WENDY BEETLESTONE, District Judge.
Plaintiff moves for reasonable attorney's fees under the Individuals with Disabilities Act (IDEA), 20 U.S.C. § 1415(i)(3)(B)(i)(I), in connection with her action against Defendants Khepera Charter School ("Khepera") and the Pennsylvania Department of Education (PDE). She requests $97,987.50
The IDEA "requires that every child with a disability receive `free appropriate public education'" (FAPE). LeJeune G. v. Khepera Charter Sch., 779 Fed.Appx. 984, 986 (3d Cir. 2019) (quoting 20 U.S.C. § 1412(a)(1)(A)). "To ensure that a FAPE is provided to all disabled children, the IDEA provides that federal funding be distributed to State educational agencies (SEAs), which, in turn, allocate those funds to local educational agencies (LEAs)." Id. While "LEAs are charged with directly providing or arranging for third-party provision of a FAPE," SEAs are responsible for "ensuring compliance with the IDEA and administering educational programs for disabled children." Id. (internal quotation omitted). When an LEA is unable to provide a FAPE—for example, due to insolvency—the SEA becomes responsible for "step[ping] into the breach." See id. at 988. In the litigation underlying this fee request, Plaintiff alleged that Khepera (the LEA) failed to provide her child, T.T., with a FAPE and demanded that PDE (the SEA) "step into the breach."
Plaintiff initiated legal action against Khepera in November 2014, though not, initially, in federal court. Under the IDEA, a parent who files a complaint alleging that an LEA denied her child a FAPE is entitled to an "impartial due process hearing" before a hearing officer.
Then, in November 2017, Plaintiff sued Khepera and PDE in federal court, alleging that Khepera denied T.T. a FAPE and breached its agreements with Plaintiff, and characterizing Khepera as "either unwilling or unable" to fulfill its obligations. The Complaint also alleged that PDE was responsible for remedying these breaches and providing T.T. with a FAPE. Khepera did not respond to the Complaint, so Plaintiff's allegations regarding it were deemed admitted. See Fed. R. Civ. P. 36(a)(3).
Meanwhile, PDE was investigating Plaintiff's claims, and in a March 26, 2018 letter, it offered to pay the $44,445 in compensatory education payments owed by Khepera. Plaintiff, however, was dissatisfied with PDE's offer as it did not provide all the relief agreed to by Khepera in the Implementation Agreement. Rather than paying the $44,445 directly to the trust, PDE determined that the funds were to be administered through the Pennsylvania Training and Technical Assistance Network (PaTTAN). Unlike the trust funds, the PaTTAN funds could not be used for recreational activities, private placements and post-secondary tuition. PDE's offer also did not include attorney's fees and costs and did not address the issue of the YALE tuition.
On April 27, 2018, Plaintiff moved for summary judgment against both Khepera and PDE and PDE cross-filed for summary judgment against Plaintiff. The Court granted Plaintiff's motion for summary judgment on August 29, 2018, on the basis that Khepera 1) breached the Implementation Agreement
With respect to PDE's motion for summary judgment, the Court granted it in part and denied it in part. With respect to PDE's responsibility for Khepera's obligations, "the IDEA does not require an SEA to step in and fulfill IDEA resolution agreements when an LEA is merely `unwilling' to comply;" however, an LEA is required "to step into the breach" where a
Plaintiff moved for attorney's fees following summary judgment, but both parties asked for a stay while Plaintiff appealed the Court's partial grant of summary judgment in PDE's favor. The decision was affirmed in all respects. LeJeune, 779 Fed. Appx. at 988-89. Now that the appeal has concluded, Plaintiff once again moves for reasonable attorney's fees under the IDEA. Her fee petition requests compensation for services provided by three members of Berney & Sang: founding partner David Berney, associate Kevin Golembiewski and former associate Morgen Black-Smith.
"Under the IDEA, a court, in its discretion, may award reasonable attorneys' fees as part of the costs ... to a prevailing party who is the parent of a child with a disability." Ida D. v. Rivera, 2019 WL 2615481, at *6 (E.D. Pa. June 26, 2019) (quoting 2 U.S.C. § 1415(i)(3)(B)(i)(I)); see also M.R. v. Ridley Sch. Dist., 868 F.3d 218, 224 (3d Cir. 2017). The burden of proving that a particular request is reasonable rests on the requesting party. See Rode v. Dellarciprete, 892 F.2d 1177, 1183 (3d Cir. 1990).
Khepera denies that Plaintiff prevailed in the underlying litigation.
Khepera argues the August 2018 judgment did not materially alter Plaintiff's legal relationship with Khepera and characterizes Plaintiff's success on summary judgment as "purely technical and de minimis." Because "Plaintiff already had
Khepera's attempt to dismiss Plaintiff's summary judgment victory is self-defeating. As Khepera admits, Plaintiff had the right to "enforce" her agreements (i.e., the Implementation and Resolution Agreements) with Khepera. But, these agreements were not self-enforcing. So, Plaintiff sued to obtain a judgment to enforce them. While "a plaintiff does not become a `prevailing party' solely because his lawsuit causes a voluntary change in the defendant's conduct," obtaining an enforceable order does confer such status, even where the parties reached an ostensible agreement prior to the order's issuance.
Defendants characterize Plaintiff's requested fee as unreasonable. "The most useful starting point for determining the amount of a reasonable fee is the number of hours reasonably expended on the litigation multiplied by a reasonable hourly rate." Rode, 892 F.2d at 1183 (internal quotations omitted). "Once the court determines the reasonable hourly rate, it multiplies that rate by the reasonable hours expended to obtain the lodestar," which "is presumed to be the reasonable fee." Id. Though "the party seeking attorney's fees has the burden to prove that its request for attorney's fees is reasonable with the submission of evidence supporting both the hours and rate claims," "[i]n a statutory fee case, the party opposing the fee award then has the burden to challenge, by affidavit or brief with sufficient specificity to give fee applicants notice, the reasonableness of the requested fee." Finnegan v. Smith, 2019 WL 1052013, at *2 (M.D. Pa. Mar. 5, 2019) (internal citations omitted). Additionally, the "district court has the discretion to ... adjust the lodestar downward [to] account[] for time spent litigating wholly or partially unsuccessful claims that are related to the litigation of the successful claims." Id.
Plaintiff seeks an hourly rate of $495 for David Berney, $325 for Morgen Black-Smith and $270 for Kevin Golembiewski. Both Khepera and PDE characterize these
"The `starting point' in determining the appropriate hourly rate is the attorneys' usual billing rate. The Supreme Court has directed that the district court should then consider the `prevailing market rates' in the relevant community," Pennsylvania Envtl. Def. Found. v. Canon-McMillan Sch. Dist., 152 F.3d 228, 231 (3d Cir. 1998) (internal quotations and citations omitted), for attorneys of "comparable skill, experience, and reputation," Rode, 892 F.2d at 1183. "[A]ffidavits of non-party attorneys with personal knowledge of the hourly rates customarily charged in the relevant community" may constitute evidence of the market rate. Apple Corps. Ltd. v. Int'l Collectors Soc., 25 F.Supp.2d 480, 492 (D.N.J. 1998). Additionally, "[t]he fee schedule established by Community Legal Services, Inc. (CLS) has been approvingly cited by the Third Circuit as being well developed and has been found by [the Eastern District of Pennsylvania] to be a fair reflection of the prevailing market rates in Philadelphia." Maldonado v. Houstoun, 256 F.3d 181, 187 (3d Cir. 2001) (internal quotations omitted).
As of the time of the fee petition's submission, Mr. Berney had practiced law for 27 years, Ms. Black-Smith for 13 years
Nevertheless, Defendants challenge not only the rates themselves but also their increase over time. First, Defendants argue that counsels' rates are unreasonable because Mr. Berney, Ms. Black-Smith and Mr. Golembiewski billed lower rates at the onset of this litigation—and, in Mr. Golembiewski's case, requested a lower rate in the first fee petition—than they do now. Defendants contend the rate should reflect the cost of counsel's time on the date services were rendered, rather than current billing rates. However, the current market rate, rather than the date of service, is the relevant indicator for purposes of calculating a reasonable rate, and "[t]he current market rate is the rate at the time of the fee petition, not the rate at the time the services were performed."
Plaintiff has submitted enough evidence to prove the reasonableness of the requested rates, and Defendants' arguments concerning the rates' change over time does not disprove their reasonableness.
Plaintiff has provided detailed time-sheets in support of her request. While Defendants do not dispute the accuracy of the time-sheets, they do argue that the number of hours requested are unreasonable. Generally, "[h]ours are not reasonably expended if they are excessive, redundant, or otherwise unnecessary." Rode, 892 F.2d at 1183 (internal citation omitted).
Both Khepera and PDE argue that Plaintiff's counsel expended excessive time on fee petitions. In her opening brief, Plaintiff requests 17.9 hours for time spent by Mr. Berney and 52.7 hours for time spent by Mr. Golembiewski on fee petitions.
"[T]ime spent on fee petition preparation is compensable." Frazier v. Se. Pennsylvania Transp. Auth., 1993 WL 38401, at *1 (E.D. Pa. Feb. 11, 1993); see also Maria C. ex rel. Camacho v. Sch. Dist. of Philadelphia, 142 F. App'x 78, 83 (3d Cir. 2005) (affirming district court's fee award, including fees in connection with fee petition litigation); Rode, 892 F.2d at
Both Khepera and PDE also argue that certain aspects of Plaintiff's litigation strategy unnecessarily lengthened the underlying litigation, causing counsel to accumulate excessive hours.
Third, Khepera argues that it was unreasonable for Plaintiff to continue litigating after PDE's offer to pay the $44,450 in compensatory education funds owed by Khepera to the trust. However, this same argument was rejected at summary judgment. Lejeune, 327 F. Supp. 3d at 795 (finding that Plaintiff's claims against Khepera were not mooted by PDE's offer, because PDE's offer promised incomplete relief); see also Ida D., 2019 WL 2615481, at *11 (E.D. Pa. June 26, 2019) (declining to reduce Plaintiffs' fee award where Plaintiffs rejected an unsatisfactory settlement offer). Plaintiff will not be penalized for pursuing complete relief.
Khepera objects to Plaintiff's request on the basis that counsel has already been sufficiently compensated by Khepera. First, Khepera notes that it already "paid a total of $47,884.33 to the Berney Firm" in connection with Plaintiff's due process complaints. Khepera does not explain the relevance of these payments to this litigation or offer any support for its implication that payments made to counsel in an administrative proceeding distinct from this litigation should offset the fees currently at issue. Plaintiff's award will not be reduced on this basis.
Second, Khepera states that "counsel improperly obtained payment of additional fees ... from student's compensatory education fund" and argues this amount should also offset the current request. Counsel denies any improper conduct. Regardless, this very argument was addressed and rejected in the underlying litigation. Lejeune, 327 F. Supp. 3d at 797 n.7 (explaining that, if counsel had improperly withdrawn funds from the trust, "Khepera's claim for an offset would be against Plaintiff's attorney, but its debt is to the Plaintiffs. Thus, there is no right to an offset."). Khepera's argument fares no better here than it did at summary judgment.
Finally, Khepera argues that Plaintiff's counsel has already been compensated by the fees awarded in the Ida D. litigation. "When comparing time sheets submitted in support of that petition to the Fee Petition at issue now," Khepera suggests that the same work has been billed twice. Ida D. did involve issues very similar to those at issue in Plaintiff's underlying litigation; however, Khepera does not identify any of counsel's supposedly duplicative entries.
While PDE does not dispute Plaintiff's prevailing party status, PDE does characterize Plaintiff's success as "limited" and calls for a 25% downward departure on Plaintiff's lodestar.
Where "a plaintiff has achieved only partial or limited success, the product of hours reasonably expended on the litigation as a whole times a reasonable hourly rate may be an excessive amount." Hensley v. Eckerhart, 461 U.S. 424, 436, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983). And, "[t]his will be true even where the plaintiff's claims were interrelated, nonfrivolous, and raised in good faith." Id. "[W]here the successful and unsuccessful claims involve a common core of facts, the lawsuit cannot be viewed as a series of discrete claims and the district court should instead focus on the significance of the overall relief obtained." I.W. v. Sch. Dist. of Philadelphia, 2016 WL 147148, at *20 (E.D. Pa. Jan. 13, 2016) (internal quotations and alterations omitted). Indeed, a downward departure may be warranted even where a Plaintiff has "obtained significant relief" "if the relief, however significant, is limited in comparison to the scope of the litigation as a whole." Hensley, 461 U.S. at 440, 103 S.Ct. 1933.
This is such a case. Plaintiff's claims against Khepera and PDE were interrelated in that they involved a common set of facts and sought the same relief (fulfillment of the Agreements) under the same statute (the IDEA) for related harms (breach of the Agreements and denial of a FAPE). And, Plaintiff did secure an important victory in holding PDE responsible for providing T.T. with a compensatory education. But, she also failed in significant respects. Plaintiff was denied her preferred
Ida D. is instructive. Though Plaintiff cites Ida D. for the proposition that its lodestar should not be reduced, the plaintiff in Ida D. obtained greater relief than Plaintiff. As a result of Ida D., PDE was required to fulfill Khepera's obligations up to and including Khepera's agreement to pay the plaintiff's child's tuition to another school—relief denied to Plaintiff. See Ida D., 2018 WL 6046456, at *13. I.W. is also instructive. Plaintiffs in I.W. sued for attorney's fees under the IDEA following the conclusion of a due process hearing against their child's school district. I.W., 2016 WL 147148, at *20. Though plaintiffs achieved "significant success" as a result of the hearing—including securing 1300 hours in compensatory education from the school district—they also failed to obtain relief related to matters such as "extracurricular activities" and "compliance with [a]... consent decree," and their lodestar was consequently reduced by 30%. Id. at *20.
Considering the scope and significance of Plaintiff's success—she not only succeeded in obtaining specific relief from PDE, but also succeeded in establishing PDE's general duty to "step into the breach" created by an operational but insolvent charter schools—a 30% reduction is unwarranted. Nevertheless, because Plaintiff also failed in a significant respect —she did not succeed in establishing Khepera and PDE's obligations as coextensive —the lodestar will be reduced by 10% as against PDE, exclusive of the hours spent on fee petition preparation. Because Plaintiff succeeded entirely in her claims against Khepera, there will be no reduction as against Khepera.
Plaintiff argues that Defendants should be held jointly and severally liable for her attorney's fees, i.e., that both Khepera and PDE should be liable for the entire fee award.
In a suit involving multiple defendants, "[t]he allocation of fee liability is a matter committed to the district court's discretion." Koster v. Perales, 903 F.2d 131, 139 (2d Cir. 1990) (explaining that a court may consider factors such as "the relative culpability of the parties" and "the proportion of time spent litigating against each defendant" in determining a fee award). Joint and several liability is a theory of recovery which may, but does not necessarily, apply in a multi-defendant suit; "joint and several liability ... requires that the plaintiffs ... establish that each defendant acted in concert to `produce a single, indivisible injury.'" Niblack v. Murray, 2016 WL 4086775, at *4 (D.N.J. July 29, 2016) (quoting Harper v. Albert, 400 F.3d 1052, 1061-62 (7th Cir. 2005)).
Because Defendants did not produce "a single indivisible injury," joint and several liability does not apply. The fee award will therefore be calculated on the basis of the disaggregated lodestar
Plaintiff shall be awarded $86,933.97 in attorney's fees. Khepera shall be ordered to pay attorney's fees in the amount of $14,412.83,