Deadra Combs v. City of Huntington, Texas , 829 F.3d 388 ( 2016 )


Menu:
  •      Case: 15-40436   Document: 00513594859      Page: 1   Date Filed: 07/15/2016
    IN THE UNITED STATES COURT OF APPEALS
    FOR THE FIFTH CIRCUIT
    No. 15-40436                     United States Court of Appeals
    Fifth Circuit
    FILED
    DEADRA L. COMBS,                                                       July 15, 2016
    Lyle W. Cayce
    Plaintiff - Appellant                                       Clerk
    v.
    CITY OF HUNTINGTON, TEXAS,
    Defendant - Appellee
    Appeal from the United States District Court
    for the Eastern District of Texas
    Before STEWART, Chief Judge, and JONES and DENNIS, Circuit Judges.
    CARL E. STEWART, Chief Judge:
    Plaintiff-Appellant   Deadra    Combs     brought    a   Title     VII       sexual
    harassment suit against the City of Huntington (the “City”), asserting hostile
    work environment, quid pro quo, and retaliation claims. Combs succeeded only
    on her hostile work environment claim and was awarded a fraction of the
    damages she sought. Combs then moved for attorney’s fees. After calculating
    the lodestar, the district court reduced the fee award, concluding that the ratio
    between attorney’s fees and damages was excessively disproportionate. Combs
    appeals, contending that the district court abused its discretion by reducing
    the award. Because there is no requirement of strict proportionality between
    attorney’s fees and damages, we VACATE the fee award.
    Case: 15-40436    Document: 00513594859     Page: 2    Date Filed: 07/15/2016
    No. 15-40436
    I.
    The City hired Combs as a municipal court clerk in September 2008.
    From the time she was hired until August 2010, Combs reported to Bruce
    Milstead, the City Manager. Combs asserted that, over the course of her
    employment, Milstead subjected her to frequent sexual harassment. Combs
    eventually filed a Charge of Discrimination with the Equal Employment
    Opportunity Commission (“EEOC”) in December 2010. The City terminated
    Combs on February 1, 2011. Combs then filed a Title VII sexual harassment
    suit against the City, contending that (1) she was the victim of quid pro quo
    harassment, (2) the City failed to alleviate a hostile work environment, and (3)
    her discharge was retaliation for filing an EEOC charge.
    The case proceeded to a jury trial, and each of Combs’s theories was
    submitted to the jury. During jury deliberations, the parties stipulated that
    Combs would be entitled to $123,027.35 in back pay if the jury found in her
    favor on her quid pro quo and retaliation claims. In addition, Combs asked the
    jury to award her $100,000 in damages on her sexual harassment claim and
    $100,000 in damages on the claims related to her termination. Combs thus
    sought a total of $323,027.35 in damages. The jury found in favor of the City
    on Combs’s quid pro quo and retaliation claims, eliminating the possibility of
    a back pay award. The jury found in Combs’s favor only on her hostile work
    environment claim and awarded just $5,000 in damages.
    Because she was a prevailing party under Title VII, Combs moved for
    attorney’s fees, seeking compensation for lead counsel Mark Aronowitz and his
    co-counsel Julia Hatcher (together, “Plaintiffs’ counsel”), who represented
    Combs during the litigation. In calculating the lodestar, the district court
    determined that some of the requested hours were not properly included and
    thus reduced the total number of hours billed; the court, however, accepted the
    hourly rates proposed by Plaintiffs’ counsel: $305 for Aronowitz and $375 for
    2
    Case: 15-40436        Document: 00513594859           Page: 3     Date Filed: 07/15/2016
    No. 15-40436
    Hatcher. Plaintiffs’ counsel also proposed a voluntary 20% reduction in the
    number of hours due to Combs’s “limited recovery.” The district court accepted
    this voluntary reduction and calculated the lodestar to be $38,722.80 for
    Aronowitz (126.96 hours x $305/hour) and $55,890.00 for Hatcher (149.04
    hours x $375/hour) for a total of $94,612.80.
    The court then considered whether the lodestar should be adjusted due
    to any of the factors enumerated in Johnson v. Georgia Highway Express, Inc.,
    
    488 F.2d 714
    , 717–19 (5th Cir. 1974) (the “Johnson factors”), 1 abrogated on
    other grounds by Blanchard v. Bergeron, 
    489 U.S. 87
    (1989). Relying on Migis
    v. Pearle Vision, Inc., 
    135 F.3d 1041
    (5th Cir. 1998), the City contended that
    Combs’s limited success—prevailing on only one claim and receiving only
    $5,000 in damages—required a reduction of the lodestar. The district court
    agreed, concluding that it was “constrained by the holding in Migis, to reduce
    the total to something less than 6.5 times the actual damages awarded.” It
    then reduced the fee award to $25,000, an amount five times the damages
    awarded to Combs. Combs timely appealed.
    II.
    A prevailing litigant may not ordinarily collect an attorney’s fee from the
    loser absent some statutory exception. See Indep. Fed’n of Flight Attendants
    v. Zipes, 
    491 U.S. 754
    , 758 (1989). One such congressionally-created exception
    is Title VII of the Civil Rights Act of 1964, which allows a district court to
    award reasonable attorney’s fees to the prevailing party. See 
    id. (citing 42
    1 The Johnson factors are: (1) the time and labor required; (2) the novelty and difficulty
    of the issues in the case; (3) the skill requisite to perform the legal services properly; (4) the
    preclusion of other employment by the attorney due to acceptance of the case; (5) the
    customary fee charged for those services in the relevant community; (6) whether the fee is
    fixed or contingent; (7) time limitations imposed by the client or the circumstances; (8) the
    amount involved and the results obtained; (9) the experience, reputation, and ability of the
    attorneys; (10) the undesirability of the case; (11) the nature and length of the professional
    relationship with the client; and (12) awards in similar cases. 
    Johnson, 714 F.2d at 717
    –19.
    3
    Case: 15-40436      Document: 00513594859        Page: 4    Date Filed: 07/15/2016
    No. 15-40436
    U.S.C. § 2000e-5(k)). An attorney’s fee award rests within the sound discretion
    of the district court, and accordingly, “[w]e will not reverse an award of
    attorneys’ fees unless the trial court abused its discretion or based its award
    on clearly erroneous findings of fact.” E.E.O.C. v. Clear Lake Dodge, 
    60 F.3d 1146
    , 1153 (5th Cir. 1995). “A district court abuses its discretion if it: (1) relies
    on clearly erroneous factual findings; (2) relies on erroneous conclusions of law;
    or (3) misapplies the law to the facts.” Allen v. C&H Distribs., L.L.C., 
    813 F.3d 566
    , 572 (5th Cir. 2015) (citation and internal quotation marks omitted).
    III.
    Combs challenges the district court’s reduction of the fee award,
    contending that (1) the Supreme Court has overruled this court’s method of
    calculating attorney’s fees; (2) a low damages award is an inadequate basis to
    adjust the lodestar; and (3) the district court abused its discretion in
    proportionally reducing the lodestar under Migis.
    A.
    In this circuit, courts apply a two-step method for determining a
    reasonable attorney’s fee award. See Jimenez v. Wood Cty., 
    621 F.3d 372
    , 379
    (5th Cir. 2010), on reh’g en banc, 
    660 F.3d 841
    (5th Cir. 2011). 2 The court must
    first calculate the lodestar, “which is equal to the number of hours reasonably
    expended multiplied by the prevailing hourly rate in the community for similar
    work.” 
    Id. In calculating
    the lodestar, “[t]he court should exclude all time that
    is excessive, duplicative, or inadequately documented.” 
    Id. at 379–80.
    Though
    the lodestar is presumed reasonable, see Perdue v. Kenny A. ex rel. Winn, 
    559 U.S. 542
    , 553–54 (2010), the court may enhance or decrease it based on the
    twelve Johnson factors, see 
    Jimenez, 621 F.3d at 380
    . “The court must provide
    2  Part V of 
    Jimenez, 621 F.3d at 379
    –80, which discussed this circuit’s method for
    calculating attorney’s fees was reinstated on rehearing en banc. See 
    Jimenez, 660 F.3d at 844
    n.1.
    4
    Case: 15-40436    Document: 00513594859      Page: 5    Date Filed: 07/15/2016
    No. 15-40436
    ‘a reasonably specific explanation for all aspects of a fee determination.’” 
    Id. (quoting Perdue,
    559 U.S. at 558).
    Despite this precedent, Combs asserts that the Supreme Court’s decision
    in   Perdue   limits   the   two-step method     to   only   “the    most   unusual
    circumstances.” We do not agree that Perdue is so broad.
    In Perdue, the Supreme Court considered whether the lodestar could be
    enhanced “due to superior performance and 
    results.” 559 U.S. at 546
    . In the
    underlying lawsuit, the plaintiffs, children in the Georgia foster-care system
    and their representatives, brought a class action against Georgia’s governor
    and numerous state officials, asserting that various deficiencies in the state’s
    foster-care system violated their statutory and constitutional rights. 
    Id. at 547.
    The underlying class action settled, and the plaintiffs’ attorneys sought
    more than $14 million in fees under 42 U.S.C. § 1988. 
    Id. The district
    court
    calculated a $6 million lodestar amount but then increased that amount by
    75% because it concluded that the lodestar failed to account for (1) the
    attorneys’ unreimbursed advancement of $1.7 million in expenses over three
    years; (2) the absence of ongoing pay to the attorneys; (3) the fully contingent
    nature of the case; (4) the “extraordinary” results obtained; and (5) the
    attorneys’ extraordinarily high degree of “skill, commitment, dedication, and
    professionalism.” 
    Id. at 548–49.
    The district court thus awarded a $10.5
    million fee. 
    Id. The Court
    vacated the award. See 
    id. at 557–59.
                  First, the Court
    observed that § 1988 “does not explain what Congress meant by a ‘reasonable’
    fee, and therefore the task of identifying an appropriate methodology for
    determining a ‘reasonable’ fee was left for the courts.” 
    Id. at 550.
    Our circuit’s
    use of the Johnson factors was the first such attempt. 
    Id. at 550–51.
    But the
    Court criticized the Johnson method, noting that this method “gave very little
    actual guidance to district courts,” “placed unlimited discretion in trial judges,”
    5
    Case: 15-40436     Document: 00513594859     Page: 6   Date Filed: 07/15/2016
    No. 15-40436
    and “produced disparate results.” 
    Id. (quoting Pennsylvania
    v. Del. Valley
    Citizens’ Council for Clean Air, 
    478 U.S. 546
    , 563 (1986)). In contrast, the
    Court praised the lodestar method of calculating attorney’s fees, because, inter
    alia, it “cabins the discretion of trial judges, permits meaningful judicial
    review, and produces reasonably predictable results.” 
    Id. at 551–52.
    The
    Court then summarized “important rules” regarding the federal fee-shifting
    statutes. 
    Id. at 552–53.
    Of particular relevance here, the Court explained that
    “a ‘reasonable’ fee is a fee that is sufficient to induce a capable attorney to
    undertake the representation of a meritorious civil rights case” and observed
    that “the lodestar method yields a fee that is presumptively sufficient to
    achieve this objective.” 
    Id. at 552.
          The Court then turned to the precise issue at hand: “whether either the
    quality of an attorney’s performance or the results obtained are factors that
    may properly provide a basis for an enhancement.”          
    Id. at 554.
      Because
    “superior results are relevant only to the extent it can be shown that they are
    the result of superior attorney performance,” the Court considered only
    “whether superior attorney performance can justify an enhancement.” 
    Id. The Court
    concluded that superior attorney performance could warrant an
    enhancement but limited such enhancements to three rare and exceptional
    circumstances, all of which “require specific evidence that the lodestar fee
    would not have been ‘adequate to attract competent counsel.’” 
    Id. at 554–55
    (quoting Blum v. Stenson, 
    465 U.S. 886
    , 897 (1984)). Because the district court
    failed to “provide proper justification for the large enhancement it awarded,”
    the Court held that the fee award could not stand. 
    Id. at 557.
          Combs argues that Perdue clearly disfavors applying the Johnson factors
    to determine a fee award and instead requires the use of only the lodestar. We
    agree that Perdue requires courts to first calculate the lodestar; indeed, this
    has long been our practice. See, e.g., League of United Latin Am. Citizens No.
    6
    Case: 15-40436     Document: 00513594859      Page: 7   Date Filed: 07/15/2016
    No. 15-40436
    4552 (LULAC) v. Roscoe Ind. Sch. Dist., 
    119 F.3d 1228
    , 1232 (5th Cir. 1997)
    (“The method by which the district court calculates an attorneys’ fees award is
    well established. The district court first calculates the ‘lodestar.’”). But Perdue
    does not, as Combs contends, make it impermissible to then consider any
    relevant Johnson factors. Perdue cautions against the sole use of the Johnson
    factors to calculate a reasonable attorney’s fee but nowhere calls into question
    the use of relevant Johnson factors to make this determination.            Indeed,
    Perdue expressly allows adjustments “in those rare circumstances in which the
    lodestar does not adequately take into account a factor that may properly be
    considered in determining a reasonable 
    fee.” 559 U.S. at 554
    .
    Combs next asserts that Perdue requires that reductions to the lodestar,
    like enhancements to it, be allowed only where the outcome of the litigation is
    directly tied to the attorney’s performance. Not so. In Perdue, the Court
    emphasized that it is enhancements that must be rare because, instead of
    merely guaranteeing adequate representation, they can result in a windfall to
    attorneys.   See 
    id. at 559
    & n.8.       As the Court explained, “unjustified
    enhancements that serve only to enrich attorneys are not consistent with
    the . . . aim” of fee-shifting statutes. 
    Id. at 559.
    Thus, excellent results should
    usually result only in “a fully compensatory fee”—the lodestar. See Hensley v.
    Eckerhart, 
    461 U.S. 424
    , 435 (1983).        Consistent with Hensley, the Court
    repeatedly explained prior to Perdue that the lodestar may be increased only
    in extraordinary circumstances. See City of Burlington v. Dague, 
    505 U.S. 557
    ,
    562 (1992) (“We have established a strong presumption that the lodestar
    represents the reasonable fee, and have placed upon the fee applicant who
    seeks more than that the burden of showing that such an adjustment is
    necessary to the determination of a reasonable fee.” (internal quotation marks
    and citations omitted)); Del. Valley Citizens’ 
    Council, 478 U.S. at 565
    (stating
    that lodestar enhancements, while permissible, “are proper only in certain
    7
    Case: 15-40436     Document: 00513594859      Page: 8    Date Filed: 07/15/2016
    No. 15-40436
    ‘rare’ and ‘exceptional’ cases” and noting that fee-shifting statutes are not
    designed “to improve the financial lot of attorneys”).               Perdue simply
    emphasizes what the Court has long recognized: enhancements are
    permissible only in a rare and exceptional class of cases. See 
    Jimenez, 621 F.3d at 380
    (citation omitted) (reading Perdue as “limiting upward adjustments in
    light of ‘a strong presumption that the lodestar is sufficient’”).
    And though the lodestar is presumed reasonable, it may be adjusted
    where it “does not adequately take into account a factor that may be properly
    considered in determining a reasonable fee.” 
    Perdue, 559 U.S. at 554
    . A
    plaintiff’s limited success is just such a factor. In Hensley, the Supreme Court
    explained that “the most critical factor” in determining a reasonable fee “is the
    degree of success 
    obtained.” 461 U.S. at 436
    . There, the Court endorsed using
    “the important factor of the ‘results obtained’” to decrease the lodestar, noting
    that where a plaintiff achieves “only partial or limited success,” the lodestar
    may be excessive. 
    Id. at 434,
    436. Perdue, consistent with the Court’s frequent
    pronouncements, explains that lodestar enhancements are to be rare. But it
    provides no basis to depart from Hensley’s rule that courts must consider the
    plaintiff’s degree of success to determine whether the lodestar is excessive. See
    Farrar v. Hobby, 
    506 U.S. 103
    , 114 (1992) (noting that the district court failed,
    after calculating the lodestar, to consider plaintiff’s success in the lawsuit); see
    also 
    Hensley, 461 U.S. at 436
    (“Congress has not authorized an award of
    fees . . . whenever conscientious counsel tried the case with devotion and skill.
    Again, the most critical factor is the degree of success obtained.”).
    Combs relies on Millea v. Metro-North Railroad Co., 
    658 F.3d 154
    (2d
    Cir. 2011), but we find this case unpersuasive.        There, citing Perdue, the
    Second Circuit concluded that a district court erred by reducing “the attorneys’
    fee award based on the outcome of the litigation without tying that outcome to
    the quality of [plaintiff’s] attorneys.” 
    Id. at 169.
    The court explained that,
    8
    Case: 15-40436     Document: 00513594859      Page: 9   Date Filed: 07/15/2016
    No. 15-40436
    absent a nominal victory, litigation outcomes are generally “only relevant to
    fee award calculations when they are a direct result of the quality of the
    attorney’s performance.” 
    Id. at 168.
    But Millea does not cite—much less
    reconcile—Hensley, which explained that courts must consider a plaintiff’s
    limited success in determining what fee is reasonable. 
    Hensley, 461 U.S. at 438
    –40.   Indeed, the degree of success is the most critical factor even if
    “conscientious counsel tried the case with devotion and skill.” 
    Id. at 436.
    We
    decline to adopt Millea’s reasoning.
    We also reject Combs’s contention that Hensley applies only to cases
    involving multiple claims and varying levels of success. The Supreme Court
    has emphasized that the degree of success is the most crucial element in
    determining a reasonable attorney’s fee. See 
    Hensley, 461 U.S. at 436
    ; accord
    Marek v. Chesny, 
    473 U.S. 1
    , 11 (1985). “A reduced fee award is appropriate if
    the relief, however significant, is limited in comparison to the scope of the
    litigation as a whole.” 
    Hensley, 461 U.S. at 440
    (emphasis added). The Court
    has thus found error where a district court, in setting a fee award, simply
    awarded the lodestar “without engaging in any measured exercise of
    discretion.” 
    Farrar, 506 U.S. at 114
    . Hensley’s mandate that courts consider
    the limited nature of a plaintiff’s success applies to all cases.
    In sum, the district court should begin by calculating the lodestar: the
    reasonable hours expended multiplied by a reasonable rate. The district court
    may then determine whether any other considerations counsel in favor of
    enhancing or decreasing the lodestar. In light of the “strong presumption” that
    the lodestar represents a sufficient fee, enhancements must necessarily be
    rare. 
    Perdue, 559 U.S. at 553
    –54. “[S]uperior results are relevant only to the
    extent it can be shown that they are the result of superior attorney
    performance.” 
    Id. at 554.
    However, in considering whether to decrease the
    lodestar, the district court must consider the plaintiff’s degree of success.
    9
    Case: 15-40436     Document: 00513594859      Page: 10    Date Filed: 07/15/2016
    No. 15-40436
    
    Hensley, 461 U.S. at 436
    –37, 440 (“[T]he extent of a plaintiff’s success is a
    crucial factor in determining the proper amount of an award of attorney’s
    fees under 42 U.S.C. § 1988. . . . [W]here the plaintiff achieved only limited
    success, the district court should award only that amount of fees that is
    reasonable in relation to the results obtained.”).
    B.
    Combs next argues that a low damages award should not lead the district
    court to reduce a fee award. In Cobb v. Miller, we explained that “[i]n the
    absence of other Johnson factors justifying a reduction in a fee award, a district
    court should not reduce the fee award solely because of a low damages award,”
    because “[s]uch an approach would lead to a proportionality requirement
    between the amount of attorney’s fees and the amount of damages.” 
    818 F.2d 1227
    , 1235 (5th Cir. 1987).
    Cobb, however, predated the Supreme Court’s decision in Farrar. There,
    the Court clarified the relevance of a plaintiff’s success, explaining that
    “[w]here recovery of private damages is the purpose of . . . civil rights litigation,
    a district court, in fixing fees, is obligated to give primary consideration to the
    amount of damages awarded as compared to the amount sought.” 
    Farrar, 506 U.S. at 114
    (quoting City of Riverside v. Rivera, 
    477 U.S. 561
    , 585 (1986)
    (Powell, J., concurring in judgment) (omission in original)). Noting that this
    approach “promotes the court’s ‘central’ responsibility to ‘make the assessment
    of what is a reasonable fee under the circumstances of the case,’” 
    id. at 114–15
    (quoting Blanchard v. Bergeron, 
    489 U.S. 87
    , 96 (1989)), the Court explained
    that the district court, by simply awarding the lodestar amount, failed to
    “consider[] the relationship between the extent of success and the amount of
    the fee award,” 
    id. at 115–16
    (quoting 
    Hensley, 461 U.S. at 438
    ).
    We have since recognized that “[a]warding attorney’s fees based on the
    damages, or degree of success obtained, is completely in line with the holdings
    10
    Case: 15-40436         Document: 00513594859           Page: 11     Date Filed: 07/15/2016
    No. 15-40436
    of the Supreme Court and this Circuit.” 3 Flowers v. S. Reg’l Physician Servs.,
    Inc., 
    286 F.3d 798
    , 802 (5th Cir. 2002). Accordingly, in a private civil rights
    suit, a district court must consider any disparity between the amount of
    damages sought and the amount of damages awarded. 4 See 
    Migis, 135 F.3d at 1048
    (“[T]he plaintiff’s monetary success in a private civil rights suit must be
    the primary determinant of the attorney’s fee.”); Hodges v. City of Houston, 
    71 F.3d 877
    , 
    1995 WL 726463
    , at *4–5 (5th Cir. 1997) (unpublished table decision)
    (citing Farrar and concluding that a $65,000 fee award was “grossly excessive”
    where plaintiff “asserted $45,800 in monetary losses and requested $1 million
    in damages” but received only $3,500); see also McAfee v. Bozcar, 
    738 F.3d 81
    ,
    92–93 (4th Cir. 2013) (“[W]hen considering the extent of the relief obtained, we
    must compare the amount of damages sought to the amount awarded.”
    (citation omitted)); McCown v. City of Fontana, 
    565 F.3d 1097
    , 1104 (9th Cir.
    2008) (concluding that Supreme Court precedent “suggest[s] that a comparison
    of damages awarded to damages sought is required”); Villano v. City of Boynton
    Beach, 
    254 F.3d 1302
    , 1307–08 (11th Cir. 2001) (holding that where
    compensatory damages are “the primary relief sought and become the only
    relief obtained,” the court may consider the amount of damages awarded in
    setting a fee award). The district court may properly compare what Combs
    sought with what she was ultimately awarded.
    3  Combs points to a number of cases stating that a low damages award, alone, is not
    a sufficient basis for a fee reduction. See, e.g., Black v. SettlePou, P.C., 
    732 F.3d 492
    , 503 (5th
    Cir. 2013); Saizan v. Delta Concrete Prods. Co., 
    448 F.3d 795
    , 799 (5th Cir. 2006); Singer v.
    City of Waco, 
    324 F.3d 813
    , 830 (5th Cir. 2003). Each of those cases involved the Fair Labor
    Standards Act. In civil rights litigation, however, district courts must primarily consider the
    award of damages because “[t]he Supreme Court has twice made clear that the most critical
    factor in determining the reasonableness of a fee award in a civil rights suit is the degree of
    success obtained.” 
    Migis, 135 F.3d at 1047
    (citations and internal quotation marks omitted).
    4 This is not to say that this comparison always mandates a reduction of the fee award.
    The focus is “on the significance of the overall relief obtained by the plaintiff.” 
    Hensley, 461 U.S. at 435
    (emphasis added).
    11
    Case: 15-40436     Document: 00513594859     Page: 12   Date Filed: 07/15/2016
    No. 15-40436
    C.
    Finally, Combs argues that the district court erred by adjusting the
    lodestar amount based solely on strict proportionality considerations. On this,
    we agree.
    1.
    In determining a reasonable attorney’s fee award based on the plaintiff’s
    degree of success, “[t]here is no precise rule or formula”; instead, the district
    court “necessarily has discretion in making this equitable judgment.” 
    Hensley, 461 U.S. at 436
    –37. In City of Riverside, a Supreme Court plurality rejected
    the argument that fee awards “should necessarily be proportionate to the
    amount of damages a civil rights plaintiff actually 
    recovers.” 477 U.S. at 574
    .
    There, the district court awarded $245,456.25 in attorney’s fees, even though
    the prevailing plaintiffs had received only $33,350 in damages. 
    Id. at 564–66.
    The Court determined that the district court did not abuse its discretion in
    making this fee award.      
    Id. at 572–73.
       The plurality explained that a
    proportionality rule “would make it difficult, if not impossible, for individuals
    with meritorious civil rights claims but relatively small potential damages to
    obtain redress from the courts” and thus undermine Congress’s purpose in
    enacting civil rights statutes such as § 1988. 
    Id. at 576–78.
          After City of Riverside, we have consistently emphasized that “there is
    no per se requirement of proportionality in an award of attorney fees.” Branch-
    Hines v. Hebert, 
    939 F.2d 1311
    , 1322 (5th Cir. 1991); Hernandez v. Hill Country
    Tel. Co-Op., Inc., 
    849 F.2d 139
    , 144 (5th Cir. 1988); see also West v. Nabors
    Drilling USA, Inc., 
    330 F.3d 379
    , 395 (5th Cir. 2003) (“[U]nder civil rights
    statutes such as the ADEA, [t]here is no per se requirement of proportionality
    in an award of attorney fees.” (second alteration in original) (citation and
    internal quotation marks omitted)). Nevertheless, proportionality remains “an
    12
    Case: 15-40436     Document: 00513594859     Page: 13    Date Filed: 07/15/2016
    No. 15-40436
    appropriate consideration in the typical case.” 
    Hernandez, 849 F.2d at 144
    ; see
    also 
    Branch-Hines, 939 F.2d at 1322
    –23.
    The district court read our decision in Migis as capping a fees-to-
    damages ratio at 6.5:1. Migis involved the recovery of attorney’s fees in a Title
    VII civil rights 
    case. 135 F.3d at 1047
    –48. There, though the plaintiff sought
    $325,000 in damages, she was ultimately awarded only $12,233.32. 
    Id. at 1048.
    The district court calculated a roughly $90,000 lodestar, see 
    id. at 1062
    (Barksdale, J., concurring in part and dissenting in part); despite the plaintiff’s
    limited success, the district court reduced the lodestar by only 10% and
    awarded $81,000 in attorney’s fees, 
    id. at 1047.
    We reversed, concluding that
    the district court “fail[ed] to give adequate consideration to the result obtained
    relative to the fee award, and the result obtained relative to the result sought.”
    
    Id. at 1048.
    Citing Farrar, we explained “that the plaintiff’s monetary success
    in a private civil rights suit must be the primary determinant of the attorney’s
    fee.”   
    Id. Observing that
    the plaintiff “sought over twenty-six times the
    damages actually awarded” and that the fees-to-damages ratio was 6.5:1, we
    concluded that these ratios were too large to justify the award. 
    Id. But Migis
    does not impose a strict proportionality requirement. Instead,
    it simply recognized that “’the most critical factor’ in determining the
    reasonableness of a fee award in a civil rights suit ‘is the degree of success
    
    obtained.’” 135 F.3d at 1047
    (quoting 
    Farrar, 506 U.S. at 114
    ). In Migis, the
    plaintiff alleged four acts of discrimination on the basis of gender or pregnancy;
    she prevailed on only one claim, and even then, only on the basis of pregnancy
    discrimination. 
    Id. She received
    just over $12,000 in damages instead of the
    $325,000 that she sought. 
    Id. at 1048.
    “By any fair measure, [her] success
    relative to the relief she sought was limited.” 
    Id. The district
    court’s meager
    10% reduction of the fee award thus failed to adequately consider just how
    13
    Case: 15-40436      Document: 00513594859        Page: 14     Date Filed: 07/15/2016
    No. 15-40436
    limited the plaintiff’s success was. 5 
    Id. at 1047;
    see also Migis v. Pearle Vision,
    Inc., 
    944 F. Supp. 508
    , 515–16 (N.D. Tex. 1996) (noting that “the monetary
    damages awarded to plaintiff simply do not justify a fee award” of roughly
    $90,000 and decreasing award by only 10% without adequate explanation),
    aff’d in part and rev’d in part, 
    135 F.3d 1041
    .
    And the Migis district court’s explanation failed to “answer the question
    of what is ‘reasonable’ in light of” the plaintiff’s limited success. 
    Hensley, 461 U.S. at 439
    ; see also 
    id. at 439
    n.15 (observing that “a mere conclusory
    statement that [a] fee [is] reasonable in light of the success obtained” is not a
    sufficient explanation); 
    Jimenez, 621 F.3d at 379
    (requiring a “reasonably
    specific explanation for all aspects of a fee determination” (citation and
    internal quotation marks omitted)); Gagnon v. United Technisource, Inc., 
    607 F.3d 1036
    , 1044 (5th Cir. 2010) (citing Migis and vacating a fee award that
    “was more than six times greater than the amount of relief awarded,” but
    explaining that “this conclusion in no way implies that the attorney’s fee
    award, if justified by a proper explanation, would be an abuse of discretion”).
    2.
    A district court abuses its discretion if it “relies on erroneous conclusions
    of law.” 
    Allen, 813 F.3d at 572
    . Here, the district court explained that it was
    “constrained by the holding in Migis, to reduce the total to something less than
    6.5 times the actual damages awarded.” The district court properly recognized
    that proportionality between attorney’s fees and damages may be considered
    in determining a reasonable fee. See 
    Migis, 135 F.3d at 1048
    ; Hernandez, 849
    5 We again note that, here, the lodestar reflected a 20% reduction in hours based on
    Combs’s limited success.
    14
    Case: 15-40436       Document: 00513594859        Page: 15     Date Filed: 07/15/2016
    No. 15-40436
    F.2d at 144. But because our cases reject, and Migis does not impose, a per se
    proportionality requirement, the fee award must be vacated. 6
    IV.
    We VACATE the district court’s award of attorney’s fees and REMAND
    for determination of a new fee award in accordance with this opinion.
    6 Though we hold that Migis did not impose a strict proportionality requirement, in
    no way do we undercut the reasoning that led the Migis court to find an abuse of discretion.
    And of course, there are marked similarities between this case and Migis, including, for
    example, substantial disparities between the damages sought and the damages actually
    awarded. The district court should consider Combs’s fee request anew in light of both our
    discussion and these similarities.
    15
    

Document Info

Docket Number: 15-40436

Citation Numbers: 829 F.3d 388

Filed Date: 7/15/2016

Precedential Status: Precedential

Modified Date: 1/12/2023

Authorities (25)

Villano v. City of Boynton Beach , 254 F.3d 1302 ( 2001 )

Millea v. Metro-North Railroad , 658 F.3d 154 ( 2011 )

League of United Latin American Citizens 4552 v. Roscoe ... , 119 F.3d 1228 ( 1997 )

Thomas E. West v. Nabors Drilling Usa, Inc. , 330 F.3d 379 ( 2003 )

Gagnon v. United Technisource, Inc. , 607 F.3d 1036 ( 2010 )

56-fair-emplpraccas-1365-57-empl-prac-dec-p-41007-charla , 939 F.2d 1311 ( 1991 )

Sandra Spragis Flowers v. Southern Regional Physician ... , 286 F.3d 798 ( 2002 )

47-fair-emplpraccas-318-47-empl-prac-dec-p-38121-santos-r , 849 F.2d 139 ( 1988 )

Melissa MIGIS, Plaintiff-Appellee, Cross-Appellant, v. ... , 135 F.3d 1041 ( 1998 )

Saizan v. Delta Concrete Products Co. , 448 F.3d 795 ( 2006 )

Singer v. City of Waco, Texas , 324 F.3d 813 ( 2003 )

elbert-a-cobb-and-gail-smith-cobb-husband-and-wife-v-beauregard-h , 818 F.2d 1227 ( 1987 )

68-fair-emplpraccas-bna-663-33-fedrserv3d-104-equal-employment , 60 F.3d 1146 ( 1995 )

7-fair-emplpraccas-1-7-empl-prac-dec-p-9079-richard-johnson-jr , 488 F.2d 714 ( 1974 )

Marek v. Chesny , 105 S. Ct. 3012 ( 1985 )

City of Riverside v. Rivera , 106 S. Ct. 2686 ( 1986 )

Pennsylvania v. Delaware Valley Citizens' Council for Clean ... , 106 S. Ct. 3088 ( 1986 )

Blanchard v. Bergeron , 109 S. Ct. 939 ( 1989 )

Independent Federation of Flight Attendants v. Zipes , 109 S. Ct. 2732 ( 1989 )

City of Burlington v. Dague , 112 S. Ct. 2638 ( 1992 )

View All Authorities »