Velez v. Wynne

220 F. App'x 512
Court of Appeals for the Ninth Circuit·Decided January 29, 2007·No. No. 04-17425·Published·Cited by 6 cases

Opinions

[513] MEMORANDUM **

PlaintiffiApp ellant Pauline Velez (“Velez”) appeals the district court’s order granting her request for attorneys’ fees. We remand this case to the district court for findings consistent with this memorandum.

Because the parties are familiar with the facts and procedural history of the case, we will not recount it here. The district court’s assessment of attorney’s fees is reviewed for abuse of discretion. Morales v. City of San Rafael, 96 F.3d 359, 362 (9th Cir.1996) (as amended). “A district court abuses its discretion when it awards fees based on an inaccurate view of the law or a clearly erroneous finding of fact.” Wilcox v. City of Reno, 42 F.3d 550, 553 (9th Cir.1994) (internal quotation omitted).

Velez argues that the district court abused its discretion by reducing the lodestar amount by 25% based upon its finding that she did not obtain a total victory or complete vindication, and by not treating the lodestar amount as presumptively reasonable. We agree.

Although the district court cited to Hensley v. Eckerhart, 461 U.S. 424, 433, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983), it failed to properly apply the process required to determine attorneys’ fees. Where the prevailing party was only partially successful, and the unsuccessful and successful claims are related, the district court must focus on whether the hours spent in litigation were reasonably necessary to obtain the relief that was ultimately obtained. Dang v. Cross, 422 F.3d 800, 813 (9th Cir.2005). The district court found that Velez had limited success because the main focus of the trial was Velez’s claim that the abeyance and reviews leading up to it were discriminatory, yet Velez lost her disparate treatment claim. In making this finding, however, the district court did not discuss whether winning the hostile work environment claim and receiving the maximum statutory amount allowed justified the expenditure of over 2,000 hours of attorney time.

Specifically, the district court failed to identify any fees that had been factored into the lodestar that were unnecessary to the pursuit of Velez’s successful hostile work environment claim. The district court could have discussed all the evidence introduced (not just the abeyance and reviews leading up to it) and determined which evidence possibly could have contributed to the verdict. The district court could have then attempted to approximate the percentage of time spent on developing and introducing the evidence that possibly supported a hostile work environment claim and separated those events from the events that could have only supported the losing claims. Instead, the district court reduced the total number of hours as being excessive before calculating the lodestar, and then reduced the lodestar amount without discussing the relationship between the relief obtained and the hours spent and without an explanation of the exceptional circumstances requiring such a reduction. In other words, the district court did not analyze whether any of the hours used to calculate the lodestar amount were unnecessary to win the hostile work environment claim.

Although the district court found that all of Velez’s claims were related and thus, it could not separate out the time spent on the unsuccessful claims from the successful ones, the court was still obligated to con[514] sider the “results obtained” in relation to the scope of the trial in calculating the lodestar figure. See Morales, 96 F.3d at 364. Prior to calculating the lodestar, the district court noted that Velez’s attorneys already deducted 70 hours for inefficiency. The court then excluded approximately 286 more hours before calculating the lodestar since it determined these hours were excessive, unnecessary, or otherwise noncompensable. The district court should have enumerated what other hours were non-compensable because they were not spent to achieve the result obtained, before calculating the lodestar figure, and then treated that figure as presumptively reasonable. Cunningham v. County of Los Angeles, 879 F.2d 481, 487 (9th Cir.1989) (once the lodestar amount is determined, it is presumed reasonable and adjustment to the lodestar amount should be made only in rare and exceptional cases); see also Quesada v. Thomason, 850 F.2d 537, 539-40 (9th Cir.1988) (district court abused its discretion in reducing the lodestar amount since the lodestar should be presumed reasonable and it should not be reduced simply because the amount of damages awarded was small). The court failed to do so and did not offer an explanation as to the exceptional circumstances that supported adjustment to the presumptively reasonable lodestar. See Cunningham, 879 F.2d at 488 (“Only in rare or exceptional cases will an attorney’s reasonable expenditure of time on a case not be commensurate with the fees to which he is entitled. Adjustments to the lodestar based on ‘results obtained’ must be supported by evidence in the record demonstrating why such deviation from the lodestar is appropriate.”).

In addition, the district court apparently gave significant weight to the fact that Velez did not receive all relief requested, such as the injunction she sought and economic damages. ER 585 (district court stated “[ijmportantly, much of the relief sought by Dr. Velez was not obtained”). Failure to receive all relief requested, however, without a review of whether the relief obtained justified the hours expended, should not be considered a significant factor. See Hensley, 461 U.S. at 435 n. 11, 103 S.Ct. 1933 (“it is not necessarily significant that a prevailing plaintiff did not receive all the relief requested. For example, a plaintiff who failed to recover damages but obtained injunctive relief, or vice versa, may recover a fee award based on all hours reasonably expended if the relief obtained justified that expenditure of attorney time.”); Quesada, 850 F.2d at 539-40 (“courts should not reduce lodestars based on relief obtained simply because the amount of damages recovered on a claim was less than the amount requested. ... Failure to obtain all relief requested for a claim on which the plaintiff prevailed should not deprive plaintiffs attorney of a reasonable hourly fee for hours needed to obtain the relief.”); Dang, 422 F.3d at 813 (“a plaintiff does not need to receive all the relief requested in order to show excellent results warranting the fully compensatory fee.”).

Accordingly, the district court abused its discretion by reducing the presumptively reasonable lodestar amount without an analysis of whether the result obtained justified the hours spent and without an explanation of the exceptional circumstances supporting such reduction.

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Velez v. Wynne, 220 F. App'x 512 (9th Cir. 2007).

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