in this case, Save Our Cumberland Mountains, Inc. v. Hodel, 826 F.2d 43 (D.C.Cir.1987), reviewed an attorneys’ fee award entered pursuant to § 520(d) of the Surface Mining Control and Reclamation Act (“SMCRA”), 30 U.S.C. § 1270(d) (1982 & Supp.1986). In addition to making other modifications, generally not pertinent to this decision, the panel, based on the precedent of Laffey v. Northwest Airlines, Inc., 746 F.2d 4 (D.C.Cir.1984), determined that the District Court had improperly computed the hourly rate for plaintiffs’ attorneys, and accordingly ordered a remand for recalculation of that rate consistent with Laffey and the panel opinion. Thereafter, we accepted the case for rehearing en banc, Save Our Cumberland Mountains, Inc. v. Hodel, 830 F.2d 1182 (D.C.Cir.1987), and ordered briefing of the single question:

Should Laffey v. Northwest Airlines, Inc. ... be overruled to the extent that it holds that in awarding attorneys’ fees to a private law firm, that customarily charges below the prevailing community rate in order to serve a particular type of client, courts should calculate the “reasonable hourly rate” according to the hourly rates charged in similar cases by that firm, as opposed to rates that reflect the prevailing community rate for similar legal services?

Id. Having reviewed the question en banc, we now answer that question in the affirmative and overrule Laffey.

I. Background

The factual background of the substantive litigation underlying this attorneys’ fee dispute is set forth in both the panel opinion and the District Court opinion, Save Our Cumberland Mountains, Inc. v. Hodel, 622 F.Supp. 1160 (D.D.C.1985). We will revisit only those facts directly relating to the fee petition and the question before us. The District Court had awarded fees for work performed by plaintiffs’ four attorneys, Joseph A. Yablonski, L. Thomas Galloway, Daniel B. Edelman, and Lee Bishop. As the panel noted, the District Court applied the correct three-part analysis to determine the appropriate award: (1) determination of the number of hours reasonably expanded in litigation; (2) determination of a reasonable hourly rate or “lodestar”; and (3) the use of multipliers as merited. Blum v. Stenson, 465 U.S. 886, 104 S.Ct. 1541, 79 L.Ed.2d 891 (1984). As to the second of these steps, the panel ruled that the District Court had erred as to the appropriate “reasonable hourly rate” for Yablonski and Galloway.

The District Court, in attempting to determine the reasonable hourly rate, first [1518]*1518noted the Supreme Court’s determination in Blum v. Stenson that “[s]uch a reasonable hourly rate is that ‘prevailing in the community for similar work.’ ” Save Our Cumberland Mountains, 622 F.Supp. at 1165 (citation omitted). He further noted this Circuit’s prior holding that “[f]or an attorney who has a customary rate at which he or she bills fee-paying clients, the prevailing community rate has been said to be that customarily charged rate.” Id. (citing Laffey, 746 F.2d 4 (D.C.Cir.1984)). He then held, following Blum v. Stenson, that “for an attorney who has no customary hourly rate, the Court must look to the prevailing community rates in order to determine the appropriate hourly rate.” Save Our Cumberland Mountains, 622 F.Supp. at 1165.

The panel opinion noted that under Laf-fey, this case is factually distinct from Blum v. Stenson. In Blum, the attorneys seeking the fee awards were salaried employees of the Legal Aid Society of New York, a private, non-profit law office. The District Court had applied prevailing market rates for attorneys of like competence and experience in the same area doing similar work during the relevant period. Stenson v. Blum, 512 F.Supp. 680, 683 (S.D.N.Y.1981). The government argued to the Supreme Court for the adoption of a cost-based standard for fee awards to non-profit, legal aid attorneys, while recognizing that prevailing market rates were the proper standard attorneys in private for-profit practices. The Court rejected that theory and applied the same test for non-profit legal services organizations as the government had conceded was applicable to private attorneys.

The panel opinion of this Court reviewed Blum and Laffey and determined this case to be controlled by Laffey. Plaintiffs’ attorneys in Laffey, like SOCM’s attorney in the case at bar, charged some clients at hourly rates less than the prevailing average, from motives of subsidizing what they perceived to be “good" clients or clients with good causes. Laffey, 746 F.2d at 14 n. 69. We held in Laffey that the Blum treatment of public interest legal organizations was inapplicable to a quasi-public interest law firm practicing for profit, but reducing rates from non-economic motives, and that the most “relevant comparison” was the rate charged in private representation by the attorneys seeking the awards. Laffey, 746 F.2d at 24.

In the present case, the panel applied Laffey and determined that Yablonski’s average rate, for the 20 to 50 percent of his clients whom he charged on an hourly basis, was $100 per hour and that Galloway charged a “reduced rate” for “national environmental and conservation groups” of from $75 to $100 per hour. Applying the Laffey rule to those facts, the panel determined that $100 was the proper hourly rate for the determination of the lodestar as to Yablonski and Galloway.

It is in this posture that we now consider plaintiffs’ contention that Laffey must be overruled.

II. Analysis

As both Blum and Laffey teach, the determination of an award of reasonable attorney fees is at bottom a question of statutory interpretation. In Blum, the Supreme Court construed the Civil Rights Attorney’s Fee Award Act of 1976, 42 U.S.C. § 1988 (1976 & Supp. V), which expressly authorized the award of a reasonable attorney’s fee to prevailing civil rights litigants other than the United States. In determining the intent of Congress as to the meaning of the phrase “reasonable attorneys fees” (emphasis supplied), the Court looked in large part to the Senate Report which approved the method employed in four cases, Johnson v. Georgia Highway Express, 488 F.2d 714 (5th Cir.1974); Stanford Daily v. Zurcher, 64 F.R.D. 680 (N.D.Cal.1974); Davis v. County of Los Angeles, 8 Empl.Prac.Dec. (CCH) ¶ 9444 (C.D.Cal.1974); and Swann v. Charlotte Mecklenburg Bd. of Educ., 66 F.R.D. 483 (W.D.N.C.1975). The Senate Report plainly expresses the intent of Congress that the Johnson

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857 F.2d 1516, 273 U.S. App. D.C. 78, 18 Envtl. L. Rep. (Envtl. Law Inst.) 21419, 28 ERC (BNA) 1469, 1988 U.S. App. LEXIS 12889, 47 Fair Empl. Prac. Cas. (BNA) 1363, 1988 WL 95672, Counsel Stack Legal Research, https://law.counselstack.com/opinion/save-our-cumberland-mountains-inc-v-donald-p-hodel-secretary-of-the-cadc-1988.