Opinion ID: 2035627
Heading Depth: 1
Heading Rank: 3

Heading: Attorney's Fees and Interest.

Text: The plaintiff has appealed from the award of $132,323 in attorney's fees, an amount which was calculated by multiplying the number of hours reasonably spent on the case times a reasonable hourly rate. (A fee calculated by this method is generally referred to as a lodestar award. See, e.g., Hensley v. Eckerhart, 461 U.S. 424 [1983]; Stratos v. Department of Pub. Welfare, 387 Mass. 3121, 321 [1982].) The judge declined to increase the fee award, concluding that State law did not permit such enhancement. The amount of a reasonable attorney's fee, awarded on the basis of statutory authority, in this case G.L.c. 151B, § 9, is largely discretionary with the judge, who is in the best position to determine how much time was reasonably spent on a case, and the fair value of the attorney's services. We determine the limits within which this discretion may be exercised. Linthicum v. Archambault, 379 Mass. 381, 388-389 (1979). The plaintiff's appeal raises the question whether an attorney's fee, calculated by the lodestar method, may be enhanced in recognition of the contingent nature of an attorney's recovery in these cases. [13] In limited circumstances, statutory fee awards may be enhanced to compensate for the risk of nonpayment. We do not think, however, that an enhanced fee award is justified in this case. We have not had occasion to address how attorney's fees awarded under c. 151B should be calculated. In the analogous area of fee awards based on G.L.c. 93A (1990 ed.), we said in Heller v. Silverbranch Constr. Corp., 376 Mass. 621, 629 (1978), that in calculating a fee award, a judge should consider (1) how long the trial lasted, (2) the difficulty of the legal and factual issues involved, and (3) the degree of competence demonstrated by the attorney. In Linthicum v. Archambault, supra at 388-389, the list of factors lengthened, to include: the nature of the case and the issues presented, the time and labor required, the amount of damages involved, the result obtained, the experience, reputation and ability of the attorney, the usual price charged for similar services by other attorneys in the same area, and the amount of awards in similar cases. The list of factors matched the standard in effect in the Federal courts at that time. Darmetko v. Boston Hous. Auth., 378 Mass. 758, 764 (1979). In Stratos v. Department of Pub. Welfare, 387 Mass. 312, 321 (1982), a case arising under a Federal feeshifting statute, it was said, in reference to this list of factors, that their application do[es] not lead with any certainty to a number of dollars. In choosing among the various approaches then current in the Federal courts, it was said: We believe it is enough to state ... that ... fair market rates for time reasonably spent should be the basic measure of reasonable fees, and should govern unless there are special reasons to depart from them (footnote omitted). Id. at 322. The most recent in this line of cases, then, expresses basic approval of the lodestar approach, now mandated in Federal fee-shifting cases, and used by the judge in this case. The Massachusetts Commission Against Discrimination has also employed the lodestar method as its starting point in calculating a reasonable attorney's fee under c. 151B, § 5, as amended through St. 1989, c. 722, § 27. Karen Baker vs. Town of Winchester School Committee, MCAD No. 87-BEM-0283 (Nov. 12, 1991). The lodestar approach has the advantage of producing generally consistent results from case to case. Its use in the courts of the Commonwealth may also reduce forum shopping. Because State and Federal antidiscrimination laws prohibit similar conduct, attorney's fees available in both fora should, for the most part, be calculated in a similar manner. Bournewood Hosp., Inc. v. Massachusetts Comm'n Against Discrimination, 371 Mass. 303, 310 (1976). To the extent that our cases may have been ambiguous on this point, we repeat what was said in Stratos v. Department of Pub. Welfare, supra . A fair market rate for time reasonably spent preparing and litigating a case is the basic measure of a reasonable attorney's fee under State law as well as Federal law. We turn to the plaintiff's contention that the lodestar figure should be enhanced in this case to compensate for the risk that his attorneys would receive no payment for their work. [14] The judge noted that the issues in the case were not complex, and that it had features of emotional appeal to a jury, lending itself to a reasonably good chance of success. The determination of liability raised no novel issues of law. The case had significance for the plaintiff, but not for a wider class of persons. The statutory provision for attorney's fees aims to attract competent legal counsel for those with meritorious claims. It is not designed to provide a windfall recovery of fees. Stratos v. Department of Pub. Welfare, supra at 322. We are satisfied that, in a simple discrimination case, the basic fee award, calculated by the lodestar method, is adequate to achieve the statutory purpose. We agree with the judge that enhancement of the fee was not warranted in this case. 2. The defendants and the plaintiff dispute the calculation of interest provided for by the amended judgment. We decide the issues still relevant. Contrary to the defendants' contention based on State law, the plaintiff is entitled to prejudgment interest on his compensatory damages from the commencement of the action. See McEvoy Travel Bureau, Inc. v. Norton Co., 408 Mass. 704, 716 (1990); Makino, U.S.A., Inc. v. Metlife Capital Credit Corp., 25 Mass. App. Ct. 302, 320 (1988). Prejudgment interest on compensatory damages is designed to make a plaintiff whole for the loss of money during the time it was owed but not paid. Conway v. Electro Switch Corp., 402 Mass. 385, 390 (1988). In contrast, an award of liquidated or multiple damages is essentially punitive in nature. See Trans World Airlines, Inc. v. Thurston, 469 U.S. 111, 125 (1985); McEvoy Travel Bureau, Inc. v. Norton Co., supra at 717. In our view, a recovery of prejudgment interest on compensatory damages and of multiple or liquidated damages is not duplicative. [15] The Federal courts treat postjudgment interest on State law claims as a matter of procedure governed by Federal statute. See Northrop Corp. v. Triad Int'l Marketing S.A., 842 F.2d 1154, 1155-1156 (9th Cir.1988); Weitz Co. v. MoKan Carpet, Inc., 723 F.2d 1382, 1385-1387 (8th Cir.1983). In the absence of briefing on this issue by the parties, we too shall treat the matter as one of procedure, and apply State law to the question of postjudgment interest on the plaintiff's liquidated damages award. General Laws c. 235, § 8 (1990 ed.), allows postjudgment interest from the date of the verdict at the same rate per annum as provided for prejudgment interest. Militello v. Ann & Grace, Inc., 411 Mass. 22, 28 (1991). The plaintiff is entitled to postjudgment interest on the liquidated damages award under the ADEA from March 12, 1991, the date of the jury's verdict.