Holden v. Bowen

Decision Date23 July 1986
Docket NumberCiv. A. No. C84-548.
Citation668 F. Supp. 1042
PartiesNorma HOLDEN, et al., Plaintiffs, and State of Ohio, Through Richard F. Celeste, Governor, Plaintiff-Intervenor, v. Otis R. BOWEN, Secretary of Health and Human Services, Defendant.
CourtU.S. District Court — Northern District of Ohio

David B. Dawson, Louise McKinney, Carolyn Carter, Ann Porath, Paula Gellman, Fred P. Schwartz, Cleveland, Ohio, for plaintiffs.

Rita S. Eppler, Asst. Atty. Gen., Columbus, Ohio, for plaintiff-intervenor.

Rita S. Eppler, Asst. Atty. Gen., Columbus, Ohio, Kathleen A. Sutula, Asst. U.S. Atty., Cleveland, Ohio, for defendant.

MEMORANDUM AND ORDER

ANN ALDRICH, District Judge.

On August 27, 1985, this Court ruled that the prevailing plaintiffs in this social security disability class action were entitled to attorneys' fees, costs and expenses from the Secretary of Health and Human Services ("Secretary")1 under the Equal Access to Justice Act ("EAJA"), 28 U.S.C. § 2412. Holden v. Heckler, 615 F.Supp. 686 (N.D. Ohio 1985). By agreement of the parties, that opinion dealt only with the threshold question of whether any fees should be awarded. Id. at 687 n. 1. After this Court sustained the plaintiffs' right to EAJA fees, costs and expenses, the Secretary was permitted discovery with respect to the amount sought, id. at 698, and plaintiffs submitted a supplemental application for additional fees.

Plaintiffs now seek attorneys' fees, costs and expenses totaling $251,789.15.2 The Secretary objects to the hourly rates sought for counsel, law clerks and paralegals, to the number of hours for which compensation is sought, and to any compensation for certain tasks performed by counsel. The Secretary also argues that some of the costs and expenses sought by plaintiffs are not available under the EAJA. Plaintiffs have submitted voluminous materials in support of their application and both sides have thoroughly briefed the relevant legal issues. For the reasons set forth below, plaintiffs' application — with a slight reduction for excessive and duplicative work on small portions of this case — is approved.

I. THE FEE APPLICATION

The plaintiffs were represented by David B. Dawson, Esq., Louise McKinney, Esq. and Carolyn L. Carter, Esq. of The Legal Aid Society of Cleveland ("Legal Aid"); Mark J. Valponi, Esq. and John Habat, Esq. of the Cleveland law firm of Kelley, McCann & Livingstone ("Kelley, McCann"); and, with respect to the fee application itself, by Fred P. Schwartz, Esq. of the Cleveland law firm of Hahn, Loeser, Freedheim, Dean & Wellman ("Hahn, Loeser"). The application as supplemented seeks compensation for the following work:

                           Attorneys' Fees, Costs and Expenses
                                     Through May 20, 1985    
                                            Fees
                                  Hours          ×  Rate  =    Amount
                Mark Valponi      346.1             $75      $ 25,957.50
                John Habat         55.1             $65         3,581.50
                David Dawson      894.8             $125      111,850.00
                Louise McKinney   250.7             $100       25,070.00
                Carolyn Carter    283.4             $125       35,425.00
                Dean della Volpe  115.1             $30         3,453.00
                Toll-free number  59 hours, 1 min.              3,283.163
                  answering                                    ___________
                                  Subtotal Fees:             $208,620.16
                            Costs and Expenses
                Expenses incurred by Kelley, McCann &         $   543.03
                  Livingstone
                Deposition costs and other expenses               353.59
                Travel costs                                       73.58
                Toll-free number costs                          1,716.77
                Computer-assisted legal research costs            577.22
                Mailing costs                                     282.45
                Other long-distance telephone costs               621.48
                                                             ___________
                            Subtotal Costs and Expenses:      $ 4,171.12
                      Subtotal Fees, Costs and Expenses
                                                             ___________
                       Through May 20, 1985                  $212,791.28
                           Attorneys' Fees, Costs and Expenses
                                     After May 20, 1985   
                                                    Fees
                                     Hours         ×  Rate   =    Amount
                Valponi                25            $75         $  1,875.00
                Dawson               94.5           $125           11,625.00
                                 (less 1.5 hours erroneously
                                 included in original application
                                 $11,812.50 - 187.50)
                McKinney             42.5          $100          4,250.00
                Carter               28.1          $125          3,512.50
                Bill Matthews        93.5          $30           2,805.00
                  (law clerk)
                Fred Schwartz        120           $94.09       11,290.80
                Hahn, Loeser law     6.6           $30             198.00
                Clerks and paralegals
                                                                __________
                             Subtotal Fees:                    $ 35,556.30
                         Costs and Expenses
                Deposition transcript of David Dawson           $   172.40
                Long-distance telephone hotline                   2,785.77
                Computer-assisted legal research costs              396.08
                Postage                                               3.50
                Photocopying costs                                   83.82
                                                               ___________
                              Subtotal Costs and Expenses:     $  3,441.57
                      Subtotal Fees, Costs and Expenses
                                                               ___________
                           After May 20, 1985                  $ 38,997.87
                    TOTAL Fees, Costs and Expenses             $251,789.154
                

As noted, the Secretary's objections to the fee application fall into three categories: hourly rates; number of compensable hours; and costs and expenses.

II. HOURLY RATES

The Secretary does not challenge the hourly rates sought by the Kelley, McCann counsel, Valponi ($75) and Habat ($65), but does contest the amounts sought by Legal Aid counsel, Dawson, McKinney and Carter; by Hahn, Loeser's Schwartz for his work on the fee application; by Legal Aid and Hahn, Loeser for work by law clerks and paralegals; and by all counsel for time spent answering the toll-free telephone line provided for class members by order of this Court. Holden v. Heckler, 584 F.Supp. 463, 496 (N.D.Ohio 1984) (preliminary injunction order ¶ 7(a)).

A. Legal Aid Counsel Dawson, McKinney and Carter

The Secretary claims that the $125 hourly rate sought by Dawson and Carter and the $100 rate sought by McKinney are precluded by 28 U.S.C. § 2412(d)(2)(A)(ii), which provides in pertinent part:

Attorney fees shall not be awarded in excess of $75 per hour unless the court determines that an increase in the cost of living or a special factor, such as the limited availability of qualified attorneys for the proceedings involved, justifies a higher fee.

Plaintiffs assert that the higher hourly rates are justified by the "limited availability" in the Cleveland area of attorneys with Dawson and McKinney's expertise in disability law and Carter's knowledge of complex litigation.

Uncontroverted affidavits establish that Dawson, McKinney and Carter are among the leading practitioners of poverty law in the Cleveland area and possess lawyering skills unique not only in the local bar generally but even among the subset of attorneys who practice social security disability law. Dawson has represented individuals in disability cases since 1974 and has specialized in the field since 1978; he serves as an adviser and consultant on disability issues for attorneys at Legal Aid and at legal services offices throughout Ohio, conducts training seminars for legal services attorneys, served on Governor Richard Celeste's Task Force on Continuing Disability Investigations, and acted as co-counsel on two other disability class actions. McKinney has litigated numerous disability cases and trained and advised other legal services attorneys; she also has lectured on disability issues at a number of colleges and universities in northern Ohio. Carter has extensive experience with complex litigation and federal civil rights cases.

C. Lyonel Jones, the director of Legal Aid, demonstrated by affidavit that the skills of these three counsel were crucial to swift and successful prosecution of this class action:

The attorneys representing the plaintiffs class in this action provide a combination of background and skill that would have been available from few, if any, other sources in Ohio. The effective prosecution of Holden v. Heckler required specialized expertise in Social Security issues, such as that which David Dawson and Louise McKinney possess. In addition, it required ... experience in complex federal litigation, class action issues, and jurisdictional issues, such as Carolyn Carter possesses. Finally, it required an organization that was willing to commit significant time and resources to the case, with any ultimate recovery dependent upon an EAJA fee petition....

Franklin Hickman, a private attorney with extensive experience in disability cases, demonstrated the corollary to Jones' proposition — namely, that the average disability law practitioner could not have handled this case nearly as well as the Legal Aid attorneys did. He stated:

I would not have been able to represent the class in the Holden case while in private practice unless I were working with Legal Aid Society attorneys and relying on their resources. To my knowledge there are few, if any, private attorneys in the Cleveland area who would assume full responsibility for representation in a case like the Holden case.

Hickman also attested to the reasonableness of the hourly rates sought, as did David Weiner, a Hahn, Loeser partner specializing in litigation.

The Secretary established by affidavit that since 1983 some 330 attorneys have filed social security disability actions in the Northern District of Ohio; this statistic, it is alleged, demonstrates that there is not a limited availability...

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