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USDOL/OALJ Reporter
Lederhaus v. Paschen & Midwest Inspection Service, Ltd., 91-ERA-13 (Sec'y Jan. 13, 1993)


                         U.S. DEPARTMENT OF LABOR
                            SECRETARY OF LABOR
                             WASHINGTON, D.C.

DATE: January 13, 1993
CASE NO. 91-ERA-13 

IN THE MATTER OF

GORDON LEDERHAUS,

          COMPLAINANT,

     v.

DONALD PASCHEN & MIDWEST 
INSPECTION SERVICE, LTD.,

          RESPONDENTS.


BEFORE: THE SECRETARY OF LABOR


                         FINAL DECISION AND ORDER

     This case arises under Section 210 (the employee protection
provision) of the Energy Reorganization Act of 1974, as amended
(ERA), 42 U.S.C. § 5851 (1988).  The Administrative Law
Judge (ALJ) on August 9, 1991, issued a Recommended Decision and
Order (R.D. and O.) upholding Complainant Lederhaus' claims and
recommending that Complainant be awarded back pay with interest,
compensatory damages, and attorneys fees and costs.  He allowed
Complainant's counsel to submit his request for attorneys fees,
to which Respondents did not object, and on October 22, 1991, the
ALJ issued a Recommended Decision and Order Granting Attorney
Fees in the amount of $19,043.69.
     On October 26, 1992, I issued a Decision and Order (D. and
O.) concluding that Complainant had been retaliated against for
protected activities in violation of the ERA.  The D. and O. 
awarded back pay with interest, and compensatory damages, and
allowed the parties the opportunity to submit supplemental
material regarding attorneys fees and costs.  Complainant
submitted an application for attorneys fees in response to that
order.  Respondents have filed nothing regarding the attorneys
fees issue.


[PAGE 2] In his original claim before the ALJ, Complainant's attorney stated that his normal billing rate is $150.00. September 7, 1991, Application (Appl.) at 4. He and Complainant had a modified contingent fee arrangement, however. Complainant had agreed that, if he prevailed, his attorney could be paid $300.00 per hour up to one third of the amount awarded to Complainant to elevate the attorney's compensation to twice his normal hourly rate. Appl. at 5. Complainant's attorney also provided affidavit support for his contention that attorneys in the Milwaukee and Madison, Wisconsin, areas "would have to be confident of receiving two to five times their normal hourly billing rates before they would consider taking statutory fee-generating cases on a contingency basis." Id. Complainant's attorney argued that his normal hourly rate should be doubled to $300.00 in order to calculate the reasonable attorneys fees to which he is entitled under the ERA. The ALJ adopted this rate and the number of hours requested, noting that the amount requested was reasonable in light of "the nature of the issues involved, the high degree of skill with which the Complainant was represented, the amount of time and work involved, and other relevant factors . . . ." Recommended Decision and Order Granting Attorney Fees at 2. At the time Complainant's attorney filed his original submission regarding attorneys fees, the leading decision on the subject of attorneys fee awards under fee shifting statutes such as the ERA was Pennsylvania v. Delaware Valley Citizens' Council for Clean Air, 483 U.S. 711 (1987) (Delaware Valley II), which left open the question whether under the fee shifting provision of the Clean Air Act, 42 U.S.C. § 7604(d) (1988), prevailing plaintiffs' attorneys were entitled to receive an enhancement above the "lodestar"[1] amount on the theory that without such enhancement plaintiffs would face substantial difficulties in obtaining suitable counsel. The Supreme Court has now resolved the issue left undecided in Delaware Valley II. In City of Burlington v. Dague, ___ U.S. ___, 112 S. Ct. 2638 (1992), the Court held that under the fee shifting statutory provisions of the Solid Waste Disposal Act, 42 U.S.C. § 6972(e) (1988), and the Federal Water Pollution Control Act (Clean Water Act (CWA)), as amended, 33 U.S.C. § 1365(d) (1988), an attorneys fee award may not be enhanced above the "lodestar" amount in order to reflect the fact that the prevailing party's attorney was hired on a contingent-fee basis and therefore assumed the risk of receiving no payment at all for his or her services. The statutory fee shifting provisions there interpreted are similar in all relevant respects to that contained in the employee protection provision of the ERA. The
[PAGE 3] SWDA and the CWA authorize a court to "award costs of litigation (including reasonable attorney . . . fees)" to a "prevailing or substantially prevailing party." 42 U.S.C. § 6972(e) (emphasis added); 33 U.S.C. § 1365(d) (emphasis added). The ERA provides that where the complainant prevails, "the Secretary, at the request of the complainant shall assess against the person against whom the order is issued a sum equal to the aggregate amount of all costs and expenses (including attorney's and expert witness fees) reasonably incurred . . . ." 42 U.S.C. § 5851(b)(2)(B) (emphasis added). The Supreme Court specifically noted in City of Burlington that "our case law construing what is a 'reasonable' fee applies uniformly to all [federal fee shifting statutes]." Id. at 2641. See Flight Attendants v. Zipes, 491 U.S. 754, 758, n.2 (1989). I conclude that the holding of City of Burlington should be applied to the attorneys fees authorization of the employee protection provision of the ERA. I therefore determine that Complainant's attorney is not entitled to a fee enhancement above the "lodestar" figure. The fact that Complainant and his counsel entered into an agreement requiring Complainant to pay a maximum of $300.00 per hour up to one third of the Complainant's award (see Affidavit of Thomas Nelson (Nelson Aff.) at 2, attached to Appl.) is not a reason for awarding that hourly rate. Respondents are liable only for reasonable attorneys fees no matter what amount Complainant may have contracted to pay his attorney. Blanchard v. Bergeron, 489 U.S. 87, 93 (1989) ("[A]ttorney's private fee arrangement standing alone is not dispositive"); Clark v. American Marine Corp., 320 F. Supp. 709, 711 (E.D. La. 1970), aff'd 437 F.2d 959 (5th Cir. 1971) ("The criterion for the court is not what the parties agreed but what is reasonable"). Complainant's attorney has presented adequate evidence to demonstrate that $150.00 is a reasonable hourly fee for the type of work he performed given his level of experience and the geographic area in which he practices. Nelson Aff. at 1-2; Affidavit of Walter F. Kelly at 4; Affidavit of Thomas M. Jacobson at 2; Affidavit of Robert J. Gingras at 6-7; attach to Appl. In addition, given the issues presented, I conclude that the total of 80 hours claimed (62.2 hours at the hearing level and 10.8 before the Secretary) is well within the range of reasonableness. Therefore the "lodestar" figure in this case is $12,000. Total costs requested are $383.69. ORDER For the foregoing reasons, Midwest Inspection Services, Ltd., and Donald Paschen are ordered to comply with paragraphs 1 and 2 of my Decision and Order of October 26, 1992, and to pay Complainant's attorneys fees and costs in the amount of
[PAGE 4] $12,383.69. SO ORDERED. Secretary of Labor Washington, D.C. [ENDNOTES] [1] As the Supreme Court has explained, the "lodestar" is "the product of reasonable hours times a reasonable rate." Pennsylvania v. Delaware Valley Citizens' Council for Clean Air, 478 U.S. 546, 565 (1986) (Delaware Valley I).



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