Court Opinion

ID: 9474645
Source: CourtListenerOpinion
Date Created: 2023-08-05 05:04:01.467297+00
Date Added: 2024-06-11T17:44:14.008287
License: Public Domain

ESCHBACH, Senior Circuit Judge,
dissenting.
I agree with the majority’s conclusion that the use of a contingent fee is appropriate in computing a reasonable award of attorney fees under 42 U.S.C. § 1988 “in cases that enforce old precedents and allow effective compensation as a percentage of the total recovery.” I, nevertheless, cannot join its opinion. To my mind, the majority fails both to recognize the discretion of the district court in setting an award of fees, and to offer adequate guidance to the district court on remand. Were I Judge Marshall, I would be at a loss to say whether the majority found the actual award of fees in this case excessive, insufficient, or, perhaps, even reasonable. I also would be unable to say at what point I had taken an incorrect turn in setting the award of fees.
I
Section 1988 provides that in federal civil-rights actions “the court, in its discretion, may allow the prevailing party, other than the United States, a reasonable attorney’s fee as part of the costs.” 42 U.S.C. § 1988. The reasonableness of the fee is the relevant statutory benchmark. Blum v. Stenson, 465 U.S. 886, 897, 104 S.Ct. 1541, 1548, *32979 L.Ed.2d 891 (1984); see also Hensley v. Eckerhart, 461 U.S. 424, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983). In enacting § 1988, Congress expressly approved the twelve factors set forth in Johnson v. Georgia Highway Express, Inc., 488 F.2d 714, 717-19 (5th Cir.1974), as guidelines for setting an award of fees, which factors in turn were derived from the American Bar Association Code of Professional Responsibility, Disciplinary Rule 2-106. See S.Rep. No. 1011, 94th Cong., 2nd Sess. 6, reprinted in 1976 U.S. Code Cong. & Ad. News 5908, 5913. The legislative history of § 1988 discloses Congress’s intent that “a reasonable attorney’s fee” is one that is “adequate to attract competent counsel, but ... [does] not produce windfalls to attorneys.” S.Rep. No. 1011 at 6; see also Blum, 465 U.S. at 893-94, 104 S.Ct. at 1548.
Section 1988 empowers the district court to exercise discretion in determining whether an award is to be made and, if so, its reasonableness.1 Blum, 465 U.S. at 902 n. 19, 104 S.Ct. at 1550 n. 19; Hensley, 461 U.S. at 437, 103 S.Ct. at 1941; see also Lovell v. City of Kankakee, 783 F.2d 95, 96 (7th Cir.1986); Linhart v. Glatfelter, 771 F.2d 1004, 1011 (7th Cir.1985); Berberena v. Coler, 753 F.2d 629, 632 (7th Cir.1985); Muscare v. Quinn, 614 F.2d 577, 580 (7th Cir.1980). “The amount of the fee, of course, must be determined on the facts of each case.” Hensley, 461 U.S. at 429, 103 S.Ct. at 1937.2 The district court’s award may be set aside on appeal only for a clear abuse of discretion. See, e.g., Berberena, 753 F.2d at 632; Muscare, 614 F.2d at 580.
II
As the majority itself acknowledges, this was a simple false-arrest and battery case. It neither established an important constitutional right, nor sought equitable relief for the vindication of such a right. This was an action seeking damages and no more. Anita Kirchoff recovered a judgment for $25,000.00, from which no appeal was taken.
Anita Kirchoff then petitioned the district court for $50,000.00 in fees and costs. After evaluating the petition in light of the guidelines approved by Congress, Judge Marshall rejected it as unreasonable. He commented extensively on the nature of her claim, and noted, quite correctly, that it was essentially a personal-injury tort action with federal constitutional underpinnings. He determined that Kirchoff had prevailed only partially on the merits, and that neither novel nor complex legal issues were involved. Judge Marshall also found that there was no need for two attorneys to litigate the claim, and questioned the amount of time and labor set forth in the petition.
Judge Marshall then began his computation of a fee award with a determination of the “market rate” for the legal services rendered by Kirchoff’s counsel.3 He observed that “the marketplace for this type of litigation throughout my career at the bar has been the contingent fee contract.” He noted also that such fee arrangements are useful in attracting competent counsel for civil rights litigants. Judge Marshall concluded that “[t]he market value of this case from a professional standpoint, in my opinion, is the contingent fee which is avail*330able in the market for personal injury actions of this kind.” Only then did he apply the 40% fee contained in Kirchoff’s contingent fee contract to the $25,000.00 recovery to reach the $10,000.00 fee award.
Ill
The crux of the majority’s disagreement with Judge Marshall’s computation of a fee award is that the fee percentage contained in Kirchoff’s contract might not provide “the percentage that is used in similarly risky tort litigation with moderate stakes.”4 The majority, however, does not so much as hint to Judge Marshall what might constitute “similarly risky tort litigation with moderate stakes.”5 Judge Marshall’s conclusion that the market value of the legal services involved was represented fairly by a 40% contingent fee was based upon his considerable number of years experience. In reaching that conclusion, Judge Marshall considered Kirchoff’s petition for attorney’s fees, the defendants’ counter-proposal, and supporting affidavits. It is simply inaccurate to suggest that Judge Marshall thought himself wedded to the fee provision in Kirchoff’s contingent fee contract. Under such circumstances, and considering the facts of this case, I conclude that Judge Marshall’s finding that a 40% fee provision is reasonable in this type of case is sufficient for the purposes of § 1988.6
Although the majority does not explicitly state why they fault Judge Marshall’s appraisal of the market value of the legal services involved in this case, it does note that Judge Marshall set the fee award from the bench without a separate hearing. Nevertheless, the Supreme Court has made clear that a petition for attorney’s fees should not precipitate a second major litigation.7 Blum, 465 U.S. at 902 n. 19, 104 S.Ct. at 1550 n. 19; Hensley, 461 U.S. at 437, 103 S.Ct. at 1941. As the Court has emphasized:
*331[T]he district court has discretion in determining the amount of a fee award. This is appropriate in view of the district court’s superior understanding of the litigation and the desirability of avoiding frequent appellate review of what essentially are factual matters. It remains important, however, for the district court to provide a concise but clear explanation of its reasons for the fee award.
Hensley, 461 U.S. at 437, 103 S.Ct. at 1941.
To my mind, Judge Marshall carefully heeded the Supreme Court’s mandate with respect to both the computation of a reasonable fee and as to the conservation of scarce judicial resources. To the extent that my brethern now suggest that Judge Marshall either make more detailed findings or conduct an evidentiary hearing, they compel him to engage in a ritual that exalts form over substance. Section 1988 requires Judge Marshall to set a “reasonable” fee award. It is evident from his remarks that Judge Marshall was well aware of the relevant considerations.8 This is not to suggest that some civil-rights cases, involving more complex legal issues or more directly implicating the public interest, might not require more detailed findings. Yet, a decision as to what factors, computations, and evidentiary procedures might then be required should await the presentation of those issues in the facts of another case. In any event, to require more in the instant case invites procedures whose practical effects are far worse than the ill these procedures are ostensibly designed to remedy. The majority inexplicably encourages losing defendants to appeal from awards of attorney’s fees, even when such appeals are not likely to affect the amount of the final fee award. Not only is such litigation unproductive, but it is inimical to the objectives of § 1988. For the reasons stated above, I would affirm the district court’s judgment.

. It is true that the district court’s discretion is somewhat circumscribed on the issue of whether an award of fees should be made at all. When the prevailing party is the plaintiff, it is entitled to an award of attorney's fees almost as a matter of course. See, e.g., Hensley v. Eckerhart, 461 U.S. 424, 429, 103 S.Ct. 1933, 1937, 76 L.Ed.2d 40 (1983); Henry v. Webermeier, 738 F.2d 188, 192 (7th Cir.1984). The method of calculating a fee award, however, rests squarely within the sound discretion of the district court. Linhart v. Glatfelter, 771 F.2d 1004, 1011 (7th Cir.1985); Muscare v. Quinn, 614 F.2d 577, 580 (7th Cir.1980).

. On page 16 of its opinion, the majority indicates that the appropriate fee percentage should be set "by category of case ... rather than case by case.”

. The district judge stated that “[a]s I understand the Hensley case and its progeny ... the beginning point in applications for attorney's fees under the Civil Rights Act should be a determination of the market value for the services rendered by the prevailing party’s counsel, here the prevailing party, Anita Kirchoff.”

. The majority also faults Judge Marshall for incorrectly interpreting the contingent fee contract by treating the 40% fee provision as a "cap" and not as a minimum. This point is not well taken. The contingent fee contract was just one of many factors considered by Judge Marshall in rejecting the fee-award recommendations of both parties, and setting the award he did. Judge Marshall did not, and quite rightly so, understand § 1988 to incorporate a private “fee-shifting” provision contained in a contract negotiated between the prevailing plaintiff and her counsel.
As a logical matter, the fact that the 40% fee provision was designed as a floor, not a ceiling, has little bearing on the reasonableness of the actual fee award. Once Judge Marshall determined that a 40% fee percentage reflected the reasonable market value of the legal services in question, then the relevance, if any, of the fee- ■ shifting aspect of the contract disappeared.

. On page 13 of its opinion, the majority observes that “the private market uses the contingent fee for personal injury cases, including torts such as battery, false arrest, and malicious prosecution, the subjects of this case.” The majority is, of course, well aware that Judge Marshall considered this "a personal injury false arrest case." Judge Marshall then concluded that a 40% fee accurately reflected the market rate of legal services in such a case. The majority, nonetheless, considers Judge Marshall’s findings in this regard insufficient, and his choice of a 40% fee inappropriate. I assume the majority’s dissatisfaction stems from its discussion on pages 7-8 of its opinion in which it points out a number of differences between ordinary tort litigation and a personal injury claim brought under § 1983,' and cautions against uncritically accepting the customary fee percentages in ordinary tort litigation as benchmarks for § 1983 claims. As I read the majority’s opinion, then, the customary fee in traditional false-arrest, battery, and malicious prosecution cases must be adjusted to reflect these differences in the context of § 1983. The majority does not, however, provide Judge Marshall with guidance as to how to make appropriate adjustments.

. Of course, I do not wish to be understood as advocating that a district judge should be restricted to the fee percentage contained in a particular contingent fee contract. As always, the computation of a reasonable fee depends upon the facts of a case, and rests in the first instance within the sound discretion of the district judge.

. The majority itself praises the use of contingent fees for the very reason that, as compared to the "lodestar” approach, such a practice would reduce the motivation of defendants to litigate a fee award. Yet, the majority's dissatisfaction with Judge Marshall’s method of computing the fee award cuts back to a large degree on the advantages of the contingent fee in this regard.

. I could understand the majority’s misgivings if there had been no contingent fee contract in this case, and Judge Marshall simply had devined what an appropriate fee percentage would have been had the parties entered into a fee contract. Yet, that is not the case before us. Judge Marshall relied upon the actual agreement between Kirchoff and her attorney as an appropriate starting point for computing a fee award. If her counsel felt that the nature of the litigation warranted a higher fee, he could have drafted the fee contract to reflect that. I thus do not believe Judge Marshall abused his discretion by finding that a 40% fee provision reflected a reasonable market rate for this type of litigation.