Category Archives: Civil RIghts

Breaking: SCOTUS Clarifies the Test for Awarding Fees when a Party is Partially Successful

June 8th, 2011

baby fox.jpgFor years federal courts have wrestled with how to handle an award of attorneys’ fees when a party is only partially successful. For example, if you file an age discrimination claim under the ADEA and a sex discrimination claim under Title VII, how does the trial court award fees if you prevail on only one of the two claims? Some courts would award all of your attorneys’ fees without discounting for the fact that you did not prevail on a specific claim. Other courts would cut the attorneys’ fees in half because you only prevailed on half of the lawsuit. Still other courts would arbitrarily reduce the attorneys’ fees by an amount fair to the losing party by virtue of the fact that it may have prevailed on some of the claims. (This third approach is completely arbitrary and gives trial judges virtually unlimited discretion to award the amount of fees it deems reasonable. Thankfully, this approach to awarding fees was expressly rejected by the Supreme Court in 2009 in Purdue v. Kenny A).
This week the Supreme Court created a bright line rule that limited attorneys’ fees to fees incurred solely to defending a frivolous claim. In Fox v. Vice, a unanimous court held that a party who is awarded attorneys’ fees because part but not all of a lawsuit is deemed frivolous is entitled only to those fees incurred uniquely to the frivolous claims. For example, if a deposition was taken in support of both frivolous and non-frivolous claims, attorneys’ fees for the deposition cannot be awarded. Only attorneys’ fees uniquely attributable to defending against the frivolous claim are compensable.
This ruling is important for two reasons:
First – it significantly limits the amount of attorneys’ fees that can be awarded to a defendant who successfully files a motion for sanctions under Rule 11 or Section 1927. A large fee award to a defendant would only be justified if an entire lawsuit is deemed frivolous.
Second – it provides guidance, indirectly, to district judges who award prevailing plaintiffs’ their attorneys’ fees when their claims are only partially successful. In the context of a civil rights claim, a prisoner who files a section 1983 claim for excessive force and a section 1983 claim for an illegal search should be entitled to 100% of the lodestar even if he only wins on the excessive force claim. All of the depositions, discovery and motion practice would be identical and indivisible notwithstanding the two claims. This is critical because district court judges routinely order blanket deductions (15%, 50%, 75%) off the prevailing attorneys’ lodestar. As a result of giving district court judges so much discretion, competent plaintiffs’ attorneys are refusing to take meritorious claims out of fear (and it is fear) of not being properly compensated. Civil rights and constitutional claims are treated as private attorney general statutes, and accordingly, plaintiffs’ attorneys who take these extraordinarily difficult cases on a contingency basis should be fully compensated for their work.
The decision is here.

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Mexican-Americans Prevail in Lawsuit Against Sam’s Club

April 15th, 2011

Sam’s Club, the wholesale chain store owned and operated by Walmart, will pay $440,000 and furnish other relief to settle a national origin harassment lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today.
The EEOC contends that at least nine employees of Mexican descent at the Sam’s Club in Fresno, along with one who was married to a Mexican, endured ethnic slurs and derogatory remarks by a fellow co-worker who is Mexican-American. Since late 2005, the victims were barraged with near-daily insults about Mexicans such as “f—-n’ wetbacks,” and references to Mexicans only being good for cleaning the harasser’s home, according to the EEOC. The harasser even threatened to report three of the victims to immigration authorities despite their legal status. The victims and harasser – all female – worked in the demonstration department, serving food samples to customers.
The victims complained about the hostile work environment to management as early as April 2006 to no avail. Instead, the complaints only intensified the harassment and led to intimidation, said the EEOC. Another employee also began deriding a victim for her inability to speak English. It was not until after an official EEOC charge of discrimination was filed in October 2006 that Sam’s Club finally discharged the harasser in December 2006.
In May 2009, the EEOC filed its lawsuit in U.S. District Court, Eastern District of California (EEOC v. Walmart Stores, Inc. dba Sam’s Club, et al., Case No. 09-CV-00804), claiming that the harassment, and Walmart’s failure to appropriately address it, were in direct violation of Title VII of the Civil Rights Act of 1964. Aside from the monetary relief, the parties entered into a three-year consent decree which requires Walmart to comply with the following at its Sam’s Club locations in Fresno and/or Bakersfield, Calif.:
review and make available its policies against and complaint procedures for national origin discrimination, harassment and retaliation;
provide training to non-management employees in the Fresno location regarding anti-discrimination laws, including national origin discrimination and harassment;
provide separate training to management employees in the Fresno and Bakersfield locations which will including training on how to receive, investigate, or report to designated officials complaints of national origin discrimination, harassment and retaliation;
set up a record-keeping procedure for the Fresno location that provides for the centralized tracking system for such complaints;
report the handling of such complaints and compliance with the decree to the EEOC; and
provide neutral references for the victims upon inquiry.
“We commend Walmart for taking the issues of national origin harassment seriously and implementing preventative measures,” said Anna Y. Park, regional attorney for the EEOC’s Los Angeles District Office, which includes Fresno in its jurisdiction. “A work environment that is free of harassment ensures a more productive and vibrant workplace for all.”

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Fractured Eleventh Circuit Panel Upholds $400,000 Sanction Against Prominent Plaintiff’s Counsel

December 29th, 2010

The blog does not know what to make of today’s Eleventh Circuit ruling that affirmed a $350,000 sanction award against a prominent Florida employment lawyer. The opinion was highly fractured. Judge Carnes, generally considered one the most conservative jurists in the country, wrote the 80 page majority opinion. A visiting judge, as most visiting judges do, went along with the decision but dissented from a small portion that was not actually relevant to the outcome. Judge Tjoflat, not know for being terribly pro-plaintiff, wrote a forceful dissent.
But no one actually knows what the case was about. In a nutshell, the plaintiff — who alleged sexual harassment and sexual abuse at Denny’s restaurant by her supervisors and co-workers – apparently lied or had some form of highly selective memory during her deposition. The deposition took place over several weeks and was complicated by the fact that the plaintiff spoke only creole. (Judge Carnes made a point of noting that the plaintiff was an illegal immigrant — although this of absolutely no legal consequence and isn’t relevant to the court’s opinion). The plaintiff’s counsel filed an errrata sheet consisting of nearly 70 pages and over 800 changes — many of which were materially different from her actual deposition testimony. According to Judge Carnes’ opinion, the plaintiff’s attorney was sanctioned personally to the tune of $350,000 because of the errata sheet.
This conclusion is exactly what Judge Lenard concluded — the errata sheet should never have been filed because the plaintiff was a giant liar and everyone knew it.
The Eleventh Circuit’s key holding is this: “The Amlongs’ submission of the novella-length errata sheet making a slew of material changes in their client’s deposition testimony was improper.” But the court can’t seriously mean this and it hasn’t fully considered the implications of its own ruling. Witnesses have a right under the Federal Rules to file an errata sheet to make modifications and clarifications to their deposition testimony — obviously they cannot change answers from “yes” to “no” without a good explanation. Moreover, attorneys’ have ethical obligations to correct faulty testimony when the client says she made a mistake. In fact, and as Judge Carnes correctly points out, a district judge may strike an errata sheet if it materially changes the testimony. (Judge Tjoflat, in dissent, argues that the district court should have done exactly that and nothing else).
Judge Carnes also faulted the Amlongs for continuing to prosecute the case after the errata sheet was filed. This may be but it rests on the assumption — and it is taken as conclusive by the Eleventh Circuit — that the plaintiff is a total liar and that nothing she says can be taken as true. Witnesses and parties lie – and juries are really good at figuring out who is lying and who is telling the truth. The court has essentially condoned a district court’s decision ruling that a party lacks all credibility and is a giant liar. This is a stretch, even for federal courts. What makes the situation more troublesome is the fact the plaintiff’s counsel had the plaintiff take not one but two lie detector tests — she passed both. The court categorically discounted the fact that the plaintiff passed both lie detectors by concluding that (a) lie detectors can be faked and (b) the results are not admissible. This too seems to miss the bigger point — the plaintiff gave incredible and highly conflicting testimony and she passed two lie detector tests. The district court and the Eleventh Circuit has essentially trumped what historically were jury questions.
The blog is concerned that district courts will make even more credibility determinations than they already do and will dismiss even more meritorious lawsuits that are not necessarily airtight. Only time will tell but there is no reason to believe that this case — which is a jurisprudential outliar – will be treated as such by trial judges.
It seems to the blog that the court was more interested in the fact that the plaintiff’s case was extremely weak and was plagued by both the plaintiff’s changing testimony and the lack of corroborating evidence (when, under the facts of this particular case, corroborating evidence should have been discovered).
The blog is also concerned with the manner in which the court dismissed the value of having the plaintiff tested via polygraph. Many rapes and sexual assaults are unwitnessed — only the victim and the rapist are present. It is standard practice for plaintiffs to be undergo polygraphing before filing an unwitnesses sexual abuse lawsuit. Many lawyers do it as a matter of course to protect themselves from being victimized by a lying plaintiff. Judge Carnes acknowledged that this was done for “self-preservation” and to defend against future ethical issues. But what is wrong with that? Do we not want attorneys to go the extra mile to test their own clients’ veracity? This sends a terrible message to attorneys — don’t polygraph your clients because it won’t help if a court decides that your client is a liar.
Judge Tjoflat’s dissent is interesting (so interesting that Judge Carnes spent many pages going out of his way to criticize it). He concluded that the document, albeit labeled an errata sheet, was actually just a letter to the defense counsel acknowledging the plaintiff’s false deposition testimony. Accordingly, the plaintiff’s counsel was just doing what her ethical obligations required of her, and thus she could not be sanctioned.
The full opinion is here:
Amlong Sanctions
Given the highly fractured opinion, the blog suspects a rehearing en banc or a certiorari petition is warranted. Either way, this opinion – if left as is — will have far reaching implications well beyond this case and will probably chill civil rights lawsuits where the case is not open-and-shut.

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