Village of Park Forest v. Tom Mick , 886 F.3d 626 ( 2018 )


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  •                                 In the
    United States Court of Appeals
    For the Seventh Circuit
    ____________________
    Nos. 15-2295, 15-2303 & 16-3556
    THORNCREEK APARTMENTS III, LLC, a foreign limited liability
    company d/b/a The Lofts at Thorncreek,
    Plaintiff-Appellee/
    Cross-Appellant,
    and
    THORNCREEK MANAGEMENT, LLC,
    Plaintiff-Appellee,
    v.
    TOM MICK,
    Defendant-Appellant/
    Cross-Appellee.
    ____________________
    Appeals from the United States District Court
    for the Northern District of Illinois, Eastern Division.
    No. 08 C 1225 — Gary Feinerman, Judge.
    ____________________
    Nos. 15-2296, 15-2302 & 16-3555
    VILLAGE OF PARK FOREST,
    Plaintiff-Appellant/
    Cross-Appellee,
    and
    2                                                  Nos. 15-2295, et al.
    TOM MICK,
    Third-Party Defendant-Appellant/
    Cross-Appellee,
    and
    MAE BRANDON, et al.,
    Third-Party Defendants/
    Cross-Appellees,
    v.
    THORNCREEK APARTMENTS II, LLC,
    Defendant-Appellee/
    Cross-Appellant,
    and
    ATLANTIC MANAGEMENT CORPORATION,
    Defendant-Appellee.
    ____________________
    Appeals from the United States District Court
    for the Northern District of Illinois, Eastern Division.
    No. 08 C 0869 — Gary Feinerman, Judge.
    ____________________
    Nos. 15-2298, 15-2304 & 16-3557
    THORNCREEK APARTMENTS I, LLC,
    Plaintiff-Appellee/
    Cross-Appellant,
    and
    THORNCREEK MANAGEMENT, LLC,
    Plaintiff-Appellee,
    v.
    Nos. 15-2295, et al.                                                3
    TOM MICK, individually and as Village Manager for the
    Village of Park Forest,
    Defendant-Appellant,
    and
    VILLAGE OF PARK FOREST, et al.,
    Defendants/
    Cross-Appellees.
    ____________________
    Appeals from the United States District Court
    for the Northern District of Illinois, Eastern Division.
    No. 08 C 4303 — Gary Feinerman, Judge.
    ____________________
    ARGUED MAY 18, 2017 — DECIDED MARCH 27, 2018
    ____________________
    Before BAUER, EASTERBROOK, and SYKES, Circuit Judges.
    SYKES, Circuit Judge. These consolidated appeals
    challenge various aspects of a judgment entered on a split
    jury verdict in a long-running dispute between the Village of
    Park Forest, Illinois, and Thorncreek Apartments, a large
    housing complex located in the Village. Thorncreek accused
    village officials of engaging in a campaign of regulatory
    harassment based on personal animus against its owner and
    because many of its residents are black. Thorncreek sued the
    Village and ten officials for compensatory and punitive
    damages under several federal and state civil-rights laws.
    After a 13-day trial, jurors returned a partial verdict for
    Thorncreek. The Village and its manager were found liable
    under 42 U.S.C. § 1983 for a class-of-one equal-protection
    violation, and the village manager and director of communi-
    ty development were found liable for conspiracy in violation
    4                                         Nos. 15-2295, et al.
    of 42 U.S.C. § 1985(3). In all other respects, the jury sided
    with the defendants.
    Ruling on postverdict motions, the district court tossed
    out the jury’s liability finding against the community-
    development director but otherwise approved the verdict
    and entered judgment accordingly. The judge also granted
    Thorncreek’s motion for prejudgment interest and attorney’s
    fees, though the award of fees was approximately one-third
    of what was requested.
    Both sides appealed, raising assorted challenges to the
    judge’s posttrial rulings on damages, prejudgment interest,
    and attorney’s fees. We find no error and affirm.
    I. Background
    Thorncreek is a large townhouse complex nestled in the
    Village of Park Forest, a suburb southeast of Chicago that
    straddles both Cook County and Will County. In 1989
    Thorncreek was sold to Atlantic Limited Partnership XX, a
    Michigan partnership largely owned by David Clapper, its
    general partner. Clapper later reorganized the property into
    three separate limited liability corporations: Thorncreek
    Apartments I, LLC; Thorncreek Apartments II, LLC; and
    Thorncreek Apartments III, LLC. Each corporation operated
    a different part of the complex: Thorncreek I (“Area F”),
    Thorncreek II (“Area G”), and Thorncreek III (“Area H”). We
    refer to the three corporations collectively as “Thorncreek”
    unless the context requires otherwise.
    In 2007 Atlantic Limited sold Thorncreek I for roughly
    $16 million. The leasing office for the entire complex was
    located in a townhouse in Area F, so the sale caused a logis-
    tical problem. Thorncreek’s management company proposed
    to relocate the leasing office to a vacant townhouse in
    Nos. 15-2295, et al.                                           5
    Area G, which was owned and operated by Thorncreek II.
    The move required a conditional use permit, so in February
    2007 Thorncreek II applied to the Village for a permit to use
    the vacant townhouse as a business office. In the meantime,
    however, Thorncreek began to conduct its business opera-
    tions from the Area G townhouse without waiting for action
    on the permit application. The Village responded by citing
    Thorncreek II for zoning violations and operating without
    the required permit.
    In December 2007 the Village filed suit in state court
    against Thorncreek II and Atlantic Limited to halt the zoning
    and operating violations arising from the unpermitted
    leasing office and also to redress certain building-code
    violations. Thorncreek II removed the suit to federal court,
    but a district judge quickly sent it back to state court for lack
    of subject-matter jurisdiction. A later removal was success-
    ful; Thorncreek II counterclaimed against the Village and ten
    village officials raising a host of federal and state civil-rights
    violations. In February 2008 Thorncreek III filed its own
    federal lawsuit raising substantially similar claims.
    Two months later Fannie Mae filed foreclosure notices
    with the Cook County Recorder of Deeds against
    Thorncreek II and III. Thorncreek blamed its predicament on
    the Village’s regulatory overreach. In July 2008 Thorncreek I
    joined the legal battle by filing its own federal suit alleging
    similar civil-rights violations.
    In essence, all three suits alleged that the Village violated
    Thorncreek’s constitutional rights by denying its application
    for a business license, interfering with business operations,
    refusing to grant the application for a conditional use per-
    mit, failing to issue a certificate of occupancy, and unequally
    enforcing a building-code provision requiring electrical
    6                                          Nos. 15-2295, et al.
    upgrades. A single district judge took charge of all three
    suits, consolidating them for summary judgment and, if
    necessary, a trial.
    As originally pleaded, the case was sprawling.
    Thorncreek brought claims under 42 U.S.C. §§ 1981, 1983,
    1985, and 1986 seeking compensatory and punitive damages
    for alleged due-process, equal-protection, and Takings
    Clause violations; conspiracy; and failure to prevent a civil-
    rights conspiracy. Thorncreek also tacked on claims under
    the Illinois Civil Rights Act, 740 ILL. COMP. STAT. § 23/5.
    The judge trimmed the case a bit on summary judgment,
    but even as narrowed the case remained unwieldy. Three
    groups of claims were tried to a jury over 13 days: (1) § 1983
    claims against the Village and nine officials for class-of-one
    and race-based equal-protection violations; (2) claims under
    §§ 1985 and 1986 against the same nine officials for conspira-
    cy and failure to prevent a civil-rights conspiracy; and
    (3) claims against the Village under the Illinois Civil Rights
    Act. The basic theory of the case was that the defendants
    caused Thorncreek’s mortgage default and foreclosure by
    singling it out for unfair regulatory action (and inaction)
    based on irrational animus against Clapper and racial bias
    against its black residents.
    Thorncreek prevailed in part. The jury found the Village
    and Village Manager Tom Mick liable for a class-of-one
    equal-protection violation. The jury also found Mick and
    Larrie Kerestes, the director of community development,
    liable for conspiracy in violation of § 1985(3). The jury
    cleared the other defendants on these two claims and exon-
    erated all defendants on the remaining claims. On the issue
    of damages, the jury awarded $2,014,000 in compensatory
    damages to Thorncreek II but only $1 in nominal damages to
    Nos. 15-2295, et al.                                         7
    Thorncreek I and III. Finally, the jury awarded punitive
    damages against Mick and Kerestes in the amounts of $5,000
    and $1,000, respectively.
    Thorncreek moved for a new trial under Rule 59(a) of the
    Federal Rules of Civil Procedure but only on the issue of
    damages. The motion raised several claims of error. The
    judge rejected each one and denied relief. Thorncreek also
    asked for prejudgment interest on the jury’s award of com-
    pensatory damages. The judge granted that request.
    Mick and Kerestes both moved for judgment as a matter
    of law under Rule 50(b). The jury’s verdict against Kerestes
    was limited to the § 1985(3) conspiracy claim, but that statute
    requires a predicate race-based or class-based equal-
    protection violation. Because the jury cleared all of the
    defendants on the race-based equal-protection claim, the
    judge held that the verdict against Kerestes on the § 1985(3)
    claim could not stand.
    Mick’s situation was different. His Rule 50(b) motion
    challenged only the jury’s finding on the § 1985(3) conspira-
    cy claim; he did not attack the jury’s liability finding against
    him on the class-of-one equal-protection claim. So the judge
    saw no reason to disturb the verdict as to him and denied his
    motion. With these adjustments, the judge entered judgment
    on the verdict.
    Thorncreek later moved for an award of attorney’s fees
    and nontaxable costs under 42 U.S.C. § 1988. The judge
    granted the motion and awarded $430,999.25 in fees and
    $44,844.33 in costs. The award of fees was about one-third of
    what Thorncreek requested.
    Both sides appealed, reprising many of the arguments
    raised in the posttrial litigation.
    8                                           Nos. 15-2295, et al.
    II. Analysis
    A. Mick’s Motion for Judgment as a Matter of Law
    Mick challenges the denial of his motion for judgment as
    a matter of law. He argues that he deserves the same treat-
    ment as his codefendant Kerestes because the jury’s finding
    of liability on the § 1985(3) conspiracy claim is invalid with-
    out a predicate race-based or class-based equal-protection
    violation. That’s a correct statement of settled law. See, e.g.,
    Smith v. Gomez, 
    550 F.3d 613
    , 617 (7th Cir. 2008) (“Section
    1985(3) prohibits a conspiracy to deprive another of equal
    protection under the law … , but the conspiracy must be
    motivated by racial, or other class-based discriminatory
    animus.” (citing Griffin v. Breckenridge, 
    403 U.S. 88
    , 102
    (1971))). But it does not follow that Mick, like Kerestes, is
    entitled to judgment as a matter of law.
    It’s true that the jury’s verdict on the § 1985(3) claim was
    flawed as to both defendants. The jurors rejected the race-
    based equal-protection claim in toto, so there’s no underly-
    ing race-based equal-protection violation to support con-
    spiracy liability under § 1985(3). But the jury found Mick
    and the Village liable on Thorncreek’s § 1983 claim alleging a
    class-of-one equal-protection violation and awarded more
    than $2 million in compensatory damages. Mick did not
    challenge this part of the verdict in his Rule 50(b) motion.
    The compensatory-damages award on this claim is plainly
    sufficient to support the $5,000 punitive-damages award
    against him. So although the jury’s verdict on the § 1985(3)
    claim was defective, there’s nothing wrong with the judg-
    ment, which Mick does not otherwise challenge. The judge
    properly denied his motion for judgment as a matter of law.
    Nos. 15-2295, et al.                                          9
    B. Thorncreek’s Motion for a New Trial on Damages
    Thorncreek asks us to order a new trial on the limited is-
    sue of damages. Its primary argument is that the judge
    impermissibly admitted prejudicial references to Clapper’s
    wealth that influenced the jury’s assessment of damages.
    Thorncreek also attacks the jury decision to award only
    nominal damages to Thorncreek I and III.
    1. Prejudicial Evidence
    “Evidence is unfairly prejudicial only if it will induce the
    jury to decide the case on an improper basis, commonly an
    emotional one, rather than on the evidence presented.”
    United States v. Suggs, 
    374 F.3d 508
    , 516 (7th Cir. 2004) (quo-
    tation marks omitted). We review claims of evidentiary error
    for abuse of discretion. Smith v. Hunt, 
    707 F.3d 803
    , 807 (7th
    Cir. 2013). Because the trial judge is in a superior position to
    evaluate the impact of contested testimony or other evi-
    dence, we give special deference to the judge’s evidentiary
    rulings. 
    Suggs, 374 F.3d at 516
    . And to warrant a new trial,
    an evidentiary error must affect the losing party’s substantial
    rights—that is, there must be a significant chance that the
    flawed ruling affected the outcome of the trial. 
    Smith, 707 F.3d at 808
    .
    The parties submitted some 26 or 27 motions in limine
    seeking to limit the opposition’s evidentiary submissions.
    One of Thorncreek’s pretrial motions pertained to evidence
    of Clapper’s wealth, which Thorncreek insisted should be off
    limits. The judge agreed and excluded evidence of Clapper’s
    wealth or financial status. Thorncreek maintains that the
    defense attorney violated this ruling several times, tainting
    the jury on the question of damages. The judge was not
    persuaded. Neither are we.
    10                                           Nos. 15-2295, et al.
    Thorncreek’s main complaint centers on a brief moment
    during the trial when defense counsel was cross-examining a
    witness about a phone conversation with Clapper. Counsel
    asked if the witness knew where Clapper was during the
    call. The witness replied that he was “either in his offices in
    Michigan, or he was on his boat in the Mediterranean.”
    The judge instructed the jury to disregard the testimony,
    and we assume that jurors follow such instructions. Solyts v.
    Costello, 
    520 F.3d 737
    , 744 (7th Cir. 2008). To overcome this
    presumption, the complaining party must establish “an
    overwhelming probability” that the jury was “unable to
    disregard inadmissible evidence” and also “a strong likeli-
    hood of a devastating effect from the evidence.” Turner v.
    Miller, 
    301 F.3d 599
    , 604 (7th Cir. 2002). Thorncreek has not
    shown that this stray snippet of testimony had any sort of
    effect—much less a devastating effect—on the jury.
    Other oblique references to Clapper’s wealth occurred
    during defense counsel’s closing argument, but Thorncreek
    did not object. Ordinarily “a definitive ruling in limine
    preserves an issue for appellate review, without the need for
    later objection.” Wilson v. Williams, 
    182 F.3d 562
    , 563 (7th Cir.
    1999). But that rule doesn’t apply to claimed violations of a
    judge’s in limine rulings; an objection is generally required
    to preserve appellate review of an alleged violation of a
    pretrial ruling. And here the judge reminded the parties to
    object to any violations of his rulings on motions in limine
    and instructed them to be specific about the grounds.
    More specifically, after the witness’s “boat in the
    Mediterranean” reference, the judge called a break, made a
    record of what happened, and instructed the lawyers as
    follows:
    Nos. 15-2295, et al.                                       11
    What I’ll say in response is there were 26 or
    27 motions in limine, so -- and with some prior
    objections, the objection said, “ruling on the
    motion in limine,” and that prompts me to
    think about the motion in limine. …
    If you want to rely on a motion in limine -- a
    ruling on a motion in limine in making an ob-
    jection, you’ve got to tell me because it isn’t
    like -- if we had one or two or three motions in
    limine, it would be different, but we had 26 or
    27.
    ….
    [Y]ou really have to state the basis for the ob-
    jection when you make the objection.
    ….
    [I]n the future, if you do want -- both sides, if
    you want to rely on a motion in limine ruling in
    making an objection, just say, “motion in limine
    ruling.” Obviously don’t get into the details of
    the motion in limine, because again, that would
    defeat the point of having the motion in limine.
    The judge’s instructions could not have been clearer: To
    preserve a challenge to any further violations of his rulings
    on motions in limine, the parties had to object. Thorncreek
    did not do so with respect to defense counsel’s passing
    references to Clapper’s wealth during closing argument.
    That’s a waiver. Venson v. Altamirano, 
    749 F.3d 641
    , 657 (7th
    12                                                 Nos. 15-2295, et al.
    Cir. 2014); Houskins v. Sheahan, 
    549 F.3d 480
    , 495 (7th Cir.
    2008). 1
    Thorncreek argues for the first time in its reply brief that
    we should review the unpreserved errors under the plain-
    error standard. Plain-error review is rarely applied in civil
    cases and is available only if “(1) exceptional circumstances
    exist[]; (2) substantial rights are affected; and (3) a miscar-
    riage of justice will occur if plain error review is not ap-
    plied.” Willis v. Lepine, 
    687 F.3d 826
    , 839 (7th Cir. 2012)
    (quotation marks omitted). Thorncreek’s plain-error argu-
    ment fails for multiple reasons. For starters, “arguments
    raised for the first time in a reply brief are waived.” Darif v.
    Holder, 
    739 F.3d 329
    , 336 (7th Cir. 2014). And Thorncreek has
    not shown either exceptional circumstances or a miscarriage
    of justice. Thorncreek won more than $2 million in damages,
    which suggests that the jury was not put off by any refer-
    ences to Clapper’s wealth. 2
    1 Thorncreek suggests that not interrupting closing argument was part of
    its own counsel’s trial strategy. Maybe so, but that doesn’t make a
    difference in the analysis. “Perhaps defendant-appellant feared that a
    contemporaneous objection would incur hostility from the jury. This
    court need not speculate as to the nature of defendant-appellant’s
    motives. Suffice it to note, however, that risky gambling tactics such as
    this are usually binding on the gambler.” Pickett v. Sheridan Health Care
    Ctr., 
    610 F.3d 434
    , 445 (7th Cir. 2010) (quoting Gonzalez v. Volvo of Am.
    Corp., 
    752 F.2d 295
    , 298 (7th Cir. 1985) (per curiam)).
    2 Before we leave the subject of Clapper’s wealth, we pause to note an
    additional argument Thorncreek raises, though it’s so plainly meritless
    that we could let it go unmentioned. Thorncreek takes issue with the
    highlighted parenthetical in this passage from the judge’s written
    decision on posttrial motions:
    Before trial, Thorncreek moved in limine to bar, among
    other things, any references to or evidence regarding the
    Nos. 15-2295, et al.                                                  13
    Thorncreek next argues that its financial records pre-
    dating 2005 should not have been admitted at trial. This
    argument rests entirely on a ruling by a magistrate judge
    concerning a discovery dispute. The magistrate judge saw a
    need to limit the scope of discovery, so he ordered that
    “[e]xcept for specific interrogatories and document requests
    identified on the record, the interrogatories and document
    requests are limited to the time period of 01/01/05 to the
    present.”
    But the documents at the center of Thorncreek’s argu-
    ment are publicly available financial records pertaining to the
    housing complex. The defense expert incorporated this
    material into his final damages opinion, and the defense
    disclosed the documents to Thorncreek about two months
    before trial, explaining that the pre-2005 public records were
    additional support for the expert’s opinion. The defense
    even offered to produce the expert for another deposition.
    Thorncreek declined the offer.
    wealth and personal financial status of David Clapper,
    Thorncreek’s principal owner. Doc. 258. (Clapper ap-
    parently is a wealthy man. See Kaya Morgan, David
    Clapper—Success Runs Deep, http://www.island
    connections.com/edit/clapper.htm (last visited May 17,
    2015), which appears to be a puff piece about Clapper
    authored by a publicist, which refers to Clapper as a
    “Michigan business tycoon,” which shows photo-
    graphs of Clapper with, among others, the first Presi-
    dent Bush, Pope John Paul II, and Kevin Nealon, and
    which was not offered or admitted into evidence at tri-
    al.) The Village did not oppose the exclusion of such ev-
    idence, Doc. 272, and the court granted the motion in
    relevant part, Doc. 377.
    (Emphasis in bold added.) This harmless aside is hardly reversible error.
    14                                          Nos. 15-2295, et al.
    Thorncreek now cries foul, relying on Rule 26(a), but its
    objection is way off the mark. Rule 26(a) says that “[a]bsent a
    stipulation or a court order,” expert testimony must disclosed
    at least 90 days before the date set for trial. FED. R. CIV.
    P. 26(a)(2)(D)(i) (emphasis added). Here the judge specifical-
    ly allowed the defense to submit the modified expert report
    two months before trial. There was no Rule 26 violation, and
    the judge did not otherwise abuse his discretion in admitting
    the publicly available pre-2005 financial records.
    2. Challenge to Nominal Damages Awards
    “[W]e do not readily overturn a damage award when the
    trial court has denied the plaintiff’s motion for a new trial.”
    Rosario v. Livaditis, 
    963 F.2d 1013
    , 1020 (7th Cir. 1992). We
    will do so only “when the jury’s verdict is contrary to reason
    and the trial court’s denial of a new trial on damages is an
    abuse of discretion.” 
    Id. The jury
    awarded a substantial sum of money—more
    than $2 million—to Thorncreek II but only nominal damages
    of $1 each to Thorncreek I and III. Thorncreek insists that the
    awards are inconsistent and contrary to reason. Not so.
    Based on the evidence adduced at trial, the jury rationally
    treated the three Thorncreek entities differently.
    Thorncreek I originally housed the apartment leasing of-
    fice and was sold for roughly $16 million in 2007 before most
    of the events in question occurred. True, the sale necessitat-
    ed the relocation of the business office, which spawned the
    fight over regulatory approval of the conditional use permit.
    Regardless, although Thorncreek’s expert testified that the
    $16 million price was too low, the defense expert said it was
    just right and no damages accrued. The jury was entitled to
    accept the latter’s testimony.
    Nos. 15-2295, et al.                                         15
    Thorncreek II, for its part, was uniquely affected by the
    run-ins with the Village. The Village unequally enforced an
    electrical-upgrade ordinance against Area G. And the
    Village sued Thorncreek II to enforce the electrical-upgrade
    ordinance and to shutter the illegal leasing office set up in
    the Area G townhouse after the sale of Thorncreek I. Finally,
    the jury heard evidence that before the foreclosure
    Thorncreek II was set to be sold to a third party and that but
    for the Village’s interference, the sale would have been
    consummated. Indeed, it appears that the jury took the
    contract value of the property and subtracted the mortgage
    amount to arrive at its compensatory-damages award.
    Thorncreek III, on the other hand, was not subjected to
    harassment over electrical upgrades like Thorncreek II was,
    and it did not face an enforcement action by the Village in
    state court. The record supports the jury’s decision to treat
    each Thorncreek plaintiff differently when assessing damag-
    es. The judge properly denied Thorncreek’s motion for a
    new trial.
    C. Prejudgment Interest
    The Village challenges the judge’s decision to award pre-
    judgment interest on the verdict. We held long ago that
    prejudgment interest is “presumptively available to victims
    of federal law violations.” Gorenstein Enters., Inc. v. Quality
    Care–USA, Inc., 
    874 F.2d 431
    , 436 (7th Cir. 1989). Prejudg-
    ment interest serves dual purposes: to fully compensate the
    plaintiff and to minimize a defendant’s incentive to delay. 
    Id. But it
    is not the same as punitive damages; prejudgment
    interest is not meant to penalize the party who caused the
    injury. Raybestos Prods. Co. v. Younger, 
    54 F.3d 1234
    , 1247 (7th
    Cir. 1995).
    16                                          Nos. 15-2295, et al.
    Accordingly, a prevailing plaintiff can’t double dip by
    providing the jury with a damages estimate that includes
    interest and also moving for prejudgment interest. When a
    plaintiff provides evidence of damages that includes interest,
    the presumption flips and the judge will presume that the
    jury included the interest in its award. 
    Id. The damages
    estimates Thorncreek submitted to the jury
    included prejudgment interest. So the judge properly started
    with the presumption that Thorncreek was not entitled to
    prejudgment interest. But he found the presumption re-
    butted and granted the request for prejudgment interest. We
    review that decision for abuse of discretion. First Nat’l Bank
    of Manitowoc v. Cincinnati Ins. Co., 
    485 F.3d 971
    , 981 (7th Cir.
    2007).
    The judge concluded that the jury calculated its
    compensatory-damages award by simply subtracting the
    mortgage debt on Thorncreek II from its value—a figure that
    the judge said “result[ed] from simple subtraction, [and] did
    not include prejudgment interest.” In its motion for a new
    trial, the Village embraced this interpretation as a plausible
    reading of the verdict. That concession takes most of the
    wind out of the Village’s sails.
    For completeness, however, we note that the jury heard
    evidence that a willing buyer offered to purchase
    Thorncreek II for $11 million. The jury also heard evidence
    that the original mortgage on Thorncreek II was $8,960,000
    and $8,466,945.55 of the principal on the mortgage remained
    unpaid. Simple subtraction results in a range of damages
    between $2,004,000 and $2,533,054.45. The actual
    compensatory-damages award—$2,014,000—fits squarely
    within that range.
    Nos. 15-2295, et al.                                          17
    Thorncreek’s expert offered an estimate of prejudgment
    interest in the range of $1,311,163 to $1,641,861. Under the
    circumstance it’s highly improbable that the jury incorpo-
    rated prejudgment interest in its ultimate award, and the
    Village has not given us a good reason to think that it did.
    We see no error in the judge’s award of prejudgment inter-
    est.
    D. Attorney’s Fees
    For claims brought under § 1983, “the court, in its discre-
    tion, may allow the prevailing party … a reasonable attor-
    ney’s fee as part of the costs.” 42 U.S.C. § 1988(b). The
    statute’s use of the word “may” commits the award of fees
    to the district court’s discretion. Thorncreek challenges the
    judge’s decision to substantially reduce the amount of fees it
    requested. Our review is deferential, for abuse of discretion
    only. Khan v. Gallitano, 
    180 F.3d 829
    , 837 (7th Cir. 1999).
    The reasonableness of an award of fees is fundamentally
    determined by “the degree of the plaintiff’s overall success.”
    Farrar v. Hobby, 
    506 U.S. 103
    , 114 (1992) (quoting Tex. State
    Teachers Ass’n v. Garland Ind. Sch. Dist., 
    489 U.S. 782
    , 793
    (1989)). Ordinarily a reasonable fee is calculated under the
    lodestar method by multiplying a reasonable hourly rate by
    the number of hours reasonably expended on the litigation.
    Pickett v. Sheridan Health Care Ctr., 
    664 F.3d 632
    , 639 (7th Cir.
    2011). The judge performed that calculation here and
    reached a lodestar figure of $1,292,997.75.
    But the lodestar figure is just the “starting point.” Estate
    of Enoch v. Tienor, 
    570 F.3d 821
    , 823 (7th Cir. 2009). And
    though it is presumptively reasonable, Perdue v. Kenny A. ex
    rel. Winn, 
    559 U.S. 542
    , 553–54 (2010), the figure may be
    excessive when “a plaintiff has achieved only partial or
    18                                          Nos. 15-2295, et al.
    limited success,” Hensley v. Eckerhart, 
    461 U.S. 424
    , 436
    (1983). In making this determination, the district court
    considers the claims on which the party did not prevail, the
    size of the monetary award, and any social benefits not
    reflected in a small damages award. Estate of 
    Enoch, 570 F.3d at 824
    .
    If a plaintiff recovers only nominal damages, the “rea-
    sonable fee is usually no fee at all.” 
    Farrar, 506 U.S. at 115
    .
    Three factors help determine whether attorney’s fees are
    appropriate in a nominal-damages case: “(1) the difference
    between the judgment recovered and the recovery sought;
    (2) the significance of the legal issue on which the plaintiff
    prevailed; and (3) the public purpose of the litigation.”
    Johnson v. Daley, 
    339 F.3d 582
    , 609 (7th Cir. 2003).
    The judge properly applied these general principles here.
    He first noted that the jury awarded only nominal damages
    to two of the three Thorncreek entities. Thorncreek I and III
    sought a combined total of $12.5 million but received a
    combined total of $2. The judge also considered that the
    issues in the litigation were primarily factual rather than
    legal. And, finally, the public purpose of the litigation was
    minimal. Though the vindication of constitutional rights is
    always important, “attorney’s fees are appropriate … only
    when the plaintiff’s victory entails something more than
    merely a determination that a constitutional guarantee was
    infringed.” Maul v. Constan, 
    23 F.3d 143
    , 146 (7th Cir. 1994).
    The judge reasonably concluded that the necessary “some-
    thing more” was missing here.
    On the other hand, Thorncreek II won a substantial sum
    from the jury, though not close to what it sought. It asked for
    $8 million; the jury awarded just over $2 million. Still, it’s a
    sizeable award, and the judge properly noted the point. And
    Nos. 15-2295, et al.                                         19
    he did not “make the mistake of limiting the fee to some
    multiple of the judgment, which would have been reversible
    error.” Montanez v. Simon, 
    755 F.3d 547
    , 557 (7th Cir. 2014).
    In the end, there is no algorithm “for adjusting a lodestar
    to reflect partial or limited success.” 
    Id. The trial
    judge “has
    broad discretion to determine the appropriate reduction”
    and “is in a better position to assess … whether a … judg-
    ment is a spectacular success, a dismal failure, or something
    in between.” 
    Id. Here the
    judge reasonably exercised his
    broad discretion to reduce the requested fees. Two of the
    three Thorncreek entities won only nominal damages.
    Thorncreek achieved a partial victory against the Village and
    Mick on a single claim but lost on all the others, and the nine
    remaining defendants were completely exonerated.
    Thorncreek sought a combined total of $20.5 million in
    damages but won a fraction of that amount, though at just
    over $2 million it’s unquestionably a substantial sum. After
    considering all the relevant factors, the judge declined to
    approve a lodestar recovery and settled on a fee award of
    approximately $475,000. That decision was sound.
    AFFIRMED.
    

Document Info

Docket Number: 15-2296

Citation Numbers: 886 F.3d 626

Judges: Sykes

Filed Date: 3/27/2018

Precedential Status: Precedential

Modified Date: 1/12/2023

Authorities (21)

mariluz-rosario-teresa-shapiama-ligny-canet-dolores-maldonado-carmen , 963 F.2d 1013 ( 1992 )

Smith v. Gomez , 550 F.3d 613 ( 2008 )

Richard E. Maul v. Dr. Evan Constan, Anthony A. Metzcus and ... , 23 F.3d 143 ( 1994 )

Jackie Wilson v. James K. Williams , 182 F.3d 562 ( 1999 )

Gorenstein Enterprises, Inc., Sam Gorenstein, and David ... , 874 F.2d 431 ( 1989 )

Estate of Enoch Ex Rel. Enoch v. Tienor , 570 F.3d 821 ( 2009 )

Lynda J. Khan, Cross-Appellee v. Dennis J. Gallitano, Nancy ... , 180 F.3d 829 ( 1999 )

Roland Turner v. Louis Miller, Jerome Nickerson, and Paul ... , 301 F.3d 599 ( 2002 )

Cedric Johnson v. George M. Daley, and United States of ... , 339 F.3d 582 ( 2003 )

Houskins v. Sheahan , 549 F.3d 480 ( 2008 )

Pickett v. Sheridan Health Care Center , 664 F.3d 632 ( 2011 )

roger-p-gonzalez-sr-individually-and-as-administrator-of-the-estate-of , 752 F.2d 295 ( 1985 )

Raybestos Products Company, a Delaware Corporation v. ... , 54 F.3d 1234 ( 1995 )

Soltys v. Costello , 520 F.3d 737 ( 2008 )

Texas State Teachers Ass'n v. Garland Independent School ... , 109 S. Ct. 1486 ( 1989 )

United States v. Bobby Suggs, Seantai Suggs, Aaron M. Davis,... , 374 F.3d 508 ( 2004 )

Pickett v. SHERIDAN HEALTH CARE CENTER , 610 F.3d 434 ( 2010 )

Griffin v. Breckenridge , 91 S. Ct. 1790 ( 1971 )

Farrar v. Hobby , 113 S. Ct. 566 ( 1992 )

Perdue v. Kenny A. Ex Rel. Winn , 130 S. Ct. 1662 ( 2010 )

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