Opinion ID: 1238426
Heading Depth: 4
Heading Rank: 4

Heading: Prevailing Market Rates

Text: The government contends that Nadarajah should not be awarded prevailing market rates, or any fees at all for that matter, because he was represented by the ACLU, a non-profit organization, rather than by private counsel. The government objects that Nadarajah did not submit his retainer agreement with the ACLU, or evidence of the ACLU employees' hourly salaries, and therefore the court cannot evaluate the appropriateness of the fee request. The government argues that there are substantial and compelling economic reasons for allowing private firms to obtain EAJA payments at market rates where appropriate, but that non-profit organizations do not operate on these same market principles and therefore should not obtain prevailing market rates. The government's contentions are not supported by legal authority and lack merit. The United States Supreme Court clarified long ago that the award of attorneys' fees under civil rights fee-shifting statutes is not cost-based, and that the award of prevailing market ratesregardless whether the claimant is represented by private counsel or a non-profit legal services organizationshould not be viewed as an unjustified windfall profit to the attorney. See Blum v. Stenson, 465 U.S. 886, 892-95, 104 S.Ct. 1541, 79 L.Ed.2d 891 (1984); Hensley, 461 U.S. at 433 n. 7, 103 S.Ct. 1933 (standards applicable to § 1988 awards are generally applicable in all cases where Congress has authorized an award of fees to a `prevailing party'); see also INS v. Jean, 496 U.S. 154, 161, 110 S.Ct. 2316, 110 L.Ed.2d 134 (1990) (applying Hensley to EAJA award). It is well-settled that an award of attorneys fees [under EAJA] is not necessarily contingent upon an obligation to pay counsel.... The presence of an attorney-client relationship suffices to entitle prevailing litigants to receive fee awards. Ed A. Wilson, Inc., v. GSA, 126 F.3d 1406, 1409 (11th Cir.1997). The government does not dispute that Nadarajah and the ACLU counsel have an attorney-client relationship. In addition, in response to the government's contentions, Nadarajah's counsel submitted a declaration stating that there is a retainer agreement, that the agreed-upon representation is at no charge to Nadarajah, and that Nadarajah has agreed to remit to the ACLU any attorneys' fees that are recovered. The ACLU's representation of Nadarajah at no charge, pursuant to the retainer agreement, does not preclude awarding reasonable attorneys' fees under EAJA, including the requested prevailing market rates. The government's argument that the expenses associated with private representation would far exceed those expended by a non-for-profit group, including the inference that the fees awarded should not exceed the legal workers' salaries, is unavailing. Important public policy considerations dictate that [the court] should not punish an `undercharging' civil rights attorney, but instead must award attorneys' fees based on prevailing market rates (or, under EAJA, where applicable, the adjusted statutory maximum hourly rates). See Reiter v. MTA New York City Transit Auth., 457 F.3d 224, 233 (2d Cir.2006).
Although Nadarajah has established his entitlement to enhanced rates under EAJA, he must also show that the requested enhanced rates are in line with those [rates] prevailing in the community for similar services by lawyers of reasonably comparable skill, experience and reputation. Blum, 465 U.S. at 895 & n. 11, 104 S.Ct. 1541. Nadarajah requests an hourly rate of $500 for 2004 to 2006 work by Rabinovitz, a 1985 graduate. Nadarajah requests the hourly rates of $300 for 2004 work, $315 for 2005 work, and $335 for 2006 work by Arulantham and Natarajan, who are 1999 graduates. In support of the requested enhanced rates, Nadarajah submits the declaration of Sobel, a 1978 graduate, that: My hourly billing rate for 2006 is $590 per hour.... During the time that I was Senior Staff Counsel at the ACLU, I was responsible for preparing many of the fee motions.... I was required to obtain information to establish reasonable market rates for the ACLU lawyers. It was my practice to obtain current billing rates for lawyers of comparable skill and experience at several firms throughout the City [of Los Angeles].... Since entering private practice, I have continued to survey firms each year to obtain relevant comparisons for billing rates.... In addition to speaking with partners at various law firms, I have also become familiar with the market rates charged by attorneys in the Los Angeles area by reviewing attorney fee applications and decisions awarding fees under fee-shifting statutes.... Based on my knowledge and experience, these rates [sought for Rabinovitz, Arulanantham, and Natarajan] are below comparable market rates in Los Angeles. Attached to Sobel's declaration are copies of fee awards involving Los Angeles law firms. The district court awarded 2004 hourly rates of $340 to a 1997 graduate and $320 to a 1998 graduate. See McClure v. City of Long Beach, No. CV-92-2776 (C.D.Cal. Sept. 20, 2005) (Memorandum Opinion And Order Regarding Fees And Expenses). Another district court awarded 2005 hourly rates of $450 to a 1991 graduate and $305 to a 2000 graduate. See Comite de Jornaleros de Glendale v. City of Glendale, CV-04-3251 (Aug. 19, 2005) (Order Granting Motion For Attorneys' Fees And Costs). Sobel states that she is familiar with the work of the 1997 and 1998 graduates and, based on her experience, they do not have the skill, experience, or reputation of Arulanantham or Natarajan. Sobel also states that based on my experience over the past 28 years of working at the ACLU and with the pro bono bar, the skill, experience, and reputation of the lawyers at the ACLU is usually greater than that of many lawyers in large firms with comparable years of practice. Sobel notes that, in Comite de Jornaleros, the district court stated that the hourly rates awarded there were well below market rate. Sobel states that 2005 hourly rates for attorneys at Loeb & Loeb who graduated in 1985, 1998, and 2000 were $485, $390, and $375, respectively. Sobel also provides a 2005 Skadden, Arps, Slate, Meagher & Flom declaration in support of requested hourly rates of not less than $560 for a pre-1998 graduate and $530 for a 1998 graduate. Nadarajah also submits Van Der Hout's declaration that: I am familiar with the billing practices and rates of law firms in the San Francisco Bay Area. The $500 per hour rate requested for Ms. Rabinovitz and the $335 requested for Mr. Arulanantham and Ms. Natarajan are below the prevailing market rate for attorneys of their respective experience and expertise. The government objects again that Van Der Hout does not state whether he, or immigration attorneys in general, normally bill hourly or receive a flat fee and, therefore, the evidence submitted in support of the requested prevailing market rates is inadequate and insufficient. The government's objection is not supported by legal authority and lacks merit. Moreover, the government offers no evidence to rebut Sobel's and Van Der Hout's declarations and the accompanying evidence showing that the requested rates for Rabinovitz, Arulanantham, and Natarajan are below prevailing market rates for attorneys of comparable skill, experience, and reputation. See Camacho v. Bridgeport Fin., Inc., 523 F.3d 973, 980 (9th Cir.2008) (quoting Gates v. Deukmejian, 987 F.2d 1392, 1397-98 (9th Cir.1992) (The party opposing the fee application has a burden of rebuttal that requires submission of evidence ... challenging the accuracy and reasonableness of the ... facts asserted by the prevailing party in its submitted affidavits.)) Nadarajah's evidence regarding the prevailing market rates is corroborated by the Appellate Commissioner's review of many other fee applications. Accordingly, Nadarajah is awarded the requested hourly rates for Rabinovitz, Arulanantham, and Natarajan, subject to the 5 percent and 20 percent reductions applied to Arulanantham's and Natarajan's hourly rates in Nadarajah's calculation of the total fees requested.