Robinson v. Ritchie
Opinion of the Court
Kate O. Robinson and other named plaintiffs in this class action appeal the district court’s award against them of attorneys’ fees. Because the district court made no finding that the plaintiffs acted in bad faith, we vacate the district court’s judgment and remand the case for further proceedings.
This action was brought in an attempt to obtain declaratory, injunctive, and mone
After the district court dismissed the action,
Speaking of exceptions to the general rule against the allowance of attorneys’ fees, the Supreme Court observed in Alyeska Pipeline Service Co. v. Wilderness Society, 421 U.S. 240, 258-59, 95 S.Ct. 1612, 1622, 44 L.Ed.2d 141 (1975), that fees could be assessed against a losing party who has “acted in bad faith, vexatiously, wantonly, or for oppressive reasons.” In its most recent opinion on attorneys’ fees, the Supreme Court has referred to the Alyeska exception for award of attorneys’ fees as the “bad faith exception.” Roadway Express, Inc. v. Piper, 447 U.S. 752, 766, 100 S.Ct. 2455, 2464, 65 L.Ed.2d 488 (1980). We believe this is an accurate characterization of the exception.
In arguing that a finding of bad faith is not necessary to sustain this award of attorneys’ fees, Ritchie and Clements rely on Christiansburg Garment Co. v. EEOC, 434 U.S. 412, 98 S.Ct. 694, 54 L.Ed.2d 648 (1978). In that case, however, the award was based on § 706(k) of Title VII, which expressly provides that “the court, in its discretion, may allow the prevailing party ... a reasonable attorney’s fee.” 42 U.S.C. § 2000e-5(k). Section 1988 of Title 42 U.S.C. similarly provides for attorneys’ fees in cases brought under the Civil Rights Act, as amended. Christians-burg Garment eliminates the bad faith requirement for awards made pursuant to such statutes. 434 U.S. at 421, 98 S.Ct. at 700. Nevertheless, under the Alyeska exception to the general rule against awarding attorneys’ fees, Roadway Express makes it clear that to rely on its “inherent” rather than statutory power in assessing fees, a court must find that the party acted in bad faith. See 100 S.Ct. at 2464. The award of attorneys’ fees in favor of Ritchie and Clements was based on the court’s inherent power and not on any statutory authority. Therefore, the principles set out in Alyeska and Roadway Express rather than in Christiansburg Garment govern this case.
The record presented to this court contains no evidence that individual plaintiffs acted in bad faith. At the most, the record indicates that some of the plaintiffs brought to the attention of the attorney information about Clements and Ritchie suggesting a possible conflict of interest.
In Browning Debenture Holders’ Committee v. DASA Corporation, 560 F.2d 1078, 1087-89 (2d Cir. 1977), the court held that bad faith is personal and that attorneys’ fees based on the Alyeska exception cannot be awarded against individual parties unless the district court finds that the parties “personally were aware of or otherwise responsible for” the bad faith litigation. We agree, and we therefore think this case should be remanded for an evidentiary hearing and a specific finding regarding the bad faith of the named plaintiffs. If the evidence reveals that the individual plaintiffs did nothing more than to provide their attorney with factual information they reasonably believed true and to rely on him for the development of a proper cause of action, then attorneys’ fees should not be awarded against them.
It may be that under the standards set forth in Roadway Express, Inc. v. Piper, 447 U.S. 752, 766, 100 S.Ct. 2455, 2464, 65 L.Ed.2d 488 (1980), plaintiffs’ counsel is liable for attorneys’ fees. We also remand this question to the district court, without expressing any view on its merits.
VACATED AND REMANDED.
. These statutes comprise an article in the Virginia Code entitled “Conspiracy to Injure Another in Trade, Business or Profession.”
. This dismissal was upheld on appeal in Robinson v. Ritchie, 636 F.2d 1214 (4th Cir., 1980).
. In its opinion, the district court found:
The statement of the claim against Ritchie alleges that he owned real estate which would be increased in value when the sewer line is complete. The claim against Clements states little more than that a bank in which he has substantial interest hoped to make a profit off of financing hookup costs. No allegations of conspiracy, other than the bare use of the word conspiracy, indicate anything other than completely open and aboveboard transactions.
Reference
- Full Case Name
- Kate O. ROBINSON, Nelson L. Tench, Mrs. Nelson L. Tench, C. J. Price, Virginia Maddra, Apul Moore, Lula Abernathy, each individually and as representatives of all others similarly situated v. Robert RITCHIE, individually and as Chairman of the Dinwiddie County Water Authority John H. Clements, individually and as Co-Chairman of the Dinwiddie County Water Authority John W. Scarborough, individually and as a member of the Dinwiddie County Water Authority Frank N. Hale, individually and as a member of the Dinwiddie County Water Authority T. J. Leftwich, individually and as a member of the Dinwiddie County Water Authority and the Dinwiddie County Board of Supervisors M. G. Rainey, Jr., individually and as a member of the Dinwiddie County Water Authority Grace S. Bennett, Jr., individually and as Chairman of the Dinwiddie County Board of Supervisors Milton J. Hargrave, Jr., individually and as a member of the Dinwiddie County Board of Supervisors
- Cited By
- 9 cases
- Status
- Published