Ridley v. Costco Wholesale, 2007 U.S. App. LEXIS 2493 (February 5, 2007)
In this Title VII case, the trial court reduced an attorney’s hourly rate from $375 to $300, citing counsel’s “limited role” in the litigation. The Third Circuit reversed, because an attorney’s limited role will be reflected in the number of hours billed (or lack thereof) and is unrelated to the reasonable rate. With respect to the latter, counsel submitted supportive affidavits from experienced civil rights practitioners, and the defendant offered no evidence to rebut the reasonableness of the proposed rate. In such a situation, the Third Circuit held, a trial court has no discretion to adjust a requested rate downward.
The Third Circuit also reversed the trial court’s denial of fees for work before the Pennsylvania Human Rights Commission. Because plaintiff did not succeed in the administrative proceedings, the trial court found that he was not a prevailing party entitled to fees with respect to that aspect of the litigation. The Third Circuit held that the party, by winning a verdict in federal court, qualified as a prevailing party under 42 U.S.C. 1988. The administrative hearings were required in order for plaintiff to bring his claims to federal court, and therefore part of his overall success. Accordingly, work performed for such hearings is compensable. The trial court erroneously cited N.Y. Gaslight Club v. Carey, 447 U.S. 54, 71 (1980), as justifying the denial of fees, but in Gaslight the Court held only that success before an administrative agency justifies a fee award, not that success is required.