SUSAN OKI MOLLWAY, Chief District Judge.
The court has before it a motion for attorneys' fees filed by Plaintiffs Faith Action for Community Equity ("FACE") and Tochiro Kochiro Kovac (collectively, "Plaintiffs"). Plaintiffs seek $50,000.00 in attorneys' fees pursuant to a settlement agreement between the parties in this case. The motion is granted.
The court and the parties are familiar with the factual background of this case. The court, therefore, includes only information relevant to disposition of the motion for attorneys' fees in this section.
The parties reached a settlement agreement on the eve of trial. Pursuant to that agreement, the issue of attorneys' fees was reserved for this court's resolution according to "(1) whether the terms of the settlement agreement and accompanying documents entitle Plaintiffs to be deemed prevailing parties; and (2) whether Plaintiffs are responsible for causing Defendants to change their position by offering translated [driver's license] examinations in 2014."
On June 29, 2015, Plaintiffs filed their motion for attorneys' fees, seeking an award of $50,000.00 pursuant to the settlement agreement.
In their opposition, Defendants contend that Plaintiffs lack standing to pursue an award of attorneys' fees.
Defendants contend that Mr. Kovac is not a party to the settlement agreement and therefore is not entitled to an award of attorneys' fees pursuant to that agreement.
A party that prevails under 42 U.S.C. § 1983 may be awarded a reasonable attorney's fee.
The parties agree that their settlement agreement meets the first prong of the three-part test.
Defendants contend, however, that the settlement agreement does not satisfy the second and third prongs of the three-part test.
The settlement agreement materially altered the legal relationship between the parties. A material alteration occurs when a settlement agreement "allows one party to require the other party `to do something it otherwise would not be required to do.'"
Although Defendants contend that the enforcement provision is just a "standard provision" and that "it is not a material difference that FACE can revisit the terms of its non-monetary settlement," ECF No. 279, PageID # 6619, neither of those statements is persuasive. The United States Supreme Court notes that a "material alteration of the legal relationship between the parties occurs [when] the plaintiff becomes entitled to enforce a judgment, consent decree, or settlement against the defendant."
According to Defendants, "[t]he State agreed to certain conduct . . . that it was already going to implement." ECF No. 279, PageID # 6618. Even if this is so, the agreement legally requires those actions and permits this court to enforce the agreement's terms if a violation occurs.
Defendants also appear to argue that the settlement agreement could not have materially altered the legal relationship between the parties because the agreement "provides no monetary benefit to Plaintiffs." ECF No. 279, PageID # 6618. Defendants cite no authority for the proposition that a prevailing party must have obtained monetary benefit. The Ninth Circuit, in fact, has specifically determined that monetary relief is unncessary.
Defendants seek to minimize the effect of the settlement agreement by arguing that it "does not allow FACE to dictate whether [the Hawaii Department of Transportation] must provide translated versions of the driver's license test, because the parties agreed that: [`]The terms of the agreement may be overridden if the federal government orders the state to take action that differs from the terms of this agreement.[']" ECF No. 279, PageID # 6618.
The settlement agreement does acknowledge the possibility that federal government action may override settlement terms. But this acknowledgment does not negate the material alteration in the legal relationship between the parties absent action by the federal government inconsistent with the settlement agreement.
With respect to the third prong of the prevailing party analysis, Plaintiffs correctly argue that they obtained actual relief on the merits of their claims through the settlement agreement.
To satisfy the third prong, "a plaintiff must receive some actual relief that serves the goals of the claim in his or her complaint."
The settlement agreement also requires Plaintiffs to demonstrate that they were "responsible for causing Defendants to change their position by offering translated examinations in 2014."
Offering translated examinations was clearly not a high priority for Defendants once the translated examinations became unavailable in October 2008.
In an internal Department of Transportation memorandum dated July 23, 2013, FACE's efforts are specifically cited as a reason for the decision to reinstate translated examinations.
To support their argument that the decision to offer translated examinations in 2014 had nothing to do with Plaintiffs, Defendants cite deposition testimony from Clifton Harty stating that "[t]he decision to translate was made in 2013, but the translations weren't made available again until March 17th, 2014." ECF No. 279-2, PageID #6642. This statement gives absolutely no indication of the motivation behind Defendants' decision to offer translated examinations in 2014. That is, the testimony does not indicate that the timing of the reinstatement of translations was independent of this lawsuit.
The Department of Transportation memorandum stating that Plaintiffs did indeed have an impact on Defendants' decision to reinstate translated examinations, along with Defendants' general awareness of and concern with Plaintiffs' efforts, undermines Defendants' argument that Plaintiffs were not responsible for the decision to offer translated examinations in 2014.
Defendants argue, in the alternative, that even if Plaintiffs caused Defendants to change their priorities, "it was unquestionably FACE's advocacy and not its litigation that caused any such change." ECF No. 279, PageID # 6623. Defendants note that the July 23, 2013, Department of Transportation memorandum requesting funding for translated examinations preceded the start of this litigation, making it "illogical to claim that this litigation caused HDOT to issue the memorandum."
This court is unpersuaded by Defendants' argument. It was because Plaintiffs' "advocacy" efforts did not immediately yield results that Plaintiffs proceeded with litigation. Translated examinations were not reinstated until March 2014, several months after this lawsuit was filed. If it was Plaintiffs' mere request that caused translations to be reinstated, it is hard to understand why the translations were not reinstated sooner and why this lawsuit has been so contentious.
Plaintiffs demonstrate that they are prevailing parties under Ninth Circuit case law and the settlement agreement. As a result, Plaintiffs are entitled to reasonable attorneys' fees.
The calculation of an award of reasonable attorneys' fees is generally based on the traditional "lodestar" method set forth in
A court may adjust the lodestar figure based on several factors, including: the time and labor involved, the preclusion of other employment by the attorney due to acceptance of the case, the customary fee, time limitations imposed by the client or the circumstances, the "undesirability" of the case, the nature and length of the professional relationship with the client, and awards in similar cases.
In this case, the settlement agreement reached between the parties limits any fee award to $50,000.00.
The reasonableness of an hourly rate is determined based on consideration of the experience, skill, and reputation of the attorney requesting fees.
Plaintiffs have requested the following hourly rates for work performed by Alston Hunt Floyd & Ing and Hawaii Appleseed Center for Law and Economic Justice:
ECF No. 276-1, PageID # 6340. Defendants do not specifically object to the reasonableness of any hourly rate.
This court's knowledge of the community's prevailing rates, the hourly rates generally granted by the court, the court's familiarity with this case, and the information provided by counsel support the conclusion that the hourly rates requested for Gavin Thornton and Jya Bunch are reasonable.
This court need not expressly approve the hourly rates for the attorneys, law clerks, and paralegals at Alston Hunt because, even if this court only approved lower rates, Plaintiffs would be entitled to $50,000 in fees. Without ruling on whether the requested hourly rates for the Alton Hunt attorneys, law clerks, and paralegals are or are not reasonable, this court, recognizing that it makes no difference in this case, will treat the applicable hourly rates as lower than requested.
The party seeking fees "bears the burden of documenting the appropriate hours expended in the litigation and must submit evidence in support of those hours worked."
Defendants object to certain expenditures of time on the ground that Plaintiffs' counsel violated the Rules of Professional Conduct. According to Defendants, "The time records submitted by Plaintiffs show that their attorneys (1) knowingly failed to turn over relevant evidence that had been requested in discovery, (2) improperly contacted State officials concerning the subject matter of this lawsuit without the consent of the Attorney General's Office, (3) misrepresented the extent of their collaboration with the United States Department of Justice, and (4) billed for time spent speaking to the press about this litigation." ECF No. 279, PageID # 6625. Many, if not all, of these arguments are irrelevant to Plaintiffs' fee request.
For example, Defendants' argument that Plaintiffs' counsel deliberately failed to produce various YouTube videos involves a discovery issue immaterial to the present motion. Even if this court were inclined to address purported discovery violations at this time, Defendants fail to demonstrate that the YouTube videos in question were responsive to any discovery request. While the two videos are recordings of oral communications, they do not appear to be "written or electronic communications between [Plaintiffs] and the Hawaii Department of Transportation."
Even if the court accepted all of Defendants' objections to Plaintiffs' fee request and excluded the time associated with those objections, Plaintiffs would be entitled to the requested fee award of $50,000.00.
Although many different combinations of time entries could lead to an award of $50,000.00 in reasonable and necessary fees for Plaintiffs, this court outlines the following as one example of a $50,0000.00 fee award:
On May 15, 2014, with trial scheduled to begin less than two weeks later, Defendants filed a "Request to Discuss Threshold Matter," seeking to challenge FACE's standing.
In opposition to Plaintiffs' motion for attorneys' fees, Defendants seek to resurrect their "Request to Discuss Threshold Matter," again contending that FACE lacks standing for the reasons articulated in that request. Defendants now add that this court's alleged lack of jurisdiction extends to any award of attorneys' fees to FACE. ECF No. 279, PageID # 6610. As Defendants put it, "Because FACE lacked standing to maintain this lawsuit, it also lacks standing to be deemed a prevailing party in order to collect attorneys' fees."
This court rejects Defendants' argument. The issue of standing is no longer relevant, given the settlement agreement under which this court retains jurisdiction to resolve post-settlement matters.
Defendants were (or at least should have been) fully aware that agreement to the settlement of Plaintiffs' claims would obviate the need for this court to address Defendants' "Request to Discuss Threshold Matter," which raised the same standing argument Defendants now reassert. While this court sees no need to address that request at this time, the court is surprised to see Defendants brimming with confidence that their request would have been granted.
Moreover, Defendants had ample opportunity to challenge FACE's standing earlier. Defendants unsuccessfully challenged FACE's standing on two prior occasions.
It is also unclear to this court how Defendants can plausibly cabin their standing argument to Plaintiffs' entitlement to attorneys' fees. While contending that this court lacks jurisdiction to award Plaintiffs attorneys' fees, Defendants concede that this court "approved the Settlement Agreement and retain[s] enforcement." ECF No. 279, PageID # 6609. Under Defendants' framework, if this court lacks jurisdiction to award attorneys' fees, a power specifically contemplated by the terms of the settlement agreement, it should likewise lack jurisdiction to enforce any of the other terms of the settlement agreement.
In their opposition, Defendants go so far as to state that they only agreed that FACE could seek attorneys' fees "because [they] knew that any prospective award of attorneys' fees would be a violation of the United States Constitution." ECF No. 279, PageID #s 6617-18. This is, to put it charitably, a strange argument. Defendants are saying either that (1) Defendants agreed that FACE could, if it won its fee motion, get what Defendants consider an unconstitutional fee award, or (2) Defendants were agreeing to something while all along planning to disavow the agreement as prohibited. The latter is not at all the same as arguing that Plaintiffs were not prevailing parties. This court will not permit Defendants to reap the benefits of the settlement agreement (e.g., avoidance of trial and the potential for liability, including a money judgment and an even greater fee award, plus costs), while seeking to avoid the burdens imposed by the settlement agreement (e.g., the potential for attorneys' fees).
Defendants' standing argument is rejected.
Plaintiffs' motion for attorneys' fees is granted. Plaintiffs are awarded $50,000.00 in fees.
IT IS SO ORDERED.
The case Defendants rely on,
A party seeking attorneys' fees "should make a good faith effort to exclude from a fee request hours that are excessive, redundant, or otherwise unnecessary,"