State of Illinois v. Sangamo Construction Co. And J. L. Simmons Company, Inc., Defendants

657 F.2d 855, 32 Fed. R. Serv. 2d 379, 1981 U.S. App. LEXIS 10936
CourtCourt of Appeals for the Seventh Circuit
DecidedJuly 30, 1981
Docket80-1761, 80-2275
StatusPublished
Cited by178 cases

This text of 657 F.2d 855 (State of Illinois v. Sangamo Construction Co. And J. L. Simmons Company, Inc., Defendants) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State of Illinois v. Sangamo Construction Co. And J. L. Simmons Company, Inc., Defendants, 657 F.2d 855, 32 Fed. R. Serv. 2d 379, 1981 U.S. App. LEXIS 10936 (7th Cir. 1981).

Opinion

SPRECHER, Circuit Judge.

This appeal concerns the propriety of the district court’s award of attorneys’ fees and costs, including expert witness fees, to the Illinois Attorney General who successfully pursued this private antitrust action on behalf of the State of Illinois in its proprietary capacity. We affirm the award of attorneys’ fees, but reverse and remand the award of costs to be reduced to the extent the amount of expert witness fees awarded exceeds the statutory witness fees set forth in 28 U.S.C. § 1821.

I

Illinois, in its proprietary capacity, brought this suit under Section 1 of the Sherman Act, 15 U.S.C. § 1, and Section 4 of the Clayton Act, 15 U.S.C. § 15, against defendants, Sangamo Construction Company and J. L. Simmons Co., Inc., alleging a conspiracy to allocate certain highway construction projects put out for public bids by Illinois on June 23,1970. 1 At the conclusion of trial, the jury returned a verdict in favor of Illinois. Although Illinois had requested damages of $85,720, the jury awarded only $25,000 in damages. The district court, pursuant to Section 4 of the Clayton Act, trebled the actual damages and awarded Illinois $75,000 in total damages.

The district court also ruled that, pursuant to Section 4 of the Clayton Act, Illinois was entitled to costs of suit, including reasonable attorneys’ fees. Consequently, the court held an evidentiary hearing on Illinois’ request for an itemization of attorneys’ fees and costs. The court granted Illinois’ entire request for attorneys’ fees totaling $63,285. The court also awarded $16,822.36 as costs of suit, including $5,471.91 for deposition charges, $1,501.47 for copying, $56.00 for charts, $9,777.98 for expert witness costs, and $15.00 for filing fees.

Although defendants filed two notices of appeal, the first from the judgment entered on the jury verdict and the second from the final judgment awarding attorneys’ fees and costs, the only issues urged on this appeal concern the award of attorneys’ fees and costs to the State of Illinois.

II

Section 4 of the Clayton Act, 15 U.S.C. § 15, entitles a successful private litigant to “recover threefold the damages by him sustained, and the costs of suit, including a reasonable attorney’s fee.” 2 *858 Courts uniformly have held that the award of attorneys’ fees and costs to the successful plaintiff under Section 4 is mandatory. See Baughman v. Cooper-Jarrett, Inc., 530 F.2d 529, 531 n.2 (3rd Cir.), cert. denied, 429 U.S. 825, 97 S.Ct. 78, 50 L.Ed.2d 87 (1976); Knutson v. Daily Review, Inc., 479 F.Supp. 1263, 1267 (N.D.Cal.1979); see also Christiansburg Garment Co. v. EEOC, 434 U.S. 412, 415 n.5, 98 S.Ct. 694, 697, 54 L.Ed.2d 648 (1978). Furthermore, the determination of what constitutes reasonable attorneys’ fees is a matter relegated, in the first instance, to the sound discretion of the trial court, guided by proper standards and due consideration of the unique circumstances of each case. See infra II — C.

Defendants argue that these accepted rules for awarding attorneys’ fees under Section 4 of the Clayton Act do not apply in this case of first impression involving an award of fees to a state represented by its Attorney General. 3 First, defendants assert that an award of attorneys’ fees to a state, which sues in its proprietary capacity and is represented by its Attorney General, is inconsistent with the policy underlying Section 4’s provision for attorneys’ fees. Defendants argue, in the alternative, that if a state represented by its Attorney General is entitled to attorneys’ fees, then the award of attorneys’ fees should be limited to the actual costs incurred by the state, i. e., the salaries of the state lawyers. Finally, defendants argue that the district court abused its discretion by awarding Illinois attorneys’ fees which exceed the single damages award.

We disagree with defendants’ reasoning. For the reasons detailed below, we affirm the award of attorneys’ fees to Illinois as appropriate under Section 4 and within the sound discretion of the district court. 4

A

It is well-established that a state is a “person” for purposes of establishing a cause of action and jurisdiction to sue under Section 4 of the Clayton Act. Hawaii v. Standard Oil Co., 405 U.S. 251, 261, 92 S.Ct. 885, 890, 31 L.Ed.2d 184 (1972); Georgia v. Evans, 316 U.S. 159, 62 S.Ct. 972, 86 L.Ed. 1346 (1942). But, defendants argue that a state, represented by its Attorney General, should not be considered a “person” entitled *859 to attorneys’ fees and costs under the last clause of Section 4 which entitles a prevailing party to “cost of suit, including a rea^ sonable attorney’s fee.”

A textual analysis of Section 4 lends no support to defendant’s reasoning. Section 4 states that “[a]ny person who shall be injured . .. shall recover threefold the damages by him sustained, and the cost of suit, including a reasonable attorney’s fee.” 15 U.S.C. § 15. Nothing in the text suggests that a state, which is a “person” for purposes of suing for treble damages, is not a “person” for purposes of the next clause which allows recovery of costs and attorneys’ fees. The “statute makes no distinction between the applicability of the treble damages and attorney’s fees provisions therein.” Knutson v. Daily Review, Inc., 479 F.Supp. at 1267.

Failing to find textual support in Section 4 for their position, defendants argue that Section 4’s silence as to whether attorneys’ fees should be awarded to states indicates that Congress did not intend states to receive attorneys^ fees for suits brought under Section 4. Defendants point first to 15 U.S.C. § 15c(a)(2), which explicitly allows a state to recover reasonable attorneys’ fees following successful prosecution of a parens patriae antitrust suit. Defendants then point to 15 U.S.C. § 15a

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657 F.2d 855, 32 Fed. R. Serv. 2d 379, 1981 U.S. App. LEXIS 10936, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-of-illinois-v-sangamo-construction-co-and-j-l-simmons-company-ca7-1981.