Legal Document

483 U.S. 711 107 S.Ct. 3078 97 L.Ed.2d 585 PENNSYLVANIA, et al., Petitionersv.DELAWARE VALLEY CITIZENS' COUNCIL FOR CLEAN AIR, al. No. 85-5. Argued March 3, 1986. Reargued Oct. 15, Decided June 26, 1987. Syllabus In 1977, the Delaware Valley Citizens' Council for Clean Air (hereafter respondent) and United States each filed suit to compel Pennsylvania comply with certain provisions of Act (Act). (See 478 546, 106 3088, 92 439, an earlier decision in this case setting forth a detailed statement facts.) A consent decree, approved by Federal District Court 1978, obligated establish program inspection maintenance vehicle emissions systems counties August 1980. The State failed do so, protracted litigation ensued. 1983, parties agreed set 1, 1984, as date would commence program. Shortly after such agreement, respondent petitioned attorney's fees costs, pursuant § 304(d) Act, work performed issuance decree. court divided into phases determined lodestar amount (the product reasonable hours times rate) phase. For phases, adjusted figure upward doubling reflect risk presumably faced that it not prevail on litigation. Appeals affirmed Court's enhancement fee award. issue presented here is whether, under 304(d), when plaintiff prevails, its attorney, contingent arrangement, should or may be awarded separate compensation losing being paid. Held: judgment reversed. 762 F.2d 272, (CA3 1985), Justice WHITE, joined THE CHIEF JUSTICE, POWELL, SCALIA, concluded construed permitting compensate assuming loss nonpayment, even if permit appropriate cases, was error so case. Pp. 723-731. O'CONNOR Congress did intend foreclose consideration contingency fee-shifting but erred employing multiplier circumstances 735-755. BLACKMUN, BRENNAN, MARSHALL, STEVENS, intended allow adjustment, circumstances, taken basis, award vacated remanded further findings. J., announced delivered opinion respect Parts I, II, III-A, which REHNQUIST, C.J., O'CONNOR, JJ., joined, III-B, IV, V, POWELL joined. concurring part judgment, post, p. ----. dissenting opinion, Jay C. Waldman, Harrisburg, Pa., petitioners. Donald B. Ayer, Sacramento, Cal., States, amicus curiae, support petitioners, special leave Court. James D. Crawford, Philadelphia, respondents. WHITE III-A represent views Court, V are SCALIA. 1 This involves prevailing party 42 U.S.C. 7604(d).1 2 * We facts underlying v. Air, 439 (1986), recite only abbreviated version those here. Commonwealth Act. entered 1978,2 10 Philadelphia Pittsburgh areas implement date, Ultimately, May costs determining awarded, respondent's counsel nine phases. See U.S., at 549-553, S.Ct., 3090-3092. After computing phase, four, five, seven these observed: 3 "The nature plaintiff's success has been apparent throughout Plaintiffs against Government Pennsylvania. involved new novel issues, resolution had little no precedent. . [P]laintiffs have defend their rights decree due numerous attempts defendants others overturn circumvent court's Orders." 581 F.Supp. 1412, 1431 (1984). 4 Third Circuit success, 282 (1985), we now reverse.3 II 5 first focus before us. Under typical statute, extent prevails. See, e.g., Maher Gagne, 448 122, 129-130, 100 2570, 2574-75, 65 653 (1980); Hensley Eckerhart, 461 424, 435, 103 1933, 1940, 76 40 (1983). Hence, lost, loser fee; unless attorney agreement client will paid, win lose, paid all. assumes nonpayment he takes us That measured rather than winning depends how unsettled applicable law issues posed likely could decided complainant. Looked way, there various factors bearing question 6 First matter delay. When plaintiffs' entitlement lawyers until favorable finally eventuates, years later, Meanwhile, expenses doing business continue must met. counsel, courts regularly recognized delay factor, either basing current rates adjusting based historical present value. Sierra Club EPA, 248 U.S.App.D.C. 107, 120-121, 769 796, 809-810 (1985); Louisville Black Police Officers Organization, Inc. Louisville, 700 268, 276, 281 (CA6 1983). Although often mentioned same breath, former distinct suggest, however, adjustments inconsistent statute. 7 Second, public importance, position unpopular community, defendant difficult obstreperous does enter assessing whether compensated. Neither chance find unnecessary some time effort spent prosecuting 8 Third, pay assumed occasion adjust because risky one. Jones Central Soya Co., 748 586, 593 (CA11 1984), where said "[a] lawyer preserve right recourse his still expect compensated sacrificed completely payment event unsuccessful outcome." III A. 9 compensating left open Blum Stenson, 465 886, 104 1541, 79 891 (1984), BRENNAN wrote "the prevailing, therefore recovering any proper basis district adjustment otherwise compensatory fee." Id., 902, 1550 (concurring). Most Courts similar view allowed awards factor.4 Circuit, Wildman Lerner Stores Corp., 771 605 example, approach allows account factor. case, jury verdict finding employer liable violating Age Discrimination Employment 29 621 seq., two Puerto Rican statutes. $56,500 then increased 50% fact difficulties action novelty issue, attorneys all effort." F.2d, 610. sustaining contingency, relied legislative history 1988, several additional reasons why necessary increase contingent-fee claims, particular cases provide envisioned Congress.5 construction statutes universal. Columbia particularly skeptical purpose served enhancing prevailing. Laffey Northwest Airlines, Inc., 241 11, 746 cert. denied, 472 1021, 105 3488, 87 622 reversed trial double citing wide variety problems approach. found that, theory, limit size permitted, less chances more "entitled" acceptance risk. vein, factor penalizes strongest most defenses, thus "creating perverse penalty least culpable." U.S.App.D.C., 33, 26. Moreover, account, anything approaching mathematical precision, vast increases [fees] derive from spurious base." 33-34, 26-27 (footnote omitted). 11 On fundamental level, using compensates successful efforts one claims asserted related cases. "encourag[es] marginal litigation," raises 'why subsidy [for litigation] come another case.' " 34, n. 138, 27, 138 (citations 12 Such scheme deemed manifestly Congress' intent parties. Relying holding unrelated ultimately prevailed, reasoned: 13 logic restricts portions lawsuit directly relief procured also forbids multiplying effectively other, brought. full claims; provision losing, other might involve Any crude derived simply rejected contrary congressional scheme." 34-35, 27-28. 14 Finally, held enhancement, opposed multiplier, used party's initial made clear enhancements were exceptional "this level risk, awarded." 36, 29.6 15 bar legal commentators much interested issue.7 Some writers unqualifiedly endorsed concept increasing insure adequately taking experience marketplace indicates generally representation they receive premium risk." Berger, Awarded Attorneys' Fees: What "Reasonable"?, 126 U.Pa.L.Rev. 281, 324-325 (1977).8 also, Developments Law—Class Actions, 89 Harv.L.Rev. 1318, 1615 (1976); Comment, 122 636, 708-711 (1974). 16 Others considerably reserved endorsement bonus, focusing four major use First, evaluation creates potential conflict interest between client, order award, expose weaknesses inconsistencies client's defendant's concede strength keep down "allo[w] boosted bonus [by] insisting victory freakish." Leubsdorf, Contingency Factor Attorney Fee Awards, 90 Yale L.J. 473, (1981) (Leubsdorf). determine retroactively estimate perspective considered filing suit. Not mathematically compute, "once result known, hard judges regain ignorance treat initially possible." 486. 17 third problem identified questioned practice: defense, forces him subsidize bringing actions defendants. 488-491. Note, 80 Colum.L.Rev. 346, 375 (1980). cannot certainty accuracy, "cannot justified ground provides incentive litigation." Leubsdorf 496. Cf. 96 677, 686, 51 (1983); 53 U.Chi.L.Rev. 1074 (1986). 18 There considerations. Fee-shifting removes paying ensuring serving economically; task monitoring shifted judge over wins. occurs case-to-case protracted, complicated, exhausting. doubt simplified maximum possible. If measure, uncertain matter, especially who confident correctly plaintiff, inquire weak he, judge, mistaken. It absurd ask "determine probability incorrectly." 1094. B 19 disagreement among Circuits clearly directed authorized multipliers loss. nor 1988 expressly independent fee, doubtful supports concluding risk-enhancement authorized, Blum, 1551, items enumerated Johnson Georgia Highway Express, 488 714 (CA5 1974), fixed contingent, S.Rep. 94-1011, (1976) (S.Rep), U.S.Code Cong. & Admin.News 1976, pp. 5908, 5913. But careful reading shows meant judicial scrutiny solely existence contract executed attorney. quoted percentage recovery helpful demonstrating expectations accepted case." 718. 479, 38. At most, therefore, suggests reasonableness nothing show whole. 20 noted cited Stanford Daily Zurcher, 64 F.R.D. 680 (ND Cal.1974) (subsequently aff'd, 550 464 (CA9 1977), rev'd grounds, 436 547, 98 1970, 56 525 (1978)), "correctly applied" factors. supra, 903, 1551. based, part, contingency-of-success criteria. Davis County Los Angeles, EPD ¶ 9444, 5047 (CD Cal.1974), added "Result Charge" basic merits; instead, label suggests, "counsel [had] achieved excellent results," "[t]he litigate. ." 5048. Swann Charlotte-Mecklenburg Bd. Ed., 66 (WDNC 1975), illustrative approval Congress, Instead, reviewing listed Johnson, reduced request nearly 15%, choosing "err conservative side dealing question" "contribute unnecessarily overpricing court." F.R.D., Given divergence both analysis three is, best, inconclusive merits. 21 nevertheless IV 22 impressed consistent adopt rule entitled fees. viewed willingness take sure denied loses, uncompensated case; least, authorize highest won hence encourage whose fully occupied work. Because ever won, assumption justify degree almost every 23 Weighing considerations, unconvinced expended As Senate Report "In traditional fee-paying 'for reasonably matter.' Davis, supra; Daily, 684." 6, 24 argument without promise risk-taking, clients pay, serve purpose. agree aim make possible obtain competent providing follow allowable. Surely plaintiffs can afford lose. true impecunious otherwise, damages absence Nor secure help organizations very through salaried themselves lawyer. unlikely market matters. 25 take, too suits brought), recovered sufficient adequate well frequent goal injunctive exclusion claim damages. situations, guarantee won. Respondent's prospect exceeding payment, unable aimed provide. 26 persuaded Indeed, superfluous fee. "risky" difficulty presented, prevails lawsuit, primarily attributable skills experience, devoted These factors, number hourly rate lodestar, sum "reasonable" windfall prevailed case.9 27 decline cases; general respond achieved. event, administration inequities fees; guidance, conclude impermissible usual 28 Even supplementing out below, Section like indicate exception; neither require leaves informed discretion courts. are, severe making deem appropriate, guide exercise courts' awarding fees, followed multipliers. involved—the lodestar—is presumed need justification readily supported evidence record specific findings courts.10 898-901, 1548-50. reasons, employed 30 doubled recognition loss, saying "contingent apparent" outset, Pennsylvania, Furthermore, "defend orders." F.Supp., 1431. concerns done entered, already time. beginning Lewis Coughlin, 801 570, 576 (CA2 1986); Ramos Lamm, 713 558 (CA10 1983).11 Whatever thought anticipated enforcing having entered. specifically identify fail discern any, emerged long process accordance terms. And substantial opponent tried real persuading enforce own difficult, wearing, time-consuming, kind 31 justified, excessive. alluded uncertainties burdensome desirable application statute hold finds risk-of-not-prevailing made, but, rule, one-third lodestar. exacting justification. limitation once protect windfalls act deterrence believes 50-50 Riskier brought, limited Here, 32 whatever be, statutory poor good help. Before assumption, record, find, local relevant market.12 33 Accordingly, 34 Reversed. 35 judgment. 36 explained dissent I 7604(d), Civil Rights Attorney's Fees Awards 1988. difference treatment class, assessment "riskiness" my plurality correct "novelty ante, 726, reflected 37 private commonly arrangements receives plaintiff. model guidance. Riverside Rivera, 477 561, 573-576, 2686, 2693-2695, 91 466 Thus unsurprising enhanced "[p]inpointing [has been] subjective components computation process, apt lead imprecision final award." M. Derfner Wolf, Fees, 16.04[c][i], 16-88 method calculating theoretically satisfying practice speculating riskiness explain theory put practice. translate extra economic endured smaller firms, see 750—751, firms 751, enhancement? 38 although offers defense door "extra enhancement" "exceptional cases" pose great 'legal' Post, 751—752. calculated likelihood commenced raised court. type subject many described plurality. Ante, 721—723. plurality's objections "lose force" granted rare. 752, 16. But, arbitrary unjust rarity. created arise granted, whenever sought. 39 To "reasonable," merely justifiable objective nonarbitrary treating class symbolic, determination community vary significantly next. guidance discretion, "severe inequities." 728. view, constraints appropriate. appeals controlling future involving market. Haphazard widely divergent avoided treated class; strive consistency Determinations different markets comport other. Thus, applicant prove greater previous able point differences compensation. 41 bears burden proving contingency. 898, 1548, (1984) ("The applicant"); 437, 1941, (1983) ("Where settlement possible, establishing documenting rates"). enhance bring within range attract counsel. "would market." 731. "legal" risks peculiar lodestar—"the rate," 434, 1940—is flexible enough variation in, challenges by, complexity issues" "presumably [would be] billable recorded counsel." 1549. litigation, tenacity defendant. "special skill rates." Ibid. demonstrates considerable ability overcoming unusual arisen accomplishments means multiplied expended. 43 Based above guidelines, concerning large community. unique considerations enhancement—the "new stubbornness defendants, (1984)—should rate, again 44 concur reversing Appeals. 45 whom STEVENS join, dissenting. 46 enacting statutes, stressed "adequate produce attorneys." (1976), Today, ignores promptly regardless outcome inadequate inappropriate upon By allowing undermines "private citizens meaningful opportunity vindicate important Congressional policies laws contain." 2, 5910.1 47 48 market, charge entire winning. Canons Professional Ethics American Bar Association, promulgated 1908, "[i]n consider (5) compensation." 12, A.B.A.Rep. 575, 578 (1908). ABA Model Code Responsibility, originally 1969 subsequently adopted State, Nix Whiteside, 475 157, 167, 4, 988, 995, 123 likewise "[f]actors considered" "[w]hether contingent." DR 2-106(B)(8) ABA's recently formulated ethical standards, Rules Conduct, consensus "whether contingent" Rule 1.5(a) 1.5(a)(8). 49 succeed end litigation—factors progresses. Clermont Currivan, Improving Contingent Fee, 63 Cornell L.Rev. 529, 556-557, 561-566 (1978); Schwartz Mitchell, An Economic Analysis Personal-Injury Litigation, Stan.L.Rev. 1125, 1150-1154 (1970); F. MacKinnon, Legal Services 28, 62 (1964). All else equal, naturally prefer outcome, win. Cases latter inherently riskier properly prosecution. Lindy Bros. Builders, Radiator Standard Sanitary 487 161, 168 1973) (" 'No expects charge, successful, advance services, success' "), quoting Cherner Transitron Electronic 221 55, 61 (Mass.1963); 605, 612 (CA1 1985) (significant "case retainer spends period months assurance unsuccessful"). E. Larson, 224-225 (1981). 50 usually recouped recovered. computed bills succeeds. L.Rev., 546-547, 567; Alternative 1984 Utah 485, 499-503. approach, market-based necessarily higher charged certain. ensures accepting remains economically attractive feasible enterprise lawyers. 3-6. directing litigant vindicates rights, 7604(d) (Clean Act), basically competitive what earn purpose—extensively environment, Ruckelshaus Club, 463 680, 691-692, 3274, 3280-81, 77 938 (1983)—was enforcement federal lawsuits persons. itself supply lacked funds hire H.R.Rep. 94-1558, 5909. "an essential remedy" law. reimbursement "full complete," meaningless remain largely unenforced. 1. Promoting Vindication Through 350-351, 372 Is 306-310 (1977). 52 best "is client." "It governed standards types equally complex antitrust nonpecuniary nature." 9. emphasized: 'reasonable fees' according community." 895, 1547. broad go One wins Three examples applied," 5913—and 897, 13, 13—mentioned weigh. 714, 718 1974);2 685-686 Board Education, 483, 486 1975). attorneys' work, noting "parallel[s] Association's deserve fixed-fee work." 685. explained: "From public's standpoint, helps equalize access rich, middle-class, individuals decisions turn action's merits income." assertion, 723-724, resulting equivalent rates.3 54 gained calculations, begun utilize "lodestar" worked rate. 167-168; 433, 1939, (approving approach). designed simplify, circumvent, Copeland Marshall, 205 390, 400, 641 880, 890 (1980) (en banc); U.Pa.L.Rev., 286-287. reference corporate payments monthly billings.4 Rather, arrive incorporate nonrecovery, aggravated incorporated rates. goes calculation, or, include 1551 (concurring opinion). adding brings up contemplated Congress. 16.04, 16-84 (1986) fine tuning value efforts").5 55 attracted prosecute violations. Committee Assistance, Counsel Public Interest Record N.Y.C.B.A. 300, 317 demand. substantially sector, tend reject statutory-enforcement penalized Brief Twelve Small Private Law Firms Amici Curiae 6-29 (describing financial depending fees); Darden Illinois Bell Tel. 797 497, 505 (CA7 1986) opinion) ("Unless losing—whether device stakes high—fees systematically small"). Allowing given appropriately 'enable[s] accept apparently just causes awaiting winners.' Yates Mobile Personnel Bd., 719 1530, 1533 1983), quotingJones Diamond, 636 1364, 1382 1981). surprisingly, nonrecovery circumstances.6 while 901, 17, 1550, adjustments, lawyers' services. awards, 'windfall profits' [Congress] prohibit," ibid., way intent. C 57 land, decision, Part reduce below inevitably obstruct vindication rights.7 fewer persons valid They modest augment lawyer's charge—precisely sought assist. somehow manage get for: capable. Without "[b]usy employment. arrangement ill enormous national importance." 1534. recognized, effective requires services experienced attorneys. underemployed. demand obtained sector. 314-315. 58 assurances public-interest groups 726. effect, place shoulders bar. unrealistic think 600 centers around country pick slack rest bar, approximately 400,000 pro bono concentrated eastern urban centers, [are] available people." 313 59 Significantly, validate nonprofit legal-aid 1547.8 New York Gaslight Carey, 447 54, 70, 9, 2024, 2034, 723 today accomplish indirectly refused Blum. 60 defends asserting arrangements. provided shifting precisely manner. solution slight seek relatively small depends. desire needs compelling reason constitutes mischaracterization states "may paid," explains "[t]hat complainant." 715—716. Having framed fashion, discovers significant says disturbed create clients, try characterize manner decrease 721-722, knows outcome. 722. notes penalizing defenses causing bring. last concern significance appears "[in]consistent fees." 725. expresses alarm, echoing "in 'entitled' 719; flaw depend, instance, Enhancement prospective returns degrees merit.9 employment whole roughly footing noncontingent practice, equal associated employment, exist discussed above, possibility simple merit sometimes fail, inherent payment.10 vision radically case's decreases, ordinary relative case.11 Once mandates frightening disappear. assume delve strengths interests disproportionate granted. job mitigate payment. points "it actual burdens borne called for." 613.12 Association sets when, degree, Amicus 18-22. basis. contracted "LODESTAR" FEE (I.E., REASONABLE rate), continuing Ohio-Sealy Mattress Mfg. Co. Sealy 776 646, 660 (plaintiff regular "lawyers risked noncompensation payment"); 592 1984) (no indication appropriate). way. portion amount, mitigated extent, total mitigating contribution be. 686 (client $5,000 undertake fundraising effort, guaranteed expended). Or, seeking damages, exchanging amount. course, calculate assessed grant "windfall" excusing contract. Hamner Rios, 1404, 1408-1410 1985); Sargeant Sharp, 579 645, 649 1978). unwilling liability aided Other generate funds, successful. Many declaratory relief, hampered immunity doctrines awards. 9; (1986); Rowe, Theory Shifting: Critical Overview, 1982 Duke 651, 676. out, aspects 21-22. spending hours, indeed years, knowledge aggravate payments. 67 treats 716, integral aspect appropriate.13 Delay cash-flow deprives money, magnifying uncertainty 403, 893; 6-31 delayed payments). institutional reform environmental assured offset disincentive 68 circumstances. firm solo practitioner easily presence turned away accepted.14 Conversely, responsibility shared diminished. re Fine Paper Antitrust 48, 84 (ED Pa.1983), aff'd 751 562 1984).15 69 sought, it. few, account. Sometimes, facing constitute interest, suffer lack representation. Extra only. high, expected spend preparing litigating seriously unduly finds, represented regarding outset importance obtained—findings enhancement. 70 Almost become irrelevant seen, outlined assess retroactively, cause huge odds significant.16 remaining objection gives stability possibly unsuccessful, lawsuits. contravenes fail. recovers lawsuit. represents lawsuits—some successful—does contravene mandate parties.17 certainly restriction deny income violation earned business. 71 mind "reasonable fee" perfectly. party. ensure bases passed continued availability highly skilled "reasonable"—i.e., assumed. 72 Respondent "clearly attaining [it] [won results that] occurred [its] efforts." 1420 Pa.1984). party, Newman Piggie Park Enterprises, 390 402, 88 964, 966, 1263 (1968). 73 candidate expectation prevailed. following brief statement: 74 Commencing Phase present, 75 vacate remand explained, took parallels, closely exists thereby deserves note, began decree—a situation entail risks. believe nonetheless effect state issues." Ibid.18 per se ruling, express conferred majority selected 78 respectfully dissent. provides, part: issuing brought subsection (a) section (including expert witness fees) determines appropriate." Last Term principles governing specified court, costs." time, Center (PILCOP), prior certiorari Term, 474 815, 57, heard argument, issued counsel's administrative proceedings "was crucial Valley's 3096. "superior quality" performance, reasoning "why reflecting quality 567, 3099. not, address us, reargument beneficial. restored docket Term. 568, 3100. Numerous Appeals, acting Crumbaker Merit Systems Protection Board, 781 191, 196-197 (CA Fed.1986); Vaughns Ed. Prince Georges County, 770 1244 (CA4 aff'g 598 1262, 1285-1286 (Md.1984); Riddell National Democratic Party, 712 165, 169-170 1983); Kelley Metropolitan 773 683, banc), 1083, 853, 893 Craik Minnesota University 738 348, 350-351 (CA8 1984); White Richmond, 458, 462 557-558 591 1984). addition Seventh reasons. (upward failure evaluate loss); Lanasa Orleans, 619 39, 50-51 La.1985) (settlement low money litigation); Littlejohn Null 149, 152 (attorney received adjustment); Bennett Telephone Illinois, 640, Ill.1985) (lack supporting high rates); EEOC Burlington Northern 618 1046, 1061-1062 (high nonsuccess unusually high); Litton Systems, Telegraph 613 824, 835 (SDNY needed appellee $276 million appeal); Cook Block, 609 1036, 1043-1044 (DC (counsel unsuccessful); Cherry Rockdale 601 78, 80-81 Ga.1984) (insufficient Inmates Maine Prison Zitnay, 590 979, 987 (Me.1984) (contingency lodestar); Rank Balshy, 787, 799-800 (MD Pa.1984) lodestar). economics played Appeals' analysis: "[T]he alone differentiate unsuccessful. employees during course substantial. "Moreover, face second prevailed—that duplicative, unnecessary, inefficiently "We civil few service [to] bear strike 'reasonable.' 612-613 note our mind, nonpayment. ruled 'alone multiplier.' McKinnon Berwyn, 750 1383, 1392 attorneys, effectively, suits, though prevails." 1392. reasoned insurance form multiplier." 1393.) Sealy, 646 Kirchoff Flynn, 786 320 1986), withdrawal position, later McKinnon, circuit favored multipliers." Northern, 810 601, 608 Hearings Subcommittee illuminate differing about desirability necessity S. 2802 Constitution Judiciary, 98th Cong., 2d Sess. (1984); 1580 99th 1st (1985). "[i]f want test nonmonetary forbidding deter cases." interesting denying 80-81. capable advocates. proffered showing lawyers, insufficient evidentiary base argued "by illustration only," multiplier. According survey access, requesting top 25% partners admitted $77,800 $89,800, respectively, year. associates, annual salaries $56,800 $61,300. showed practitioners average overhead expense $47,000 diligent bill 2,000 year (40 week weeks). parties' affidavits stated wage $100. lost year, upper lawyers—i.e., $85,000 (($200,000 minus 68,000 (uncollectible)) 47,000 (overhead) equals $85,000). observed, unnecessary. one-half necessary, $53,000. advanced amici Arizona dealt respondent, PILCOP, accorded weight whatsoever perceived deciding PILCOP's tax-exempt status Internal Revenue Code. 56-57. petition PILCOP "a non-profit, tax exempt corporation," prohibited Service (IRS) "regulations" including respondent. App. 161a-162a. undoubtedly referring Rev.Proc. 71-39, 1971-2 Cum.Bull. desiring except procedures IRS. Subsequently, IRS 75-13, 1975-1 662, amplified 71-39 maintain charitable organization, status. included requirement, others, "not selection really undertook regard eventually follows validly entertained notion Second firms. Assn. Retarded Children, 1136 pass submission amici. response pre-trial merits, judge's merits." 575. "[A]n counsel" "one high-risk declined earning 576. concurrence recognizes recognizes, "construed nonpayment." remanding standards. essentially Responsibility 2-106(B) guidelines (emphasis included: labor required questions, perform properly, preclusion customary limitations imposed undesirability relationship 717-719. "lodestar," 898-899, 1548-49. Bills introduced prohibit "bonuses multipliers," government. H.R. 5757, Sess., §§ 6(a)(1) (2) 2802, 3181, 1580, So far unavailing. Lawyers billed. this. Murray Weinberger, 239 264, 741 1423, quarrel "[n]either added). purely terms, "otherwise reasonable" fails upheld allowable 573-574 Durett Cohen, 790 360, 364, George's 1244, 1246 Sims Jefferson Downs Racing Assn., 778 1068, 1084 Moore Des Moines, 766 343, 346 1060, 805, Planned Parenthood Arizona, 789 1348, 1353-1354 Jordan Heckler, 744 1397, 1401-1402 (Ca10 196 Fed.1986). propriety 1392-1393 repeats analyses detail. 719-720, 6. Panels circuits, indicated situations. 272-273, 1431-1432 661 1985). misconstrued conclusion five Members (those O'CONNOR) 731 (concurrence) ("I 1988"). nonprofit, revenue charging (other expenses) retain organization. CFR 1.501(c)(3)-1 (1987); 3.02, 575; 662; Rev.Rul. 75-74, 152; 75-75, 154. Acceptance limits, jeopardize 75-76, Government, funding Corporation, available. 2996f(b)(1); 446, 1946, (opinion part). equalization infrequently, enhancements. stronger often, accordingly 449, 1947 part) ("Courts applying time-value never 100% case"); 197 (argument allowed, prevail, "inane"; vigorously contested prevail). 501 (Leubsdorf) ("A inquiry 1988: Ore.L.Rev. 571, 588 ("[S]tandard [should fees"). ironic draws heavily article Professor 721-722 rely. article, 482-497—an terms Lindy-Grinnell approach" leading area, id., 478-482. begins fair 480 receiving functions. more, reluctant cases"). professor explains: "Although justifies bonus" (first emphasis alternative approaches 501-512. implication 717—718, approve Court—which held, elaboration, warranted enhancement—and warranted. 613-614. Among were: what, successful; incurred lost; associates carry compensation; 614. errs viewing component gratifying suggest statute." 716. Brewer Southern Union 607 1511, 1532 (Colo.1984) (small firm); Uzzell Friday, 1222, 1227 (MDNC (solo practitioner). devoted, see, personnel hired compensation, foreclosed participation conflicts (one 'undesirability' case" obtaining business) omitted); Alabama 631 85 Ala.1986) (successful sophisticated litigation). probably comparatively undertaken despite sufficiently rare lose force. encouraged inducement persuade invest unproductive—even handle willing concludes nonpayment—or losses Either explanation reflection 325 Both serious persistent opposition 1431; faces strong well-funded ordinarily becomes Like demands outset.

Classification Label: 5