Missouri v. Jenkins Petition for a Writ of Certiorari to the US Court of Appeals for the Eighth Circuit
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January 1, 1991
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Brief Collection, LDF Court Filings. Missouri v. Jenkins Petition for a Writ of Certiorari to the US Court of Appeals for the Eighth Circuit, 1991. 9b0edbf9-bd9a-ee11-be36-6045bdeb8873. LDF Archives, Thurgood Marshall Institute. https://ldfrecollection.org/archives/archives-search/archives-item/8c0df2d6-705d-4375-a003-362bf6a4c204/missouri-v-jenkins-petition-for-a-writ-of-certiorari-to-the-us-court-of-appeals-for-the-eighth-circuit. Accessed November 23, 2025.
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No
In T he
Supreme (Hmtrt a t the plniteh S tates
OctoberTerm, 1991
State of M issouri, et al.,
Petitioners,
vs.
Kalima Jenkins, et al.,
Respondents.
PETITION FOR A WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE EIGHTH CIRCUIT
W illiam L. W ebster
A ttorney General
M ichael J. Fields*
A ssistant Attorney General
B art A . M atanic
A ssistant A ttorney General
Broadway Building, 8th Floor
P. 0 . B ox 899
Jefferson City, Missouri 65102
(314) 751-3321
Corns el for Petitioners
’ Counsel o f Record
St. Louis Law Printing,Inc. 13307 ManchesterRd. St. Louis, MO 63131 314-231-4477
QUESTION PRESENTED
Whether post-judgment interest under 28 U.S.C. § 1961 on
an attorneys’ fees award should run from the date the prevailing
party is deemed to be entitled to a statutory fee award or from the
date when the amount of fees is quantified?
11
LIST OF PARTIES
Petitioners:
State of Missouri, the Honorable John Ashcroft, Governor, the
Honorable Wendell Bailey, Treasurer, Dr. Robert E. Bartman,
Commissioner of Education, and the Missouri State Board of
Education and its members, Thomas R. Davis (Presiding),
Roseanne Bentley, the Rev. Raymond McCallister, Jr., Susan D.
Finke, Gary D. Cunningham, Rebecca M. Cook and Sharon M.
Williams.
Respondents:
Kalima Jenkins, et al., a class consisting of all present and future
elementary and secondary education students in the School
District of Kansas City, Missouri
The School District of Kansas City, Missouri, its Board of
Directors, and its Superintendent, Dr. Walter L. Marks
The American Federation of Teachers, Local 691
— lii-
Page(s)
Questions Presented......................................................... i
List of P arties.................................................................... ii
Table of Authorities......................................................... iv
Opinions Below................................................................. 1
Jurisdiction........................................................... 2
Statute Involved................................................................. 2
Statement of the C ase....................................................... 2
Reasons for Granting the W rit........................................ 6
Conclusion.......................................................................... 9
Appendix............................................................................ A-l
TABLE OF CONTENTS
---- I V -----
Page(s)
Cases:
Copper Liquor, Inc. v. Adolph Coors Company, 701
F.2d 542 (5th Cir. 1983)......................................... 5
Fleming v. County of Kane, 898 F.2d 553 (7th Cir.
1990)........................................................................... 5,6
Harris v. Chicago Great Western Railway, 197 F.2d 829
(7th Cir. 1952)........................................................... 6
Jenkins v. Missouri, 593 F. Supp. 1485 (W.D. Mo.
1984), affd, 807 F.2d 657 (8th Cir. 1986), cert,
denied, 484 U.S. 816 (1987)................................... 3
Jenkins v. Missouri, 838 F.2d 260 (8th Cir. 1988), affd,
Missouri v. Jenkins, 491 U.S. 274 (1989)............. 4
Kaiser Aluminum and Chemical Corp. v. Bonjomo,___
U .S .___, 110 S. Ct. 1570 (1990)........................... 6,7,8
Mathis v. Spears, 857 F.2d 749 (Fed. Cir. 1988).......... 5
Missouri v. Jenkins, 491 U.S. 274 (1989)...................... 4
Missouri v. Jenkins,___U.S. ____, 110 S. Ct. 1651
(1990)......................................................................... 4
Ohio-Sealy Mattress Manufacturing Company v. Sealy,
Inc., 776 F.2d 646 (7th Cir. 1985).......................... 6
Perkins v. Standard Oil Company of California, 487 F.2d
672 (9th Cir. 1973).................................................. 6,7
School District of Kansas City, Missouri v. State of
Missouri, 460 F. Supp. 421 (W.D. Mo. 1978),
appeal dism’d, 592 F.2d 493 (8th Cir. 1979)........ 2
TABLE OF AUTHORITIES
Statute:
28 U.S.C. § 1961 passim
No
In T he
Supreme (Uiuirt nf t\\t Jtlnttcb States
October Term, 1991
State of M issouri, et al.,
Petitioners,
vs.
Kalima Jenkins, et al.,
Respondents.
PETITION FOR A WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE EIGHTH CIRCUIT
The S tate of Missouri, and certain of its agencies and officials,
petition for a writ of certiorari to review the accompanying
judgment of the United States Court of Appeals for the Eighth
Circuit in this case.
OPINIONS BELOW
The opinion of the Court of Appeals is reported at 931 F.2d
1273 and is reprinted at pages A-3 to A-13 of the accompanying
appendix to this petition. The order of the District Court is
reported at 731F. Supp. 1437 and is set forth in the accompany
ing appendix at pages A-33 to A-40. Other unreported orders of
the District Court which are relevant to this appeal are reprinted
in the accompanying appendix at pages A -14 through A-32.
— 2 —
JURISDICTION
The judgment of the Court of Appeals was entered on April
29, 1991. On July 16, 1991, Mr. Justice Blackmun granted an
extension of time in which to file this petition until August 28,
1991. The jurisdiction of this Court is invoked under 28 U.S.C.
§ 1254(1).
STATUTE INVOLVED
The statute involved is 28 U.S.C. § 1961 (a) which provides in
relevant part:
Interest shall be allowed on any money judgment in a civil
case recovered in a district court. . . Such interest shall be
calculated from the date of the entry of the judgment, at a
rate equal to the coupon issue yield equivalent (as deter
mined by the Secretary of the Treasury) of the average
accepted auction price for the last auction of fifty-two week
United S tates Treasury bills settled immediately prior to the
date of the judgm ent. . .
STATEMENT OF THE CASE
The lawsuit giving rise to the cause of action underlying the
attorney’s fees proceeding in this case was originally filed in
1977 by the Kansas City, Missouri School District (“KCMSD”)
and certain plaintiffs, alleging claims of interdistrict segregation
and seeking broad and sweeping relief.1 In 1978, KCMSD was
realigned as a defendant. School District of Kansas City,
Missouri v. State o f Missouri, 460 F. Supp. 421,442 (W.D. Mo.
1978), appeal dism’d, 592 F.2d 493 (8th Cir. 1979). An
amended complaint was filed by a class of schoolchildren, who 1
1 The State of Missouri recently filed a petition for certiorari, seeking
review of separate issues pertaining to the remedies ordered in this case. See
Missouri v. Jenkins, No. 91-____ , filed August 21, 1991.
3
were later certified as the Jenkins class. Arthur A. Benson, II
entered his appearance on behalf of the class on March 15,1979.
The case proceeded through discovery and trial, with most of the
hours billed in the 1981-84 period. The NAACP Legal Defense
Fund (“LDF”) entered their appearance in the case on May 27,
1982 and provided additional representation to the Jenkins
plaintiffs. On September 17, 1984, the Jenkins plaintiffs pre
vailed, in part, on their liability claims. Jenkins v. Missouri, 593
F. Supp. 1485 (W.D. Mo. 1984), affd, 807 F.2d 657 (8th Cir.
1986) (en banc), cert, denied, 484 U.S 816 (1987). At that time,
the district court found liability for intradistrict segregation on
the part of the KCMSD and the State. The case then proceeded
through the remedial phase.
The attorney’s fees proceedings went forward on a different
track from the remedial issues presented by the underlying cause
of action. Plaintiffs filed their initial fee petitions on February 5,
1986, and filed subsequent motions later. The district court first
indicated that the Plaintiffs were entided to some measure of
attorney’s fees on February 24,1986, Pet. App. A-14, but it did
not establish the amount of “overall fees” to be awarded the
Plaintiffs for the liability phase and the first part of the remedy
phase at that time. Rather, the February 24,1986 order merely
required an interim payment of $200,000 to Plaintiffs’ counsel
Benson. Id.
The fee issues were briefed and a hearing on those issues was
held on February 27, 1987. Thereafter, the district court quan
tified the fee award for the liability phase of the proceedings and
the first part of the remedy phase in its order issued on May 11,
1987, Pet. App. A-16, an order modified on July 14, 1987. In
total, the district court awarded Benson $1,728,567.92 and the
LDF $2,365,875.24.2
2 Benson had originally requested $3/700,010.30 and the LDF had re
quested $3,170,600.20. Pet. App. A-16.
— 4
Plaintiffs and the State both pursued appeals of the district
court’s May 11,1987 decision. The district court’s decision was
affirmed in all respects by the Eighth Circuit in Jenkins v.
Missouri, 838 F.2d 260 (8th Cir. 1988). Both the Plaintiffs and
the State then filed petitions for writs of certiorari. Plaintiffs’
petition was denied, 488 U.S. 889 (1988), while the State’s was
granted in part, 488 U.S. 888 (1988). This Court thereafter
affirmed the Eighth Circuit’s decision. Missouri v. Jenkins, 491
U.S. 274 (1989).3
While the fee litigation was pending the State made numerous
partial payments to both Benson and the LDF. After this Court’s
decision was handed down, the State paid Plaintiffs the balance
of the principal of the fees judgment, along with post-judgment
interest calculated from May 11, 1987, the date of the district
court’s ruling quantifying the fees to be awarded to the prevail
ing party.
The proceedings that are the subject of this petition followed,
beginning with the filing of the Plaintiffs’ Motion for Award of
Post-Judgment Interest. Plaintiffs’ motion requested post-judg
ment interest from February 24, 1986 and requested, in the
alternative, that the court grant pre-judgment interest. After
further pleadings were filed on this issue, the district court
granted the Plaintiffs post-judgment interest from February 24,
1986. The State appealed, and the Eighth Circuit affirmed the
district court’s order.
In affirming the district court’s judgment that post-judgment
interest under 28 U.S.C. § 1961(a) was to accrue from the date
when the court first determined the class was entitled to some fee
award rather than the date when it quantified the fees, the Eighth
Circuit acknowledged the Seventh Circuit’s contrary opinion in
3 This case has also been before the court on the issue of taxation beyond
State law limits. Missouri v. Jenkins,___U .S .___ , 110 S. Ct. 1651 (1990).
— 5 —
Fleming v. County o f Kane, 898 F.2d 553 (7th Cir. 1990) and
agreed that it “lends some support” to the position it was
rejecting. Pet. App. at A-8,n.3. The court maintained, however,
that the Fleming decision did not explain why it was awarding
post-judgment interest from the date of quantification rather than
the date of entidement, and it questioned whether the parties
presented that issue to the Fleming court. Pet. App. at A-7. The
Eighth Circuit then noted with approval the decisions of the Fifth
and Federal Circuits awarding post-judgment interest as of the
date the right to some fee award was first recognized, Pet. App.
at A-7, citing Mathis v. Spears, 857 F.2d 749, 760 (Fed. Cir.
1988); Copper Liquor, Inc. v. Adolph Coors Co., 701 F.2d 542,
545 (5th Cir. 1983) (per curiam), and reasoned that the accrual
of post-judgment interest as of the date of entitlement would
serve the general purposes fostered by the statutory award of
attorneys’ fees. Pet. App. at A-9 - A -10.
In a concurring opinion, Chief Judge Lay disagreed with the
majority’s rationale. In Chief Judge Lay’s view, the Fifth Circuit
opinion in Copper Liquor was not germane, as that case involved
an award of fees under the Sherman Act, 15 U.S.C. §§ 1, 15
(1988), pursuant to which attorneys’ fees were recognized as a
matter of right rather than as an element of the district court’s
discretion. Pet. App. at A -11 (Lay, J., concurring). In Chief
Judge Lay ’ s view, however, the determinative factor was that the
district court entered a final judgment when it issued its order
establishing the plaintiffs’ entitlement to fees and requiring an
interim payment of $200,000. Pet. App. at A -12. It is not clear
from the concurring opinion whether Chief Judge Lay regarded
the quantifiability of the fee award to be a significant consider
ation, but he did indicate he thought the award was “readily
ascertainable by mathematical computation or other recognized
standards,” as of the February 24,1986 Order. Pet. App. A -12.
— 6 —
REASONS FOR GRANTING THE W RIT
Certiorari should be granted to resolve a conflict between the
Eighth Circuit’s opinion and the interpretations reflected by the
recent decisions of the United States Court of Appeals for the
Seventh Circuit in Fleming v. County of Kane, supra, and the
earlier decision of the Ninth Circuit in Perkins v. Standard Oil
Co. o f California, 487 F.2d 672, 675 (9th Cir. 1973). Not only
is the grant of certiorari necessary and appropriate to address this
conflict among the circuits, the Court’s review of the Jenkins
case is necessary to reconcile the Eighth Circuit’s interpretation
of the statutory post-judgment interest provision of 28 U.S.C. §
1961(a) with the principles established in this Court’s decision
in Kaiser Aluminum and Chemical Corp. v. Bonjorno,___U.S.
___, 110 S. Ct. 1570 (1990). Unless resolved by this Court, the
conflicting interpretations among the federal courts of appeal
will continue to generate applications that are inconsistent with
one another and with the congressional intent in enacting the
post-judgment interest statute, as reflected in this Court’s
Bonjorno decision.
While recognizing that Fleming lent support to the position it
proceeded to reject, the Eighth Circuit questioned whether the
Fleming court had clearly been presented the question. Pet. App.
at A-7. An examination of Fleming dispels any such questions,
however. The Fleming court plainly considered the operative
date of the post-judgment interest statute to be an issue, and it
clearly held that “plaintiffs may collect interest on attorneys’
fees or costs only from the date that the award was entered,” by
which it referred to the date the award was quantified. Fleming,
898 F.2d at 565, quoting Ohio-Sealy Mattress Manufacturing
Co. v. Sealy,Inc., 776F.2d 656,662 (7th Cir. 1985).4 In Fleming,
4 The Seventh Circuit also cited its earlier decision in Harris v. Chicago
Great Western Railway, 197 F.2d 829, 836 (7th Cir. 1952) (noting that
interest is to be awarded only after the fees obligation is “authoritatively
defined.”)
7
the district court entered a memorandum opinion and order,
datedApril 12,1988, in which it ruled that “plaintiff was entitled
to attorney’s fees under § 1988, but did not rule on the exact
amount to be awarded.” Id. at 562. After additional proceedings
and a hearing, the Court entered a minute order on June 23,1988
awarding plaintiffs $205,176.80 as attorney’s fees and costs.
Apparently, judgment was entered the next day, June 24,1988.
Id. at 565. It was this final date of June 24,1988 from which the
Seventh Circuit held that interest under § 1961(a) would begin
to run. The rationale for this holding was stated clearly. “Prior
to the date the judgment on attorney’s fees was entered, plaintiffs
attorneys’ claim for unpaid attorney ’ s fees was unliquidated and,
as such, not entitled to interest.” Id.
Moreover, as an examination of the cases cited in the instant
Jenkins decision and the Seventh Circuit’s competing result and
rationale in Fleming will confirm, other circuits are divided on
this question as well. As noted above, the Fifth and Federal
Circuits appear to adopt the same rule as that announced in
Jenkins and thus hold that a prevailing party’s entitlement to
post-judgment interest on a fee award accrues at the time the
party has been deemed entitled to receive a fee award rather than
the time the award is quantified. The Ninth Circuit, by contrast,
holds that interest only accrues when the attorneys’ fee award is
reduced to a quantified judgment. See Perkins v. Standard Oil
Co. of California, 487 F.2d 672, 675 (9th Cir. 1973).
The State submits, and Bonjorno confirms, that the date of the
judgment quantifying a fee award is the appropriate date for the
commencement of the accrual of post-judgment interest. Prior
to that time, it is impossible to apply the statute and make a
calculation of interest in a Section 1988 case in order to allow the
paying party to know the extent of its obligation.5
5 As such, Chief Judge Lay’s concurring opinion rests on an incorrect
premise. Chief Judge Lay apparently believed that the attorneys’ fees award
(Footnote 5 continued on next page)
— 8 —
In Bonjorno, the Court was unanimous in holding that the
appropriate date from which interest should be calculated on a
damage award under the antitrust laws is the date of the judgment
and not the date of the verdict. Id. at 1576. The date of the
verdict/date of the judgment distinction is comparable to the
distinction between the date that the right to some attorney ’ s fees
is recognized and the date the fee award is quantified. The date
of the verdict will often be prior to the date of the judgment, but
despite the fact that the party may obtain a damage verdict in a
large amount, interest will not begin to run on the damages until
the Court enters judgment, regardless of how long the period be
tween judgment and verdict is. However, as this Court pointed
out:
Even though denial of interest from verdict to judgment
may result in the plaintiff bearing the burden of the loss of
the use of the money from verdict to judgment, the alloca
tion of the costs accruing from litigation is a matter for the
legislature, not the courts. [Citation omitted].
Id. at 1576. Similarly, a holding that a party is entitled to
attorney’s fees is different from a judgment requiring that the
party be paid a specific amount of fees. Until the fee award is
quantified, the losing party has not been required to do some
thing on pain of the prevailing party executing on the judgment,
because there is no judgment to execute on.
(Footnote 5 Continued)
was liquidated as of the time of the February 24,1986 Order, as he indicated
that “[t]he total sum is readily ascertainable by mathematical computation or
other recognized standards”. Pet. App. A-12. However, the facts of this case
refute that contention. As indicated, supra, Note 2, Benson initially sought
$3,700,010.30 and the LDF sought $3,170,600.20. Pet. App. A-16. They
were awarded significantly less than those amounts. Pet. App. at A-16.
CONCLUSION
This petition for a writ of certiorari should be granted.
Respectfully submitted,
WILLIAM L. WEBSTER
Attorney General
MICHAEL J. FIELDS*
Assistant Attorney General
BART A. MATANIC
Assistant Attorney General
Broadway Bldg., 8th Floor
P.O. Box 899
Jefferson City, Missouri 65102
(314) 751-0531
Counsel for Petitioners
— 9 —
‘Counsel of Record
APPENDIX
APPENDIX A
UNITED STATES COURT OF APPEALS
FOR THE EIGHTH CIRCUIT
No. 90-1534
Kalima Jenkins, by her friend, Kamau Agyei; Carolyn
Dawson, by her next friend Richard Dawson; Tufanza A.
Byrd, by her next friend, Teresa Byrd; Derek A. Dydell, By
his next friend, Maurice Dydell; Terrance Cason, by his next
friend, Antoria Cason; Jonathan Wiggins, by his next friend,
Rosemary Jacobs Love; Kirk Allan Ward, by his next friend,
Mary Ward; Robert M. Hall, by his next friend, Denise Hall;
Dwayne A. Turrentine, by his next friend, Shelia Turrentine;
Gregory A. Pugh, by his next friend, David Winters, on behalf
of themselves and all others similarly situated;
Appellees,
American Federation of Teachers, Local 691,
v.
The State of Missouri; Honorable John Ashcroft, Governor of
the State of Missouri; Wendell Bailey, Treasurer of the State
of Missouri; Missouri State Board of Education
Roseann Bentley
Dan Blackwell
Gary M. Cunningham
Roger L. Tolliver
Raymond McCallister, Jr.
Susan D. Finke
Thomas R. Davis
Cynthia R. Thompson
Members of the Missouri State Board of Education
Robert E. Bartman, Commissioner of Education of the State
of Missouri,
Appellants,
A-2
and
School District of Kansas City, Missouri and Claude C.
Perkins, Superintendent thereof.
77-420-CV-W-4
Appeal from the United States District Court
for the Western District of Missouri.
Filed: May 23, 1991
JUDGMENT
This appeal from the United States District was submitted on
the record of the district court, briefs of the parties and was
argued by counsel.
After consideration, it is ordered and adjudged that the judg
ment of the district court in this cause is affirmed in accordance
with the opinion of this Court.
April 29,1991
A true copy.
ATTEST: /s/M ichael E. Gans, Acting Clerk
CLERK, U. S. COURT OF APPEALS,
EIGHTH CIRCUIT.
MANDATE ISSUED 5/21/91
A-3
APPENDIX B
United States Court of Appeals
for the Eighth Circuit
No. 90-1534
Kalima Jenkins, by her friend, Kamau Agyei; Carolyn
Dawson, by her next friend Richard Dawson; Tufanza A.
Byrd, by her next friend, Teresa Byrd; Derek A. Dydell, by
his next friend, Maurice Dydell; Terrance Cason, by his next
friend, Antoria Cason; Jonathan Wiggins, by his next friend,
Rosemary Jacobs Love; Kirk Allan Ward, by his next friend,
Mary Ward; Robert M. Hall, by his next friend, Denise Hall;
Dwayne A. Turrentine, by his next friend, Shelia Turrentine;
Gregory A. Pugh, by his next friend, David Winters, on behalf
of themselves and all others similarly situated;
Appellees,
American Federation of Teachers, Local 691,
v.
The State of Missouri; Honorable John Ashcroft, Governor of
the State of Missouri; Wendell Bailey, Treasurer of the State
of Missouri; Missouri State Board of Education
Roseann Bentley
Dan Blackwell
Gary M. Cunningham
Roger L. Tolliver
Raymond McCallister, Jr.
Susan D. Finke
Thomas R. Davis
Cynthia B. Thompson
Members of the Missouri State Board of Education
Robert E. Bartman, Commissioner of Education
of the State of Missouri,
— A-4
Appellants.
and
School District of Kansas City, Missouri and Claude C.
Perkins, Superintendent thereof.
Appeal from the United States District Court
for the Western District of Missouri.
Submitted: December 12, 1990
Filed: April 29, 1991
Before LAY, Chief Judge, HEANEY, Senior Circuit Judge,
and JOHN R. GIBSON, Circuit Judge.
JOHN R. GIBSON, Circuit Judge.
The State of Missouri appeals from an order of the district
court1 holding that the Jenkins class is entitled to post-judgment
interest on its attorneys’ fees accruing from the date when the
court first determined that the class was entitled to an award of
attorneys’ fees, rather than the date when the court quantified the
fees. Jenkins v. Missouri, 731 F. Supp. 1437, 1440-41 (W.D.
Mo. 1990). The district court thus held that post-judgment
interest should accrue from February 24,1986, the date on which
it determined entitlement to the fees. Id. at 1441. The State
argues that the accrual should not begin until May 11,1987, the
date when the district court quantified the fees. We affirm the
order of the district court.
This action for post-judgment interest on attorneys’ fees has
its origins in the 1977 lawsuit that challenged segregation in the 1
1 The Honorable RUSSELL G. CLARK, United States District Judge for
the Western District of Missouri.
A-5
Kansas City, Missouri, School District. Arthur A. Benson, II,
entered his appearance on behalf of the plaintiffs in March 1919,
and the NAACP Legal Defense Fund entered as co-counsel in
March 1982. Following a three-month bench trial, the district
court in September 1984 held the State defendants and the
KCMSD liable for intradistrict segregation. Jenkins v. Missouri,
593 F. Supp. 1485, 1505-06 (W.D. Mo. 1984). In June 1985,
after a two-week hearing on remedies, the district court entered
judgment on the merits, ordering $87 million in capital improve
ments and operating programs. Jenkins v. Missouri, 639 F. Supp.
19,43-44 (W.D. Mo. 1985), a ff das modified, 807 F.2d 657,662
(8th Cir. 1986) (en banc), cert, denied, 484 U.S. 816 (1987).
On February 5, 1986, the Jenkins class filed application for
attorneys’ fees under The Civil Rights Attorney’s Fees Award
Act of 1976,42U.S.C. § 1988 (1988). OnFebruary24,1986, the
district court found that “[cjlearly under the law, counsel for
plaintiffs are entitled to an award of attorney’s fees” and ordered
the State to make an immediate partial payment of $200,000 to
Benson. Jenkins v. Missouri, No. 77-0420-CV-W-4, slip op. at
1- 2 (W.D. Mo. Feb. 24, 1986). The State did not appeal this
award, and it made three payments, totalling $347,332.93, to
Benson during the litigation of the fees dispute in district court.
In May and July of 1987, the district court entered two separate
orders directing the State to pay Benson a total additional amount
of $1,381,897.44 in attorneys’ fees and expenses. Jenkins v.
Missouri, No. 77-0420-CY-W-4, slip op. at 16 (W.D. Mo. May
11,1987); Jenkins v. Missouri, No. 77-0420-CV-W-4, slip op. at
2- 3 (W.D.Mo. July 16,1987). It also awarded the Legal Defense
Fund $2,365,875.74 in fees and expenses. Jenkins, slip op. at 16
(May 11,1987). This court and the Supreme Court affirmed the
district court’s order. Jenkins v. Missouri, 838 F.2d 260,268 (8th
Cir. 1988), affd, 109 S. Ct. 2463, 2472 (1989).
In December 1989, the Jenkins class filed a motion for post
judgment interest. The district court found that Benson and the
— A-6 —
Legal Defense Fund were entitled to such interest from February
24,1986, the date when it had first determined that the class was
entitled to attorneys’ fees, rather than from May 11, 1987, the
date when the court had quantified the fees. Jenkins, 731 F.
Supp.at 1438-40. The district court also held that interest should
accrue at a rate of 7.71 percent, the U. S. Treasury Bill rate on
February 24, 1986. Id. at 1441. See also 28 U.S.C. § 1961(a)
(1988) (prescribing application of Treasury Bill rate).
The parties here agree that the Jenkins class is entitled to post
judgment interest on its attorney fee award under 28 U.S.C. §
1961(a), which states:
Interest shall be allowed on any money judgment in a civil
case recovered in a district court......... Such interest shall
be calculated from the date o f the entry o f the judgment, at
a rate equal to the coupon issue yield equivalent (as deter
mined by the Secretary of the Treasury) of the average
accepted auction price for the last auction of fifty-two week
United States Treasury bills settled immediately prior to the
date of the judgment.
(Emphasis added).
The phrase “any money judgment” in section 1961(a) is
construed as including a judgment awarding attorneys’ fees.
R.W.T. v. Dalton, 712 F.2d 1225, 1234 (8th Cir.), cert, denied,
464 U.S. 1009 (1983); Spain v.Mountanos, 690 F.2d 742, 747-
48 (9th Cir. 1982). In Dalton, this court held that post-judgment
interest on attorneys’ fees was mandatory under section 1961 (a)
and that denial of such interest constituted reversible error. 712
F.2d at 1234-35.
With the entitlement to post-judgment interest clear, the
parties’ disagreement is confined to the meaning of the phrase
“shall be calculated from the date of the entry of the judgment.”
The State contends that the proper construction of this language
A-7 —
establishes that the relevant date is when the fee award is
quantified or “liquidated.” The Jenkins class contends that the
relevant date is when the prevailing party becomes uncondition
ally entited to fees, either because of a statutory right or because
the court in its discretion has determined the party is entitled to
attorneys’ fees.
The district court concluded that all of the relevant authority
supported the plaintiffs’position. 731 F.Supp. at 1438-40. After
the district court issued its opinion, however, the Seventh Circuit
decided Fleming v. County of Kane, 898 F.2d 553,565 (7th Cir.
1990), which awarded the plaintiff post-judgment interest on his
attorneys’ fees from the date the fees were quantified. Id. at 565.
The Fleming court did not explain why it selected the date of fee
quantification rather than the date of fee entitlement, and it is not
clear whether the parties presented this issue. Fleming reversed
the district court’s ruling that had awarded pre-judgment interest
on the attorney’s fees. The Fleming court explained: “Prior to
the date the judgment on attorney’s fees was entered, plaintiffs
attorneys’ claim for unpaid attorney ’ s fees was unliquidated and,
as such, not entitled to interest.” Id. The court then concluded
that the “award of attorney’s fees was entered” on the date the
fees were quantified. Id.
The Fleming result runs counter to the holdings of the Fifth
Circuit in Copper Liquor, Inc. v. Adolph Coors Co., 701 F.2d
542 (5th Cir. 1983) (per curiam), and the Federal Circuit in
Mathis v. Spears, 857 F.2d 749, 760 (Fed. Cir. 1988). The
Copper Liquor court prescribed a two-pan test to determine
when attorneys’ fees should begin to accrue interest:
If a judgment is rendered that does not mention the right to
attorneys’ fees, and the prevailing party is unconditionally
entitled to such fees by statutory right, interest will accrue
from the date of judgment. If, however, judgment is
rendered without mention of attorneys’ fees, and the allow
A-8
ance of fees is within the discretion of the court, interest will
accrue only from the date the court recognizes the right to
such fees in a judgment.
Id. at 545. Under either part of the Copper Liquor test, interest
accrues from the date that the party becomes unconditionally
entitled to fees, even if those fees are not yet quantified. Id. The
Mathis court followed Copper Liquor, stating that “[ijnterest on
an attorney fee award . . . runs from the date of the judgment
establishing the right to the award, not the date of the judgment
establishing its quantum.” 857 F.2d at 760. The Jenkins class
contends that under Copper Liquor and Mathis, post-judgment
interest should accrue from a date no later than February 24,
1986.2
The State argues that there is no need to apply Copper Liquor
or Mathis because an Eighth Circuit case, Dalton, holds that
post-judgment interest does not begin to accrue until the date
when the fees are quantified.3 In Dalton, the district court
2 Although the Jenkins class sought and was awarded post-judgment
interest from February 24,1986, the class maintains that under the first prong
of Copper Liquor it is entitled to interest accruing from the June 14,1985,
judgment on the merits. See Jenkins v. Missouri, 639 F. Supp. 19 (W.D. Mo.
1985), off d as modified, 807 F.2d 657 (8th Cir. 1986) (en banc), cert, denied,
484 U.S. 816 (1987). As the Jenkins class does not actually seek interest
accruing from the June 14,1985, judgment, we need not decide this issue.
3 The State, while relying primarily onDalton, also argues that support for
its argument can be found in Fleming; Sun Ship, Inc. v. Matson Navigation
Co., 785 F.2d 59,64 (3d Cir. 1986); Institutionalized Juveniles v. Secretary
of Public Welfare, 758 F.2d 897,927 (3d Cir. 1985); Perkins v. Standard Oil
Co, 487 F.2d 672,675 (9th Cir. 1973); and Kaiser Aluminum <4 Chemical
Corp. v. Bonjorno, 110 S. Ct. 1570,1575-76 (1990). We agree that Fleming
lends some support to the State’s position, but conclude that Sun Ship,
Institutionalized Juveniles, Perkins, and Bonjorno do not address the issue
before us.
A-9
granted summary judgment in favor of the plaintiffs on October
14,1980. 712F.2dat 1228. On March 30,1982, it entered a final
judgmentawardingcostsandfeestotheplaintiffs. Id. Following
the district court’s denial of post-judgment interest on the attor
neys’ fees, this court reversed and held that post-judgment
interest should accrue from the March 30,1982, award of fees.
Id. at 1234-35.
The State argues that Dalton stands for the proposition that
post-judgment interest does not begin to accrue until the date
when fees are quantified. We reject such a reading of Dalton, as
did the district court. Jenkins, 731 F. Supp. at 1439. Dalton
simply did not address the issue presented here. In Dalton, the
district court apparently established the plaintiffs’ right to fees
on the same date as it quantified the fees. Id. The court therefore
had no need to address the issue before us.
After considering the purposes underlying the award of post
judgment interest, we are convinced that Copper Liquor and
Mathis establish the proper rule. In Dalton, we recognized the
purposes that are furthered by the awarding of post-judgment
interest on attorneys’ fees:
[A denial of post-judgment interest] would effectively
reduce the judgment for attorneys’ fees and costs, because
a certain sum of money paid at a certain time in the future
is worth less than the same sum of money paid today.
Failing to allow awards of attorneys’ fees to bear interest
would give parties against whom such awards have been
entered on artificial and undesirable incentive to appeal or
otherwise delay payment.
Dalton, 712 F.2d at 1234-35. See also Mathis, 857 F.2d at 760
(“The provision for calculating interest from entry of judgment
deters use of the appellate process by the judgment debtor solely
as a means of prolonging its free use of money owed the
judgment creditor”). The award of interest also serves the make-
— A-10 —
whole objective of fee awards in civil rights cases. Gates v.
Collier, 616F.2d 1268,1275-76 (5th Cir. 1980). See generally
S. Rep. 94-1011,94th Cong., 2d Sess. 2-5, reprinted in 1976 U.S.
Code Cong. & Admin. News 5908-13 (discussing purposes of
Civil Rights Attorney’s Fees Award Act of 1976). We also
observe that if the accrual of post-judgment interest is delayed
until fee awards are quantified and attorneys are thus not fully
compensated for their successful efforts, they may be reluctant
to take on complex and expensive litigation.
The State argues that until the fee award is liquidated, the party
responsible for payment has no way to satisfy its obligation, and
thus, no interest should accrue. We are not persuaded by this
argument. The fee-paying party suffers no prejudice from any
delay in quantifying the award because it has the use of the
money in the interim and because the statutory interest rate is tied
to the U.S. Treasury Bill rate. See 28 U.S.C. § 1961(a).
Several of the district courts that have considered the issue of
when post-judgment interest begins to accrue on attorneys’ fees
have applied the same approach used in Copper Liquor and
Mathis. See, e.g., Water Technologies Corp. v. Calco Ltd., 714
F. Supp. 899, 910 (N.D. 111. 1989); Proctor & Gamble Co. v.
Weyerhaeuser Co., 711 F. Supp. 904, 908 (N.D. 111. 1989);
Williamsburg Fair Hous. Comm. v. Ross-Rodney Horn. Corp.,
599 F. Supp. 509,522-23 (S.D.N.Y. 1984fBurstonv. Common
wealth o f Virginia, 595 F. Supp. 644, 652 (E.D. Va. 1984). But
see Griffin v. Ozark County, 688 F. Supp. 1372,1377 (W.D. Mo.
1988) (post-judgment interest on attorneys’ fees accrues from
date of judgment quantifying fees); McCullough v. Cady, 640 F.
Supp. 1012, 1028 (E.D. Mich. 1986) (dictum suggesting that
post-judgment interest properly accrues from date of judgment
quantifying attorneys’ fees because the fee claim is unliquidated
before that date).
— A -ll
Applying the second part of the Copper Liquor standard,4
which states that interest will accrue from “the date the court
recognizes the right to such fees in a judgment,” we conclude that
the Jenkins class is entitled to post-judgment interest on its
attorneys’ fees accruing from the February 24, 1986, order
declaring the class’s entitlement to those fees.
For the foregoing reasons, we affirm the judgment of the
district court.
LAY, Chief Judge, concurring.
I concur in the award of post-judgment interest on the attorney ’ s
fees beginning on February 24,1986. I must, however, disagree
with the studied effort used by the majority in recognizing that
award. The majority opinion relies on Copper Liquor, Inc. v.
Adolph Coors Co., 701 F.2d 542 (5th Cir. 1983) (en banc) (per
curiam). This case is not germane to our discussion and does not
address the issue at hand. In Copper Liquor, the Fifth Circuit
discussed an attorney’s fee award under the Sherman Act, 15
U.S.C. §§ 1,15 (1988). Under the antitrust laws the attorney’s
fee award was recognized as a matter of right under the appli
cable statutes. The interest on the award accrued from the date
of the judgment because the prevailing party was uncondition
ally entitled to such fees by statute, even if the judgment did not
mention the right to attorney’s fees. See Copper Liquor, 701
F.2d at 545. In the present case, we are dealing with an award of
attorney’s fees under the Civil Rights Act, 42 U.S.C. § 1988
(1988). Under section 1988 attorney’s fees are awarded, not as
a matter of right, but as a matter of discretion by the trial court.
Id.-, see White v. New Hampshire Dep’t o f Employment Sec., 455
4 As the Jenkins class has not sought post-judgment interest accruing from
the June 1985judgment on the merits, see footnote 2, we apply the second part
of the Copper Liquor test
— A-12 —
U.S. 445,454 (1982). The prevailing party is not entitled to post
judgment interest on an award for attorney ’ s fees unless the court
specifically enters such a judgment.
This case is relatively simple. The statutory provision govern
ing post-judgment interest is found in 28 U.S.C. § 1961(a)
(1988), which states in part that “[sjuch interest shall be calcu
lated from the date of the entry of the judgment.” In determining
when the judgment is entered on an award of attorney’s fees,
Rule 58 of the Federal Rules of Civil Procedure provides in part
that “[ejvery judgment shall be set forth on a separate document.
A judgment is effective only when so set forth and when entered
as provided in Rule 79(a).” Fed. R. Civ. P. 58. In the present
case, the district court, on February 24, 1986, awarded a judg
ment under the Civil Rights Attorney’s Fees Awards Act of
1976, 42 U.S.C. § 1988 (1988). At that time the district court
ordered that “ ‘counsel for plaintiffs are entitled to an award of
attorney’s fees’ and ordered the state to make an immediate
partial payment” of $200,000 to attorney Arthur Benson. Jenkins
v. Missouri, No. 77-0420-CV-W-4, slip op. at 1-2 (W.D. Mo.
Feb. 26,1986). This clearly constituted a final judgment under
Rule 58.
Post-judgment interest on the final judgment began to run on
the total judgment from the date of the judgment awarding the
attorney’s fees. The fact that the February 24 judgment con
tained only a partial sum for attorney’s fees is immaterial. The
total sum is readily ascertainable by mathematical computation
or other recognized standards.1 We need only look to Rule 58
1 As the Supreme Court has indicated, in an award for attorney ’ s fees under
section 1988, there can be several final judgments. White, 455 U.S. at 453.
— A-13
and section 1961 to ascertain the date from which the post
judgment interest should run.2
A true copy.
Attest:
CLERK, U. S. COURT OF APPEALS,
EIGHTH CIRCUIT.
2 As pointed out in the majority opinion, the state urges that we should
follow the Seventh Circuit decision in Fleming v. County of Kane, 898 F.2d
553 (7th Cir. 1990). In Fleming, the Seventh Circuit acknowledged that the
final judgment did not occur until June 24,1988. Id. at 565. Although the
court recited that the district court had rendered a memorandum opinion and
orderon April 12,1988, and a minute orderon June 23,1988,1 submit the only
reasonable conclusion is that the earlier opinions of the district court were not
final judgments under Rule 58. Under the circumstances, the decision in
Fleming is not supportive of any argument to the contrary. As the Supreme
Court has observed, “it may be unclear even to counsel which orders are and
which are not ‘final judgments.’ “ White, 455 U.S. at 453. The purpose of
Rule 58 was to obviate that confusion. See Bankers Trust Co. v. Mallis, 435
U.S. 381, 386 (1978).
— A-14
APPENDIX C
IN THE UNITED STATES DISTRICT COURT FOR THE
WESTERN DISTRICT OF MISSOURI
WESTERN DIVISION
No. 77-0420-CV-W-4
KALIMA JENKINS, et al.,
Plaintiffs,
vs.
STATE OF MISSOURI, et al.,
Defendants.
FILED: FEB. 24, 1986
ORDER
On February 5, 1986, Mr. Arthur Benson, II, one of the
attorneys for plaintiffs in the above-captioned case, moved for an
allowance of attorney’s fees and in addition asked for an imme
diate payment of $200,000.00, being only a very small percent
age of the total fee requested. OnFebruary 11,1986, the NAACP
Legal Defense Fund, Inc. likewise filed a request for attorney’s
fees and asked for an immediate award of $280,000.00.
On February 20,1986, the State defendants filed a response to
the requests for an immediate award of attorney ’ s fees and stated
that they have no objection to the immediate allowance of
attorney’s fees to Mr. Benson in the amount of $200,000.00 but
opposed the immediate award of $280,000.00 to the NAACP
Legal Defense Fund. The State defendants also take the position
that the attorney’s fees should be borne equally by the State
defendants and the KCMSD.
Clearly under the law, counsel for plaintiffs are entitled to an
award of attorney ’ s fees. Mr. Benson has made a very persuasive
argument that an immediate award of $200,000.00 should be
A-15
made to him. It is not so clear that any immediate award should
be made to the NAACP Legal Defense Fund.
Without making a determination as to whether the award of
attorney’s fees should be assessed against the State defendants as
well as the KCMSD, the Court will not require KCMSD to
participate in the payment of immediate fees being awarded to
Mr. Benson. Therefore, it is hereby
ORDERED that Mr. Arthur Benson, II is entitled to an
immediate award as partial payment of attorney’s fees in the
amount of $200,000.00 to be paid by the State defendants; and
it is further
ORDERED that the immediate award of $280,000.00 in
partial payment to the NAACP Legal Defense Fund, Inc. is
presently denied without prejudice.
/s/RUSSELL G. CLARK,
DISTRICT JUDGE
UNITED STATES
DISTRICT COURT
Dated: February 24, 1986
A-16
APPENDIX D
IN THE UNITED STATES DISTRICT COURT FOR'THE
WESTERN DISTRICT OF MISSOURI
WESTERN DIVISION
No. 77-0420-CV-W-4
KALIMA JENKINS, et al„
Plaintiffs,
vs.
STATE OF MISSOURI, et al.,
Defendants.
FILED: MAY 11, 1987
ORDER
Several motions for awards of attorney’s fees and expenses
are presently before the Court. Plaintiffs’ cou-counsel, Arthur
Benson, has moved for $3,310,587.00 in fees and expenses for
services rendered by him and his staff through June 30, 1986.
The Court will award Mr. Benson and his staff $1,614,437.43 for
these services. Having previously received $347,332.93 of this
amount, the balance due Mr. Benson for these services is
$1,267,104.50. In addition, Benson has requested $72,702.49 in
fees and expenses incurred in litigating his fee application. The
Court will award this amount. The Legal Defense Fund (LDF),
co-counsel for the plaintiffs in this case, moved the Court for
$3,170,600.20 in fees and expenses for services rendered through
May 31,1985. The Court will award the LDF $2,323,730.60 for
these services. In addition, the LDF seeks $65,411.64 in fees and
expenses incurred in pursuing its fee application. The Court will
award the LDF $42,145.14 for such services. The State of
Missouri defendants will be solely liable for the fees and ex
penses awarded by the Court. Co-defendant KCMSD has moved
the Court for $1,298,198.70 in attorney’s fees and litigation
— A-17
expenses for services rendered through June 30, 1986. This
motion will be denied. Intervenor Kansas City Missouri Federa
tion of Teachers Local 691 moved the Court for $62,169.37 in
attorney’s fees and expenses incurred through March 1, 1987.
This motion will be denied.
BENSON AND STAFF
Pursuant to 42 U.S.C. § 1988, the Court may allow the
prevailing parties in this suit a reasonable fee as part of the costs.
However, the plaintiffs in this case may only be considered
prevailing parties for attorney’s fees purposes if they succeeded
on any significant issue in the litigation which achieved some of
the benefit the parties sought in bringing the suit. Hensley v.
Eckerhart, 461 U.S. 424, 433 (1983), quoting Nadeau v.
Helegemoe,581 F .2d275,278-79 (1stCir. 1978). Theplaintiffs
in this action are undisputedly “prevailing parties” because this
Court found in favor of the plaintiffs on their liability claims
against the State of Missouri defendants and the KCMSD.
Jenkins v. State o f Missouri, 593 F. Supp. 1485,1505 (W.D. Mo.
1984).
The first step in determining a reasonable attorney’s fee is to
multiply “the number of hours reasonably expended on the
litigation times a reasonable hourly rate.” Blum v. Stenson, 465
U.S. 886, 888 (1984). Mr. Benson acknowledges that under
Henlsey v. Eckerhart, 461 U.S. 424 (1983), he and his staff
cannot receive compensation for all their time spent on this
litigation since the plaintiffs were not successful in their claims
against the suburban school districts, the Kansas defendants, and
the federal defendants. Accordingly, Mr. Benson excluded from
the total time expended by him and his staff approximately 353
hours which he claims was clearly allocable to work done on the
unsuccessful claims against these other defendants. The State
argues that Benson and his staff failed to exclude additional
hours that were expended solely on the unsuccessful claims.
A-18 —
Contrary to the contentions of the State of Missouri, the Court
finds that the specific exclusions made by Benson and his staff
accurately represent the time allocable to unsuccessful claims in
the litigation, and which was “distinct in all respects” from time
spent on their successful claims. Hensley v. Eckerhart, 461 U.S.
at 440.
The State also argues that the remaining time should be
reduced by 50% because the plaintiffs were unsuccessful on their
claim of interdistrict liability against the State and various other
defendants. The Court finds that these remaining hours either
related solely to the successful claims made by the plaintiffs
against the State and the KCMSD or were so closely interrelated
among the remaining claims that they cannot be separated or
reduced by some arbitrary percentage.
Finally, the State also requests an additional reduction of 5%
for alleged duplication of effort. The State argues that because
the plaintiffs utilized thirteen attorneys and numerous staff
personnel in this case that there was “inevitably” some duplica
tion of effort. Having examined the time records submitted by
Benson and his staff, the Court finds no such duplication.
Retention of numerous attorneys and a large staff in this lengthy
and complicated school desegregation case is certainly under
standable and is not in itself a ground for reducing the hours
claimed. Johnson v. University College o f the University of
Alabama in Birmingham, 706F.2d 1205,1208 (11th Cir. 1983).
For the reasons stated, the Court finds the hours submitted by
Mr. Benson and his staff represent the time reasonably expended
on this litigation.
The next step in arriving at reasonable attorney’s fees is the
determination of a reasonable hourly rate. In making such a
determination, the Court has carefully considered the twelve
factors enumerated in Johnson v. Georgia Highway Express,
Inc., 488 F.2d 714,717-19 (5th Cir. 1974) that have been adopted
— A-19
by the Eighth Circuit. E.g., Hardman v. Board o f Education of
Dollarway,Arkansas,7 14F.2d823,825 (8thCir. 1983). Among
these factors are the customary fee of the attorney and his
experience, reputation and ability. The Court finds that Mr.
Benson does not regularly charge an hourly rate in his civil rights
practice. Therefore, the Court must consider the current Kansas
City, Missouri hourly rate for attorneys with the litigation
experience and expertise comparable to that of Mr. Benson.
It is undisputed that Mr. Benson is an experienced trial
attorney who is widely recognized as a highly qualified civil
rights attorney in the Kansas City, Missouri area. Based on the
evidence presented to the Court, the Court finds that the hourly
rates for Kansas City, Missouri attorneys with litigation experi
ence and expertise comparable to that of Mr. Benson range from
$ 125.00 to $ 175.00 per hour. The Court finds that Mr. Benson’s
rate would fall at the higher end of this range based upon his
expertise in the area of civil rights.
Two additional Johnson factors are particularly applicable in
this case, i.e., the preclusion of other employment by the attorney
due to acceptance of a case, and the undesirability of a case. The
Court finds that from early 1983 until the end of 1985 Benson
devoted nearly all of his professional time to this case and was
thereby precluded from accepting other employment. Similarly,
Benson’s staff was also precluded from other employment for a
period of at least one year while working full time on this
litigation.
The undesirability of this case should also be considered in
determining Benson’s reasonable hourly fee. Undeniably, this
case has been very unpopular with many Missouri citizens as
evidenced by various statements, editorials, articles and letters
from parents, taxpayers and state officials.
In addition, the Court has considered delay in payment, a
factor not listed in Johnson, in determining a reasonable attorney ’ s
— A-20
fee for Benson’s services. Mr. Benson’s application is for
services rendered from March, 1979 through June 30, 1986. It
is essential that his hourly rate include compensation for the
delay in payment Jorstad v. IDS Realty Trust, 643 F.2d 1305
(8th Cir. 1981).
Accordingly, having carefully considered the twelve factors
set forth in Johnson, and the additional factor of delay in
payment, the Court finds that a reasonable hourly rate for Mr.
Benson’s services from 1979 through June 30,1986, is $200.00
per hour. This rate, multiplied by the number of hours reason
ably expended by Mr. Benson on the litigation, results in an
attorney’s fee of $1,004,160.00. The Court will award Mr.
Benson this amount for attorney’s fees for services rendered
through June 30,1986.
Mr. Benson had requested an hourly rate of $125.00 an hour
which when multiplied by his reasonable hours expended totals
$627,600.00. However, he also requested additional awards of
$370,042.00 for “quality of representation” and $1,135,800.00
for the “risk of nonpayment,” creating a total fee request for his
services of approximately $2.1 Million Dollars.
The Court finds that Benson’s request is improper because
under Blum v. Stenson, 465 U.S. 886, 898-900 (1984) the
“quality of representation,” along with the “novelty and com
plexity of the issues,” “the special skill and expertise of counsel,”
and the “results obtained” from the litigation are presumably
fully reflected in the product of the reasonable hours and a
reasonably hourly rate, and thus cannot serve as an independent
basis for increasing the basic fee award. In the present case, the
quality of Benson’s representation as well as the other factors
mentioned above, are fully reflected in the $1,004,160.00 fee
calculated by the Court.
The Court is aware that an upward adjustment is permissible
in the rare case where the fee applicant offers specific evidence
— A-21 —
to show that the quality of service rendered was superior to that
one reasonably should expect in light of the hourly rate charged
and that the success was exceptional. Blum v. Stenson, 465 U.S.
at 899. However, while Mr. Benson certainly provided quality
representation in this case, the Court does not find that this is the
“rare case” which warrants an upward adjustment.
The question of upward adjustment based on the risk of loss,
or as described by the plaintiffs, risk of nonpayment, was left
open in Blum b. Stenson, supra. However in Pennsylvania v.
Delaware Valley Citizens Council for Clean Air, No. 85-5, slip
op. at 20-21 (July 2,1986), the Supreme Court reset the case for
argument on that particular issue. To date, no such opinion has
been rendered. Notwithstanding, the Court finds that the plain
tiffs’ likelihood of success in their claim against the State of
Missouri defendants was very high, and thus Benson’s risk of
nonpayment very slight, because the State had mandated segre
gated schools for black and white children prior to 1954 and had
failed to take any affirmative steps to eliminate the unlawful
segregation after 1954. This small risk of nonpayment is fully
reflected in the reasonable attorney ’ s fee calculated by the Court.
Benson also requests a fee award for the services of four
attorneys whom he employed to assist him in the litigation of this
case. Two of these attorneys, Ms. Burkdoll and Ms. Goering,
were associates of Mr. Benson and billed 97% of the hours
submitted by these four attorneys on the fee application. Mr.
Benson requests an hourly rate of $80.00 per hour for Ms.
Burkdoll and Ms. Goering. The evidence presented to the Court
establishes that current Kansas City, Missouri hourly rates for
associates with experience and expertise comparable to Ms.
Burkdoll and Ms. Goering range from $60.00 to $95.00 per hour.
After careful consideration, the Court finds that $80.00 per hour
rate is approximately $15 to $20 higher than the average hourly
rate for Kansas City associates in 1982-84, the years in which
Ms. Burkdoll and Ms. Goering compiled their hours. However,
A-22
the differential is necessary to compensate Mr. Benson for the
delay in payment. However, the differential is necessary com
pensate Mr. Benson for the delay in payment. Accordingly, the
Court will award Mr. Benson a total of $304,348.00 in fees for
services rendered by Ms. Burkdoll and Ms. Goering from 1982
to 1984.
Benson also requested that he be awarded enhancements of
$319,328 and $287,912 for the services of Ms. Burkdoll and Ms.
Goering for the risk of nonpayment. As previously stated, the
risk of nonpayment was very small and is fully reflected in the
$80.00 per hour rate found to be reasonable by the Court.
The remaining two attorneys employed by Mr. Benson, Mr.
Routman and Mr. Thomas, collectively compiled 89 hours from
1981 through 1983. At the time they began assisting Mr. Benson
in this litigation, Mr. Routman had ten years of legal experience
and Mr. Thomas five. Both are presently partners in Kansas
City, Missouri law firms. After careful consideration, the Court
finds that the hourly rate of $90.00 for Mr. Routman and $85.00
per hour for Mr. Thomas requested in the fee application are
reasonable for the Kansas City, Missouri area. Therefore, the
Court will award Mr. Benson $7,663.00 in attorney’s fees for the
services o f Mr. Routman and Mr. Thomas.
Mr. Benson also requested an enhancement of the above
award for the risk of nonpayment. Again, the Court finds that
such a risk is very small and is fully reflected in the hourly rate
calculated by the Court.
Mr. Benson also employed seven paralegals and four law
clerks for whom he requests fees. The evidence presented to the
Court indicates that the current Kansas City hourly rates is
$40.00 an hour for paralegals and $35.00 for law clerks, the rates
requested by Mr. Benson. Therefore, the Court finds that the
requested rates are reasonable for the services rendered and will
award Mr. Benson $225,084.50 for paralegal and law clerk fees.
— A-23 —
Furthermore, the Court notes that it has adequately compensated
Mr. Benson for the delay in payment by calculating this award
based upon the current, rather than the historical, hourly rates.
In addition, Mr. Benson requests $73,182.43 in litigation
expenses that he has personally incurred from 1979 to June 30,
1986. The Court has carefully reviewed these expenditures and
finds them necessary and reasonable costs. Therefore, the Court
will award the requested amount.
Mr. Benson also seeks $72,702.49 in fees and expenses
incurredin preparing and litigating his fee application. Such fees
and expenses are compensable under 42 U.S.C. § 1988. Doulin
v. White, 549 F. Supp. 152, 159 (E.D. Ark. 1982). Mr. Benson
was represented in his fee application by Mr. Russell Lovell, a
professor of law at Drake University. Mr. Lovell is a regular
lecturer on civil rights litigation, including attorney’s fees. Prior
to joining the law faculty at Drake University, Mr. Lovell
practiced law for five years and served as counsel of record in
approximately twenty federal court civil rights cases. Based
upon the skill and experience of Mr. Lovell and type of work
involved, the Court finds that $125.00 per hour is a reasonable
Kansas City, Missouri hourly rate for preparing and litigating
this fee application. The Court finds that the time records
submitted by Mr. Lovell represent hours reasonably expended
on the fee application. Therefore, the Court will award $47,387.50
for services rendered by Mr. Lovell.
Mr. Benson requests a fee of $10,125.00 for his services in
litigation of his fee application. Having reviewed the time
records submitted by Mr. Benson, the Court finds that the 81
hours listed represent time that was reasonably expended on the
litigation. In addition, the Court finds that the $125.00 hourly
rate requested by Mr. Benson is a reasonable rate for the work
performed. Therefore, the Court will award Mr. Benson the
amount requested.
— A-24
In addition, Mr. Lovell and Mr. Benson collectively employed
three paralegals and two law clerks to assist in the preparation of
the fee application. The Court has reviewed the hours submitted
by these individuals and finds them reasonable. Furthermore,
the rates requested, $40.00per hour for paralegals and $35.00per
hour for law clerks, are certainly reasonable rates for the Kansas
City area. Therefore, the Court will award $7,865.00 in fees
requested for these staff members.
Finally, Mr. Benson requests $7,324.49 for expenses incurred
in litigation of this fee application. Having reviewed the record
submitted, the Court finds that these expenditures were neces
sary and their cost reasonable and will award the amount re
quested.
In summation, the Court finds that Mr. Benson and his staff are
entitled to a total award of $1,687,139.92 in fees and expenses
for services rendered from 1979 to June 30, 1986, and for fees
and expenses incurred in litigating his fee application. To date,
Mr. Benson has received $347,332.93 of this amount, leaving a
balance due of $1,339,806.99.
THE LEGAL DEFENSE FUND
The Court finds that this highly complex case required re
sources far beyond those available to Mr. Benson. Therefore, it
was necessary for Mr. Benson to obtain the assistance of an
organization such as the LDF. The LDF entered the case in
March, 1982 as co-counsel for the plaintiffs and is now request
ing an award of $3,170,600.20 in fees and expenses for services
rendered through May, 1985.
Approximately $2.5 Million of the total amount requested by
the LDF represents fees of attorneys, paralegals and law clerks.
As stated previously, the first step in determining a reasonable
fee is to multiply the number of hours reasonably expended on
the litigation times a reasonable hourly rate. Blum v. Stenson,
465 U.S. 886,888 (1984). Regarding the hours submitted by the
— A-25 —
LDF, the Court finds that the LDF properly excluded the time
that was clearly allocable to work done on the unsuccessful
claims pursuant to Hensley v. Eckerhart, 461 U.S. 424 (1983).
The Court finds that the remaining hours, except for 3.5 hours
submitted by Mr. Liebman for a 12-21-83 flight from Kansas
City to New Mexico, were reasonably expended on the litiga
tion, and are deserving of compensation.
In determining a reasonable hourly rate for the services of the
various LDF attorneys and support personnel, it is noteworthy
that such fees are to be calculated according to the prevailing
market rates in the relevant community, regardless of whether
plaintiff is represented by private or nonprofit counsel. Blum v.
Stenson, 465 U.S. at 895. The “relevant community” is the
“general locality in which the litigation takes place.” Interna
tional Travel Arrangers, Inc. v. Western Airlines, Inc., 623 F.2d
1255, 1275 (8th Cir. 1980). Therefore, the hourly rates to be
awarded the attorneys and staff of the New York based LDF will
be determined according to Kansas City, Missouri rates.
Seven of the LDF staff attorneys assisted Mr. Benson in the
litigation of this case from March 1982 to May 1985. In
determining a reasonable hourly rate for each attorney’s ser
vices, the Court has considered the twelve factors in Johnson v.
Georgia Highway Express, Inc., 488 F.2d at 717-19. The LDF
attorneys are salaried and do not charge a customary fee. There
fore, the Court must judge the experience, reputation and ability
of the individual attorneys and determine a reasonable hourly
rate for a Kansas City, Missouri attorney with similar expertise
and experience. Based upon the evidence presented the court
finds that the current Kansas City, Missouri hourly rate for
attorneys with litigation experience and expertise comparable to
that of LDF attorneys Liebman, Johnston, and Lief range from
$125 to $175 per hour. In addition the court finds that these
attorneys are entitled to compensation for delay in payment.
Therefore, the Court will award the LDF attorney’s fees at the
current, rather than historical, rates. Accordingly, the Court
A-26 —
finds that the $160.00 requested by Mr. Liebman is a reasonable
hourly rate and will award the LDF $650,688.00 for his services
rendered through May of 1985. Similarly, the Court finds that
$175.00 per hour is a reasonable hourly rate for the services of
Mr. Johnston and Ms. Lief and will award fees of $62,002.50 and
$122,447.50 respectively for their services.
The Court finds that the experience and expertise of attorneys
Shaw, Fins, Winter and Hair at the time of their involvement in
this case is comparable to that of associates with five or fewer
years experience. The current Kansas City hourly rate for such
associates ranges from $60.00 to $95.00 per hour. Therefore, the
Court finds that a reasonable hourly rate for the services of Mr.
Shaw, Mr. Winter, Ms. Hair and Ms. Fins in $95.00 per hour and
the Court will award the LDF a total of $384,617.00 for their
services.
LDF had requested rates higher than those awarded by the
Court claiming that the complexity and scope of litigation
prompted a hiring freeze and precluded it from accepting other
cases for which it would receive payment sooner. The Court
considered this factor, but finds that during this litigation the
LDF employed additional attorneys who were not involved in
this litigation and were available for work on other cases.
The LDF also requested the Court to award it a contingency
enhancement of $688,874.30. As stated previously, the Court
finds that the plaintiffs’ risk of loss, and thus the LDF’s risk of
nonpayment, was very slight and is fully reflected in the reason
able fees calculated by the Court.
In addition, the LDF requests an award for the services of
numerous paralegals, law clerks andrecentlaw graduates. Based
upon the evidence presented, the Court finds that the requested
rates of $50.00 an hour for recent law graduates, $40.00 for
paralegals, and $35.00 an hour for law clerks are comparable to
the current Kansas City, Missouri rates for these services.
A-27
Therefore, the Court will award the LDF $431,337.75 in fees for
the services rendered from March, 1982 to May 1985.
In addition, the LDF requests $627,637.85 in litigation ex
penses. The Court has carefully reviewed these expenditures
and finds that they were necessary and their cost reasonable.
Accordingly, the Court will award the LDF the requested amount.
The LDF also requested an award of $65,411.64 in attorney’s
fees and expenses incurred in the preparation and litigation of
their fee application. The Court has reviewed the time records
submitted by the four attorneys who represented the LDF in their
fee application and finds that they contain only those hours that
were reasonably expended on the litigation. However, the Court
finds that the New York rates requested by these attorneys,
ranging from $ 160.00 to $330.00 per hour, are excessive and do
not reflect a reasonable hourly rate in the Kansas City, Missouri
area for similar work. As the Court found in considering Mr.
Benson’s request for attorney’s fees incurred in litigating his fee
application, $ 125.00 per hour is a reasonable hourly rate for such
work in the Kansas City, Missouri area. Thus, the Court will
award the LDF $29,050.00 in fees for services rendered in
litigating its fee application.
The LDF also requests $11,441.33 for expenses incurred in
litigating its fee application. Having carefully reviewed these
expenditures, the Court finds that they were necessary and their
cost reasonable and will award the amount requested.
KCMSD
KCMSD requests an award of $1,298,198.70 for attorney’s
fees and expenses for work performed from March 1977 through
June, 1986. The issue before the Court is whether the Kansas
City, Missouri school district is a “prevailing party” within the
meaning of 42 U.S.C. § 1988.
— A-28
A party may be considered a prevailing party for attorney’s
fees purposes of they “succeed on any significant issue in the
litigation which achieves some of the benefit the party sought in
bringing suit.” Hensley v. Eckerhart, 461 U.S. at 433. For
purpose of analysis of the attorney’s fees issues, the “notion of
‘prevailing party’ is to be interpreted in a practical, nor formal,
manner.” Northcross v. Board o f Education, 611 F.2d 624, 636
(6th Cir. 1979), cert, denied, 447 U.S. 911 (1980).
This Court did find in favor of the defendant KCMSD on its
crossclaim against the State of Missouri defendants. Jenkins v.
State o f Missouri, 593 F. Supp. 1485, 1505 (W.D. Mo. 1984).
However, in its crossclaim, the KCMSD simply reiterated the
allegations of the plaintiffs that the State of Missouri had failed
to take action to dismantle its prior dual school system, and had
acted to perpetuate the segregation. This Court found for the
plaintiffs on this same claim against the state defendants. Jenkins
v. State o f Missouri, 593 F. Supp. at 1505. While the KCMSD
has certainly been improved by the remedial plans ordered by the
Court after assessing liability against the State and the KCMSD,
it is the plaintiffs, the victims of unlawful segregation, who have
benefited by prevailing on this claim originally alleged in their
complaint and subsequently made by the KCMSD in its crossclaim
against the State of Missouri. Moreover, the Court finds that the
same remedial plans would have been ordered, and thus the
KCMSD would have received the same benefits, even if it had
not reiterated the plaintiffs’ allegation in its crossclaim.
In addition, KCMSD in its crossclaim charges that the State
should be required to contribute financially to any remedial plan
the Court might order as relief against the KCMSD. The
KCMSD was adjudged liable for adopting ineffective policies to
change the segregative patterns and was subsequently directed to
fund approximately 20% of the initial remedy ordered by the
Court. Jenkins v. State o f Missouri, 639 F. Supp. 19 (W.D. Mo.
1986). However, on appeal, the Eighth Circuit held that the
desegregation costs ordered by this Court should be divided
A-29
equally between the KCMSD and the State of Missouri because
both were adjudged constitutional violators. Jenkins v. State of
Missouri, 807 F.2d 657, 684-85 (8th Cir. 1986).
Finally, the KCMSD alleges in its crossclaim, as did the
plaintiffs in their complaint, that the S tate is liable for interdistrict
violations. It is undisputed that the KCMSD and the plaintiffs
failed in their attempt to prove an interdistrict liability against the
State of Missouri.
Therefore, after a closs[sic] examination of the KCMSD’s
crossclaim against the State of Missouri defendants, the Court
finds that the KCMSD, as a practical matter, is not a “prevailing
party” within the meaning of 42 U.S.C. § 1988.
Notwithstanding the foregoing analysis, there exists a sepa
rate and compelling reason why the KCMSD should not be
awarded attorney’s fees and expenses in this case. In Jenkins v.
State o f Missouri, 593 F. Supp. 1485 (W.D. Mo. 1984), this
Court found that the KCMSD had violated the United States
Constitution by adopting policies which perpetuated, rather than
eliminated, segregation in its schools. Therefore, the Court finds
it inappropriate to award attorney’s fees to a constitutional
violator.
Accordingly, the KCMSD ’ s motion for an award of attorney ’ s
fees and expenses will be denied.
AFT 691
Intervenor Kansas City, Missouri Federation of Teachers
Local 691 (AFT 691) requests an award of $62,169.37 for
attorney’s fees and expenses incurred through March 1, 1987.
This determination lies within the sound discretion of this Court.
Little Rock School District v. Pulaski County Special School
District, 787 F.2d 372 (8th Cir. 1986).
— A-30 —
As noted several times in this opinion, a party may be
considered a prevailing party under 42 U.S.C. § 1988 if it
succeeds on any significant issue in the litigation which achieved
some of the benefits the party sought in bringing suit. Hensley
v. Eckerhart, 461 U.S. at 433. AFT 691 was granted leave to
intervene in this case on November 5, 1985, following the
Court’s liability order of September 17, 1984. AFT 691 had
sought leave to intervene to protect the interests of its members
and to assist the Court in fashioning a remedy to further litiga
tion. Notwithstanding, AFT 69l ’sparticipation in this litigation
has been de minimis. As other courts have recognized, this Court
finds that an intervenor should not be awarded attorney’s fees
unless it has played a significant role in the litigation. Grove v.
Mead School District No. 354, 753 F.2d 1528 (9th Cir. 1985),
cert, denied, 106 S. Ct. 85 (1985).
Accordingly, AFT 691’s application for attorney’s fees and
expenses will be denied.
LIABILITY FOR THE FEES AND EXPENSES
AWARDED
For the reasons set forth in this opinion, the Court will award
the plaintiffs approximately $4 Million in attorney’s fees and
expenses for work performed in this case. The remaining
question before the Court is against whom will these fees be
charged.
Plaintiffs succeeded on their liability claim against the State of
Missouri defendants in this case. Jenkins v. State o f Missouri,
593 F. Supp. 1485,1505 (W.D. Mo. 1984). This Court found the
State of Missouri to be the primary constitutional violator
because it had mandated separate schools for black and white
children prior to 1954, and after 1954 had failed to take any
affirmative action to eliminate the vestiges and devastating
effects of the dual school system it had created. Jenkins v. State
of Missouri, 593 F. Supp. at 1505-06. Accordingly, the Court
A-31 —
finds that the State of Missouri defendants are liable for the
attorney’s fees and expenses to be awarded plaintiffs’ counsel in
this case.
This Court also found in favor of the plain tiffs in their claim
against the KCMSD. Jenkins v. State o f Missouri, 593 F. Supp.
at 1505. However, the Court did not find that the KCMSD
caused the unlawful segregation within its district, but rather that
it failed to fulfill its constitutional obligation to act to disestablish
the dual system created by the State of Missouri. Jenkins v. State
of Missouri, 593 F. Supp. at 1504. This Court found that the
KCMSD had adopted policies which were ineffective in elimi
nating the unlawful segregation. Id.
Despite the adjudged constitutional violations of the KCMSD,
the Court finds that the KCMSD is not chargable[sic] for the
attorney’s fees and expenses to be awarded by the Court. The
KCMSD, originally a plaintiff in this action, was involuntarily
made a defendant by the Court in 1978. School District of
Kansas City, Missouri v. State o f Missouri, 460 F. Supp. 421,445
(W.D. Mo. 1978). After 1978, the KCMSD and the plaintiffs
cooperated closely in the development and prosecution of the
litigation and the KCMSD actually acknowledged prior to trial
that it had violated the constitutional rights of the plaintiffs.
In addition, the Court notes that in May, 1980 the State of
Missouri defendants were adjudged “primary constitutional
violators” in the St. Louis school desegregation case on facts
very similar to those in the present case. Liddell v. Board of
Education o f the City o f St. Louis, Missouri, 491 F. Supp. 351,
359 (E.D. Mo. 1980), affd, 667 F.2d 643 (8th Cir. 1981).
Despite this finding, the State of Missouri defendants persisted
in denying liability during the 10 1/2 month trial in this case on
the liability issues.
For the reasons stated, the Court will order that the State of
Missouri defendants are solely liable for the $4,053,015.66 in
fees and expenses to be awarded the plaintiffs in this case.
A-32 —
Accordingly, it is hereby
ORDERED that the Court awards Mr. Benson $1,614,437.43
in fees and expenses for services rendered by him and his staff
from 1979 through June 30, 1986; and it is further
ORDERED that the Court awards Mr. Benson $72,702.49 in
fees and expenses incurred in litigating his fee application; and
it is further
ORDERED that because Mr. Benson has previously received
$347,332.93 of this award, the balance due Mr. Benson is
$1,339,806.99; and it is further
ORDERED that the Court awards the LDF $2,323,730.60 in
fees and expenses for services rendered through May of 1985;
and it is further
ORDERED that the Court awards the LDF $42,145.14 for
fees and expenses incurred in litigating its fee application; and it
is further
ORDERED that the State of Missouri defendants are solely
liable for the $4,053,015.66 in fees and expenses awarded by the
Court, including the $347,332.93 the State has previously paid
Mr. Benson; and it is further
ORDERED that the KCMSD’s motion for an award of
attorney’s fees and expenses is denied; and it is further
ORDERED that AFT 691 ’ s motion for an award of attorney ’ s
fees and expenses is denied.
/s/RUSSELL G. CLARK,
DISTRICT JUDGE,
UNITED STATES
DISTRICT COURT
Dated: May 11, 1987
A-33
APPENDIX E
IN THE UNITED STATES DISTRICT COURT FOR THE
WESTERN DISTRICT OF MISSOURI
WESTERN DIVISION
No. 77-0420-CV-W-4
K ALIM A JENKINS, et al.,
Plaintiffs,
vs.
STATE OF MISSOURI, et al„
Defendants.
FILED: FEB. 26, 1990
ORDER
Before the Court is plaintiffs’ motion for award of post
judgment interest. The State filed a response and plaintiffs filed
a reply to the State’s response. The State filed a memorandum
reply to plaintiffs’ reply and plaintiffs filed a comment to the
State’s memorandum reply. Plaintiffs’ motion for award of post
judgment interest will be granted.
On September 17, 1984, the Court entered judgment in the
above-captioned case in favor of plaintiffs and against the State
and the KCMSD. Jenkins v. State o f Missouri, 593 F. Supp. 1485
(W.D. Mo. 1984). On February 24,1986, the Court entered an
order stating that “[cjlearly under the law, counsel for plaintiffs
are entitled to an award of attorney’s fees” and ordered t he State
to make an immediate partial payment of attorneys’ fees to
Arthur Benson in the amount of $200,000. Id.., Order of February
24, 1986, at 1-2. Subsequently, on May 11, 1987, the Court
entered an order stating that plaintiffs were entitled to recover
attorneys’ fees in the above-captioned case and directing the
State to pay Benson $1,687,139.92 in attorneys’ fees and ex
A-34
penses and to pay the Legal Defense Fund $2,365,875.74 in
attorneys’ fees and expenses.
Plaintiffs’ motion for award of post-judgment interest argues
that plaintiffs are entitled to post-judgment interest on attorneys ’
fees from the date of the February 24, 1986, order in which the
Court first determined plaintiffs were entitled to an award of
attorneys’ fees. The State responds that post-judgment interest
is only available from the date of the May 11, 1987, order
quantifying plaintiffs’ attorneys’ fees and that even if post
judgment interest runs from a date earlier than the quantifying of
the fee award, the Court’s award of current market rates and
enhancement of Benson’s rate for delay in payment should
preclude awarding post-judgment interest prior to the quantify
ing of the fee award, as it would result in a windfall to plaintiffs.
Plaintiffs originally alleged claims against defendants under
42U.S.C. §§ 1983 and 2000d and under the 14th Amendment to
the United States Constitution. Id., 593 F. Supp. at 1488.
Plaintiffs were successful on their claims, see id. at 1506, and
were subsequently awarded attorneys’ fees as a “prevailing
party” pursuant to 42 U.S.C. § 1988. Id., Order of May 11,1987,
at 2. 28 U.S.C. § 1961(a) (emphasis added) provides:
Interest shall be allowed on any money judgment in a
civil case recovered in a district court. Execution therefor
may be levied by the marshal, in any case where, by the law
of the State in which such court is held, execution may be
levied for interest on judgments recovered in the courts of
the State. Such interest shall be calculated from the date of
the entry o f the judgment, at a rate equal to the coupon issue
yield equivalent (as determined by the Secretary of the
Treasury) of the average accepted auction price for the last
auction of fifty-two week United States Treasury bills
settled immediately prior to the date of the judgment. The
Director of the Administrative Office of the United States
A-35
Courts shall distribute notice of that rate and any changes in
it to all Federal judges.
It is well-settled that the language “any money judgment” in
§ 1961 includes a judgment awarding attorneys’ fees, see, e.g.,
Mathis v. Spears, 857 F.2d 749,760 (Fed. Cir. 1988); R.W.T. v.
Dalton, 712F.2d 1225,1234-35 (8th Cir.), cert, denied,464 U. S.
1009 (1983); CopperLiquor,Inc. v. Adolph Coors Co., 701 F.2d
542, 543 (5th Cir. 1983) (en banc) (per curiam); Spain v.
Mountanos, 690 F.2d 742, 748 (9th Cir. 1982), and therefore
plaintiffs are entitled to an award of interest on their attorneys’
fees judgment pursuant to § 1961. The dispute resulting in the
current motion arises from the following § 1961 language:
“Such interest shall be calculated from the date of the entry of the
judgment. . . .” Plaintiffs contend that interest on plaintiffs’
attorneys’ fees award should begin to accrue on February 24,
1986, which is the date the Court first entered an order stating
that plaintiffs were entitled to recover attorneys’ fees. The State
argues that interest on the attorneys ’ fees award should not begin
to accrue until May 11,1987, which is the date the Court entered
an order quantifying plaintiffs’ attorneys’ fees award.
All courts that have specifically addressed this issue have
determined that interest should accrue from the date the Court
recognizes the party’s right to recover attorneys’ fees even if the
fees were not quantified. The Fifth Circuit has stated:
If a judgment is rendered that does not mention the right to
attorneys’ fees, and the prevailing party is unconditionally
entitled to such fees by statutory right, interest will accrue
from the date of judgment. If, however, judgment is
rendered without mention of attorneys’ fees, and the allow
ance of fees is within the discretion of the court, interest will
accrue only from the date the court recognizes the right to
such fees in a judgment.
A-36
Copper Liquor, 701 F.2d at 545 (emphasis added). In a footnote
that court stated that the “rule should not extend to the allowance
of interest prior to the time of the judgment recognizing the right
to costs and fees." Id. at 544 n.3 (emphasis added). The Federal
Circuit agreed with the Fifth Circuit:
The provision for calculating interest from entry of
judgment deters use of the appellate process by the judg
ment debtor solely as a means of prolonging its free use of
money owed the judgment creditor. Interest on an attorney
fee award thus runsfrom the date o f the judgment establish
ing the right to the award, not the date o f the judgment
establishing its quantum.
Mathis, 857 F.2d at 760 (citation omitted) (emphasis added).
The district courts which have specifically addressed the issue
reach the same result as Copper Liquor and Mathis. See Water
Technologies Corp. v. Calco Ltd., 714 F. Supp. 899, 910 (N.D.
111. 1989); Proctor & Gamble Co. v. Weyerhaeuser Co., 711 F.
Supp. 904, 908 (N.D. 111. 1989); Williamsburg Fair Housing
Committee v. Ross-Rodney Housing Corp., 599 F. Supp. 509,
522-23 (S.D.N.Y. 1984fBurstonv. Commonwealth of Virginia,
595F. Supp. 644,652 (E.D.Va. 1984). The court in Williamsburg
justified its award of interest on attorneys’ fees from the date the
fees were awarded as follows:
If a dollar amount had been set by this Court when the
order was entered [granting plaintiffs’ request for attor
neys’ fees], the plaintiffs’ attorneys would have been en
titled to immediate payment. Since the amount of the award
was not set forth at that time, the defendants have enjoyed
the use of that money and the plaintiffs’ attorneys have not.
Williamsburg, 599 F. Supp. at 523.
It appears that the cases cited by the State to support the
proposition that interest begins to accrue on the date an attor
A-37
neys’ fees award is quantified are distinguishable from the
current case and do not specifically address the issue raised in the
current motion. In R.W.T. v. Dalton, 712 F.2d 1225, 1228 (8th
Cir.), cert, denied, 464 U.S. 1009 (1983), the district court
granted summary judgment in favor of plaintiffs on October 14,
1980, and on March 30,1982, entered a final judgment awarding
plaintiffs’ attorneys’ fees in the amount of $34,815, but with no
award of post-judgment interest. The Eighth Circuit determined
that the district court should have awarded interest on plaintiffs’
attorneys’ fees award from March 30,1982, until payment. Id.
at 1234-35. The State argues that Dalton indicates that the
Eighth Circuit intended for post-judgment interest on an attor
neys’ fees award to begin to accrue only from the date of an order
quantifying such award. Although Dalton is somewhat ambigu
ous on this issue, the Court does not agree with the State’s
interpretation of Dalton. From the Eighth Circuit’s opinion it
would appear that the district court determined that plaintiffs
were entitled to an award of attorneys’ fees and quantified the
award of fees both in the March 30,1982, order. Therefore, there
was no need for the Eighth Circuit to specifically address and
determine if post-judgment interest began to accrue on the date
the court determined plaintiffs were entitle[sic] to an award of
attorneys’ fees or the date the attorneys’ fees award was quanti
fied. In addition, the Court notes that in Dalton the Eighth Circuit
approvingly cited Copper Liquor as authority. Id. at 1234.
The State also cites Griffin v. Ozark County, Missouri, 688 F.
Supp. 1372 (W.D. Mo. 1988). In Griffin, the court entered an
order on December 8,1987, in favor of plaintiff in the amount of
$500plus attorneys’ fees. Id. at 1372. On June 1,1988, the court
entered an order quantifying the attorneys’ fees award. Id. at
1377. The court cited Dalton in awarding plaintiff interest on
attorneys’ fees from the date of the order quantifying the attor
neys’ fees award. However, based upon the discussion o fDalton
previously in this order, it appears that the Griffin court’s
— A-38
reliance on Dalton is misplaced. In addition, the Court notes that
the Griffin court did not specifically address the issue raised by
the current motion.
The remaining cases cited by the State or disclosed through
the Court’s research are not dispositive on the issue of when post
judgment interest begins to accrue on an attorneys’ fees award
because the cases do not specifically address that issue and the
courts in those cases both awarded attorneys’ fees and quantified
such awards on the same date. See Institutionalized Juveniles v.
Secretary o f Public Welfare, 758 F.2d 897, 927 (3d Cir. 1985);
McCullough v. Cady, 640 F. Supp. 1012, 1028 (E.D. Mich.
1986); Advo System, Inc. v. Walters, 110 F.R.D. 426,433 (E.D.
Mich. 1986); Spell v. McDaniel, 616 F. Supp. 1069, 1115
(E.D.N.C. 1985), vacated in part on other grounds, 824 F.2d
1380(4thCir. 1987), cert, denied,484U.S. 1027(1988). Infact,
the court in Spell cited Dalton when stating that “interest accrues
as a matter of course from the date of entry of the judgment
awarding fees,” as opposed to quantifying fees. Id. (emphasis
added). The court in Advo also stated that interest accrues “from
the date of the judgment allowing this award.” Advo, 110 F.R.D.
at 433 (emphasis added). Although the court in McCullough
made the correct statement that“[c]laims for attorneys’ fees and
costs are unliquidated until finally determined by the court and
a judgment entered,” the court continued by stating that “interest
will be applied to the total amount of [the attorneys’ fees award]
from the date of the judgment allowing this award.” Id. (empha
sis added).
Therefore, the Court finds that the weight of authority favors
an award of interest on plaintiffs’ attorneys’ fees award from
February 24, 1986, the date the Court first determined that
plaintiffs were entitled to an award of attorneys’ fees. The State
argues that even if post-judgment interest is available to plain
tiffs from February 24, 1986, such an award would not be
appropriate in this case because plaintiffs received both current
A-39
market rates and an enhancement for delay in payment in the
May 11, 1987, order quantifying plaintiffs’ attorneys’ fees
award. Thus, the State argues that allowing plaintiffs to receive
post-judgment interest form February 24, 1986, results in a
windfall to plaintiffs. However, allowing plaintiffs to receive
post-judgment interest from February 24, 1986, does not result
in a windfall to plaintiffs. In its order of May 11,1987, the Court
determined that Benson’s hourly rate would fall at the high end
of a $125 to $175 per hour range. Jenkins, Order of May 11,
1987, at 4. The Court then considered the preclusion of other
employment by Benson due to this case, the undesirability of the
case and the delay in payment and found that “a reasonable
hourly rate for Mr. Benson’s services from 1979 through June
30,1986, is $200.00 per hour.” Id. at 4-5. Thus, it is clear that
the enhanced hourly rate for Benson was not based solely on
delay in payment, but also included the undesirability of the case
and preclusion of other employment. In addition, although the
Court stated that the enhanced hourly rate was for Benson’s
services through June 30, 1986, Benson’s last time entry for
litigation other than Year I monitoring and attorneys’ fees
litigation, which were compensation at a lower hourly rate of
$125, id. at 8; id., Order of July 14,1987, at 2, was on September
3, 1985. Benson was the only attorney whose hourly rate was
enhanced and this enhancement was for services rendered prior
to September 3, 1985. Benson was the only attorney whose
hourly rate was enhanced and this enhancement was for services
rendered prior to September 3,1985. This fact, combined with
the Court’s statement that “a reasonably hourly rate for Mr.
Benson’s services from 1979 through June 30,1986, is $200.00
per hour,” id., Order of May 11, 1987, at 4-5, indicates that the
May 11,1987, order did not compensate Benson at current 1987
market rates, but instead at 1986 rates. The attorneys’ fees award
at the 1986 rates and its enhancement was not meant to be a
substitute for post-judgment interest. Therefore, the Court finds
that an award of post-judgment interest on plaintiffs’ attorneys
fees award is appropriate.
— A-40
In the alternative, plaintiffs’ motion requests the Court to
award Benson $178,859.18 in prejudgment interest. Because
the Court will grant plaintiffs’ motion, it is unnecessary for the
Court to address the issues contained in plaintiffs’ alternative
motion.
For the foregoing reasons the Court will grant plaintiffs’
motion for award of post-judgment interest. The United States
Treasury Bill rate on February 24,1986, was 7.71% and, there
fore, plaintiffs are entitled to an award of interest on their
attorneys’ fees award at a rate of 7.71% from February 24,1986.
The State shall be solely liable for such interest payments. See
id. at 14-16. The State’s post-judgment interest obligation to
Arthur Benson and the Legal Defense Fund shall be credited
$113,379.44 and $184,124.26, respectively, for June 23, 1989,
payments of post-judgment interest by the State.
Accordingly, it is hereby
ORDERED that plaintiffs’ motion for award of post-judg
ment interest is granted; and it is further
ORDERED that plaintiffs are awarded post-judgment interest
at a rate of 7.71% from February 24, 1986, on their attorneys’
fees award; and it is further
ORDERED that the State shall be solely liable for post
judgment interest payments to plaintiffs; and it is further
ORDERED that the State’s post-judgment interest obligation
to Arthur Benson and the Legal Defense Fund shall be credited
$113,379.44 and $184,124.26, respectively, for previous post
judgment interest payments.
RUSSELL G. CLARK, JUDGE
UNITED STATES
DISTRICT COURT
Date: February 26, 1990