ROBERT W. SWEET, District Judge.
The plaintiff A.R. ("Plaintiff") has moved pursuant to Rule 7 of the Federal Rules of Civil Procedure and 20 U.S.C. § 1415(i) (3)for attorneys' fees and costs against defendant New York City Department of Education ("DOE" or the "Defendant") in the amount of $313,482.50.
Upon the conclusions set forth below, the motion of the Plaintiff is granted in part and denied in part, resulting in an award of $217,388.25.
The facts and prior proceedings in this action are set forth in this Court's prior decision and order dated September 16, 2013, familiarity with which is assumed. (
Plaintiff brought this action under the Individuals with Disabilities Education Act ("IDEA") on September 21, 2012, seeking tuition funding in the amount of $129,080.30 for the full cost of her granddaughter N.B.'s tuition for a six month stay at the Judge Rotenberg Center ("JRC"). JRC is a residential facility located in Massachusetts, at which Plaintiff unilaterally placed N.B. for the latter half of the 2011-12 school year. Plaintiff's complaint constituted an appeal from an administrative decision by the New York State Education Department's Office of State Review.
On January 9, 2014, the parties entered into a stipulation and order of partial settlement (the "Settlement Agreement") whereby all claims brought by Plaintiff, or which could have been brought by Plaintiff in connection with the action, were dismissed with prejudice in exchange for certain consideration, with the exception of Plaintiff's attorneys' fees and costs incurred in connection with the action, which remained the sole issue in dispute. (
Defendant contended that retainer agreements between Plaintiff's counsel and the Plaintiff (the "Retainer Agreements") provided that Plaintiff's counsel had already been paid by JRC for their work on the case and requested materials related to these payments. Defendant subsequently filed a motion to compel the production of such documents.
On March 19, 2014 and March 26, 2014, the Court granted the DOE's motion to compel and directed Plaintiff's counsel to produce records related to their respective agreements and payment relationships with JRC. On March 20, 2014, Plaintiff's counsel produced their respective letter agreements with JRC ("JRC Agreements"). On April 2, 2014, they produced their respective invoices sent to JRC for work done on Plaintiff's case.
The instant motion for attorneys' fees was filed on February 24, 2014 and was marked fully submitted on May 14, 2014. Since the submission of the motion, Plaintiff's counsel has submitted supplemental time logs, to which Defendant has responded, which are addressed by this opinion.
A prevailing party
The Court may also examine equitable considerations relevant to an application for attorneys' fees.
The relevant terms of the JRC Agreements for each of Plaintiff's counsel, Arthur R. Block ("Block") and Anton Papakhin ("Papakhin"), are briefly summarized below.
Block's agreement notes that Block has been working with JRC for over four years. (Porter Decl. Ex. A. at 1.) The agreement notes, with respect to the representation of parents:
(
Block's agreement also notes that the hourly rate charged to JRC is less than his market rate and notes that, in 2011, Block's market rate was $450-500. (
Papakhin's agreement notes, in relevant part, that Papakhin "will do [his] utmost to protect [JRC's] interests." (Porter Decl. Ex. B. at 3.) However, the agreement also states that JRC must remember that it is "not [Papakhin's] client and [he] will not engage in any conduct that conflicts with [his] professional responsibility to parents and their children." (
Papkhin's agreement further states that the non-refundable fee for every case seeking public funding for residential placement of a new student at JRC will be $5,000 and if the case proceeds to an impartial hearing, another $5,000 will be charged. (
Defendant contends that the JRC Agreements and invoices indicate that Block has represented both JRC and parents such as plaintiff in a variety of matters since at least 2007, and is paid by JRC for these efforts and that Papakhin has brought claims on behalf of parents seeking tuition funding for JRC since at least 2009, and is also paid by JRC for his efforts. Defendant contends that the "relationship between these attorneys and JRC ... is wholly unique in the DOE's experience." (Def.'s Opp'n 3; Porter Decl. Exs. A-B.) The JRC Agreements and invoices reflect that JRC has paid fees to Block and Papakhin in the instant action and that Block and Papakhin have no obligation to repay such fees unless they recover fees from the DOE. (Porter Decl. Ex. A. at 2; Ex. B. at 2.)
Defendant raises a number of equitable arguments in opposition to Plaintiff's fee motion, including that: (1) Plaintiff's counsel's agreements with the JRC raise inherent conflicts of interest, (2) JRC's payment of fees was not necessary to provide Plaintiff with representation, and thus Plaintiff's case does not implicate the purpose of the IDEA's fee-shifting provision, and (3) the fees Plaintiff seeks do not further the purpose of the fee-shifting provision.
Defendant contends that the JRC Agreements, read together with the Retainer Agreements, implicate several New York Rules of Professional Conduct ("NYCRR"). Defendant points to three conditions that it contends create a conflict of interest: (1) provisions in the Retainer Agreements reflect that Plaintiff's counsel may withdraw from representing any or all of the parents associated with JRC, including Plaintiff, should JRC fail to pay counsel's fees, essentially creating a risk that a parent may lose her counsel midstream because the paying third party no longer considers the parent's claim to be a prudent investment; (2) the long-standing relationship between Plaintiff's counsel and JRC creates the inherent possibility of conflict with the best educational interests of the parents and their child, in that the attorneys may be incentivized to direct a parent to JRC when that residential facility may not, in fact, be the most appropriate placement for a student; and (3) the Retainer Agreements "raise serious questions" regarding whether Plaintiff has in fact provided informed consent to the third party relationship between Plaintiff's counsel and JRC. (
Defendant cites to several provisions of the NYCRR in support of its arguments, including Rule 1.7, Rule 1.16(c) (5), and Rule 1.8(f). As discussed below, none of these provisions is implicated in this action or timely invoked by Defendant.
Defendant contends that Plaintiff's attorneys' agreements with JRC authorize them to withdraw "midstream" from representing Plaintiff if JRC chooses to not pay the attorneys' fees in contravention of Rules 1.7 and 1.16. (Def.'s Opp'n 5-7.)
Pursuant to Rule 1.7 of the NYCRR, an attorney may not represent a client if a "reasonable lawyer would conclude that either: (1) the representation will involve the lawyer in representing differing interest; or (2) there is a significant risk that the lawyer's professional judgment on behalf of a client will be adversely affected by the lawyer's own financial, business, property or other personal interests." 22 NYCRR § 1200.0 Rule 1.7(a). Rule 1.16(c) (5) states a lawyer may withdraw from representing a client when "the client disregards an agreement or obligation to the lawyer as to expenses or fees."
Defendant's contentions are speculation about what might have happened had JRC chosen to cease payment. JRC did not fail to pay advances it had agreed to make throughout the duration of the litigation. Defendant does not allege that Plaintiff's counsel withdrew "midstream."
Defendant's contentions that Block and Papakhin's relationships with JRC create the inherent
Defendant further asserts that the Retainer Agreements implicate informed consent rules and contends that the Retainer Agreements "(l) fail to explain the availability of alternative counsel, (2) provide only minimal detail regarding the nature of their relationship with JRC, (3) do not appear to disclose the possibility that either attorney may withdraw if JRC stops or delays paying fees, and (4) do not appear to disclose the actual amount JRC pays them," which, Defendant contends, implicates Rule 1.8(f), in addition to Rules 1.7 and 1.16 cited above. (Def.'s Opp'n 8.)
Rule 1.8(f) provides that a lawyer "may not accept compensation for representing a client, or anything of value related to the lawyer's representation of the client, from one other than the client unless: (1) the client gives informed consent; (2) there is no interference with the lawyer's independent professional judgment or with the client-lawyer relationship; and (3) the client's confidential information is protected as required by Rule 1.6."
The Defendant has failed to establish a lack of informed consent, as its claim is directly contradicted by the Retainer Agreements that A.R. signed. (
Defendant has not established a conflict of interest nor an equitable basis to deny a fee award to Plaintiff's counsel.
Defendant contends that JRC's payment of fees to Plaintiff's counsel was not necessary to provide Plaintiff with representation and, thus, the representation does not implicate the purpose of the fee-shifting provision. Specifically, Defendant contends that it is unlikely that Plaintiff would have been deterred from bringing her action had JRC not paid her fees and asserts that the IDEA's fee shifting provision has created a market of non-conflicted attorneys at her disposal. Defendant, in effect, seeks to bar JRC from providing interim financing for the fees of Plaintiff's counsel.
The purpose of the IDEA's attorneys' fees award provision — like other civil rights fee-shifting provisions — is to attract effective legal representation and thereby encourage private enforcement of civil rights statutes.
Defendant cites to a recent decision by the Honorable Kevin Castel to support its contention there is a rich market of firms and attorneys specializing in special education litigation. The precedent cited by Defendant does not in fact preclude fees on the basis of a rich market; rather, Judge Castel considered the existing market as
Defendant separately contends that the IDEA limits the types of parties who can recover fees only to parents and, in certain situations, state and local agencies and that, as a result, JRC should be treated as an impermissible stand-in litigant. To support its contentions, Defendant analogizes to case law regarding the Equal Access to Justice Act ("EAJA"), asserting that JRC is an ineligible third party in effect seeking a fee award through an eligible surrogate, and the Court should employ a "deterrence" analysis, where it would "focus on whether the plaintiff would have been deterred from bringing the action had the fee-shifting provision not been available," as in EAJA cases. If the Plaintiff would not have been deterred, Defendant contends, the Court should decline to award fees because the purpose of the fee-shifting provision — to remove from a plaintiff's shoulders the deterrent effect of the cost of litigation — is not implicated here.
Neither party has been able to point to case law in our circuit that deals squarely with this issue. Other courts, however, have held that third party advancement of legal fees to a civil rights attorney is not relevant to the calculation of a prevailing party attorney's fee award.
In
Defendant contends that analogy to the situation in
To further support its argument for denying a fee award, Defendant cites to
In
Courts in this circuit interpret the IDEA fee provision "in consonance with those of other civil rights fee-shifting statutes."
The party seeking fees bears the burden of establishing the reasonableness of the rate sought by establishing that the requested rate is "in line with those prevailing in the community. ..."
Block seeks a rate of $550 per hour, based on (1) over 35 years of experience successfully representing clients in special education matters, (b) federal litigation experience, including cases raising important legal-policy issues, (c) scholarship in the field, and (d) law school teaching about education policy litigation. (Pl.'s Mem. 11-13; Pl.'s Reply 6;
Defendant objects to Block's proposed rate as "unprecedented" and cites to various district court decisions to support its contention that Block should be compensated at a rate of $375 per hour for work done in 2012, $395 per hour for work done in 2013, and $415 per hour for work done in 2014 or, in the alternative, should be compensated at a maximum of $415 per hour for all work done on the instant case. (
Courts have awarded a range of fees in special education cases for seasoned attorneys.
Papakhin has amended his claim, seeking an hourly rate of $300, instead of $350, for this case only. Papakhin has approximately eight years of experience working in the field of special education law. (Papakhin Decl. ¶ 13.)
Defendant objects to Papakhin's rate as unreasonable and "far in excess" of a rate for an attorney of his experience. (Def.'s Opp'n 17.) Defendant asserts that a reasonable hourly rate for Papakhin is $165 per hour for his work at the administrative proceeding and $275 per hour for his work on the federal action or, in the alternative, Papakhin's hourly rate should not exceed $275 per hour for any work done on the case. (Def.'s Opp'n 17-18.)
Courts have also awarded a range of fees for attorneys with Papakhin's level of experience.
In order to determine reasonable fees, federal courts must determine the number of hours reasonable expended on a case.
Defendant contends that the number of hours that Plaintiff claims are excessive and should be substantially reduced because: (1) Plaintiff's counsel unreasonably protracted the resolution of the controversy, (2) Plaintiff improperly block billed, (3) the amount sought for the litigation of the fees motion is excessive, and (4) Block spent an unnecessary amount of time crafting an improper declaration. Defendant also asserts that Plaintiff's counsel improperly charged for removing billing entries, attendance at oral argument, and reviewing a hearing transcript.
The IDEA's fee-shifting provision provides that "the court shall reduce" attorneys' fees awarded whenever it finds that "the parent, or the parent's attorney, during the course of the action or proceeding, unreasonably protracted the final resolution of the controversy. 20 U.S.C. § 1415(i) (3) (F) (i) & (iv). Defendant contends that Plaintiff unreasonably protracted the action by (a) opposing the DOE's discovery request for materials related to the payment relationship with JRC and the existence of any obligation to repay JRC in the event Plaintiff recovered fees from DOE and (b) moving to strike portions of the DOE's motion for judgment on the pleadings, separate from and in advance of Plaintiff's substantive opposition on that motion. (Def.'s Opp'n 18-20.)
While Plaintiff's motion to strike was not unreasonable and was dealt with at a later time at the Court's direction, Plaintiff's opposition to Defendant's motion to compel merits a reduction in fees as Plaintiff's opposition to providing responsive documents to the DOE's discovery requests, despite the broad scope of discovery under the Federal Rules of Civil Procedure, was unwarranted. Accordingly, the 62.1 hours billed by Block, and the 10.7 hours billed by Papakhin (
Block billing is the practice of "aggregating multiple tasks into one billing entry" which makes it "exceedingly difficult for courts to assess the reasonableness of the hours billed."
The billing examples to which Defendant points, for the most part, contain descriptions of compensable work, grouped in one entry because the tasks were presumably (and apparently) related. Though such grouping is not pref erred, a 25% reduction is not appropriate. Additionally, there are examples of clerical tasks interspersed within billing entries and, ideally, these types of tasks would be separated out.
Defendant contends that the number of hours spent on litigating the fees claim are excessive. While it is within the Court's discretion to reduce hours spent litigating fee applications, such a reduction is not warranted here. Rather than simply drafting a standard fee application, which outlines applicable legal standards and provides information and documentation regarding hourly rates and hours billed, Plaintiff here was also required to address Defendant's several defenses in support of the contention that Plaintiff should not be awarded any fees at all. It is reasonable that such legal research and analysis was conducted by Plaintiff and does not warrant a reduction in fees claimed.
Defendant asserts, in response to Plaintiff's supplemental billing records, that Block spent an excessive amount of time drafting his reply declaration, and contends that the reply declaration was improper due to inclusion of legal arguments and assertions not based on his personal knowledge. (Def.'s Opp'n to Supplemental Decl. 2.) Defendant asserts that items such as billing for legal research in support of the reply declaration should not be credited and seeks a 50% reduction of 39.85 hours between April 18-30, 2014.
A reduction of 50% of 37.65 of the 39.85 hours identified by Defendant is reasonable in this case.
Defendant asserts that 0.3 hours billed by Block for time spent on April 11, 2014 reviewing prior billing entries ("Block Billing Revisions"), 2.5 hours billed by Papakhin on April 28, 2014 revising time entries ("Papakhin Billing Revisions"), 5.3 hours billed by Papakhin between May 12-14, 2014 for time spent preparing for and attending oral argument, and 0.4 hours billed by Block on May 21, 2014 reviewing the fees hearing transcript should all be deducted from the fee award. The Block Billing Revisions will be deducted as well as 50% of 2 of the 2.5 Papakhin Billing Revisions hours.
Taking into account the above, the fee award is calculated in the following manner:
Based on the conclusions set forth above, the application of A.R. in the amount of $217,388.25 is granted.
It is so ordered.