Hall v. Cole
Dissenting Opinion
with whom Mr. Justice Rehnquist joins, dissenting.
I would need a far clearer signal from Congress than we have here to permit awarding attorneys’ fees in member-union litigation, which so often involves private feuding having no general significance. The award of fees in the occasionally successful and meritorious case will not be worth the litigation the Court’s decision will invite and foster.
Opinion of the Court
delivered the opinion of the Court.
This case requires us to consider the propriety of an award of counsel fees to a successful plaintiff in a suit brought under § 102 of the Labor-Management Reporting and Disclosure Act of 1959, 73 Stat. 523, 29 TJ. S. C. § 412.
On May 27, 1964, the United States District Court for the Eastern District of New York issued a temporary injunction restoring respondent’s membership in the union, and the United States Court of Appeals for the Second Circuit affirmed. 339 F. 2d 881 (1965). Some five years later, the case came on for trial and the District Court, finding a violation of respondent’s rights under § 101 (a)(2), ordered him permanently reinstated to membership in the union and, although denying respondent’s damages claims,
I
Although the traditional American
Thus, it is unquestioned that a federal court may award counsel fees to a successful party when his opponent has acted “in bad faith, vexatiously, wantonly, or for oppressive reasons.” 6 J. Moore, Federal Practice ¶ 54.77 [2], p. 1709 (2d ed. 1972); see, e. g., Newman v. Piggie Park Enterprises, Inc., 390 U. S. 400, 402 n. 4 (1968); Vaughan v. Atkinson, 369 U. S. 527 (1962); Bell v. School Bd. of Powhatan County, 321 F. 2d 494 (CA4 1963); Rolax v. Atlantic Coast Line R. Co., 186 F. 2d 473 (CA4 1951). In this class of cases, the underlying rationale of “fee shifting” is, of course, punitive, and the essential element in triggering the award of fees is therefore the existence of “bad faith” on the part of the unsuccessful litigant.
Another established exception involves cases in which the plaintiff’s successful litigation confers “a substantial benefit on the members of an ascertainable class, and where the court’s jurisdiction over the subject matter of the suit makes possible an award that will operate to spread the costs proportionately among them.” Mills v. Electric Auto-Lite, supra, at 393-394.
The instant case is clearly governed by this aspect of Mills. The Labor-Management Reporting and Disclosure Act of 1959 was based, in part, on a congressional finding “from recent investigations in the labor and management fields, that there have been a number of instances of breach of trust, corruption, disregard of the rights of individual employees, and other failures to observe high standards of responsibility and ethical conduct . . . .” 29 U. S. C. §401 (b). In an effort to eliminate these abuses, Congress recognized that it was imperative that all union members be guaranteed at least “minimum standards of democratic process. ...”
Viewed in this context, there can be no doubt that, by vindicating his own right of free speech guaranteed by § 101 (a) (2) of Title I of the LMRDA, respondent necessarily rendered a substantial service to his union as an institution and to all of its members. When a union member is disciplined for the exercise of any of the rights protected by Title I, the rights of all members of the union are threatened. And, by vindicating his own right, the successful litigant dispels the “chill” cast upon the rights of others. Indeed, to the extent that such lawsuits contribute to the preservation of union democracy, they frequently prove beneficial “not only in the immediate impact of the results achieved but in their implications for the future conduct of the union’s affairs.” Yablonski v. United Mine Workers of America, 150 U. S. App. D. C. 253, 260, 466 F. 2d 424, 431 (1972). Thus, as in Mills, reimbursement of respondent’s attorneys’ fees
II
This does not end our inquiry, however, for even where “fee-shifting” would be appropriate as a matter of equity, Congress has the power to circumscribe such relief. In Fleischmann Distilling Corp. v. Maier Brewing Co., supra, for example, we held that § 35 of the Lanham Act, 60 St-at. 439, 15 U. S. C. § 1117, precluded an award of attorneys’ fees as a separate element of recovery in a suit for deliberate infringement of a trademark. In reaching that result, we reasoned that, since § 35 “meticulously detailed the remedies available to a plaintiff
Petitioners argue further, however, that because Congress expressly authorized the recovery of counsel fees in §§ 201 (c) and 501 (b) of the LMRDA, 29 U. S. C. §§ 431 (c), 501 (b), the absence of a similar express provision in § 102 indicates an intent to preclude “fee-shifting” in suits brought under that section. Sections 201 (c) and 501 (b), which are not a part of Title I, deal with narrowly defined problems under the Act, and specifically authorize such limited remedies as an examination of the union's books and records and an accounting.
Finally, petitioners call our attention to two isolated comments in the legislative history of Title I — one by Senator Goldwater in his testimony before a House Com
Moreover, the award of attorneys’ fees under § 102 is clearly consonant with Congress’ express desire to adopt “legislation that will afford necessary protection of the rights and interests of employees and the public generally . . . .” 29 U. S. C. § 401 (b). As the Court of Appeals recognized:
“Not to award counsel fees in cases such as this would be tantamount to repealing the Act itself by frustrating its basic purpose. It is difficult for individual members of labor unions to stand up and fight those who are in charge. The latter have the treasury of the union at their command and the paid union counsel at their beck and call while the member is on his own. . . . An individual union member could not carry such a heavy financial burden. Without counsel fees the grant of federal jurisdiction is but a gesture for few union members could avail themselves of it.” 462 F. 2d, at 780-781.
Thus, it is simply “untenable to assert that in establishing the bill of rights under the Act Congress intended to have those rights diminished by the unescapable fact that
Ill
Finally, petitioners maintain that the award of counsel fees to respondent under the facts of this case constituted an abuse of the District Court’s discretion. Specifically, petitioners argue that the District Court’s finding that some of respondent’s actions “were, in part, motivated by [his] political ambitions for union office” represents a finding of “bad faith” on the part of respondent. The District Court clearly rejected the “logic” of this contention, and we agree. Title I of the LMRDA was specifically designed to protect the union member’s right to seek higher office within the union,
The judgment of the Court of Appeals is
Affirmed.
Mr. Justice Marshall took no part in the consideration or decision of this case.
Section 102 of the Act, 29 U. S. C. § 412, provides in pertinent part:
"Any person whose rights secured by the provisions of this sub-chapter have been infringed by any violation of this subchapter may bring a civil action in a district court of the United States for such relief (including injunctions) as may be appropriate.”
Section 101 (a) (2) of the Act, 29 U. S. C. § 411 (a) (2), provides:
“Every member of any labor organization shall have the right to meet and assemble freely with other members; and to express any views, arguments, or opinions; and to express at meetings of the labor organization his views, upon candidates in an election of the labor organization or upon any business properly before the meeting, subject to the organization’s established and reasonable rules pertaining to the conduct of meetings: Provided, That nothing herein shall be construed to impair the right of a labor organization to adopt and enforce reasonable rules as to the responsibility of every member toward the organization as an institution and to his refraining from conduct that would interfere with its performance of its legal or contractual obligations.”
In its unreported opinion, the District Court found that respondent “suffered no loss of wages as a result of his expulsion from the union.” And although respondent “was deprived of his right
The American rule, it might be noted, is more restrictive than the general rule that prevails in most other nations. See, e. g., Ehrenzweig, Reimbursement of Counsel Fees and the Great Society, 54 Calif. L. Rev. 792, 793 (1966). Many commentators have argued for a “liberalization” of the American rule. See, e. g., Stoebuck, Counsel Fees Included in Costs: A Logical Development, 38 U. Colo. L. Rev. 202 (1966); Ehrenzweig, supra; Kuenzel, The Attorney’s Fee: Why Not a Cost of Litigation?, 49 Iowa L. Rev. 75 (1963); McCormick, Counsel Fees and Other Expenses of Litigation as an Element of Damages, 15 Minn. L. Rev. 619 (1931); Comment, The" Allocation of Attorney’s Fees After Mills v. Electric Auto-Lite Co., 38 U. Chi. L. Rev. 316 (1971); Note, Attorney’s Fees: Where Shall the Ultimate Burden Lie?, 20 Vand. L. Rev. 1216 (1967).
See, e. g., Clayton Act, §4, 38 Stat. 731, 15 U. S. C. §15; Communications Act of 1934, § 206, 48 Stat. 1072, 47 U. S. C. § 206; Interstate Commerce Act, § 16, 34 Stat. 590, 49 U. S. C. § 16 (2); Securities Exchange Act of 1934, §§ 9 (e), 18 (a), 48 Stat. 890, 897, 15 U. S. C. §§ 78i (e), 78r (a).
See, e. g., Fleischmann Distilling Corp. v. Maier Brewing Co., 386 U. S. 714, 717 (1967); Hauenstein v. Lynham, 100 U. S. 483 (1880); Day v. Woodworth, 13 How. 363 (1852).
This exception has its origins in the “common fund” cases, which have traditionally awarded attorneys’ fees to the successful plaintiff when his representative action creates or traces a “common fund,” the economic benefit of which is shared by all members of the class.
Citing our decisions in Mills, supra, and Newman v. Piggie Park Enterprises, Inc., 390 U. S. 400 (1968), respondent contends that the award of attorneys’ fees in this case might also be justified on the ground that, by successfully prosecuting this litigation, respondent acted as a “ ‘private attorney general,’ vindicating a policy that Congress considered of the highest priority.” Id., at 402. See also Knight v. Auciello, 453 F. 2d 852 (CA1 1972); Lee v. Southern Home Sites Corp., 444 F. 2d 143 (CA5 1971). In light of our conclusion with respect to the “common benefit” rationale, however, we have no occasion to consider that question.
Mills v. Electric Auto-Lite Co., supra, at 392, quoting J. I. Case Co. v. Borak, 377 U. S. 426, 432 (1964).
105 Cong. Rec. 6471 (1959) (Sen. McClellan).
29 U. S. C. §§411-415.
American Federation of Musicians v. Wittstein, 379 U. S. 171, 182-183 (1964).
In addition to the Tit. I guarantee of freedom of speech and assembly involved in this case, 29 U. S. C. §411 (a)(2), see n. 2, supra, Tit. I also guarantees equal “political” rights to all union members, 29 U. S. C. § 411 (a) (1); stability and fairness in the assessment of dues, initiation fees, and other assessments, 29 U. S. C. § 411 (a) (3); the right of all union members to sue and to participate in litigation, 29 U. S. C. § 411 (a) (4); and procedural fairness in the discipline process, 29 U. S. C. §411 (a)(5).
Petitioners contend that the payment of counsel fees out of the union treasury might deplete union funds to such an extent as to impair the union’s ability to operate as an effective collective-bargaining agent and to endanger union stability. Although this consideration is undoubtedly an important one, it is relevant, not to the power of federal courts to award counsel fees generally, but, rather, to the exercise of the District Court’s discretion on a case-by-case basis. See n. 23, infra.
Fleischmann Distilling Corp. v. Maier Brewing Co., supra, at 719.
Section 201 (c) provides for the award of counsel fees in a suit brought by a union member to obtain access to union books, records, and accounts to verify annual financial statements. 29 U. S. C. § 431 (c). Section 501 (b) authorizes “fee shifting” in a suit brought
Gartner v. Soloner, 384 F. 2d 348, 353 (CA3 1967).
Indeed, the Mills reasoning may be particularly appropriate with respect to the LMRDA. As Professor Cox has noted, “because much of the bill was written on the floor of the Senate or House of Representatives and because many sections contain calculated ambiguities or political compromises . . . , the courts would be well advised to seek out the underlying rationale without placing great emphasis upon close construction of the words,” Cox, Internal Affairs of Labor Unions Under the Labor Reform Act of 1959, 58 Mich. L. Rev. 819, 852 (1960).
In his testimony before the House Committee on Education and Labor, after passage of the Senate version of the LMRDA, Senator Goldwater stated that “the bill does not grant [the union member], even where successful in his suit, reasonable counsel fees or other costs. It thus forces him to assume the entire financial burden of the litigation. For an ordinary rank-and-file union member who is generally a wage worker, such a litigation thus becomes an impossible financial burden.” 105 Cong. Rec. 10095 (1959).
In opposing the reporting of the Elliott bill, H. R. 8342, 86th Cong., 1st Sess. (1959), to the House, the nine dissenting Members of the House Committee on Education and Labor protested that “[u]nder that bill the individual member must shoulder the burden of litigation costs himself.” H. R. Rep. No. 741, 86th Cong., 1st Sess., 95 (1959). At the end of their criticisms of the Elliott bill, the dissenters explained that “[f]or the reasons outlined above, we intend to support ... the so-called Landrum-Griffin bill (H. R. 8400 and 8401).” Id., at 98. Thus, although the enforcement provisions of the Elliott bill and the Landrum-Griffin bill were virtually identical, the dissenters apparently believed that the latter, which eventually was enacted, allowed the union member to recover counsel fees.
105 Cong. Rec. 15548 (1959) (Rep. Elliott).
Id., at 6717 (Sen. Kuchel). See id., at 15864 et seq. (Rep. O’Hara); see also 29 U. S. C. §§ 413, 523 (a).
In describing to the Senate the various “offenses” for which a union member could be expelled under then-existing union constitutions, Senator McClellan pointed out in particular the “offense” of “applying for the position of another union man in office.” He observed, with evident sarcasm, that: “A member had better not do that. The officers have squatters’ rights. Members had better not offer any competition. They had better not seek election. They had better not aspire to the presidency or the secretaryship, or they will be expelled or disciplined.” 105 Cong. Rec. 6478 (1959).
Another such consideration is, of course, the extent to which the payment of the plaintiff’s counsel fees out of the union treasury might impair the union’s ability to operate effectively. See n. 13, supra. Here, petitioners do not, and indeed cannot, contend that the award of only $5,500 would in any sense jeopardize union stability.
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