National Labor Relations Board v. Local 3, IBEW, 2006 U.S. Dist. LEXIS 31413 (2d Cir. Dec. 20, 2006)
National Labor Relations Board (“NLRB”) petitioned for civil contempt against a labor union, seeking to enforce a judgment and consent order. The Special Master ruled in favor of NLRB and granted it attorney’s fees at prevailing market rates. The union objected, arguing that the NLRB should be reimbursed at government salary rates rather than private market rates. The Second Circuit disagreed, citing Blum v. Stevensen, 465 U.S. 886 (1984), where the Supreme Court held that a nonprofit legal aid foundation was entitled to prevailing market rates under 42 U.S.C. § 1988, as well as a number of circuit court cases extending Blum beyond the civil rights context. The Court also noted that government salaries do not properly reflect the NLRB’s expenses because government attorneys receive a fixed salary and do not bill a client for their services, and because pursuing a contempt action imposes additional costs on the government in the form of foregone opportunities to pursue other cases. Accordingly, the Court held that the NRLB was entitled to prevailing market rates.
