Tobin v. Gordon

614 F. Supp. 2d 514, 2009 U.S. Dist. LEXIS 39666
CourtDistrict Court, D. Delaware
DecidedMay 8, 2009
DocketC.A. 04-1211-MPT
StatusPublished
Cited by1 cases

This text of 614 F. Supp. 2d 514 (Tobin v. Gordon) 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.

Bluebook
Tobin v. Gordon, 614 F. Supp. 2d 514, 2009 U.S. Dist. LEXIS 39666 (D. Del. 2009).

Opinion

CORRECTED MEMORANDUM ORDER

MARY PAT THYNGE, United States Magistrate Judge.

Facts

This is a motion by plaintiff for reasonable attorney’s fees for his counsel (the Neuberger and LaRosa law firms) pursuant to 42 U.S.C. § 1988 and Fed.R.Civ.P. 54. Defendants argue, in the alternative, that neither law firm is entitled to fees and *518 if fees are awarded, plaintiffs demand should be reduced because it is unreasonable and contains non-compensable items.

Plaintiff filed his complaint on September 2, 2004 against the following defendants: Thomas P. Gordon, Sherry Freebery, John L. Cunningham, David F. McAllister and New Castle County. After the complaint was filed, defendants moved to stay the case until resolution of the pending criminal charges against Gordon and Freebery. A stay was granted on December 15, 2004. During the stay, plaintiff made settlement demands in April 2005 and October 2006. The 2005 demand sought compensatory damages of $1.5 million plus legal fees and costs of $84,200. The 2006 demand sought $600,000. Both were rejected by defendants.

Plaintiff filed an amended complaint on July 24, 2007. The Neuberger firm was engaged in two other cases against the same defendants: Riddell v. Gordon, et al. and Jamison v. Gordon, et al. Amended complaints in those matters were filed July 13, 2007 and June 12, 2006 respectively. All three eases shared similar circumstances though different claims were raised in each. Plaintiffs amended complaint in the instant matter was the last to be filed. Since the three actions share similarities, defendants allege that only thirteen of the thirty-one pages of the complaint in the present action are unique, the remainder being merely boilerplate or a mirror of the Riddell and Jamison pleadings.

Defendants made an offer of judgment for $25,000 plus reasonable attorney’s fees and costs in early February 2008. Plaintiff accepted the offer on February 9, 2008. Plaintiffs attorneys, the Neuberger and LaRosa firms, now seek a combined attorneys’ fee of $70,456 based on a total of 243.5 hours. At the time of settlement, plaintiffs counsel had completed an original and an amended complaint, two answering briefs, and two settlement requests.

The motion for attorney’s fees and memorandum in support thereof was filed on May 1, 2008. Defendants’ answering brief was filed on June 3, 2008, and plaintiffs reply memorandum was filed on June 18, 2008. The defense sur-reply brief was filed on July 25, 2008.

Attorney’s Fees Under 42 U.S.C. § 1988

The right to reasonable attorney’s fees is provided by the language of 42 U.S.C. § 1988: “[i]n any action or proceeding to enforce a provision of sections 1981, 1982, 1983, 1985 and 1986 of this title, title IX of public law 92-318 ..., or title VI of the Civil Rights Act of 1964 ..., the court, in its discretion, may allow the prevailing party, other than the United States, a reasonable attorney’s fee as part of the costs.” 1 In order to qualify, a plaintiff must be designated a “prevailing party,” 2 a term which has been defined as any party that, “succeed[s] on any significant issue in litigation which achieves some of the benefit the parties sought in bringing suit.” 3

A key factor is that the plaintiff “must be able to point to a resolution of the dispute which changes the legal relationship between itself and the defendant.” 4 Usually this is accomplished *519 through a judgment on the merits, but settlement is equivalent to judgment under this determination. 5 Additionally, prevailing party status does not turn on the magnitude of the relief obtained. 6 However, satisfaction of the requirements to be a prevailing party only make one eligible for attorney’s fees: it does not entitle a party to such fees.

In Farrar, the court determined that a one-dollar damage verdict meant that the plaintiff was a prevailing party, but because the recovery was nominal, attorney’s fees were not awarded. 7 In determining what is considered a reasonable fee, the court concluded that the only reasonable fee is no fee at all. 8 Thus, even though the plaintiff was the prevailing party and eligible for attorney’s fees, none were awarded. 9 Since a one-dollar award in Farrar was sufficient, to confer “prevailing party status,” a settlement of $25,000 meets the requirements under Farrar.

Defendants counter with the Seventh Circuit case of Fisher v. Kelly which holds that a “nuisance settlement” does not confer prevailing party status. 10 Fisher is inapposite to the law of the Third Circuit which provides that “consistent with the case law in this circuit and the policy objectives of § 1988, the threshold determination of prevailing party status that serves to entitle a plaintiff to a reasonable award of attorney’s fees may not be jettisoned by the assertion of a nuisance settlement.” 11 Consequently, in the Third Circuit, a nuisance settlement can convey prevailing party status.

The “ ‘most critical factor’ in determining the reasonableness of a fee award ‘is the degree of success obtained.’ ” 12 Justice O’Connor, in an influential concurrence in Farrar, posited three factors to gauge the level of success: “the difference between the amount recovered and the damages sought”; “the significance of the legal issue on which the plaintiff claims to have prevailed”; “the public purpose served” by the litigation. 13 The first factor is accorded the most weight. 14

Defendants’ attack plaintiffs request for attorney fees under all three factors. First, they argue that the signifi *520 cant difference between the amount sought and the amount accepted make the settlement amount de minimis and purely technical, a designation which forecloses an award of attorney fees under Farrar. Defendants rely on Petrunich v. Sun Building Systems, Inc.,

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Related

Tobin v. Gordon
623 F. Supp. 2d 538 (D. Delaware, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
614 F. Supp. 2d 514, 2009 U.S. Dist. LEXIS 39666, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tobin-v-gordon-ded-2009.