Winterrowd v. American General Annuity Insurance

556 F.3d 815, 2009 U.S. App. LEXIS 2899, 2009 WL 367696
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 17, 2009
Docket07-56541, 07-56711
StatusPublished
Cited by105 cases

This text of 556 F.3d 815 (Winterrowd v. American General Annuity Insurance) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Winterrowd v. American General Annuity Insurance, 556 F.3d 815, 2009 U.S. App. LEXIS 2899, 2009 WL 367696 (9th Cir. 2009).

Opinions

MILAN D. SMITH, JR., Circuit Judge:

We consider in this appeal whether the Plaintiffs can recover attorney’s fees generated by a distinguished member of the Oregon Bar who assists a member of the California Bar in litigating a case before the federal district court in the Central District of, California (Central. District), but who (a) is not a member of the California Bar, (b) does not physically appear before the Central District, (c) does not sign pleadings in the case before the Central District, (d) has minimal contact with his clients, and no direct contact with opposing counsel in the case, (e) is supervised by Wheatley, Jr., an attorney who is licensed to practice law in California and is the person who alone remained responsible to the Plaintiffs, and (f) is not admitted pro hac vice in connection with the case before the Central District, but no evidence in the record shows that he would not have routinely been so admitted had he applied. We hold that the Plaintiffs can recover such fees. With respect to this issue, we reverse and remand, and with respect to the other issues addressed in this opinion, we affirm in part, and remand in part.

Factual and Procedural Background

This is the third time this court has heard an appeal related to this matter in almost nine years of litigation. Appellants Neil Winterrowd, Kevin Yurkus, and Gregory Stopp (Winterrowd plaintiffs) filed their initial and amended complaints in early 2000, asserting claims for breach of a severance contract. American General [818]*818Annuity Insurance Co., et al. (AGAIC) asserted in its answer that the Winterrowd plaintiffs’ contract claims were preempted by the Employment Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. § 1001 et seq.

The district court granted AGAIC’s motion for summary judgment, holding that the severance contract issued to the Win-terrowd plaintiffs was an employee benefit plan covered under ERISA. The Winter-rowd plaintiffs appealed, and on March 5, 2003, this court reversed the district court’s grant of summary judgment, finding that ERISA did not apply, and remanded the case for further consideration of the Winterrowd plaintiffs’ breach of contract claims.

After remand, the Winterrowd plaintiffs moved the district court for an entry of summary judgment on their breach of contract claims. The district court denied that motion because it found that a material dispute of fact remained respecting AGAIC’s unilateral mistake affirmative defense. Ten months later, the parties entered into a settlement agreement under which AGAIC agreed to pay the entire amount claimed by the Winterrowd plaintiffs, plus interest, totaling $288,240.56. The settlement agreement provided for the payment of all costs except for those incurred in connection with the appeal. With regard to attorney’s fees, the settlement agreement stated:

The parties agree to preserve the issue of attorneys’ fees, if any, for a noticed motion to be decided by District Court Judge Christine Snyder.... The Court shall decide the issue of attorney’s fees based on the law, evidence submitted by affidavits (with either party reserving the right to object) and the submitted briefs. Each party retains the right to appeal the award or denial of attorneys’ fees.

The Winterrowd plaintiffs also agreed “to prepare a dismissal with prejudice of the entire action and provide it to Defendants’ counsel. Defendants agree not to file the Dismissal until their receipt of the Court’s final decision on the issue of attorney’s fees.”

The Winterrowd plaintiffs next filed a motion for attorney’s fees pursuant to § 218.5 of the California Labor Code, as well as a motion for sanctions against AGAIC’s counsel. In an order dated October 20, 2004, the district court held that the Winterrowd plaintiffs were owed attorney’s fees as a matter of law “[i]n light of the Ninth Circuit’s decision that plaintiffs’ original claim was not preempted by ERISA and the fact that defendant ultimately agreed to pay plaintiffs one hundred percent of their contract claims.” The district court applied California law to determine a reasonable hourly rate for the Winterrowd plaintiffs’ attorneys, finding that $300 per hour was an appropriate rate for their counsel of record, William Wheat-ley Jr., and for Robert Wheatley. The district court also granted fees for the Winterrowd plaintiffs’ three unsuccessful motions for summary judgment. The district court denied the Winterrowd plaintiffs’ request for sanctions against AGA-IC’s counsel.

The district court determined that William Wheatley, Sr., an attorney admitted to the Oregon Bar but not the California Bar, could not recover attorney’s fees for the work he did while the case was before the district court. The court found that because Wheatley, Sr.’s “work on this case dealt with matters of California law for a California client’s claim in the Central District of California, he is not entitled to recover for fees that were rendered in violation of the State Bar Act or the Central District Local Rules.” Wheatley, Sr., was, however, admitted to the Ninth Cir-[819]*819euit Bar, and the court granted the Win-terrowd plaintiffs fees for the time Wheat-ley, Sr. spent on the 2002-03 appeal before this court.

On February 22, 2005, the district court granted the Winterrowd plaintiffs’ motion for an entry of judgment, “dismissing this action, pursuant to the terms of the settlement agreement, and entering judgment awarding plaintiffs attorney’s fees in the amount” established in the prior order. The Winterrowd plaintiffs timely appealed from this judgment on the issues of attorney’s fees and sanctions. AGAIC cross-appealed. While that appeal was pending, on April 4, 2005, the district court denied a March 8, 2005 motion for unclaimed attorney’s fees (seeking attorney’s fees from August 27, 2004, the date that the original fees motion was filed, until March 7, 2005) stating that it “finds that it does not have jurisdiction to award any further attorneys’ fees to plaintiffs by reason of the appeal.”

On January 22, 2007, the Ninth Circuit Clerk’s Office remanded the case to the district court because “the district court has neither entered a final judgment disposing of plaintiffs’ underlying claims, nor certified the attorneys fee issue for interlocutory review pursuant to 28 U.S.C. § 1292(b) or Fed.R.Civ.P. 54(b).” On January 25, 2007, the district court issued an order certifying the case for appeal pursuant to 28 U.S.C. § 1292(b). On April 12, 2007, this court denied the Winterrowd plaintiffs’ petition for permission to appeal pursuant to 28 U.S.C. § 1292(b). In response to the dismissal by our court, the district court dismissed the Winterrowd plaintiffs’ underlying claims against AGA-IC with prejudice on September 27, 2007. Once more, the Winterrowd plaintiffs timely appealed and AGAIC timely cross-appealed.

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556 F.3d 815, 2009 U.S. App. LEXIS 2899, 2009 WL 367696, Counsel Stack Legal Research, https://law.counselstack.com/opinion/winterrowd-v-american-general-annuity-insurance-ca9-2009.