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STAHL,
STAHL,
substantial
wiretapping
Stat.
Circuit Judge.
Circuit Judge.
_____________
relief
in
their
Appellants
now
alleging
illegal
appellants obtained
lawsuit
in violation of 18 U.S.C.
Ann. tit. 15
attorney
After
expenses
argue that
appellees to pay
in the
the
amount of
district
appellants'
$283,950.58.
court abused
its
discretion
in
maintain in
occurred
in
awarding
as
little
as
careful review of
it
did;
abuse of discretion
anything
at
all.
appellees
After
the district
on certain matters
have previously
background to the
v.
Poulos,
______
recited in detail
the factual
11 F.3d
271
(1st
Cir.
1993) (the
Williams
________
"Williams"
(plaintiffs
in a
Consolidated Auto
in
the
RICO lawsuit
Williams
stemming from
lawsuit)
the demise
were
of
Bowers v. Allied
______
______
Capital Corp., Civ. No. 91-0021-B (D. Me. filed January 1991)
_____________
-22
(Brody,
J.)
discovery
Richard
(the
in the Bowers
that
conversations.
the Williams
injunctive
he
In
the
course
of
for
had
CAR's principals
secret
tapes
of
(the
some
Bowers
of their
relief, under
forbidding Poulos
inter alia,
_____ ____
federal
and the
and
Maine wiretap
requested
laws,
using the
appellants'
declaratory and
a six-day bench
part
lawsuit).
Poulos, counsel
plaintiffs)
tapes
"Bowers"
court granted in
relief,
and
we
large
affirmed.
the district
wiretap
recovery
statutes,
of
reasonable
an application for
court, pursuant
both
of
which
attorney
fees
Me.
Rev.
application, as
and costs.1
Stat.
to the
Ann.
tit.
for
costs
18 U.S.C.
15,
federal and
provide
and
attorney
the
from
2520(a)-
711(2).
The
In its
of Opinion
dated
____________________
1. Appellants' initial application for fees and expenses on
January 13, 1994, requested a total of $734,389.62. After
appellees filed a memorandum with the district court opposing
the application, appellants filed an amended application (the
Application), deducting $6,600 in computer research charges,
$2,125 in telephone surcharges, and $10,462.50 in charges for
attorney travel time, reducing the total amount requested to
$715,202.12.
This amended figure comprised approximately
$616,349 in attorney fees and $78,253 in expenses from the
-33
September
2,
Application
inflated"
1994,
was
and
that
it
of
resources."
$283,950.58
district
"unreasonable
numerous instances
firms'
the
on
contained
inefficient
The district
-- about
40%
of the
court
its
stated
face
"exorbitant
allocation
court
amount
that
and
grossly
costs
of
the
and
the
law
awarded appellants
requested.2
The
calculating
than
Appellants,
the
reasonable fees
services
Washington,
in defense
for
of
D.C.,
this request,
rates
rates,
requested.
claim they
could
locate no
Poulos,
reasonable.
The court,
Kutak Rock's
willing to sue
out-of-town rates
were
____________________
three law firms that represented appellants, with expert fees
and court reporter costs accounting for the balance.
The
lion's share of the fees and expenses -- approximately
$491,749 in fees and $59,589 in expenses -- requested in the
Application were billed by Kutak Rock, the Washington, D.C.,
law firm that served as appellants' lead counsel.
The
Application
includes
fees
and
expenses
totalling
approximately
$96,777 billed
by Richardson
& Troubh,
appellants' Maine counsel, and approximately $46,463 billed
by Murray, Plumb & Murray, counsel for Ralph Dyer, intervenor
in the Williams lawsuit.
Dyer did not appeal from the
district court's order awarding reduced fees.
However,
because the district court
based its decision on the
propriety of the entire Application, and because appellees
contend that the entire Application should be denied, we
consider the fees and expenses billed by Dyer's counsel in
our analysis.
2. The total award comprised $246,741.58
and $37,209 in costs.
in attorney
fees
-44
Kutak
Rock
represented
them
in
the
underlying
Bowers
lawsuit.
This
adjustment
resulted
in
reduction
of
approximately $159,000.
(2) The court found that appellants had overstaffed
the case, stating that it had "found numerous
Plaintiffs' counsel
duplicated efforts"
and offering
such duplicative
an additional $100,000
occasions when
as an
spent in preparing
The court found that
faith and subtracted
as a
On its
own, the
court calculated
reimbursement for
meal expenses
It
also declined
the inherent
cost of coordinating
law
allowed just
$11,000
of
to
altogether ($1,245),
and, citing
firms,
reasonable
work between
$34,088 in
requested
fax charges.
These cuts
reduced appellants'
the court
subtracted
total.
-55
not to seek
computer research
$13,575 from
the
requested
(5)
Finally,
apparently to
called a "misallocation of
it would
divide the
into three
correct
for
what it
tasks performed by
categories and,
appellants' lawyers
in accordance with
the relative
at 50%, 75% or
Stating that it
100% of each
within
each
category
for
each
lawyer,"
the
court
law
and
that the
court
provided
insufficient
Appellees maintain
request
inflated"
and
was
"unreasonable
at
least
in part
on
its
face
reflected
and
bad
that the
grossly
faith, it
the fee
II.
II.
___
DISCUSSION
DISCUSSION
__________
A. Standard of Review
______________________
We review a district
of law or abuse of discretion.
934, 937 (1st Cir.
calculating
tribunal
1992).
a reasonable
"lacks the
means
A district court's
fee
is
discretion in
particularly broad;
to replicate
F.2d
the trial
this
court's
first-hand knowledge
of
the litigation
and
its
nuances."
however, is
the trial
a `clear
award.'"
F.2d
review,
not
without
explanation
of
its
bite.
We
findings [and]
reasons for
the
fee
United States v.
______________
quoting Grendel's Den, Inc. v. Larkin, 749 F.2d 945, 950 (1st
___________________
______
Cir. 1984)).
While
minutiae,"
substantial reductions
id.,
___
in a
do
expect
Comm'n,
______
prevailing party's
great as
court
making
fee request
Brewster v. Dukakis,
________
_______
to impossible.
-77
we
findings.
need
"A
remand
for
litigation."
(1983)).
more
Jacobs v. Mancuso,
______
_______
When the
detailed
424, 437
ample
always
in a second major
U.S.
not
825 F.2d
v. Eckerhart, 461
_________
record provides
us with
been put upon us," id., we may set forth our own findings and
___
amend
see, e.g.,
___ ____
id.; Rogers v.
___ ______
1987); Hart
____
v.
Bourque,
_______
We have done
F.2d
519
so in the past,
22, 31 (1st
(1st
Cir.
Cir.
1986);
failure to
reasonable
fee.
use
the lodestar
Where
the
framework to
applicable
erred in
determine a
statutory
and-rate-method
. . . ."
by means of
scheme
found
Acres of Land,
______________
Weinberger
__________
32 F.3d
632, 634
(1st Cir.
1994) (quoting
A court employing
this
hours
method
expended on
arrive at the
multiplies
the
number
the litigation by
of
a reasonable
lodestar figure.
reasonably
hourly rate
Hensley, 461
_______
U.S. at
to
433;
-88
at 15.
To determine a
duplicative,
unproductive,
excessive,
unnecessary."
court did.
otherwise
847 F.2d
at 15.
with the
total
number of
litigation,
hours
and made
appellants' attorneys
deductions for
unorthodox manner
hours -- this
duplicative, excessive
deducting lump
sums, rather
and to
have
never
of time spent
lockstep,
approach in
required
following
that
an
district
unyielding,
cases."
the
number
Tennessee Gas, 32
______________
Comm'n, 847
______
of
F.3d at
F.2d at
15.).
spent by
on
each
In any event,
judges
"march
essentially
Id.
___
than
undoubtedly necessitated by
the
--
appellants' failure to
spent on
In fact,
in
wooden
we "have
hours
reasonably
634 (quoting
While we
expended."
Metropolitan Dist.
__________________
take issue
with some
methodology,
we
find
no
-99
error
in
its
choice
of
relief
maintain
from
that,
appellees'
in
order
illegal
to
obtain
wiretapping,
assign
Kutak Rock.
Bowers litigation,
appellants claim,
for new
local counsel.
taking
in other
to take the
litigation
thirty lawyers,
prevented
Whitman, of
from
appellants claim,
the
to sue Poulos,
involvement
firm in
an expensive search
After interviewing
Appellants' local
ever
Thus,
to find suitable
was entirely
reasonable,
in
and
reimbursement for
the
district
court
erred
limiting
to prevailing Maine
rates.
In general, "the proper
rate to apply to
the work
that which
the attorney
charges in
the community
16.03[8]
in
& Arthur
D.
(1994);
see
___
Maceira
_______
v.
reasonable
Pagan, 698
_____
hourly
F.2d 38,
rate
is
40
(1st Cir.
usually
stated
1983) ("The
to
be
`that
-1010
prevailing
Copeland
________
banc))).
in
the community
for
similar
the complexities of a
expertise of non-local
one
that
prosecute,
no
capable
it did
not
at 40, or
__
capable attorneys
willing to prosecute
or
be applied if
defend,"
work.'" (quoting
sound discretion,
so.
in
Maine
was
Instead,
it
willing
found
to
that
already
represented
them
in
litigation.
The same
district
lawsuits, and
his familiarity
the
underlying
judge
Bowers
presided over
both
and their
counsel, and with the willingness of the local bar to sue one
another, far exceeds ours.
judgment;
nothing
required
the
district
appellants'
self-serving explanations as
he believed
local
counsel
retention
with
was
of Kutak
the case
far
Rock than
and its
logical conclusion
less
client:
true.
factor
was Kutak
this
judge
summary
to
take
Apparently,
finding suitable
motivating
their
Rock's familiarity
is both
an entirely
on the record,
-1111
given that
firms did in
___
fact join
the fight
Therefore, we do not
fault the
the district
court's calculation of
consequence.4
court
To arrive
at this
rate,
the district
Kutak Rock --
$569,775.24 --
by the total
number of
hours
Rock employees of
billing rate
of
all
$198.11.
Kutak Rock
The
employees
weighted
actual
average
was
approximately
average, reflecting
the bulk
to each
of the hours.
that higher-paid
than
the
lawyers billed
commanded
by
the
two
local
firms
on
the
application),
50% to
Finally, it
arrive at
a weighted
local average
of $143.10.
2,867 hours to
____________________
4. To their credit, appellants directed our attention to
this error, even though correcting it results in a lower
local hourly rate.
-1212
arrive at an
adjusted local
Kutak Rock
of
$410,267.70.
In
fact, the
$569,775.24
figure with
which
the
the
Application.
fee
adjustments
request was
hours
appellants made
actually $491,749,
were 2,818.
Using these
in
their amended
total adjusted
figures, and
employing the
fee request
and
to
penalize
appellants
for
"found
numerous occasions
duplicated efforts."
bad
faith
in
when Plaintiffs'
counsel
bills by
attending
Poulos's deposition.6
____________________
5.
entries from
of Poulos's
Richardson &
-1313
in
the taking
reasonable, and,
possibly
of
his deposition
sustain a finding of
was
entirely
single example
cannot
a deduction of
$100,000.
Assuming for the moment
to
deposition
constitutes overstaffing,
we
agree
with
for
finding
deduction
of
of bad
faith
$100,000.
and
Our
own
combined penalty
scrutiny
the
fee
entirely unjustified.
of
and
In
addition to the
Four
attorneys
from
--
Richardson
billed
two
partners
time
for
from
Rock,
attendance at
Kutak
the
one
& Murray --
preliminary injunction
we
key depositions or
the
possible value
employing more
the importance of
of litigation, or
than
one lawyer
at
____________________
Troubh, and two from Murray, Plumb & Murray.
-1414
trial.
Nor
do we question
that
however,
complex
antitrust
with appellees
a fee request, a
litigation
This was
between
two
greet a claim
938 (1st
demands
work
Cir. 1992).
partners,
so great as
and occasional
partners and
associates, from
strike force of
efficiently
--
apparently
court.
general
sense
scrutinized
indicated
that the
the fee
the
district
to warrant extensive
work by
additional
firms --
did not
persuade
deference to the
case
was
and
district
district court's
having
and concluded
-- that there
effort, we will
order
the
tasks
overstaffed, and
request ourselves
court's
that the
some duplication of
Appellants' arguments
by four
Lipsett v.
_______
-- as
was at least
$40,000
of
for
overstaffing.
The
district court's
for misallocating
specific
examples
decision to
resources suffers
as
well
as
an
deduct $115,000
from a similar
analytical
lack of
flaw.
The
-1515
and
expertise
may
established.
be
compensated
differently
is
firmly
establish . . . multiple
hourly rates
Here, however,
have
twice
_____
deducted
calculating
district
Kutak
the
this
overall
fee
court calculated
Rock's attorneys
corrected
associates
the
and
appropriately
work
fact
the
that
performed by
falls
compensated categories
for Kutak
Rock's
weighted average
First,
in
work,
the
of all
___
of
This calculation,
paralegals.
that
differential.
at $143.10
to $126.35.
accounts for
i.e.,
for
some
we have
however, already
work
was
performed
by
Work that
was
actually
and
employees
--
these
into the
lower-paid
district
-- should not
court's
then be
subject to
that it
arrived at
lowera
Yet,
its $115,000
to the extent
within
reduc[ing]
each
category
that
[tripartite]
lawyer's
framework."
possible based
for
each
____
lawyer"
local
rate
according
(emphasis
added).
and
"then
to
the
This
was
analytically incorrect.
As was the case
billing, however,
we think
district court's
instincts
-1616
were
correct.
Of
the 3,734
hours billed,
partners' time
This would at
entry
for a
includes several
lawyer's work
on
different tasks,
virtually impossible.
any given
day typically
but only a
single figure
case that
day.7
Thus,
the bills
provide no
indication of
how much
for further
explanations,
`a
plaints that,
had the
they
We have stated
could have
and
specific
supplied
district court
accounting
. . . they [must]
of
the
tasks
number of hours
____________________
7. As an example, we cite the billing entry for Kutak Rock
partner Ronald Massumi for March 15, 1993, totalling 6.25
hours at a cost of $1,093.75:
Conference
with
Mr. Rugg
regarding
appellate procedure; telephone conference
with Mr. Murray's office; correspondence
to
Mr.
Whitman; research
regarding
injunctions pending appeal, federal rules
of civil and appellate procedure, 1st
Circuit
caselaw
on stays/injunctions
pending
appeal,
notice
of
appeal
procedure; draft motion for injunction
pending appeal, and memorandum in support
of motion for injunction pending appeal.
-1717
at 527).
The bills
of detail.
cases
in
specifically warned to
____________ ______
the
submitted do
Attorneys
District
not
preparing bills in
of
Maine
have
been
on each task.
804, 816
request
future,
activities by the
activity"),
on other
grounds
stating that
counsel to
discrete amount
aff'd sub
_____ ___
and
separate different
of time
"[i]n
devoted to
each
v. Great N. Nekoosa
_________________
law of this
extraordinary
circumstances,
will
call for
except in
substantial
952).
at 634
Given the
significant
deficiencies in
the
to a
bills were
prepared
-- we do not think
unreasonable
and we
will
this portion
of the
-1818
E.
Deductions for Excessive Expenses, Travel Time and
_____________________________________________________________
Computer Time
_____________
We
deduction
The
will also
of about
district
leave
intact the
half of appellants'
court's
explanations
for
district
court's
requested expenses.
these
cuts
were
Appellants' requested
total of
$715,202.12 already
deducted a
second time.
We
will therefore
add back
F. Appellees' Cross-Appeal
___________________________
Appellees devoted virtually all
reply brief
to arguments
had no discretion
its entirety.
contention.
would
district court
request
discretion if it
entirely because of
after
hundreds of pages
of bills and
it had no discretion to do
so.
In Lewis
_____
-1919
district
$49,000
court
award
of
attorney
fees
of
approximately
to
the
trial
judge
impossible,
id.
___
at
954, the
award, id. at
___
956.
purposefully
defied
requests.
Id.
___
We
held in that
the
caselaw
regarding
attorney
obtained substantially
had
fee
Appellants
a finding of
faith in the
Application
should
further
remand to
contest
request;
allow
the
Appellants' award is
discovery
propriety
conduct
of
the
case
would
discovery and
Application.
their original
simply be
another
now
recalculate
the
award in
light
of
We reduced
-20-
our
We
from $100,000
20
to $40,000 and
reinstated $13,575
in incorrect
deductions.
$19,361.30.
Thus,
the
total
award
for
appellants'
-2121