Vernon Harris v. Maricopa County Superior Court

Court of Appeals for the Ninth Circuit·Decided January 20, 2011·No. 09-15833·Published

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

VERNON HARRIS,  Plaintiff-Appellant, No. 09-15833 v. D.C. No.

MARICOPA COUNTY SUPERIOR  2:02-cv-00494- COURT; ARIZONA SUPREME COURT; SMM STATE OF ARIZONA, OPINION Defendants-Appellees.

Appeal from the United States District Court for the District of Arizona Stephen M. McNamee, District Judge, Presiding

Argued and Submitted

March 10, 2010—San Francisco, California

Filed January 20, 2011

Before: Procter Hug, Jr., Stephen Reinhardt and Jay S. Bybee, Circuit Judges.

Opinion by Judge Reinhardt;

Partial Concurrence and Partial Dissent by Judge Bybee 1090 HARRIS v. MARICOPA COUNTY SUPERIOR COURT

COUNSEL

Cheri L. McCracken, Phoenix, Arizona, for the plaintiff -appellant.

HARRIS v. MARICOPA COUNTY SUPERIOR COURT 1091 Katherine Baker and Diane Bornscheuer, Scottsdale, Arizona, for the defendants-appellees.

OPINION

REINHARDT, Circuit Judge:

After he was forced out of his position as an Initial Appearance Hearing Officer for the Maricopa County Superior Court, Vernon Harris unsuccessfully sued the Superior Court and the other defendants for violations of, inter alia, his rights under Title VII of the Civil Rights Act and the Fourteenth Amendment. Defendants then sought substantial attorneys fees and costs from Harris, and were awarded over $125,000 in fees and costs by the district court. Harris challenges those awards. Our laws encourage individuals to seek relief for violations of their civil rights, and allow a defendant to recover fees and costs from a plaintiff in a civil rights case only “in exceptional circumstances” in which the plaintiff’s claims are “frivolous, unreasonable or without foundation.” See Barry v. Fowler, 902 F.2d 770, 773 (9th Cir. 1990) (internal quotation marks, citation omitted); Christiansburg Garment Co. v. EEOC, 434 U.S. 412, 422 (1978). Moreover, only fees “attributable exclusively to plaintiff’s frivolous claims,” are recoverable by a defendant. See Tutor-Saliba Corp. v. City of Hailey, 452 F.3d 1055, 1064 (9th Cir. 2006) (internal quotation marks, alterations and citation omitted). Because the district court both used an impermissible method of determining the amount of fees and costs to be assessed for the claims for which fees were appropriate, and erred in some of its determinations as to which claims were properly subject to a fee award to defendants, we vacate the award of attorneys fees and remand for a new award that complies with this opinion.

I

In February of 2000, Vernon Harris was appointed as an Initial Appearance Hearing Officer for the Maricopa County 1092 HARRIS v. MARICOPA COUNTY SUPERIOR COURT Superior Court. No employment contract was executed between Harris and the Superior Court, and by statute such Hearing Officers, also known as Commissioners, serve at the pleasure of the chief presiding judge of the court. See Ariz. Rev. Stat. § 12-213. In late 2000 or early 2001, allegations were made that Harris had engaged in inappropriate conduct towards female staff members, had asked his secretary to perform personal errands for him, and had performed his own duties inadequately. In January and February of 2001, Harris was placed on administrative leave, investigated, and, finally, given the option of resigning or being terminated. He chose to resign.

Harris, who is African American, then filed a charge with the Equal Employment Opportunity Commission in which he alleged that he had been discriminated against on account of his sex and his race, which the EEOC dismissed. In February of 2002, Harris filed a complaint in Maricopa County Superior Court, naming as defendants the State of Arizona, Maricopa County Superior Court, Maricopa County, and the Arizona Supreme Court. Defendants removed the case to federal court, at which point Harris filed an Amended Complaint in which he made the following ten claims against the defendants : (1) breach of contract; (2) breach of duty of good faith and fair dealing; (3) hostile and discriminatory work environment ; (4) race discrimination; (5) false light/invasion of privacy ; (6) wrongful termination in violation of public policy; (7) intentional or negligent infliction of emotional distress; (8) defamation; (9) violation of due process and equal protection under the law; and (10) intentional interference with a business relationship.

The parties then engaged in several years of discovery and legal maneuvering. Of note, in January 2003, Maricopa County was dismissed from the lawsuit on Harris’s motion, and in October 2005, defendants’ motion for judgment on the pleadings was granted with respect to Harris’s wrongful termination claim. In July 2006, after both Harris and the defen-

HARRIS v. MARICOPA COUNTY SUPERIOR COURT 1093 dants filed summary judgment motions, the district court granted defendants summary judgment on the remaining claims in a sealed order. Harris appealed to this court and we affirmed in a memorandum disposition. Harris v. Super. Ct. of Ariz., 278 Fed. Appx. 719, 720-22 (9th Cir. 2008). We denied defendants’ motion for attorneys fees incurred in connection with the appeal without comment or explanation.

Prior to our disposition of the appeal, defendants moved for attorneys fees in district court. The district court denied the motion without prejudice. After we denied Harris’s petition for rehearing of his appeal, defendants again moved in district court for attorneys fees, seeking $315,974.65 in fees under Arizona Revised Statutes §§ 12-341.01(A) and 41-1481(J) and 42 U.S.C. §§ 1988 and 2000e-5(k), non-taxable expenses of $53,533.66, and reasonable fees and costs for preparation of the fee petition.

In 2009, the district court granted in part and denied in part the fee motion, awarding defendants $85,514.84 in fees and $40,150.23 in non-taxable costs. It separated defendants’ claims into those it designated contracts-based, for which fees are available to prevailing defendants under Arizona Revised Statute § 12-341.01(A) so long as certain conditions apply; those it designated as federal civil rights claims, for which fees are available to prevailing defendants in very limited circumstances under 42 U.S.C. §§ 1988 and 2000e-5(k); and those it designated as state law claims sharing a common nucleus of operative facts with the federal civil rights claims. It determined that most of Harris’s basic civil rights claims, including his claims of disparate treatment, retaliation, and equal protection, were not frivolous, and thus that no attorneys fees were permissible for those claims. Similarly, it determined that his defamation and tortious interference claims were not frivolous, and awarded no fees on those claims. For Harris’s other claims it found fees to be appropriate .

1094 HARRIS v. MARICOPA COUNTY SUPERIOR COURT Although the defendants were able to specifically attribute work amounting to only about $10,000 of attorneys fees to the claims for which the district court determined fees to be warranted , the district court calculated the amount attributable to these claims to be $171,104.84 by taking the $251,464.10 in “general fees” — fees that the defendants requested but that they were not able to allocate to any particular claim — and dividing them equally across the ten claims in Harris’s Amended Complaint, and then allocating to each claim for which it determined fees to be appropriate one-tenth of the total general fees. After calculating the amount of fees in this manner, the district court reduced the award by approximately half, to $85,514.84, in light of Harris’s financial hardship. With respect to expenses, the district court awarded a pro- rated amount of defendants’ requested expenses based on the ratio of contract-based claims (for which expenses are not available) to non-contract-based claims (for which, in the district court’s view, expenses were available). There was no reduction to the amount of expenses for financial hardship, however. Harris timely appealed.

II

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