RECOMMENDED DECISION AND ORDER AWARDING ATTORNEYS'
FEES
A Recommended Decision and Order was issued in the above-captioned
case on July 20 1998, providing relief under the employee protection provisions of the Water
Pollution Control Act (CWA) 33 U.S.C. § 1367 (a) and the Safe Water Drinking Act
(SWDA), 42 U.S.C. § 300j-9(i). The Decision and Order recommended that Complainant
be reinstated to his former position, receive back pay from the date of discharge in the amount of
$175,019.66, receive $10,000 for exemplary damages, and $5000 for emotional distress.
Complainant was awarded a total of $190,019.66 on his claims and he is seeking $863,772.90 in
attorneys' fees and costs.
On September 1, 1998, Complainant's counsel, Michael D. Kohn, Esq., E.
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Dennis Muchnicki, Esq., and Richard R. Renner, Esq., submitted Complainant's Application for
Attorneys' Fees and Costs. On October 5, 1998, Respondent submitted Respondent's Objections
and Memorandum in Opposition to Complainant's Request for Attorneys' Fees and Costs. On
October 19, 1998, Complainant submitted Complainant's Response to Respondent's Objections
to Complainant's Application for Attorneys' Fees and Costs. On November 6, 1998, Respondent
submitted Motion to Strike and Reply of EORWA to the Response Brief of Complainant to
Objections to the Attorneys' Fees and Costs Request. Complainant requests a fee of $325 an
hour for 706 hours for a total of $229,450 for Michael D. Kohn; $300 an hour for 868.1 hours for
a total of $260,430 for E. Dennis Muchnicki; and $225 an hour for 1192.3 hours for a total of
$262,284 for Richard R. Renner; plus an additional $111,608.90 in related costs and expenses
for a total fee request of $863,772.90.
First, Respondent requests that the application for attorneys' fees be denied
in its entirety as the fees for this claim are so exorbitant they shock the conscious. Respondent
argues that this claim was a simple employment dispute and the fees Complainant is seeking are
outrageously excessive. Respondent cites Brown v. Stackler, 612 F.2d. 1057 (7th Cir.
1980); Sun Publishing Co., Inc. v. Mecklenberg News, Inc., 823 F.2d. 818 ( 4th Cir.
1987); and Fair Housing Council of Greater Washington v. Landow, 999 F. 2d. 92 (4th
Cir. 1993) in support of its argument.
Denial of the fee application in its entirety is an extreme step in and of
itself and can be viewed as an abuse of discretion. In Brown, counsel sought 800
billable hours for primarily filing requests for extensions of time while awaiting the outcome of a
similar case that would dispose of issues in Brown making its way through the court
system. Brown, supra, 612 F.2d. at 1058. In Sun Publishing, the plaintiff had
submitted a third supplemental request for fees which shocked the conscience of the court.
Sun Publishing, supra, 823 F.2d. at 820. In Fair Housing, the fee petition was
denied because there were serious deficiencies in the record and counsel's records were not
adequately detailed. In the case at hand, there was a twenty-day hearing, this is counsels' first
fee application, and it appears that the records are adequately detailed to make a determination as
to the reasonableness of the requests applying the relevant factors under the law. Denial of the
fee application in its entirety would be extreme and an abuse of discretion.
REASONABLE ATTORNEY'S FEES
Respondent objects that the fees Complainant's counsel are seeking are
unreasonable. The correct method for determining attorneys' fees in a whistleblower
discrimination complaint arising under an environmental protection statute is the lodestar
method, which requires multiplying the number of hours reasonably expended in bringing the
litigation by a reasonable hourly rate. Jenkins v. United States Environmental Protection
Agency, 92-CAA-6 (Sec'y Dec. 7, 1994) (citing Hensley v. Eckerhart, 461 U.S. 424
(1983)). Michael Kohn seeks $325 an hour for 706 hours of work, E. Dennis Muchnicki seeks
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$300 an hour for 868.1 hours of work, Richard Renner seeks $225 an hour for 1192.3 hours of
work.
Contingency Fee
Respondent first argues that a contingency fee between Complainant and
his attorneys should be used as a cap on any award of fees to Complainant's counsel, stating that
the Administrative Review Board's decision in McCafferty v. Centerior Energy, 96-
ERA-6 (ARB Sept. 24, 1997) supports this argument. The Board held that the "reasonably
incurred" language in the Energy Reorganization Act's provision for attorney's fees meant
that any fee would be capped by a fee arrangement Complainant had made with his attorneys.
Complainant argues that McCafferty has a limited effect and that the Administrative
Review Board's decision in Van Der Meer v. Western Kentucky University, 95-ERA-38
(ARB April 20, 1998) makes it clear that a contingency fee is not a cap on an award of statutory
attorneys' fees. In fact, Complainant's counsel argues that an a contingency fee agreement
should enhance a statutory award of attorneys' fees.
The Board's decision in McCafferty does have a limited effect. In
McCafferty, Complainants had agreed to pay their counsel a total fee of $30,000 for the
total handling of the case, from filing the administrative complainant through any appeal to the
U.S. Supreme Court. See McCafferty, supra, slip. op. at 24. Complainants had agreed
to pay this fee, irrespective of whether they won or lost. The Board held the that
"reasonably incurred by Complainant" language limited their attorneys' fees to
$30,000, stating "Here Complainants have only become liable or subject to $30,000 in
attorney's fees, win or lose, no matter how much their case is litigated. We would have to ignore
the specific language in the statute to reach the conclusion that Centerior is liable to pay more
than Complainants can ever be liable for." McCafferty, supra, slip. op. at 25.
Unlike the Complainants in McCafferty, there is no evidence that Complainant ever
agreed to pay his attorney a set fee, win or lose. Rather, in his affidavit, Complainant states that
he hired his attorneys on a contingency.
McCafferty does not affect contingency fee arrangements as
evidenced by the Board's decision in Van Der Meer. In Van Der Meer,
Complainant had entered into a forty percent contingency fee agreement with his counsel.
See Van Der Meer, supra, slip. op. at 9. The Board stated that the "lodestar
method" is the proper method to use in determining the amount of an attorney fee award
under the environmental whistleblower statutes. See Van Der Meer, supra, slip. op. at 9.
The Board quoted Lederhaus v. Paschen & Midwest Inspection Service, Ltd., 91-ERA-
13 (Sec'y Jan. 13, 1993) that "Respondents are liable only for reasonable attorney's fees no
matter what Complainant may have contracted to pay his attorney." Thus, any contingency
fee arrangement Complainant had with his attorneys is irrelevant as the proper method for
determining a reasonable fee is the lodestar method. However, it is noted that Complainant's
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counsels' argument that a contingency fee arrangement should be used to enhance an award of
attorney's fees is in direct opposition to the United States Supreme Court's holding in City of
Burlington v. Dague, 505 U.S. 557 (1992), which held that attorney fee awards could not be
enhanced above the lodestar method under the federal fee shifting statutory provisions.
Therefore, any contingency fee arrangement between Complainant and his counsel can not be
used to enhance the attorney fee award.
Hourly Rate
Respondent objects that Complainants' counsel hourly rates are
unreasonable. Michael Kohn has requested an hourly rate of $325. Kohn has been an attorney
for thirteen years and is a partner at a firm with three attorneys based in Washington, D.C. Mr.
Kohn states that he is an expert in the field of whistleblower litigation. Using the parties'
exhibits, Altman & Weil's 1994 Survey of Economics, 1and considering such factors as the
location of Mr. Kohn's firm, his years of experience, his expertise, the complexity of the issues
presented in this case and the success on those issues, and what Mr. Kohn has been awarded in
attorneys' fees in other whistleblower discrimination cases before this agency, 2 I find that $250 is a reasonable hourly rate
for services rendered to Complainant in this case.