Almond v. Boyles
Almond v. Boyles
Opinion of the Court
Officials of the North Carolina Department of Human Resources (“DHR”) and the North Carolina Teachers’ and State Employees’ Retirement System (the “Retirement System”) appeal from the district court’s order granting summary judgment and awarding attorneys’ fees to plaintiffs. Plaintiffs cross-appeal, contesting the interest component of the judgment. We affirm in part, vacate in part, and remand for a redetermination of attorneys’ fees.
Plaintiffs, visually handicapped persons who operate vending stands in North Carolina, brought this class action, pursuant to the Randolph-Sheppard Act (the “Act”), 20
In calculating the amount of attorneys’ fees, the district court first determined lodestar figures for plaintiffs’ counsel, Sanford, Adams, McCullough & Beard (“SAMB”), and Charles R. Hassell, by multiplying reasonable hourly rates by reasonable hours expended. It then made upward adjustments to those figures through application of factors listed in this Court’s decision in Barber v. Kimbrell’s, Inc., 577 F.2d 216, 226 (4th Cir.), cert. denied, 439 U.S. 934, 99 S.Ct. 329, 58 L.Ed.2d 330 (1978) (adopting the twelve factors set forth in Johnson v. Georgia Highway Express, Inc., 488 F.2d 714, 717-19 (5th Cir. 1974)). The court increased both figures ten percent due to the complexity and novelty of the case, another ten percent due to the case's contingent nature, and an additional five percent in view of the results obtained. The district court further enhanced the lodestar amount for SAMB by an additional ten percent because of the reputation, ability, and experience of counsel.
On appeal, DHR and the Retirement System raise a number of contentions: (1) that the district court erred in ruling that the eleventh amendment does not bar recovery from the Retirement System; (2) that the district court erred in holding that the DHR defendants violated the Act; (3) that the district court erred in ruling the Retirement System liable in equity to plaintiffs; (4) that the district court abused its discretion in the award of attorneys’ fees to plaintiffs’ counsel; (5) that the district court erred in holding that the statute of limitations does not bar recovery of employer contributions made more than three years before the action was filed; and (6) that the district court erred in failing to hold that recovery was barred for vendors who left their employment before the limitation period but who did not withdraw their employee contributions to the program. In their cross-appeal, plaintiffs allege that the district court erred by awarding them only four percent interest rather than investment income at fair market rates on the funds diverted from them to the Retirement System as employer contributions.
With the exception of the attorneys’ fees issue, we reject as meritless appellants’ contentions one through five for the reasons stated by the district court. Almond v. Boyles, 612 F.Supp. 223 (E.D.N.C. 1985) . We find no merit in their sixth allegation. Likewise, we determine that plaintiffs’ cross-appeal must fail, as the district court did not abuse its discretion in awarding plaintiffs only four percent interest. Therefore, the judgment below is affirmed as to these issues.
With respect to the award of attorneys’ fees, we conclude that the district court applied the wrong standard in calculating the award. As we recently noted in Daly v. Hill, 790 F.2d 1071, 1078-79 (4th Cir. 1986) , the latest Supreme Court decisions on this matter, Blum v. Stenson, 465 U.S. 886, 104 S.Ct. 1541, 79 L.Ed.2d 891 (1984), and Hensley v. Eckerhart, 461 U.S. 424, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983), make clear that “[a] fee based upon reasonable rates and hours is presumed to be fully compensatory without producing a windfall.” Under Blum and Hensley, upward adjustments of the lodestar amount based
In the instant case, the district court calculated lodestar figures for plaintiffs’ counsel and then increased the two lodestar amounts thirty-five percent and twenty-five percent, respectively, based on its application of various Barber factors. We find nothing in the record to indicate that the district court identified any exceptional circumstances which warrant such increases. We conclude, therefore, that under Blum and Hensley, this enhancement of the lodestar figures was improper. Accordingly, we vacate and remand to the district court for a redetermination of appropriate attorneys’ fees in light of Blum and Hensley and our decision in Daly.
AFFIRMED IN PART, VACATED IN PART, AND REMANDED.
The complexity or novelty of the case, the quality of representation, and the results obtained are Barber factors which are generally subsumed within the factors used to calculate a reasonable fee and do not normally provide an independent basis for increasing the fee award. Blum, 104 S.Ct. at 1548-49.
Reference
- Full Case Name
- Robert P. ALMOND Jerry A. Calloway Vernon G. Cox Allen E. Dail Janice D. Decker David W. Guthrie Brenda M. Herring Sherman L. Lewis Janice E. Osborne Leslie T. Simmons, on behalf of themselves and all other persons similarly situated v. Harlan E. BOYLES, in his official capacity as Treasurer of the State of North Carolina and as Chairman of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System R. Eugene Ballard, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Ezra A. Bridges, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System M.L. Byrd, in his or her official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System William C. Covington, Jr., in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees Retirement System Withers Davis, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Colleen Jakes, in her official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Horace Jernigan, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Dan W. Jones, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System V. Glenn Morton, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Thomas Z. Osborne, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System A. Craig Phillips, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Theo H. Pitt, Jr., in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Linda I. Rader, in her official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System E.T. Barnes, in his official capacity as Deputy Treasurer of the State of North Carolina and as Director of the Retirement Systems Division, and Phillip J. Kirk, in his official capacity as Secretary, North Carolina Department of Human Resources Herman Gruber, in his official capacity as Director, Division of Services for the Blind, North Carolina Department of Human Resources Mary Ann Van Name, in her official capacity as Chief of Business Enterprises, Division of Services for the Blind, North Carolina Department of Human Resources, Appellants Robert P. ALMOND Jerry A. Calloway Vernon G. Cox Allen E. Dail Janice D. Decker David W. Guthrie Brenda M. Herring Sherman L. Lewis Janice E. Osborne Leslie T. Simmons, on behalf of themselves and all other persons similarly situated v. Harlan E. BOYLES, in his official capacity as Treasurer of the State of North Carolina and as Chairman of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System R. Eugene Ballard, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Ezra A. Bridges, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System M.L. Byrd, in his or her official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System William C. Covington, Jr., in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees Retirement System Withers Davis, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Colleen Jakes, in her official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Horace Jernigan, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Dan W. Jones, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System V. Glenn Morton, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System A. Craig Phillips, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Theo H. Pitt, Jr., in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Linda I. Rader, in her official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System E.T. Barnes, in his official capacity as Deputy Treasurer of the State of North Carolina and as Director of the Retirement Systems Division, and Thomas Z. Osborne, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System A. Craig Phillips, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Phillip J. Kirk, in his official capacity as Secretary, North Carolina Department of Human Resources Herman Gruber, in his official capacity as Director, Division of Services for the Blind, North Carolina Department of Human Resources Mary Ann Van Name, in her official capacity as Chief of Business Enterprises, Division of Services for the Blind, North Carolina Department of Human Resources, Defendants Robert P. ALMOND Jerry A. Calloway Vernon G. Cox Allen E. Dail Janice D. Decker David W. Guthrie Brenda M. Herring Sherman L. Lewis, on behalf of themselves and all other persons similarly situated, and Janice E. Osborne Leslie T. Simmons v. Harlan E. BOYLES, in his official capacity as Treasurer of the State of North Carolina and as Chairman of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System R. Eugene Ballard, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Ezra A. Bridges, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System M.L. Byrd, in his or her official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System William C. Covington, Jr., in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees Retirement System Withers Davis, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Colleen Jakes, in her official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Horace Jernigan, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Dan W. Jones, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System V. Glenn Morton, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System A. Craig Phillips, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Theo H. Pitt, Jr., in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Linda I. Rader, in her official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System E.T. Barnes, in his official capacity as Deputy Treasurer of the State of North Carolina and as Director of the Retirement Systems Division, Phillip J. Kirk, in his official capacity as Secretary, North Carolina Department of Human Resources Herman Gruber, in his official capacity as Director, Division of Services for the Blind, North Carolina Department of Human Resources Mary Ann Van Name, in her official capacity as Chief of Business Enterprises, Division of Services for the Blind, North Carolina Department of Human Resources, and Thomas Z. Osborne, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Defendants Robert P. ALMOND Jerry A. Calloway Vernon G. Cox Allen E. Dail Janice D. Decker David W. Guthrie Brenda M. Herring Sherman L. Lewis Janice E. Osborne Leslie T. Simmons, on behalf of themselves and all other persons similarly situated v. Harlan E. BOYLES, in his official capacity as Treasurer of the State of North Carolina and as Chairman of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System R. Eugene Ballard, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Ezra A. Bridges, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System M.L. Byrd, in his or her official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System William C. Covington, Jr., in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees Retirement System Withers Davis, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Colleen Jakes, in her official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Horace Jernigan, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Dan W. Jones, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System V. Glenn Morton, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System A. Craig Phillips, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Theo H. Pitt, Jr., in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Linda I. Rader, in her official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System E.T. Barnes, in his official capacity as Deputy Treasurer of the State of North Carolina and as Director of the Retirement Systems Division, Phillip J. Kirk, in his official capacity as Secretary, North Carolina Department of Human Resources Herman Gruber, in his official capacity as Director, Division of Services for the Blind, North Carolina Department of Human Resources Mary Ann Van Name, in her official. capacity as Chief of Business Enterprises, Division of Services for the Blind, North Carolina Department of Human Resources, and Thomas Z. Osborne, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Defendants Robert P. ALMOND Jerry A. Calloway Vernon G. Cox Allen E. Dail Janice D. Decker David W. Guthrie Brenda M. Herring Sherman L. Lewis, on behalf of themselves and all other persons similarly situated, and Janice E. Osborne Leslie T. Simmons v. Harlan E. BOYLES, in his official capacity as Treasurer of the State of North Carolina and as Chairman of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System R. Eugene Ballard, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Ezra A. Bridges, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System M.L. Byrd, in his or her official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System William C. Covington, Jr., in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees Retirement System Withers Davis, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Colleen Jakes, in her official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Horace Jernigan, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Dan W. Jones, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System V. Glenn Morton, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System A. Craig Phillips, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Theo H. Pitt, Jr., in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Linda I. Rader, in her official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System E.T. Barnes, in his official capacity as Deputy Treasurer of the State of North Carolina and as Director of the Retirement Systems Division, Phillip J. Kirk, in his official capacity as Secretary, North Carolina Department of Human Resources Herman Gruber, in his official capacity as Director, Division of Services for the Blind, North Carolina Department of Human Resources Mary Ann Van Name, in her official capacity as Chief of Business Enterprises, Division of Services for the Blind, North Carolina Department of Human Resources, and Thomas Z. Osborne, in his official capacity as a member of the Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System Board of Trustees of the North Carolina Teachers' and State Employees' Retirement System
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