Issue Is Whether District Judges Can Enhance Lodestar Based Solely on Quality of Attorney Performance and Results Obtained Under Federal Fee-Shifting Statute.
Yesterday, the U.S. Supreme Court granted certiorari on an attorney’s fees issues that has generated a split among federal appellate courts on whether district judges can enhance lodestars based solely on the quality of an attorney’s performance and results obtained under a fee-shifting statute when these same factors were already utilized in reaching the lodestar calculus.
The case accepted for review is Perdue v. Kenny A., No. 08-970 (U.S. Apr. 6, 2009). There, class action attorneys successfully brought an action against Georgia and several of its governmental agencies/officials to change Georgia’s foster care system, which the suit did—a settlement brought about reduced case loads and more personnel, among other improvements. The class action attorneys then moved for fees, with District Judge Marvin Shoob awarding them a $6 million lodestar plus a $4.5 million enhancement based on class counsel’s skill, commitment, dedication, and professionalism under the federal civil rights statute (42 U.S.C. sec. 1983) containing a fee-shifting provision.
Stay tuned for our post on this decision when it comes down from the high court. This decision will impact numerous cases involving about 100 fee-shifting statutes. Opponents that do not believe fees should be enhanced for these factors alone argue that enhancement is effectively a “double dip” for what is considered initially in determining the appropriate lodestar.
HAT TIP to Benjamin Shatz of enBanc, the Los Angeles County Bar Association’s official blog for bringing this important development to our attention.