Chambers v. Ohio Dept. of Human Serv., s. 00-3354

• Decision Date: 15 June 2001
• Docket Number: 00-3355,Nos. 00-3354,s. 00-3354
• Parties: (6th Cir. 2001) Robert Chambers; Jean Chambers; Lauren Holland; Sarah Holland, State of Ohio ex rel, Plaintiffs-Appellees/Cross-Appellants, Graham, McClelland & Ransbottom Co., L.P.A.; Manos, Martin, Pergram & Dietz Co., L.P.A.; William J. Browning, Attorneys-Appellees/Cross-Appellants, v. Ohio Department of Human Services; Jacqueline Romer-Sensky, in her official capacity, Defendants-Appellants/Cross-Appellees. Argued:
• Court: U.S. Court of Appeals — Sixth Circuit

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273 F.3d 690 (6th Cir. 2001) Robert Chambers; Jean Chambers; Lauren Holland; Sarah Holland, State of Ohio ex rel, Plaintiffs-Appellees/Cross-Appellants, Graham, McClelland & Ransbottom Co., L.P.A.; Manos, Martin, Pergram & Dietz Co., L.P.A.; William J. Browning, Attorneys-Appellees/Cross-Appellants,
v.
Ohio Department of Human Services; Jacqueline Romer-Sensky, in her official capacity, Defendants-Appellants/Cross-Appellees. Nos. 00-3354, 00-3355 UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT Argued: June 15, 2001
Decided and Filed: December 11, 2001

Appeal from the United States District Court for the Southern District of Ohio at Columbus. No. 94-01094--Edmund A. Sargus, Jr., District Judge.

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Dennis L. Pergram (briefed), Manos, Martin, Pergram & Dietz, Worthington, OH, John J. Kulewicz (argued and briefed), Vorys, Stater, Seymour & Pease LLP, Columbus, OH, for Plaintiffs-Appellees.

John T. Williams (argued and briefed), Patrick W. Beatty (briefed), OFFICE OF THE ATTORNEY GENERAL OF OHIO, HEALTH & HUMAN SERVICES SECTION, Columbus, Ohio, for Defendants- Appellants.

Before: BOGGS and SUHRHEINRICH, Circuit Judges; CLELAND, District Judge.^*

OPINION

CLELAND, District Judge.

This case is before the Sixth Circuit for a second time. On the first appeal, the district court's summary judgment in Plaintiffs' favor was reversed and the case remanded for further proceedings terminating the case in Defendants' favor. See Chambers v. Ohio Dep't of Human Servs., 145 F.3d 793 (6th Cir. 1998). The issue now presented concerns the propriety of attorneys fees awarded by the district court to plaintiffs' counsel on the "catalyst theory" of success as a "prevailing party." The Supreme Court's recent opinion in Buckhannon Bd. and Care Home, Inc. v. W.V. Dep't of Health and Human Resources, --- U.S. ---, 121 S. Ct. 1835 (2001) has made clear that, to "prevail," the party must have obtained a change in the legal relationship of the parties that originated in a court order or that had at least received judicial sanction. The catalyst theory of success thus is no longer a permissible basis for awarding attorneys fees. We must reverse.

I. Background

Plaintiffs-Appellees Robert Chambers, Jean Chambers, Lauren Holland, and Sarah Holland (collectively "Plaintiffs") commenced this class action pursuant to 42 U.S.C. 1983, challenging administrative rules promulgated by Defendant Ohio Department of Human Services ("the ODHS") that were utilized in determining the eligibility of institutionalized spouses for Medicaid benefits. On cross motions

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for summary judgment, the district court ruled in Plaintiffs' favor, ordering the ODHS to alter its interpretation of the federal Medicaid laws. This court reversed on appeal, finding the relevant statutory language ambiguous and upholding the ODHS's regulations as comprising a reasonable and permissible interpretation of the statute. See Chambers v. Ohio Dep't of Human Servs., 145 F.3d 793 (6th Cir. 1998).

Even before the district court entered its order on remand, however, the ODHS had implemented changes to its regulations that Plaintiffs deemed beneficial to their cause. Thus, although the ODHS ultimately prevailed on the merits of the case, Plaintiffs could be viewed as having succeeded in securing some of the benefits they were seeking via the lawsuit based on the ODHS changes. Upon this theory of virtual victory, counsel for Plaintiffs moved the district court for attorneys fees under the Civil Rights Attorney's Fees Awards Act of 1976, which allows a district court in a 1983 action to award attorneys fees to "the prevailing party." See 42 U.S.C. 1988. The district court granted the motion, finding that Plaintiffs were a "prevailing party" under the so-called catalyst theory. This appeal followed.

II. Discussion

The catalyst theory...