Opinion ID: 460232
Heading Depth: 2
Heading Rank: 1

Heading: Legal Services Provided

Text: 3 We describe in some detail the legal services rendered by Moore and his firm because of the obvious relevance of this information to the reasonableness of the fees. 4 First, B & M retained Moore to represent it in a binding arbitration between the railroad and the union of its train crew employees (the United Transportation Union, or the UTU). At stake was a thorough-going revision of wage rates and working conditions, including a determination of both the current and retroactive wages to be paid to B & M's conductors and trainmen and over 100 proposed changes in the existing work rules. In particular, B & M sought to obtain the right to man its trains with fewer than the then-required three trainmen (the so-called crew-consist rules), in order to obtain savings that it considered necessary to turning the railroad's operating deficit into operating profit. After ten days of hearings between May 9 and June 8, 1980, and the filing of a 179-page post-hearing brief, the railroad won what B & M's officers considered a highly favorable award. 5 Among the key provisions in the 83-page arbitration award was the much-desired reduction in the crew-consist rules to two-man train crews. Whereas other railroads had promised hefty productivity payments in return for reduced crew-consist rules, B & M was able to substantially limit such payments. Finally, the railroad won highly advantageous terms for the kind of retroactive increases in wages it would be required to pay, resulting in cash savings of approximately $750,000. According to B & M's officers and trustees, including those who worked closely with Moore and his firm on a daily basis, the favorable arbitration award was directly attributable to Shea's thorough preparation, skillful presentation, and strategic recommendations. There was testimony at the time that the award would save B & M about $5 million per year at 1980 wage rates; as of 1984, the actual savings have confirmed this prediction more or less. 2 6 In September 1980, approximately 60 members of the UTU filed suit, seeking to set the arbitration award aside. Shea was then retained by B & M to defend the arbitration award in what we shall refer to as the Lenfest litigation. The dissatisfied union members claimed, inter alia, that the agreement to arbitrate had not been executed by the proper UTU officials, as required by section 8 of the Railway Labor Act, 45 U.S.C. Sec. 158, and that the UTU had violated its duty of fair representation. Although Shea was already familiar with the factual background of the case and the terms of the arbitration award, the Lenfest litigation was not simply a repetition of the arbitration proceedings in a different guise; it required Moore and the attorneys who assisted him to educate themselves on various new matters. 7 After pretrial motions, including B & M's motion for summary judgment (which was denied), the case went to trial unexpectedly on April 12, 1982, ten days after the trial date was set. After a nine-day jury trial, Chief Judge Caffrey directed judgment for the defendant railroad and upheld the arbitration award. See Lenfest v. Boston & Maine Corp., 537 F.Supp. 324 (D.Mass.1982). There appears to be no question as to the vital importance of this result to B & M. Judge Caffrey found that if the Lenfest plaintiffs had succeeded in setting the award aside, economic chaos would result.... [T]he B & M would have losses of over $3.5 million for every year 1981 through 1985 instead of the projected profits, which now make reorganization arguably feasible. This loss picture would be the kiss of death to the proposed reorganization, which has been ongoing since 1970, and the kiss of death to 700 jobs.... 537 F.Supp. at 337-38. 8 Finally, 3 Shea was retained, to assist the Boston law firm of Herrick & Smith in petitioning the Massachusetts Department of Public Utilities (DPU) to rescind its orders requiring the use of three-man train crews in Massachusetts, which prevented the railroad from implementing its new crewconsist rules and thereby realize most of its labor cost savings. When the lead counsel, a partner at Herrick & Smith who was experienced in state administrative litigation, became ill shortly before the hearings, Shea assumed primary responsibility for presenting B & M's case to the DPU. 9 After B & M filed its petition on October 17, 1980, the DPU decided to conduct a general investigation into the crew-consist issue and directed all railroads operating freight trains within Massachusetts to participate in the proceedings. During eight days of public hearings, B & M made a factually intricate presentation, particularly on the issue of safety of reduced train crews, and faced vigorous opposition from different parties. The DPU ultimately revoked its earlier orders and authorized the use of two-man crews in Massachusetts. Failure to persuade the DPU to change its orders would have deprived B & M of about three-quarters of the savings anticipated from the crew-consist provisions. The railroad's success before the DPU is particularly impressive in light of Herrick & Smith's initially pessimistic appraisal of B & M's prospects for success.