Stefan v. Laurenitis, 88-2087
| Decision Date | 02 May 1989 |
| Docket Number | No. 88-2087,88-2087 |
| Citation | 889 F.2d 363 |
| Parties | Edward A. STEFAN, Jr., et al., Plaintiffs, Appellants, v. Robert A. LAURENITIS, etc., et al., Defendants, Appellees. . Heard |
| Court | U.S. Court of Appeals — First Circuit |
Michael Avery, with whom, Avery & Friedman, was on brief for plaintiffs, appellants.
Thomas J. Donoghue, with whom, Moriarty, Donoghue & Leja, P.C., was on brief, for defendants, appellees.
Before BREYER and TORRUELLA, Circuit Judges, and RE, * Judge.
Plaintiffs-appellants, Edward Stefan and John Dunn, appeal from an order of the United States District Court for the District of Massachusetts which denied their motion for reasonable attorneys' fees as the "prevailing parties" in an action brought under 42 U.S.C. Sec. 1983.
Seeking injunctive relief and damages, Stefan and Dunn brought this section 1983 action alleging that their rights under the first and fourteenth amendments to the United States Constitution had been violated by defendants-appellees, Robert Laurenitis and Marion Wysocki, officers of the Town of Sunderland, and the town itself. Stefan and Dunn alleged that Laurenitis and Wysocki, under color of the authority of the town, beginning November 1982 and continuing until the filing of this action in February 1984, harassed and intimidated them in the conduct of their business. The district court denied Stefan and Dunn's motion for a preliminary injunction.
Two days before the trial date, the Town of Sunderland, pursuant to Rule 68 of the Federal Rules of Civil Procedure, filed an offer of judgment for $10,000. This offer was accepted by Stefan and Dunn, and judgment in that amount was entered against the town. The action against Laurenitis and Wysocki was dismissed when each of them agreed to pay $3,000 in damages.
Following these settlements, Stefan and Dunn filed a motion to recover attorneys' fees from the town pursuant to 42 U.S.C. Sec. 1988. Since the district court held that appellants were not "prevailing parties," their motion for attorneys' fees was denied. The district court also held that "even if [Stefan and Dunn] are prevailing parties under 42 U.S.C. Sec. 1988, there are nevertheless 'special circumstances' present justifying the denial of [their] fees request under this Court's discretionary powers within the statute." Stefan v. Laurenitis, 695 F.Supp. 1330, 1339 (D.Mass.1988).
Stefan and Dunn contend that the district court erred in holding that they had not prevailed, and that "special circumstances" rendered an award of attorneys' fees unjust.
The question presented is whether the district court erred in denying the motion for reasonable attorneys' fees, brought under section 1988, because of its holding that Stefan and Dunn "are not prevailing parties under 42 U.S.C. Sec. 1988," and, even if they were "prevailing parties" within the meaning of the statute, the presence of "special circumstances" renders the award of attorneys' fees unjust.
Since we hold that Stefan and Dunn are "prevailing parties" because they have prevailed on a "significant issue in the litigation," and that there are no "special circumstances" which justify the denial of reasonable attorneys' fees, the judgment of the district court is reversed, and the case is remanded for a determination of an appropriate award of attorneys' fees.
Edward Stefan and John Dunn were the co-owners of a drinking and entertainment establishment in Sunderland, Massachusetts, called the "Rusty Nail Inn." The Rusty Nail presented performances by rock and roll bands, and primarily attracted local college students. Robert Laurenitis was a member of the Sunderland Board of Selectmen, and Marion Wysocki was a member of the Sunderland Board of Health.
Stefan and Dunn purchased the Rusty Nail in 1971. At that time, Marion Wysocki, and her son Kenneth, had unsuccessfully attempted to purchase the Rusty Nail. Ten years later, Barry Wysocki, another son of Marion Wysocki, sought to purchase the Rusty Nail, but Stefan refused his offer. Barry Wysocki later became an employee of a competing establishment, Hangar One.
A popular band called "The Blushing Brides" performed at Hangar One in the summer of 1982. On November 13, 1982, the band returned to the Sunderland area, but performed at the Rusty Nail instead of Hangar One. The next day, "after the busiest night of the year at the Rusty Nail," Marion Wysocki made three unscheduled Stefan and Dunn personally presented the letter to the Board of Selectmen at a Board meeting on November 15, 1982, and the minutes of the meeting reflect the hostility that prevailed. After Stefan accused Wysocki of personal bias, Laurenitis ordered Stefan to "[a]ppologize (sic) to everyone or I won't sign your license this year." Then, when Stefan refused to apologize, and asserted that both Wysocki and Laurenitis were biased against him, Laurenitis ordered a town police officer to remove Stefan from the meeting. Later, Laurenitis told Dunn to "[w]ithdraw your letter or we will have a different view of you." Dunn refused to "withdraw" his letter of complaint.
inspections of the Rusty Nail. She was accompanied on the first two inspections by two other members of the town Board of Health, and on the third by Laurenitis. Stefan and Dunn characterized Wysocki's manner during the inspections as "rude, belligerent and antagonistic," and asserted that Wysocki threatened to " 'close this place down.' " Dunn wrote a formal letter of complaint to the town, and requested both an apology and a promise that Wysocki "will not behave in that manner in any establishment in Sunderland."
The record indicates that there is a question whether Laurenitis " 'held a grudge against the owners of the Rusty Nail,' " because the former Sunderland police chief, who " 'had quarreled over many issues' " with Laurenitis, worked part time at the Rusty Nail. Record at 181 (quoting Greenfield Recorder, April 13, 1983, at 8, col. 1). Also, " 'Stefan supported the candidacies of former Selectmen ... with whom Laurenitis ha[d] also argued.' " Id.
Stefan and Dunn allege that, subsequent to the Board meeting, Laurenitis continued to use his position as a selectman of the town of Sunderland to harass and intimidate them in conducting their business, the Rusty Nail. They allege that Laurenitis orchestrated a series of harassing inspections by town and state employees. At the hearing on Stefan and Dunn's motion for a preliminary injunction, Stefan testified that
[t]here was just so many [inspections] it was one after another. If it wasn't the Board of Health, it was the State Board of Health. If it wasn't the State Board of Health, it was the Building Inspector.... They would come in and find one thing, and we would fix the thing one way and then they would come in the next time and they wanted that changed because that wasn't right.
Stefan testified that, previous to the confrontation at the Board meeting, the Rusty Nail had received approximately one annual health inspection and one annual building inspection. It is to be noted that there is no evidence in the record of any major health or building code violations at the Rusty Nail.
Stefan and Dunn also allege that Laurenitis threatened to use his office to deny Stefan and Dunn a renewal of their liquor license, and to advance the Sunday morning closing time of the Rusty Nail. At a December 13, 1982, meeting of the Board of Selectmen, Laurenitis maintained that Stefan "is not operating an inn and should not have an Innholders license and he would not sign that license unless Mr. Stefan would change to an appropriate license or" obtain the approval of the state liquor authority. Although Laurenitis finally signed the renewal, he signed only one week before the license was to expire, and only after continually threatening not to sign.
In April 1983, Laurenitis began a campaign to advance the Sunday morning closing time of Sunderland bars from 2:00 a.m. to 1:00 a.m. Only the Rusty Nail and one other establishment would be adversely affected by the advanced closing time, since these were the only Sunderland bars that regularly remained open until 2:00 a.m. on Sunday. Pursuant to Massachusetts law, "local licensing authorities," such as the Sunderland Board of Selectmen, have authority to establish "[t]he hours during which sales of ... alcoholic beverages may be made by any licensee...." Mass.Gen.L. ch. 138, Sec. 12 (1981 & Supp.1988). However, "[t]he licensing authority shall not decrease the hours during which sales of ... alcoholic beverages may be made by Suffice it to say that the pleadings of Stefan and Dunn indicate that they were genuinely fearful that Laurenitis and Wysocki, acting in a retaliatory and discriminatory manner, would use their authority as officials of the town of Sunderland to force the Rusty Nail out of business.
any licensee until after a public hearing ...; provided, that any licensee affected by such change shall be given two weeks notice of such public hearing...." Id. At a Board meeting in May 1983, with one of the three members of the Board of Selectmen absent, and the other abstaining, Laurenitis, by sole vote, enacted an order forcing Sunderland bars to close at 1:00 a.m. on Sundays. No prior notice was given, and no hearing was held
On February 2, 1984, Stefan and Dunn filed a complaint under 42 U.S.C. Sec. 1983, alleging, in pertinent part, that their first and fourteenth amendment rights had been violated by the inhibition of their right to petition the government for redress of their grievances. They also alleged that the discriminatory practices of Laurenitis, Wysocki, and the town, in harassing Stefan and Dunn with an excessive number of inspections of the Rusty Nail, denied them equal protection of the law.
After the settlement by all parties, this appeal followed the district court's denial of Stefan and Dunn's motion for an award of...
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