Scharfenberger v. Secretary of Health and Human Services

124 Fed. Cl. 225, 2015 U.S. Claims LEXIS 1614, 2015 WL 7871210
United States Court of Federal Claims·Decided December 4, 2015·No. 11-221V·Published·Cited by 31 cases

Opinion

National Childhood Vaccine Injury Act; 42 U.S.C. § 300aa-15(e); Attorney’s Fees and Costs; Forum Rate; Expert Fees; Award of Fees and Costs Associated with Motion for Review.

OPINION

WILLIAMS, Judge.

This vaccine injury case comes before the Court on Petitioner’s Motion for Review of the Special Master’s decision reducing Petitioner’s requested attorney’s fees and costs from $103,153.01 to $79,213.71. Scharfenber-ger v. Sec’y of Health & Human Seros., No. 11-221V, 2015 WL 3526559 (Fed.Cl. Spec.Mstr. May 15, 2015) (“SM Op.”). The Court affirms the decision of the Special Master. In addition, the Court awards Petitioner $22,412.76 in attorney’s fees and costs related to this Motion for Review.

Background

On April 8, 2011, Petitioner Scott Schar-fenberger filed a petition for compensation under the National Childhood Vaccine Injury Act, 42 U.S.C. § 300aa-10 to 34 (2012) (“Vaccine Act”), alleging that he suffered from *228 Guillain-Barré syndrome (“GBS”) as a result of an influenza vaccine. SM Op. *1. After initiating the case, Petitioner filed medical records relevant to his claim. On October 14, 2011, Respondent filed a Vaccine Rule 4(c) report asserting that Petitioner’s claim was not appropriate for compensation. In December of 2011, settlement negotiations began, and continued for the next two years. During this time, Petitioner prepared filings, submitted additional medical records, and worked with an accounting firm to accurately estimate his lost wages. On December 13, 2013, the parties engaged in a mediation session, which was successful. The parties filed a stipulation requesting an award of compensation, and the Special Master issued a damages decision on February 7, 2014. Judgment was entered on February 11, 2014, awarding Petitioner a lump sum of $270,000.

On November 24, 2014, Petitioner filed a motion for attorney’s fees and costs. Id. at *2. In his motion, Petitioner requested $61,983.70 in attorney’s fees for his attorney Isaiah Kalinowski, at a rate of $361 per hour. Petitioner also requested $7,694.10 for paralegal work, based on rates ranging from $75 to $145 per hour. Petitioner sought costs in the amount of $33,475.21 for an accounting firm engaged to provide a lost wages calculation, and the services of William Murphy, Esq. and Adam Abelson, Esq., attorneys at the law firm of Zuckerman Spaeder, LLP who prepared a declaration from Mr. Murphy, an experienced Maryland and D.C. litigator and partner at the firm’s Baltimore office. In his declaration, Mr. Murphy set forth his opinion that the attorney and paralegal rates requested by Petitioner were reasonable, and even low, for practitioners in the District of Columbia, based upon an analysis of the Laffey matrix 2 and his own knowledge of the hourly rates charged by law firms in that forum. See Murphy Deck ¶¶ 16-18. In addition to the declaration of Mr. Murphy, in support of his requested fees Petitioner submitted affidavits from Mr. Kalinowski and Altom Maglio, a partner at Maglio Christopher & Tóale, where Mr. Kalinowski was also a partner. Petitioner also claimed $9,493.71 in unopposed costs.

In his decision, the Special Master addressed the four elements of Petitioner’s fee application that were challenged by Respondent: Mr. Kalinowski’s requested hourly rate; the paralegals’ hourly rates; the total number of hours billed; and the expert expenses for CliftonLarsonAllen LLP, and Zuckerman Spaeder, LLP. SM Op. *4.

As to Mr. Kalinowski’s requested hourly rate, the Special Master first found that the Laffey matrix was not controlling, though he would consider it in deciding the appropriate rate. The Special Master next turned to defining the relevant forum for determining reasonable fees. While Petitioner argued that the relevant forum should be Washington, D.C. generally, Respondent argued that the forum should be narrowed to the Court of Federal Claims or the Vaccine Program. The Special Master agreed with Respondent, reasoning:

Even though the Federal Circuit has held that the forum rate used for Vaccine Program attorneys should be that of the District of Columbia generally, it has also held that a “reasonable” hourly rate is, at bottom, defined as the rate “prevailing in the community for similar services by lawyers of reasonably comparable skill, experience, and reputation.” Here, the Vaccine Program itself provides the most relevant baseline for comparing attorney billing rates — given the differences between the challenges of such litigation versus the more onerous tasks imposed on litigators subject to the federal rules and other procedural and evidentiary burdens outside *229 the Vaccine Program. The fact that Vaccine Program attorneys are (in most cases) assured of some compensation for their work, unlike their counterparts litigating in federal district courts, also bears on the matter.
Thus, when determining what a reasonable hourly rate is, it is appropriate to focus my analysis on the Vaccine Program, which is highly specific in its form and substance.

Id. at *6 (internal quotations and citations omitted) (emphasis original).

Having established the Vaccine Program as the appropriate forum, the Special Master considered cases awarding reasonable attorney’s fees for Vaccine Program attorneys in Washington, D.C., adjusted for inflation, to find that in 2015, “a reasonable range for attorneys with ten or more years of experience providing services in the Vaccine Program in Washington, DC” was $272.66 to $409.49 per hour. Id. To determine where Mr. Kalinowski fell within that range, the Special Master turned to the evidence submitted by Petitioner. First, the Special Master reiterated that the Laffey matrix “does not have the precedential force that Petitioner seeks to imbue it with, and otherwise does not control this analysis.” Id. at *7. Second, the Special Master found that the declaration of Mr. Murphy did not provide any assistance to his analysis, because Mr. Murphy had no direct Vaccine Program experience, and was not admitted to practice in the Court of Federal Claims. Id. at *8. Further, the Special Master noted that other special masters had not required expert assistance in determining a proper hourly rate to be paid a Vaccine Program attorney, and that he did not request that Petitioner “go to the trouble of retaining an outside expert to opine on fee issues.” Id.

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Scharfenberger v. Secretary of Health and Human Services, 124 Fed. Cl. 225, 2015 U.S. Claims LEXIS 1614, 2015 WL 7871210 (uscfc 2015).

124 Fed. Cl. 225 (Scharfenberger v. Secretary of Health and Human Services) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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