NORA BETH DORSEY, Chief Special Master.
On October 13, 2015, Mary Radhakrishnan ("petitioner") filed a petition for compensation under the National Vaccine Injury Compensation Program, 42 U.S.C. §300aa-10, et seq.,
On September 22, 2016, petitioner filed a motion requesting $5,288.10 in attorneys' fees and $446.23 in attorneys' costs for a total amount of $5,734.33. Motion for Attorneys' Fees and Costs ("Pet. Motion") at ¶¶ 3-4, 9 (ECF No. 23). Petitioner incurred no out-of-pocket expenses.
Petitioner filed her petition without medical records shortly before expiration of the Vaccine Act's statute of limitations.
During the call, the OSM staff attorney managing this SPU case discussed the lack of support for petitioner's claim in the medical records which were filed. See Order, issued Dec. 21, 2015, at 1 (ECF No. 15). Petitioner's counsel indicated she was seeking additional documents to support petitioner's claim. She requested 30 days to file any additional documents and to determine if petitioner could move forward with her claim. See id.
Instead of any additional proof, petitioner filed a motion for a decision on the record pursuant to Vaccine Rule 8(d).
Petitioner filed her motion for attorneys' fees and costs on September 22, 2016.
Motivated by a desire to ensure that petitioners have adequate assistance from counsel when pursuing their claims, Congress determined that attorneys' fees and costs may be awarded even in unsuccessful claims. H.R. REP. NO. 99-908, at 22 reprinted in 1986 U.S.C.C.A.N. 6344, 6363; see also Sebelius v. Cloer, 133 S.Ct. 1886, 1895 (2013 (discussing this goal when determining that attorneys' fees and costs may be awarded even when the petition was untimely filed). As Judge Lettow noted in Davis, "the Vaccine Program employs a liberal fee-shifting scheme." Davis v. Sec'y of Health & Human Servs., 105 Fed. Cl. 627, 634 (2012). It may be the only federal fee-shifting statute that permits unsuccessful litigants to recover fees and costs.
However, "Congress did not intend that every losing petition be automatically entitled to attorneys' fees." Perriera v. Sec'y of Health & Human Servs., 33 F.3d 1375, 1377 (Fed. Cir. 1994). The Vaccine Act requires an unsuccessful litigant to establish that their petition was brought in good faith and there was a reasonable basis for the claim for which the petition was brought before attorneys' fees and costs may be awarded. § 15(e)(1).
"[T]he `good faith' requirement. . . is a subjective standard that focuses upon whether petitioner honestly believed he had a legitimate claim for compensation." Turner v. Sec'y of Health & Human Servs., No. 99-544V, 2007 WL 4410030, at *5 (Fed. Cl. Spec. Mstr. Nov. 30, 2007). Petitioners are entitled to a presumption of good faith. Grice v. Sec'y of Health & Human Servs., 36 Fed. Cl. 114, 121 (1996); see also Di Roma v. Sec'y of Health & Human Servs., No. 90-3277V, 1993 WL 496981, at *1 (Fed. Cl. Spec. Mstr. Nov. 18, 1993).
This presumption does not extend to reasonable basis which must be affirmatively demonstrated by the petitioner. McKellar v. Sec'y of Health & Human Servs., 101 Fed. Cl. 297, 305 (2011). "In contrast to the subjective standard afforded the `good faith' requirement, the `reasonable basis' requirement `is objective, looking not at the likelihood of success [of a claim] but more to the feasibility of the claim.'" Turner, 2007 WL 4410030, at *6 (quoting Di Roma, 1993 WL 496981, at *1). "[R]easonable basis is an objective standard determined by the "totality of the circumstances" inquiry." Chuisano v. Sec'y of Health & Human Servs., 116 Fed. Cl. 276, 286 (2014). It should not be rigidly applied. Id. at 285; see also Silva v. Sec'y of Health & Human Servs., 108 Fed. Cl. 401, 405 (2012) (emphasizing that "[a] special master's determination . . . is entitled to deference").
After it has been determined that an award of attorneys' fees and costs is appropriate, the special master must determine the amount to be awarded. As the Federal Circuit noted, attorneys' fees and costs were "not expected to be high" due to the "no-fault, non-adversarial system" set forth in the Vaccine Act. Saxton ex rel. v. Sec'y of Health & Human Servs., 3 F.3d 1517, 1520 (Fed. Cir. 1993) (quoting H.R. REP. NO. 99-908, at 36 reprinted in 1986 U.S.C.C.A.N. 6344, 6377). Reasonable attorneys' fees are calculated by multiplying a reasonable hourly rate by a reasonable number of hours expended on litigation, the lodestar approach. Avera v. Sec'y of Health & Human Servs., 515 F.3d 1343, 1347-48 (Fed. Cir. 2008) (quoting Blum v. Stenson, 465 U.S. 886, 888 (1984)); Saxton, 3 F.3d at 1521. A petitioner's counsel in the Vaccine Program is paid the forum rate unless the bulk of the work is performed in a locale other than the forum (District of Columbia) and the local rate is very significantly lower than the forum rate. Avera, 515 F.3d at 1349. If these two requirements are met, the Davis exception applies, and petitioner's counsel is paid according to the local rate. Id.; see Davis County Solid Waste Management and Energy Recovery Special Service District v. United States Environmental Protection Agency, 169 F.3d 755 (D.C. Cir. 1999).
Although not explicitly stated in the statute, the requirement that only reasonable amounts be awarded applies to costs as well as fees. See Perriera v. Sec'y of Health & Human Servs., 27 Fed. Cl. 29, 34 (1992), aff'd, 33 F.3d 1375. Reasonable expert costs are calculated using the same lodestar method as is used when calculating attorneys' fees. Masias v. Sec'y of Health & Human Servs., No. 99-697V, 2009 WL 1838979, at *37 (Fed. Cl. Spec. Mstr. June 12, 2009).
Special masters have "wide latitude in determining the reasonableness of both attorneys' fees and costs." Hines v. Sec'y of Health & Human Servs., 22 Cl. Ct. 750, 753 (Fed. Cl. 1991). They are entitled to rely on their prior experience and, based on experience and judgment, may reduce the number of hours to an amount reasonable for the work performed. Saxton, 3 F.3d at 1521. A line-by-line evaluation of the billing records is not required. Wasson v. Sec'y of Health & Human Servs., 24 Cl. Ct. 482, 483 (Fed. Cl. 1991) aff'd in relevant part, 988 F.2d 131 (Fed.Cir.1993) (per curiam).
The petitioner "bears the burden of establishing the hours expended, the rates charged, and the expenses incurred." Wasson, 24 Cl. Ct. at 484. She "should present adequate proof [of the attorneys' fees and costs sought] at the time of the submission." Id. at 484 n.1. Petitioner's counsel "should make a good faith effort to exclude from a fee request hours that are excessive, redundant, or otherwise unnecessary, just as a lawyer in private practice ethically is obligated to exclude such hours from his fee submission." Hensley v. Eckhart, 461 U.S. 424, 434 (1983).
A review of the medical records reveals that petitioner's claim is tenuous at best. Despite that fact, there is nothing in the record to indicate petitioner lacked the requisite good faith when filing her claim. The undersigned finds petitioner has satisfied the statutory requirement of good faith and turns to the issue of reasonable basis.
It is well established that claims filed on the eve of the expiration of the Vaccine Act's statute of limitations are subject to a more lenient standard when determining if reasonable basis exists. Hamrick v. Sec'y of Health & Human Servs., No. 99-683V, 2008 WL 4793152, at *5 (Fed. Cl. Spec. Mstr. Jan. 9, 2008) (noting this "long recognized" proposition). Petitioner's counsel in these cases often do not have the time needed to properly research petitioner's claim prior to filing the petition.
However, this greater latitude should not be interpreted to allow for a finding of reasonable basis for every claim filed in this manner.
In this case, the billing records establish that petitioner's counsel began work on this case on September 23, 2015. See Exhibit 6 at 1. The petition was filed 20 days later, two to three days prior to the expiration of the Vaccine Act's statute of limitations.
Counsel did not receive petitioner's prior medical records from Dr. Vishen until October 21, 2015, nine days after the petition was filed. These records contain information which undermines petitioner's claims,
Petitioner's counsel did not receive the last of petitioner's medical records until November 11, 2015. See Exhibit 6 at 3 (2nd entry dated Nov. 11, 2015). At that point, it should have become abundantly clear to petitioner's counsel there were serious issues with petitioner's claim.
However, the majority of time billed after early November was spent preparing for the initial status conference, discussing the case with petitioner, and seeking additional medical records to support petitioner's claims. Id. at 3-7. Petitioner filed her motion for a decision on the record approximately 40 days after the initial status conference held on December 18, 2015. More importantly, it is clear that petitioner's counsel worked diligently to obtain the medical records in this case. See, e.g. Exhibit 6 at 1 (2nd entry dated Oct. 12, 2015) (describing multiple telephone calls to petitioner "regarding . . . the need for records"). In total, petitioner's counsel spent less than nine hours over a four month period of time working on petitioner's claim.
Petitioner filed her claim on the eve of the expiration of the Vaccine Act's statute of limitations. Subsequently, she pursued her claim in a timely manner and requested a ruling on the record when unable to produce additional evidence of her claim. The undersigned finds petitioner had a reasonable basis to file her claim. Furthermore, that reasonable basis continued through the conclusion of this case. Thus, petitioner is entitled to an award of attorneys' fees and costs.
Petitioner requests an hourly rate of $300 for work performed in 2015 and $359 for work performed in 2016. See Exhibit 6 at 1-7. She requests paralegal rates of $95, $105, and $145. See id. In support of the requested rates, petitioner has filed affidavits from petitioner's counsel, Altom Maglio (the managing partner at petitioner's counsel's law firm, Maglio, Christopher & Toale, P.A. ("the Maglio firm"), and attorneys and paralegals not related to counsel's firm or this action. See Exhibits 9-12.
On October 14, 2016, Special Master Corcoran issued a reasoned decision in Dezern v. Sec'y of Health & Human Servs., No. 13-643V, 2016 WL 6678496 (Fed. Cl. Spec. Mstr. Oct. 14, 2016), addressing the issue of an award or appropriate hourly rates for the attorneys in the Maglio firm's office located in Sarasota, Florida. The undersigned adopts the same reasoning in this case. Furthermore, the undersigned has reviewed the billing records submitted with petitioner's request. In the undersigned's experience, the request appears reasonable, and the undersigned finds no cause to reduce the requested hours or rates.
The Vaccine Act permits an award of reasonable attorneys' fees and costs. § 15(e). Based on the reasonableness of petitioner's request, the undersigned
The undersigned awards
The clerk of the court shall enter judgment in accordance herewith.