Blum v. Stenson Brief for the NAACP Legal Defense and Educational Fund et al. Amici Curiae, in Support of Respondent
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October 24, 1983

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Brief Collection, LDF Court Filings. Blum v. Stenson Brief for the NAACP Legal Defense and Educational Fund et al. Amici Curiae, in Support of Respondent, 1983. 91839afe-c99a-ee11-be36-6045bdeb8873. LDF Archives, Thurgood Marshall Institute. https://ldfrecollection.org/archives/archives-search/archives-item/fc0b64a3-e2d1-41bb-9c4c-a2214dcbd376/blum-v-stenson-brief-for-the-naacp-legal-defense-and-educational-fund-et-al-amici-curiae-in-support-of-respondent. Accessed April 06, 2025.
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No. 81-1374 In The ( ta rt of th? InttTii October Term, 1983 Barbara Blum, v. Ellen Stenson, Petitioner, Respondent. On Writ of Certiorari to the United States Court of Appeals for the Second Circuit BRIEF FOR THE NAACP LEGAL DEFENSE AND EDUCATIONAL FUND, INC., LAWYERS’ COMMITTEE FOR CIVIL RIGHTS UNDER LAW, PUERTO RICAN LEGAL DEFENSE AND EDUCATION FUND, INC., MEXICAN AMERICAN LEGAL DEFENSE AND EDUCATIONAL FUND, AMERICAN CIVIL LIBERTIES UNION, AMICI CURIAE, IN SUPPORT OF RESPONDENT E. Richard Larson * Burt Neuborne American Civil Liberties Union Foundation 132 West 43rd Street New York, New York 10036 (212) 944-9800 J ack J ohn Olivero Kenneth Kimerling Puerto Rican Legal Defense and Education Fund, Inc. 95 Madison Avenue New York, New York 10016 (212) 532-8470 J oaquin G. Avila Morris J. Baller Mexican American Legal Defense and Educational Fund 28 Geary Street, Suite 300 San Francisco, California 94108 (415) 981-5800 Attorneys for J ack Greenberg J ames M. Nabrit, III Charles Stephen Ralston Steven L. Winter NAACP Legal Defense and Educational Fund, Inc. 10 Columbus Circle, Suite 2030 New York, New York 10019 (212) 586-8397 Fred N. F ishman Robert H. Kapp Co-Chairmen Norman Redlich Trustee William L. Robinson Norman J. Chachkin Lawyers’ Committee for Civil Rights Under Law 733 15th Street, N.W., Suite 520 Washington, D.C. 20005 (202) 628-6700 Amici Curiae * Counsel of Record W i l s o n - E p e s P r i n t i n g C o . , In c , - 7 8 9 - 0 0 9 6 - W a s h i n g t o n , D . C . 2 0 0 0 1 TABLE OF CONTENTS Page Table of Authorities ................... ......... -.................... ii Interest of Amici............................ ........-....-......... - .... 1 Summary of Argument......................... ............... -......—- 3 ARGUMENT........................... -............ -.......................... 4 I. Congress Intended Trial Courts to Award Market-Based Fees Under the 1976 Act to Pre vailing Plaintiffs Represented by Non-Profit Civil Rights Organizations..........—----- ---------- 5 A. The Legislative History of the 1976 Act Thoroughly Demonstrates Congress’ Intent to Authorize Market-Based Fee Awards......- 6 B. Subsequent Congresses Have Ratified the Interpretation of the 1976 Act Which Was Applied by the District Court in this Case.... 16 II. The Standards for Fee Awards Proposed by the State Would Be Wholly Impracticable of Ap plication and Are Contrary to the Congressional Purpose in Enacting the 1976 A ct............. ........ 18 A. A Cost-Based Approach to Fee Computation Would Involve Civil Rights Organizations in Lengthy and Necessarily Complex Pro ceedings to Determine Fees .............-........... 19 B. The Continued Application of Market-Based Fees to Civil Rights Organizations Satisfies Congress’ Express Purpose of Promoting Enforcement of Civil and Constitutional Rights ........... ................... - .... - - ......... -........ 24 Conclusion ............... ..... ......... ------.... -..........................— 2^ Appendix A—Cases on Lodestar Fee Computation ...... la Appendix B—Cases Making No Reduction in Market Fees For Civil Rights Organizations..... 4a 11 TABLE OF AUTHORITIES Cases: Page Alsager v. District Court of Polk County, 447 F. Supp. 572 (S.D, Iowa 1977).......... ................... . I6n Alyeska Pipeline Serv. Corp. v. Wilderness Soc., 421 U.S. 240 (1975)....... ........... .......................... . 25n ASPIRA of New York, Inc. v. Board of Educ. of New York, 65 F.R.D. 541 (S.D.N.Y. 1975) ....... 6n Bates v. Little Rock, 361 U.S. 516 (1960)........ . 21 Bob Jones University v. United States, 76 L. Ed. 2d 157 (1983) .............. .................. ............... . h; Brown v. Board of Educ., 347 U.S. 483 (1954).... 26 Bradley v. School Bd. of Richmond, 416 U.S. 696 (1974) ---------- -------------------- ----- --------------6n, 25-26 Collins v. Hoke, 705 F.2d 959 (8th Cir. 1982)___ 17n Copeland v. Marshall, 641 F.2d 880 (D.C. Cir. 1980) ----- ------- --- -------------------- ------_.17n, 23, 24, 27 Copeland v. Marshall, 594 F.2d 244 (D.C. Cir. 1978), rev’d en banc, 641 F.2d 880 (D.C. Cir. 1980) .................... ...... .......... ......... ..................... 17n Davis v. County of Los Angeles, 8 E.P.D. f 9444 (C.D. Cal. 1974)..... ............ .............. ......... ...9,10, 14, 15 Delta Air Lines v. August, 450 U.S. 346 (1981)..12n-13n Dennis v. Chang, 611 F.2d 1302 (9th Cir. 1980)...... 28n Detroit v. Grinnell Corp., 495 F.2d 448 (2d Cir. 1974) ............................. ......... ..... .......... ............ 15 Fairley v. Patterson, 493 F.2d 598 (5th Cir. 1974)..7, 8, 14 Farmington Dowel Products Co. v. Forster Mfg. Co., 421 F.2d 61 (1st Cir. 1970)___________ 1 I5n Gautreaux v. Chicago Housing Auth,, 690 F.2d 601 (7th Cir. 1982) _____ _____ ____ ___________ 16 Glover v. Johnson, 531 F. Supp. 1036 (E.D. Mich. 1982) ....... ................ .......... ......... ....... _____....... . I7n Goldfarb v. Virginia State Bar, 421 U.S. 773 (1975) ................................................... ................. 22 Grunin v. International House of Pancakes, 513 F.2d 114 (8th Cir. 1975) ..................... ...... ............ I5n Hanrahan v. Hampton, 446 U.S. 754 (1980)___ 13 Hensley v. Eckerhart, 76 L. Ed. 2d 40 (1983)___ passim Hills v. Gautreaux, 425 U.S. 284 (1975)............... . 26 iii TABLE OF AUTHORITIES—Continued Page Johnson v. Georgia Highway Express, 488 F.2d 714 (5th Cir. 1974)..... ................. .................... ..9, 11, 12 Johnson v. Railway Express Agency, 421 U.S. 454 (1975) ...................................... .......... .................. 26 Jones v. Diamond, 636 F. 2d 1364 (5th Cir. 1981), cert, dismissed, 102 S. Ct. 27 (1982)...... ............ . 17n Lindy Bros. Builders v. American Radiator & Standard Sanitary Corp., 540 F.2d 102 (3d Cir. 1976) ........ ........ .......... ................... ...................... 23 Lindy Bros. Builders v. American Radiator & Standard Sanitary Corp., 487 F.2d 161 (3d Cir. 1973) ............ ............................................. ....... . 15, 23 Minority Employees at NASA v. Frosch, 694 F.2d 846 (D.C. Cir. 1982).................... .................... . 18n NAACP v. Alabama, 357 U.S. 449 (1958).............. 21 Newman v. Piggie Park Enterprises, Inc., 390 U.S. 400 (1968)... ..... ........ ............ ............................ 25 New York Gaslight Club v. Carey, 447 U.S. 54 (1980) ................ ...... ........... .................... ........... . 8 New York State Ass’n for Retarded Children v. Carey, 711 F.2d 1136 (2d Cir. 1983) ............16n, 20, 21 Northcross v. Board of Educ. of Memphis, 611 F.2d 624 (6th Cir. 1979), cert, denied, 447 U.S. 911 (1980)_______ ____ __________________ 17n, 18n, 25 O’Connor v. Donaldson, 422 U.S. 563 (1975)...... 26 Oldham v. Ehrlich, 617 F.2d 163 (8th Cir. 1980) ..16n, 17n, 28n Pacific Coast Agricultural Export Ass’n v. Sunkist Growers, 526 F.2d 1196 (9th Cir. 1975), cert. denied, 425 U.S. 959 (1976)................................. 15n Page v. Preisser, 468 F. Supp. 399 (S.D. Iowa 1979) ........ ....................................... ........ ............. 16n Palmigiano v. Garrahy, 616 F.2d 598 (1st Cir.), cert, denied, 449 U.S. 839 (1980) .......... ......... _17n, 28n Parham v. Southwestern Bell Tel. Co., 433 F.2d 421 (8th Cir. 1976)........ ................................. ........ . 6n Ramey v. Cincinnati Enquirer, 508 F.2d 1188 (6th Cir. 1974), cert, denied, 422 U.S. 1048 (1975).... 15n Ramos v. Lamm, 713 F.2d 546 (10th Cir. 1983) .... 16n IV TABLE OF AUTHORITIES—Continued Page Reynolds v. Coomey, 567 F.2d 1166 (1st Cir. 1978) ........... ...................... ............... .......... ...... . 8 Shelton v. Tucker, 364 U.S. 479 (1960)....... .......... 21 Stanford Daily v. Zurcher, 64 F.R.D. 680 (N.D. Cal. 1974)................... ........ .................. ............. 9,10, 15 Swann v. Charlotte-Mecklenburg Bd. of Educ., 66 F.R.D. 483 (W.D.N.C. 1975) ............ ......... 9,11,14 Tillman v. Wheaton-Haven Recreation Ass’n, 517 F.2d 1141 (4th Cir. 1975) ................................... 14,26 Torres v. Sachs, 538 F.2d 10 (2d Cir. 1976).....7, 8, 14, 27 Torres v. Sachs, 69 F.R.D. 343 (S.D.N.Y. 1975), aff’d, 538 F.2d 10 (2d Cir. 1976)....................... 7, 8 Trustees v. Greenough, 105 U.S. 527 (1981)___ 5 Vermont Yankee Nuclear Power Corp. v. NRDC, 435 U.S. 519 (1978)............................................. 4 Statutes: Civil Rights Attorneys’ Fees Awards Act of 1976, 42 U.S.C. § 1988, as amended ........... ............ .passim Equal Access to Justice Act, 28 U.S.C. § 2412(d).. 21n Equal Access to Justice Act, Pub. L. 96-481, § 206, 94 Stat. 2325 (1980).......................................... . 22n 42 U.S.C. § 1981 ..... ...... .............. ........................... . 26 42 U.S.C. § 1983 .............................................. 26 Legislative Materials: H.R. Rep. No. 1418, 96th Cong., 2d Sess. (1980), reprinted in 1980 U.S. Code Cong. & Ad. News 4984 ................ 21n-22n S. Rep. No. 1011, 94th Cong., 2d Sess. (1976), re printed in 1976 U.S. Code Cong. & Ad. News 5908-14 ............................................................ passim, H.R. Rep. No. 1558, 94th Cong., 2d Sess. (1976), reprinted in E. Larson, Federal Court Awards of Attorney’s Fees 288-312 (1981)........................... passim 122 Cong. Rec. (1976) ............................... passim Other Authorities: E. Larson, Federal Court Awards of Attorney’s Fees (1981) .......................................................... 15n In T he Ihqirrmr Olmtrt of tfj? lUrntth M iipb October Term, 1983 No. 81-1374 Barbara Bl u m , Petitioner, v. ’ E l len Sten so n , ______ Respondent. On Writ of Certiorari to the United States Court of Appeals for the Second Circuit BRIEF FOR THE NAA.CP LEGAL DEFENSE AND EDUCATIONAL FUND, INC., LAWYERS’' COMMITTEE FOR CIVIL RIGHTS UNDER LAW, PUERTO RICAN LEGAL DEFENSE AND EDUCATION FUND, INC', MEXICAN AMERICAN LEGAL DEFENSE! AND EDUCATIONAL FUND, AMERICAN CIVIL LIBERTIES UNION, AMICI CURIAE, IN SUPPORT OF' RESPONDENT INTEREST OF AMICI1 This brief is submitted on behalf of the NAACP Legal Defense and Educational Fund, Inc. (“LDF”), the Lawyers’ Committee for Civil Rights Under Law (“LCCRUL”), the Puerto Rican Legal Defense and Education Fund, Inc. (“PRLDEF”), the Mexican-American Legal Defense and Educational Fund (“MALDEF”), and the American Civil Liberties Union (“ACLU”) . amici curiae. 1 The parties have consented to the filing of this brief, and their letters of consent have been lodged with the Clerk of this Court under Rule 36.2 of the Rules of this Court. 2 Amici are non-profit, civil rights organizations which provide legal representation to persons seeking to vin dicate civil and constitutional rights. Amici litigate throughout the federal courts and frequently appear as counsel before this Court representing Blacks, Hispanics and other minorities in cases arising under our federal civil rights laws and under our Constitution. Amici provide this representation through their own staff attor neys and through cooperating private counsel, whose sub stantial litigation costs and expenses are often paid by amici. Both the quantity and the quality of the legal representation which can be provided by amici are di rectly affected by the amount of attorneys’ fees awarded in cases in which the parties whom they represent have prevailed. Amici were involved in most of the civil rights cases approvingly cited in the House and Senate Reports ac companying the Civil Rights Attorney’s Fees Awards Act of 1976, 42 U.S.C. § 1988, as amended, including cases under other fee-shifting statutes in which the courts held that fee awards to plaintiffs represented by civil rights organizations should not be based on different standards than awards to plaintiffs represented by pri vately retained counsel. Amici also have been involved in more than a dozen cases in which the courts of ap peals have applied this principle. As a result of the court decisions properly construing the Act and similar statutes to require that fee awards to prevailing parties be based upon market rates, amici have been able at least to maintain the level of legal services provided to individuals whose rights have been violated, despite sharply increased costs and the high rate of inflation. The cost-based approaches to fee computa tion advocated by the State would result in a severe cur tailment of the legal representation provided by and through amici. Because we believe that the novel approaches to fee computation urged by the State are contrary to Congress’ 3 intent and purpose as set forth in the legislative history of the 1976 Act, we submit this Brief Amici Curiae in support of Respondent. SUMMARY OF ARGUMENT 1. All indicia of the legislative purpose underlying the 1976 Civil Rights Attorney’s Fees Awards Act com pel the conclusion that Congress intended market-based fee computation, using market-value hourly rates and in cluding upward and downward adjustments of the lode star, to be applied to prevailing parties represented by non-profit and civil rights organizations. Both the Sen ate and House Reports, as well as the floor statements of the Act’s supporters, show that non-profit and civil rights organizations are entitled to market fees and ap prove the results reached in earlier cases which barred any reduction of market-based fees for such organiza tions. These sources confirm that the “appropriate stand ards” were “correctly applied” in three illustrative cases which “did not produce windfalls” ; in those cases, the courts rejected fee reduction for non-profit organizations, applied market-value hourly rates, and made upward ad justments of the lodestars. The House and Senate Reports also state that fees are to be awarded under the Act according to “the same standards” which prevail in other types of equally complex federal litigation, such as anti trust cases, standards which require the application of market-value hourly rates and allow adjustments of the lodestar. This construction of the statute has been fol lowed overwhelmingly in the courts of appeals since the Act became effective and it has been ratified by subse quent Congresses. 2. Throughout its Brief, the State offers a variety of policy options for this Court to substitute in place of this settled and correct construction of the Act, de spite the fact that it is not the role of the federal courts to act as super-legislatures, particularly on matters on which Congress has already spoken. The State, quite 4 simply, has altogether lost sight of the fact that “policy questions appropriately resolved in Congress . . . are not subject to reexamination in the federal courts under the guise of judicial review,” Vermont Yankee Nuclear Power Corp. v. NRDC, 435 U.S. 519, 558 (1978) (em phasis in original). Any reduction of market-based fee compensation for non-profit and civil rights organizations under the Act not only would contravene congressional intent, but it would also violate the express purpose of the Act: the encouragement and promotion of private enforcement of our fundamental civil and constitutional rights. The State’s cost-based policy options would subvert accom plishment of that purpose by forcing civil rights or ganizations into major litigation over fees, involving far- reaching inquiries of massive proportions. Continued use of market-based fee computation of awards to non-profit organizations, on the other hand, would fulfill Congress’ express purpose by facilitating representation of plain tiffs with civil rights and constitutional claims, as Con gress intended. ARGUMENT In the trial court, New York asserted none of the cost- based fee contentions which it subsequently raised in its Petition for Certiorari and which it has vigorously pur sued in its Brief.2 The State both failed to submit any 2 Although the Brief for Petitioner challenges the traditional standards of market-based fee compensation not just for non-profit and civil rights organizations, but also for private firms, the latter issue is not presented on the facts of this case and is not encom passed within the questions presented to- this Court, in the Statens Petition for Certiorari, at i. Accordingly, amici here address only the standards for fee awards to non-profit and civil rights organi zations. Further, while the State advances two basic contentions (that the use of market rates to determine the “lodestar’’ figure for an award, see Hensley v. Eckerhart, 76 L. Ed. 2d 40, 50-51 (1983), is inappropriate where the prevailing plaintiff is represented by counsel employed by a non-profit organization; and that in such circumstances a modification, to the lodestar1 figure for contingency 5 affidavits or documentary evidence in opposition to Re spondent’s application and also affirmatively waived its right to present any evidence at the fee hearing. It thus acceded, in the trial court, to the district judge’s applica tion of well-established judicial standards for the deter mination of “reasonable” fee awards under the Civil Rights Attorney’s Fees Awards Act of 1976, 42 U.S.C. § 1988 as amended [the “Act” or “1976 Act”] and other federal fee-shifting statutes. This Court should, there fore, affirm the judgment below since on the record be fore it the district court cannot be said to have abused its discretion. Trustees v. Greenough, 105 U.S. 527, 537 (1881). If the Court decides, notwithstanding these facts, to consider the merits of the State’s policy proposals, they must be rejected because they are wholly inconsistent with the congressional intent and purpose underlying the Act, as set forth primarily in S. Rep. No. 1011, 94th Cong., 2d Sess. (1976), reprinted in 1976 U.S. Code Cong. & Ad. News 5908-14; and in H.R. Rep. No. 1558, 94th Cong., 2d Sess. (1976), reprinted in Fj. Lar son, Federal Court Awards of Attorney's Fees 288-312 (1981) [hereinafter referred to, respectively, as the “Senate Report” and the “House Report”]. I. Congress Intended Trial Courts to Award Market- Based Fees Under the 1976 Act to Prevailing Plaintiffs Represented by Non-Profit Civil Rights Organizations Nothing in the language of the 1976 Act provides for the application of different standards in awarding fees to lawyers employed by non-profit organizations rather than private law firms. Nothing in the legislative history of the Act supports an argument that different rules risks or quality is also inappropriate), this Brief addresses prin cipally the first contention. Amici view contingency and quality adjustments as part of market-based fee calculation. The subject is dealt with more fully in the Brief of the Alliance for Justice', et al, Amici Curiae. 6 should apply. To the contrary, not only does the legisla tive history of the Act establish Congress’ intent that market-based fees should be awarded to non-profit civil rights organizations, but subsequent Congresses have rat ified that intent. A. The Legislative History of the 1976 Act Thoroughly Demonstrates Congress’ Intent to Authorize Market- Based Fee Awards Both the committee reports and the floor debates on the 1976 Act make abundantly clear Congress’ intention that non-profit organizations are entitled to market-based fee awards under the statute, just as are private law firms, in order to carry out its legislative purpose to facilitate private-party judicial enforcement of civil and constitutional rights.3 1. The House Report, at 8 n.16, explicitly approves awards to non-profit organizations in a footnote to the portion of the report dealing with the standards for de termining “Reasonable fees” under the Act, in which market-based fee computation is endorsed: 4 Similarly, a prevailing party is entitled to counsel fees even if represented by an organization or if the party is itself an organization. Incarcerated Men of Allen County v. Fair, [507 F.2d 281 (6th Cir. 1974) ]; Torres v. Sachs, 69 F.R.D. 343 (S.D.N.Y. 1975) , aff’d. [538 F.2d 10] (2d Cir. . . . 1976); Fairley v. Patterson, 493 F.2d 598 (5th Cir. 1974)dl5i 3 See infra pp. 24-28. 4 See infra ppi 13-14. 5 The Senate Report, similarly, explains the circumstances in which fees would be awarded by referring- to cases litigated under other fee-shifting statutes in which awards were made to pren vailing parties represented by civil rights organizations. See, e.g., Senate Report at 5, citing Bradley v. School Bd. of Richmond, 416 U.S. 696 (1974), an LDF case; Parham v. Southwestern Bell Tel. Co., 433 F.2d 421 (8th Cir. 1976), an LDF case; and ASPIRA of New York, Inc. v. Board of Educ. of New York, 65 F.R.D. 541 (S.D.N.Y. 1975), a PRLDEF case. 7 Examination of the cited cases makes clear that the or ganizations referred to were non-profit groups providing legal services in civil rights cases.8 Of equal or greater significance is the fact that two of the illustrative decisions— Torres v. Sachs and Fairley v. Patterson—did not concern entitlement to an award but instead involved only the amount of fees awardable. In both cases the courts rejected arguments that awards to civil rights organizations should be less than the market-based fees paid to private attorneys. In Fairley v. Patterson, 493 F.2d 598 (5th Cir. 1974), a LCCRUL lawsuit, the issue was “whether the [trial] court abused its discretion in limiting the awarded amount,” id. at 606. The court held explicitly “that allowable fees and expenses may not be reduced because [plaintiffs’] attorney was employed or funded by a civil rights organization and/or tax exempt foundation.” Id. And in Torres v. Sachs, 69 F.R.D. 343 (S.D.N.Y. 1975), aff’d, 538 F.2d 10 (2d Cir. 1976), a PRLDEF case, de fendants argued in both the trial court and on appeal that because plaintiffs’ counsel were employed by “legal services organizations,” “some measure of fees should be used less than the going rates for similar services re ceived by privately employed counsel,” 538 F.2d at 11. The district court specifically applied market-based hourly rates for the organizational attorneys, 69 F.R.D. at 347- 6 It is also evident from the floor debates that the Members of Congress were well aware that fee awards would be made to non-profit organizations. For example. Senator Helms, an opponent, complained: Undoubtedly the added incentive of receiving one’s attorneys’ fees from the opposing party will increase the number of cases brought before the Federal bench. The legal journal, Juris Doctor, reports future “attorneys’ fee awards were the num ber one factor in the future of public interest law financing.” 122 Cong. Ree. 38134 (1976). 8 48,7 and the Second Circuit affirmed, squarely rejecting the defendants’ arguments and quoting from Fairley, 538 F.2d at 12-14. This legislative history, approvingly incorporating Torres and Fairley, was expressly recognized in New York Gaslight Club v. Carey, 447 U.S. 54, 70 n.9 (1980), where this Court relied specifically on Torres and also on Reynolds v. Coomey, 567 F.2d 1166, 1167 (1st Cir. 1978) (an LDF case in which the court required fees “to be awarded to attorneys employed by a public interest firm or organization on the same basis as to a private prac titioner” ) and correctly observed that “Congress endorsed such decisions” when it enacted the 1976 Act. 2. The Senate Report states that the appropriate standards for determining reasonable fee awards under the Act were correctly applied in three illustrative cases, and that in each instance the award did not produce a “windfall:” The appropriate standards, see Johnson v. Georgia Highway Express, 488 F.2d 714 (5th Cir. 1974), are correctly applied in such cases as Stanford Daily v. Zurcher, 64 F.R.D. 680 (N.D. Cal. 1974) ; Davis v. County of Los Angeles, 8 E.P.D. 9444 (C.D. Cal. 1974) ; and Swann v. Charlotte-Mecklenburg Board of Education, 66 F.R.D. 483 (W.D.N.C. 1975). These cases have resulted in fees which are adequate to attract competent counsel, but which do not pro duce windfalls to attorneys. Senate Report at 6, quoted with approval in Hensley v. Eckerhart, 76 L. Ed. 2d at 48 n.4. Of obvious importance 7 For a case which was litigated on the merits in 1973 and 1974, the trial court set the market-based hourly rates for plaintiffs’ three organizational lawyers as follows: $75 per hour for lead counsel, a 1968 law graduate; and $50 per hour for plaintiffs’ other two lawyers, law graduates in 1969 and 1970, respectively. 69 F.R.D. at 346-48. The fee was ordered “to be paid by defendants to the Puerto Rican Legal Def ense Fund.” Id. at 348. 9 to the Senate Committee—and to the Congress which adopted its recommendations—were (a) the appropriate standards set forth in Johnson; (b) the correct applica tion of those standards in Stanford Daily, Davis, and Swann; and (c) the conclusion that the fee awards in the three illustrative cases did not produce windfalls. a. In Johnson v. Georgia Highway Express, 488 F.2d 714 (5th Cir. 1974), a decision involving appropriate fee computation for LDF staff attorneys and cooperating at torneys, the Fifth Circuit rejected a trial court’s low fee award—with hourly rates averaging between $28 and $33, rates below the bar association’s minimum fee scale, id. at 717—and directed trial courts to consider twelve factors commonly used to determine lawyers’ fees, id. at 717-19.8 Rather than anywhere suggesting that differ ent factors should govern fees for the LDF on the one hand and for private firms on the other, the Fifth Cir cuit remanded for reconsideration of the fee awards to all of plaintiffs’ counsel in light of the same, uniform set of factors which, the Fifth Circuit observed, were “con sistent with those recommended by the American Bar Association’s Code of Professional Responsibility, Ethical Consideration 2-18, Disciplinary Rule 2-106,” id. at 719. Accord, Hensley v. Eckerhart, 76 L. Ed. 2d at 48 n.3 (“These factors derive directly from the American Bar Association Code of Professional Responsibility, Discipli nary Rule 2-106”). b. The factors set forth in Johnson were meaningfully illustrated in the “three district court decisions that ‘cor rectly applied’ the twelve factors.” Hensley, 76 L. Ed. 2d at 48. 8 The twelve factors set forth and described in Johnson were summarized by this Court in Hensley v. Eckerhart, 76 L. Ed. 2d at 48 n.3. The Court in Hensley, id. a t 48, also1 noted that Johnson was relied upon not only in the Senate Report (at 6) but also in the House Report (at 8). See also 122 Cong. Rec. 32185 (1976) (Sen. Tunney) ; id. a t 35115 (Rep. Anderson); id. at 35123 (Rep. Drinan). 10 The district court’s fee decision in Stanford Daily v. Zurcher, 64 F.R.D. 680 (N.D. Cal. 1974), is the very model of the lodestar method of fee computation now re quired of the trial courts by all courts of appeals. See generally the decisions collected in Appendix A to this Brief. The Stanford Daily court first determined the time reasonably expended by plaintiff’s counsel, id, at 683, 687, then ascertained the hourly rates which re flected the non-contingent value 9 of the attorneys’ services, id. at 685, and then made an upward adjustment to ac count for contingency risks and quality of representation, id. at 688.10 The same lodestar methodology was used to arrive at a reasonable fee award for both a private practitioner and for a civil rights organization in Davis v. County of Los Angeles, 8 E.P.D. 'IT 9444 (C.D. Cal. 1974).11 Entirely irrelevant in calculating the fee award was the fact that plaintiffs were represented by a non-profit organization: In determining the amount of the fees to be awarded, it is not legally relevant that plaintiffs’ counsel . . . are employed by the Center for Law In The Public Interest, a privately funded non-profit 9 See 122 Cong. Rec. 35123 (1976) (Rep. Drinan) : I should add that the phrase “attorney’s fee?’ would include the values of the legal services provided by counsel, including all incidental and necessary expenses incurred in furnishing effective and competent representation. 10 The Stanford Daily court concluded that the requested 750 hours were reasonable; allowed a $50 hourly rate which, the court pointed out, “is only $1.70 an hour less than the average hourly rate which plaintiffs’ attorneys recommended to' the court” ; and then adjusted the $37,500 lodestar (750 hours times $50 per hour) upward by $10,000, an adjustment of the lodestar by approximately 28%. 64 F.R.D. at 683-88. 11 The Davis court fixed market rates of $60, $55, and $35 per hour for plaintiffs’ three lawyers, and upon consideration of the adjustment factors, allowed an upward adjustment of the lodestar by approximately 18%. 8 E.P.D. at 5048. 11 public interest law firm. It is in the: interest of the public that such law firms be awarded reason able attorneys’ fees to be computed in the traditional manner when its counsel perform legal services otherwise entitling them to the award of attorneys’ fees. 8 E.P.D. at 5048-49 (citations omitted). The identical conclusion was reached by the court in Swann v. Charlotte-Mecklenburg Board of Education, 66 F.R.D. 483 (W.D.N.C. 1975), a decision, like Johnson, awarding fees for time expended by LDF staff attorneys and local cooperating attorneys.12 The LDF, in addition to being a recipient of the fees in Swann, had reimbursed local counsel for “their out-of-pocket expenses” and had “also compensated local counsel on a nominal basis,” 66 F.R.D. at 486. These factors, however, were deemed irrelevant in view of the established legal principle that market-based “reasonable fees should be granted . . . regardless of whether the attorneys were salaried em ployees of a legal aid agency.” Id. (citations omitted). c. As observed in the Senate Report at 6, the fee awards in the foregoing cases—computed according to traditional market-based standards—did not result in “windfalls.” Instead, “These cases have resulted in fees which are adequate to attract competent counsel, but 12 Although the actual fee computation methodology is not ex plicitly set forth in Swann, the trial court did agree with the rea sonableness of the 2,700 hours expended, and the court allowed a fee award of $175,000, 66 F.R.D. at 484, 486. From these figures it may be inferred that the trial court applied hourly rates averaging $65 per hour, or that lower market rates were applied to determine a lodestar which was then adjusted upwards. While the Swann court did not award plaintiffs’ counsel all that they requested and fixed a total fee award which was less than the amount paid by the school board to its retained private counsel, the- court certainly did not use different standards for those of plaintiffs’ counsel em ployed by LDF and those in private practice in North Carolina. 12 which do not produce windfalls to attorneys.” Id. (em phasis added) .1S d. Congressional adoption of the Johnson factors, and congressional approval of their correct application in the foregoing three illustrative cases, was recognized by this Court in Hensley v. Eckerhart, 76 L, Ed. 2d at 48 & n.4, a case involving the appropriate standards for awarding fees to Legal Services of Eastern Missouri. In Hensley, there was no disagreement between the Justices in the majority and the concurring Justices with regard to the appropriate elements of the fee computa tion. Justice Powell wrote, for the majority: The most useful starting point for determining the amount of a reasonable fee is the number of hours reasonably expended on the litigation multi plied by a reasonable hourly rate. This calculation provides an objective basis on which to make an in itial estimate of the value of a lawyer’s services. . . . The product of reasonable hours times a reason able rate does not end the inquiry. There remain other considerations that may lead the district court to adjust the fee upward or downward, including the important factor of the “results obtained.” 76 L. Ed. 2d at 50, 51 (footnote omitted and emphasis added).14 The four concurring Justices agreed: 13 No Senator or Representative suggested that windfall awards were likely under the Act. The only mention of “windfalls” during the debates referred to percentage-of-recovery awards in the tens of millions of dollars in treble damage suits. See 122 Cong. Rec. 31473-74 (1976) (Sen. Allen). 14 The fee computation methodology explained by Justice Powell for the majority in Hensley as applicable to' determining fees for civil rights organizations is the same methodology set forth as applicable to- Title VII private practitioners in Delta Air Lines v. August, 450 U.S. 346, 364-65 (1981) (Powell, J., concurring) : The primary factors relevant to setting the fee usually are the time expended and a reasonable hourly rate for that time.3 3 In Lindy Bros. Builders, Inc. V. American Radiator & Standard Sanitary Corp., 540 F.2d 102 (1976) (en banc), the 13 As nearly as possible, m arket standards should pre vail, for that is the best way of ensuring tha t com petent counsel will be available to all persons with bona fide civil rights claims. This means tha t judges awarding fees must make certain tha t attorneys are paid the full value tha t their efforts would receive on the open m arket in non-civil-rights cases, both by awarding them market-rate fees, and by award ing fees only for time reasonably expended. . . . 76 L. Ed. 2d at 59 (citations omitted and emphasis added in part). See also id. at 58 n.6 (concurring opinion). 3. The same conclusion flows from the 94th Congress’ adoption of existing judicial standards under other fed eral fee-shifting statutes to apply under the 1976 Act. As this Court correctly pointed out in Hanrahan v. Hampton, 446 U.S. 754 (1980), “The provision for counsel fees in § 1988 was patterned upon the attorney’s fees provisions contained in Titles II and VII of the Civil Rights Act of 1964, and § 402 of the Voting Rights Act Amendments of 1975.” 446 U.S. at 758 n.4 (statutory citations omitted), citing the Senate Report at 2 and the House Report at 5, and further citing interpretive cases. In addition to the legislative history references cited in Hanrahan, the House Report, at 8, explicitly states the “intentt] that, at a minimum, existing judicial standards, Court of Appeals for the Third Circuit held that the primary determinant of a court-awarded feet—the. “lodestar”—should be the amount of time reasonably expended on the matter multiplied by a reasonable hourly rate. The “lodestar” is subject to' adjustment based on, inter alia, the quality of the work and the results obtained. Id., a t 117-118; accord, Furtado V. Bishop, 635 F.2d 915 (CA1 1980) ; Copeland V. Marshall, 205 U.S. App. D.C. 390, 641 F.2d 880 (1980) (en bane). Cf. Johnson V. Georgia Highway Express, Inc., 488 F.2d 714 (CA5 1974). 14 to which ample reference is made in this report, should guide the courts in construing [the Act].” 16 Under existing judicial standards interpreting other federal fee-shifting statutes, the uniform judicial ap proach was to apply the same market-based standards to plaintiffs represented by either public or private counsel. See, for example, the legislative history-cited cases: Tor res, 538 F.2d at 12-14 (Voting Rights Act) ; Fairley, 493 F.2d at 606 (same) ; Swann, 66 F.R.D. at 486 (ESAA) ; Davis, 8 E.P.D. at 5048-49 (Title VII) ; see also Tillman v. Wheaton-Haven Recreation Ass’n, 517 F,2d 1141, 1148 (4th Cir. 1975) (Title II). 4. Congress’ approval of fee awards based on market rates and appropriate adjustments of the lodestar as “reasonable” awards is further illustrated by its reliance on the standards of fee computation applied in other types of equally complex federal litigation. In addition to ex pressly approving the standards applied under other fed eral fee-shifting statutes, the Senate Report, at 6, states: It is intended that the amount of fees awarded under [the Act] be governed by the same standards which prevail in other types of equally complex Fed eral litigation, such as antitrust cases and not be reduced because the rights involved may be non- pecuniary in nature.1161 15 See also Senate Report, at 4. Proponents of the 1976 Act also repeatedly referred during the floor debates to the ample precedent under earlier statute's which would guide1 the' courts in applying the bill’s provisions. See, e.g., 122 Cong. Rec. 31471 (1976) (Sen. Scott) ; id. a t 35114-15 (Rep. Anderson) ; id. at 35117 (Rep. Railsback) ; id. a t 35122-23 (Rep. D rinan); id. a t 35125 (Rep. Kastenmeier). Senator Helms sought to impose a “bad faith” requirement in order to prevent construction of the Act in the same manner as earlier fee-shifting provisions. His amendment was de feated. 122 Cong. Rec. 38133-35 (1976). 16 A similar comparative reference to fee compensation, in anti trust cases is made' in the House! Report at 9 : “The' same, principle should apply here as civil rights plaintiffs should not be singled out for different and less favorable treatment.” 15 In other types of complex federal litigation, such as antitrust and securities cases, the amount of fees awarded has never been governed by—and is not now governed by—any factors pertaining to the overhead or to the cost outlays of the lawyers’ employers, or to the take-home pay of the lawyers themselves. Instead, fee awards in large monetary cases were sometimes based on percentages of the recoveries, while fee awards in other litigation (and often in monetary cases as well) were governed simply by market-based standards. By 1976, the amount of fees awarded in antitrust and securities cases was determined by the lodestar method. See generally Lindy Bros. Builders v. American Radiator & Standard Sanitary Corp., 487 F.2d 161, 166-70 (3d Cir. 1973), and Detroit v. Grinned Corp., 495 F.2d 448, 470- 74 (2d Cir. 1974).17 The lodestar method employs what unquestionably are market-based standards of fee compu tation: consideration of hours reasonably expended, the hourly rates which reflect the value of the lawyers’ serv ices, and adjustments to the lodestar to account for con tingency and quality factors which alter rates in the market place.18 This of course is the same lodestar method which was utilized by the courts in Stanford Daily and Davis (where the courts “correctly applied” the appropriate criteria of fee compensation). And it is the same lodestar method required of the trial courts by all courts of appeals in civil rights cases and in other complex cases alike. See generally the cases collected in Appendix A to this Brief. 17 See also, e.g., Grunin v. Int’l House of Pancakes, 513 F.2d 114, 125-29 (8th Cir. 1975) ; Ramey v. Cincinnati Enquirer, 508 F.2d 1188, 1196-98 (6th Cir. 1974), cert, denied, 422 U.S. 1048 (1975); Farmington Dowel Products Co. v. Forster Mfg. Co., 421 F.2d 61, 86-91 (1st Cir. 1970); cf. Pacific Coast Agricultural Export Ass’n v. Sunkist Growers, 526 F.2d 1196, 1210 (9th Cir. 1975), cert, denied, 425 U.S. 959 (1976). 18 See generally E. Larson, Federal Court Awards of Attorney’s Fees 115-240 (1981), and cases cited herein. 16 B. Subsequent Congresses Have Ratified the Interpre tation of the 1976 Act Which Was Applied by the District Court in this Case In Bob Jones University v. United States, 76 L. Ed. 2d 157, 178-79 (1983), and in other cases, this Court has recognized that when a statute has been given a con sistent judicial construction, and when that interpretation has been made known to Congress but Congress takes no action to amend the law in order to overturn that con struction, this congressional “ratification” makes the pre vailing judicial interpretation a part of the law. That is the situation here. As the Seventh Circuit recently put it, “The notion that fee awards should be reduced where they are to be paid to not-for-profit organizations has been rejected by every court of appeals to consider it.” Gautreaux v. Chicago Housing Authority, 690 F.2d 601, 613 (7th Cir. 1982). This virtual unanimity is reflected in the twenty courts of appeals’ decisions which have addressed this issue and resolved it (primarily in reliance upon the legislative history and the purposes of the Act). See generally the courts of appeals’ decisions collected in Appendix B to this Brief.19 Under these decisions, and in conjunction 19 We concede that the State’s elaborate argument does find support in one currently viable decision: Judge Newman’s recent opinion for the Second Circuit in New York Ass’n for Retarded Children v. Carey, 711 F.2d 1136, 1148-52 (2d Cir. 1983). Judge Newman’s, opinion, however, is likely to remain a lonely aberration. It is contrary to a Tenth Circuit ruling issued the same day, Ramos v. Lamm, 713 F.2d 546, 551-52 (10th Cir. 1983), and to the. decisions of every other court of appeals. See Appendix B to this Brief. Significantly, it is also contrary to both the majority and con curring opinions in Hensley. The other cases upon which the State relies hardly presage a trend. Page v. Preisser, 468 F. Supp. 399 (S.D. Iowa 1979) and Alsager v. District Court of Polk County, 447 F. Supp. 572 (S.D. Iowa 1977) were, disapproved by the Eighth Circuit, see Oldham v. Ehrlich, 617 F.2d 163, 168-69 (8th Cir. 1980), and thereafter the 17 with the lodestar methodology, the hourly rate component of the lodestar is determined by the market-based value of the attorneys’ services, permissible adjustments to the lodestar account for contingency and quality factors, and the end result is a reasonable fee and not a windfall.'20 author of those rulings himself allowed market rate fees, without reduction, to plaintiffs represented by the Legal Services Corpora tion of Iowa, in, a decision quickly affirmed by the Eighth Circuit on the basis of Oldham, Collins v. Hoke, 705 F.2d 959 (8th Cir. 1983). Glover v. Johnson, 531 F. Supp. 1036 (E.D. Mich. 1982) inexplicably departed from the fee computation method adopted by the Sixth Circuit in Northcross v. Board of Educ. of Mem,phis, 611 F.2d 624 (6th Cir. 1979), cert, denied, 447 U.S. 911 (1980) and has not been, followed by other courts within the Circuit. Finally, Judge Wilkey’s opinion in Copeland v. Marshall, 594 F.2d 244 (D.C. Cir. 1978) and his dissent in id., 641 F.2d 880, 908-30 (D.C. Cir. 1980) (en banc) are nothing more than a minority viewpoint rejected within his own. Circuit and by others, see, e.g., Palmigiano v. Garrahy, 616 F.2,d 598, 603 (1st Cir.), cert, denied, 449 U.S. 839 (1980). 20 Petitioner’s repeated mischaracterization of contingency-factor adjustments to the lodestar as “windfalls” unauthorized by the Act not only is a contention directly contrary to the legislative history of the Act, see supra at pp. 6-15, but it also represents a serious misunderstanding about why risks of litigation and delays in payment must; be considered in computing a reasonable fee. As summarized by the Fifth Circuit en banc in. Jones v. Diamond, 636 F.2d 1364, 1382 (5th Cir. 1981), cert, dismissed, 102 S. Ct. 27 (1982), consideration of the contingency factors, in setting a rea sonable fee under § 1988 “reflects the provisions of the ABA Code of Professional Responsibility, DR 2-106 (B )(8), and the practice of the Bar1.” The reason is obvious: Lawyers who are to be compensated only in the event of victory expect and are entitled to be paid more when successful than those who are assured of compensation regardless of result. This is neither less nor more appropriate in. civil rights litigation, than in personal injury cases. The standard of com pensation must enable counsel to accept apparently just causes without awaiting sure winners. Id. The Sixth Circuit reiterated the same conclusion somewhat more bluntly in a case involving reasonable compensation for the Legal Defense Fund: “The contingency factor is not a ‘bonus’ 18 As the Brief of the Alliance for Justice, et aL, Amici Curiae, demonstrates in detail, Congress since 1976 has on numerous occasions been petitioned by State Attorneys General and others to amend the 1976 Act to alter the standards for awarding and calculating fees. These pro posals, however, have never been given serious considera tion. Congress has thus demonstrated, in the most sig- nicant manner possible, its satisfaction with the over whelmingly consistent interpretation of the statute and the State’s arguments are more appropriately addressed to Congress than to this Court. II. The Standards for Fee Awards Proposed by the State Would Be Wholly Impracticable of Application and Are Contrary to the Congressional Purpose in Enact ing the 1976 Act Opposing the traditional lodestar method of calculat ing fee awards which was intended by Congress, the State asks this Court to amend the 1976 Act by mandat ing the use of a complicated cost-based approach. Not only are the State’s suggested approaches unworkable and arbitrary, but they would engulf the federal courts in a morass of discovery and factual disputes solely over fees.21 Analysis of a law firm’s and a non-profit organi- but is part of the reasonable compensation to which a prevailing party’s attorney is entitled under § 1988.” Northcross v. Board of Educ. of Memphis, 611 F.2d 624, 638 (6th Cir. 1979), cert, denied, 447 U.S. 911 (1980). See also Minority Employees at NASA v. Frosch, 694 F.2d 846, 847 (D.C. Cir. 1982) (upholding a 10% lodestar adjustment for the Lawyers’ Committee', which “receives remuneration only in the event of success” and which therefore was eligible for a contingency adjustment “to the same extent as similarly situated private attorneys”). 21 One of the virtues of the 1976 legislation is its simplicity: I t will also result in a significant saving of judicial resources. At present, due to the Alyeska decision, a court must analyze a party’s actions to determine, bad faith in order to. award at torneys’ fees. This is a complex, time-consuming process often requiring an extensive evidentiary hearing. The enactment of 19 zation’s costs and overhead in order to determine an appropriate fee is, as we show below, an extraordinarily more complex and time-consuming process even than the search for “bad faith,” see n.21 supra. Imposition of such a process by this Court would only impede and deter any firm or organization from seeking adequate compensation for successful representation of a prevail ing party in an action covered by the 1976 Act. A. A Cost-Based Approach to Fee Computation Would Involve Civil Rights Organizations in Lengthy and Necessarily Complex Proceedings to Determine Fees The State’s bold policy proposals for a cost-based ap proach to fee computation would be devastating to civil rights enforcement. A cost-based approach not only would relegate civil rights litigation to a back-of-the-bus, second-class status but also would involve the federal courts, as well as organizations, in lengthy and neces sarily complex proceedings to determine fee awards. 1. The three cost-based policy options which the State urges this Court to choose among not only are fraught with practical difficulties, but in fact are balanced on top of two false premises. First, the supposed willingness of private firms to lay open their financial records so as to enable analysis of their hourly rate structures and over head for comparative purposes, thereby permitting the State’s legislative policy options to be implemented, is simply nonexistent. Second, the alleged ease of utilizing a cost-based approach is refuted by the error of the aforementioned assumption, by the absence of any gen erally accepted method for law firm cost accounting, and this legislation will make such an evidentiary hearing unneces sary in the1 many civil rights cases presently pending in the Federal courts. 122 Cong. Rec. 33314-15 (1976) (Sen. Abourezk, floor manager of the bill). See also Hensley v. Eckerhart, 76 L. Ed. 2d at 53 (“A request for attorney’s fees should not result in a second major litigation”) . 20 also by the prolonged and difficult litigation which must inevitably occur over cost accounting for fee purposes. Given the fact that “the fee applicant bears the burden of establishing entitlement to an award and documenting the appropriate . . . hourly rates,” Hensley v. Eckerhart, 76 L. Ed. 2d at 53, the actual burdens imposed on pre vailing plaintiffs’ counsel by the State’s policy options would be overwhelming. a. The State, in its Brief at 12-13, 23-26, asserts that the best policy option is the approach suggested by Judge Friendly in his concurring opinion in New York State Association for Retarded Children v. Carey, 711 F.2d 1136, 1155 (2d Cir. 1983), under which courts would determine hourly rates based, first, upon “the hourly compensation paid to private attorneys in the same com munity with equivalent experience,” and second, upon “the nonprofit office’s per hour overhead.” This approach would require, in every case, two sets of inquiries of monumental proportions. First, counsel seeking or op posing an award would be expected to discover, from all (most? more than half?) private firms in the community, all records pertaining to their financial structures and to their billing practices, for the purpose of supporting their claims as to the hourly compensation paid private attorneys in the community. Second, counsel for prevail ing plaintiffs would have to restructure the financial rec ords of the non-profit organizations which employ them in order to allocate all one-time as well as all on-going overhead costs to particular pieces of litigation; 22 and 22 The allocation of “overhead costs” particular pieces of litigation or to a particular attorney would be not only extraor dinarily time-consuming but also ultimately arbitrary, if not nearly impossible, in view of the fact that there exists no generally accepted accounting principle to apply to this suggested task. For example, there is no generally accepted accounting principle! to use in determining cost allocations to different organizational activities or units, to' major and particularly complex pieces of litigation as opposed to relatively more routine cases, to' cases litigated by ex perienced attorneys rather than by younger attorneys, to cases 21 then, of course, open those records to discovery.23 Even assuming that the first set of inquiries would produce anything at all, and that the second would produce any thing other than extended litigation about the allocation of overhead, there in any event is no question that the inquiries and resultant litigation battles would assume massive proportions. b. The State alternatively proposes, in its Brief at 23, 29, the “simpler, albeit less exact formulation . . . advo cated by Judge Newman” in his opinion in Association for Retarded Children, 711 F.2d at 1151-52, under which district court judges would select an entirely arbitrary “break point” ceiling on hourly rates 24 but which would litigated out of town rather than in town. These problems are magnified for organizations such as amici, who are involved in scores of different cases at any given moment. Additionally, there would be further complexities about how to allocate the costs of technological equipment such as word proces sors and computer terminals, which are subject to major up-front outlays followed thereafter by lesser outlays, and whose effective lives are- uncertain at best. Amici recognize that non-profit organizations are subject to an nual financial reporting to the Internal Revenue Service. But the defined accounting procedures used for this overall purpose have no applicability to the per-case or per-attomey cost allocations proposed by the State here. 23 See, e.g., Shelton v. Tucker, 364 U.S. 479 (1960) ; Bates v. Little Rock, 361 U.S. 516 (1960); NAACP v. Alabama, 357 U.S. 449 (1958). 24 Judge Newman’s opinion does not explain the derivation, of the two “break point” figures to be applied by the trial court on remand in that case: a $75 per hour ceiling for services rendered in the years 1978-80, and a $50 per hour ceiling for services rendered in the years 1972-77. 711 F.2d at 1152-53. The latter figure is appar ently based upon the perceived appropriateness of the' $75 per hour ceiling, which Judge Wyzanski, concurring, 711 F.2d at 1156, sug gested may have been “borrowed” from the Equal Access to' Justice Act, 28 U.S.C. § 2412(d) (2) (A). The EAJA is totally inapplicable to this litigation. The House Report on that statute' is explicit : Moreover, this section is not intended to' replace or supersede any existing fee-shifting statutes such as the Freedom of In- 22 also permit higher hourly rates where necessary to re cover counsel’s actual costs. Despite the superficial sim plicity of Judge Newman’s formulation, his invitation for judicially sanctioned arbitrariness in fact invites pre cisely the same two sets of massive inquiries suggested by Judge Friendly. Counsel for prevailing plaintiffs, in order to protect against arbitrarily low or excessively parsimonious “break point” determinations, would neces sarily attempt to meet their burden of proof by trying to lay open the financial records of private law firms and by restructuring the financial records of their organiza tions to allocate costs to individual cases, also subject to discovery. Again, the resultant inquiries and litigation disputes would assume massive proportions. c. Possibly in recognition of the multifarious problems which would flow from its first two policy options, the State proposes that yet another cost-based approach “would be for the district courts to set hourly rates based on promulgated schedules of estimated hourly salaries of private attorneys, based on years of experience, and average hourly overhead costs.” Brief for Petitioner, at 29 (emphasis in original). Although the State apparently believes that this policy option would “avoid . . . the necessity of a case-by-case calculation,” id., this policy option both ignores the adjudicatory—not legislative— role of the judiciary and also seemingly attempts to cir cumvent the antitrust ban on promulgated fee schedules, see Goldfarb v. Virginia State Bar, 421 U.S. 773 (1975). This policy option would encourage, if not compel, the very same monumental inquiries into the financial struc- formation Act, the Civil Rights Acts, and the Voting Rights Act in which Congress has. indicated a specific intent to* en courage* vigorous enforcement, or to alter the* standards or the case law governing those Acts. It is. intended to* apply only to cases (other than tort cases) where fee awards against* the government are not already authorized. H.R. Rep. No*. 1418, 96th Cong., 2d Sess. 18 (1980), reprinted in 1980 U.S. Code Cong. & Ad. News 4984, 4997. Cf. EAJA, Pub. L. 96-481, § 206, 94 Stat. 2325, 2330 (1980). 23 tures of private law firms, both by district courts intend ing to promulgate a fee schedule and thereafter by coun sel when the schedule is sought to be applied to their cases. 2. “A request for attorney’s fees should not result in a second major litigation.” Hensley v. Eckerhart, 76 L. Ed. 2d at 53. Contrary to this admonition, and contrary to the recognition by all members of this Court in Hensley that market-based fees are to be awarded to plaintiffs represented by civil rights organizations, see supra pp. 12-13, the State here nevertheless proposes not only a second major litigation but truly major litigation, in volving a series of far-reaching inquiries which would “ ‘assume massive proportions, perhaps even dwarfing the case in chief.’ ” Copeland v. Marshall, 641 F.2d 880, 896 (D.C. Cir. 1980) (en banc), quoting from Lindy Brothers Builders v. American Radiator & Standard Saniary Corp., 540 F.2d 102, 116 (3d Cir. 1976) (en banc). The massiveness of the inquiries attendant to a cost- based approach to fee computation was part of the rea son for the en banc court’s rejection of that policy option in Copeland. As the en banc court pointed out, the “prob lems associated with administering a ‘cost-plus’ calculus are multifarious,” the nature of the questions which would have to be answered “creates the specter of a monumental inquiry on an issue wholly ancillary to the substance of the lawsuit,” and the unavoidable result is that a “ ‘cost-plus’ method of calculating fees would in deed become the inquiry of ‘massive proportions’ that we strive to avoid.” 641 F.2d at 896. None of these problems arises in the application of market value fees since “ [t] he ‘lodestar,’ or ‘market value,’ method of fee setting has the virtue of being relatively easy to administer.” Id. The en banc court’s rejection of a cost-based approach in Copeland however depended not “on administrative convenience alone” but instead on the fact that “the theoretical basis of ‘cost-plus’ is fundamentally incon- 24 sistent with Congress’ purpose in providing for statutory fee-shifting.” Id. at 897. In fact, the legislative history of the 1976 Act leaves no doubt that lawyers employed by civil rights organizations “should be compensated by using a market value approach.” Id. at 899. There similarly is no doubt that market value fee compensation for non-profit and civil rights organizations fulfills Con gress’ purpose since full fee awards “help finance their work,” and thereby “provide greater enforcement.” Id. B. The Continued Application of Market-Based Fees to Civil Rights Organizations Satisfies Congress’ Express Purpose of Promoting Enforcement of Civil and Constitutional Rights Congress’ unquestioned purpose in enacting the 1976 Act was to promote enforcement of civil and constitu tional rights. Fulfillment of that purpose compels market- based fee awards to civil rights organizations. 1. Repeated throughout the House and Senate Reports is an overriding theme: the necessity to enact the legisla tion to encourage private enforcement of civil and con stitutional rights. The Senate Report, at 5, observes that after “several hearings held over a period of years,” the Senate Committee “found that fee awards are essential if the Federal statutes to which [the Act] applies are to be fully enforced.” This theme is repeated throughout the Report. E.g., id. at 2: All of these civil rights laws depend heavily upon private enforcement, and fee awards have proved an essential remedy if private citizens are to have a meaningful opportunity to vindicate the important Congressional policies which these laws contain. The House Committee fully concurred,35 pointing out the obvious: that the purpose! of the 1976 Act was to “attract 25 The House Report, at 1, states;: The effective enforcement of Federal civil rights statutes de pends largely on the efforts of private citizens. Although some agencies of the United States have civil rights responsibilities, 25 competent counsel in cases involving civil and constitu tional rights,” and that the hoped-for “effect of [the Act] will be to promote the enforcement of the Federal civil rights acts, as Congress intended.” House Report, at 9. 2. Congress also recognized the important role played by civil rights and other non-profit organizations in en forcing civil and constitutional rights. Both the House and Senate Reports rely on cases involving amici and other organizations as examples of the kind of litigation to which the Act applies and the manner in which it is to be interpreted. The most frequently cited decision in both Reports is Newman v. Piggie Park Enterprises, Inc., 390 U.S. 400 (1968), an LDF case in which this Court held that fees were to be awarded to prevailing plaintiffs unless special circumstances rendered an award of fees unjust. The Reports also discuss Northcross v. Board of Education of Memphis, 412 U.S. 427 (1973), and Bradley v. School their authority and resources are limited. In many instances where these laws are violated, it is necessary for the citizen, to initiate court action to correct the illegality. Unless the judicial remedy is full and complete, it will remain a meaningless right. Because a vast majority of the victims of civil rights violations cannot afford legal counsel, they are unable to present their cases to the courts. In authorizing an award of reasonable attorney’s fees, [the Act] is designed to give such persons effective access, to the judicial process where their grievances can be resolved according to law. See also, e.g., 122 Cong. Rec. 31472 (1976) (Sen. Kennedy); id. at 31832 (Sen. Hathaway); id. a t 33313-14 (Sen. Tunney); id. at 35118 (Rep. Seiberling) ; id. a t 35126 (Rep. Kastenmeier); id. at 35127 (Rep. Jordan). This. Court’s, decision in Ahjeska Pipeline Serv. Corp, v. Wilder ness Soc., 421 U.S. 240 (1975), denying fee awards in many civil rights cases, created a threat of significantly reduced private civil rights enforcement which thei Congress wished to avoid. See House Report a t 2-3. See also 122 Cong. Rec. 35118 (1976) (Rep. Bolling) (Alyeslca decision created an “emergency” for Congress to deal w ith). 26 Board of Richmond, 416 U.S. 696 (1974), both also LDF suits. Illustrating the breadth of civil rights enforcement litigation to which the Act was intended to apply, the House Report at 4-5 cites both to federal statutes and to illustrative cases brought through civil rights organiza tions to enforce those statutes. As to the enforcement of 42 U.S.C. § 1981, Congress cited Johnson v. Railway Ex press Agency, 421 U.S. 454 (1975) (LDF), and Tillman v. Wheaton-Haven Recreation Association, 410 U.S. 431 (1973) (ACLU). Enforcement of 42 U.S.C. § 1983 was illustrated through reliance on Brown v. Board of Edu cation, 347 U.S. 483 (1954) (LDF), and O'Connor v. Donaldson, 422 U.S. 563 (1975) (ACLU). Title VI enforcement was illustrated by reliance on several cases including Hills v. Gautreaux, 425 U.S. 284 (1975) (spon sored in part by the ACLU). In view of Congress’ reliance on these cases, coupled with its reliance on civil rights fee decisions rendered by the lower federal courts, it is simply inconceivable that Congress could have intended less than full market-value fee awards to civil rights organizations so as “to pro mote the enforcement of the Federal civil rights acts, as Congress intended.” House Report, at 9. All indicia of congressional purpose compel the conclusion that plaintiffs represented by civil rights organizations are entitled to full market value fee compensation. 3. Effective private enforcement of civil and constitu tional rights requires not only the opportunity to apply for fees when the litigation is successful, but also the opportunity to recover adequate fees. In rejecting fee- reduction arguments such as those now made by the State in this case, the courts of appeals have overwhelmingly held that awarding full market-value fees to civil rights organizations fulfills the congressional purpose of encour aging private civil rights enforcement in two important respects. 27 First, full fee compensation for civil rights organiza tions correlates perfectly with the congressional purpose, since such fees go not into attorneys’ pockets but directly further civil rights litigation. As summarized by the Second Circuit in a Voting Rights Act case cited with approval in the House Report, see supra pp. 7-8, 14, since “ [1] itigation to secure the law’s protection has fre quently depended on the exertions of organizations dedi cated to the enforcement of the Civil Rights Act,” and since the receipt of full fee awards by civil rights organi zations “promotes their continued existence and service to the public in this field,” therefore “full recompense for the value of services in successful litigation helps assure the continued availability of the services to those most in need of assistance in translating the promise of the Act into actually functioning voting rights.” Torres v. Sachs, 538 F.2d 10, 13 (2d Cir. 1976). Second, full fee compensation for civil rights organiza tions deters both unlawful behavior and also imprudent litigation tactics by defendants. As summarized by the District of Columbia Circuit en banc in a Title VII case, “to compute fees differently depending on the identity of the successful plaintiffs’ attorney might result in two kinds of windfalls to defendants,” 2<5 26 Copeland v. Marshall, 641 F.2d at 899: The incentive to employers not to discriminate is reduced if diminished fee awards are assessed when discrimination is established. Moreover, where a public interest law firm, serves as plaintiff’s counsel. . . the defendant will be subject to a lesser incentive to settle a suit without litigation than would be the case if a high-priced private: firm undertook plaintiff’s repre sentation . . . . Defendant’s counsel could inundate the plaintiff with discovery requests without fear of paying the full value of the legal resources wasted in response. We do not think that Title VII intended that defendants should have an incen tive to litigate imprudently simply because of the fortuity of the identity of plaintiff’s counsel. 28 Relying on similar Voting Rights Act cases and Title VII cases, and to carry out Congress’ express purpose in passing the 1976 Act, the courts of appeals have repeat edly reiterated the necessary fulfillment of both these objectives through market-value awards to civil rights organizations under the Act.27 If Congress’ express pur pose is to be respected, market-value fee compensation must continue to be applied. 27 See, e.g., Oldham v. Ehrlich, 617 F.2d 163, 168-69 (8th Cir. 1980) (“Legal aid organizations can expand their services to in digent civil rights complaints by virtue of their receipt of attorneys’ fees. And a defendant sued by a. plaintiff retaining legal aid counsel should not be benefited by the fortuity that the plaintiff could not afford private counsel”) ; Palmigiano v. Garrahy, 616 F.2d 598, 602 (1st Cir.) (The ACLU’s “National Prison Project, like other such organizations, has finite resources, and a full fee award will enable it to undertake further civil rights litigation . . . . Indeed, we are concerned that compensation a t a lesser rate would result in a wind fall to the defendants”), cert, denied, 449 U.S. 839 (1980) ; Dennis v. Chang, 611 F.2d 1302, 1306 (9th Cir. 1980) (Full compensation “serves the purposes of the Act for two reasons: (1) the award encourages the legal services organization to' expend its limited resources in litigation aimed at enforcing the civil rights statutes; and (2) the award encourages potential defendants to comply with civil rights statutes”) ; see generally the courts of appeals’ decisions collected in Appendix B to this Brief. CONCLUSION For the foregoing reasons, the State’s cost-based policy options should be rejected in this forum, and the contin ued applicability of market-based fees for civil rights organizations should be reaffirmed. The judgment of the court below accordingly should be affirmed. Respectfully submitted, E. Richard Larson * Burt Neuborne American Civil Liberties Union Foundation 132 West 43rd Street New York, New York 10036 (212) 944-9800 J ack J ohn Olivero Kenneth Kimerling Puerto- Rican Legal Defense and Education Fund, Inc. 95 Madison Avenue New York, New York 10016 (212) 532-8470 J oaquin G. Avila Morris J. Baller Mexican American Legal Defense and Educational Fund 28 Geary Street, Suite 300 San Francisco, California 94108 (415) 981-5800 J ack Greenberg J ames M. Nabrit, III Charles Stephen Ralston Steven L. Winter NAACP Legal Defense and Educational Fund, Inc. 10 Columbus Circle>, Suite 2030 New York, New York 10019 (212) 586-8397 Fred N. F ishman Robert H. Kapp Co-Chairmen Norman Redlich Trustee William L. Robinson Norman J. Chachkin Lawyers’ Committee for Civil Rights Under Law 733 15th Street, N.W., Suite 520 Washington, D.C. 20005 (202) 628-6700 Attorneys for Amici Curiae Dated: October 24, 1983 * Counsel of Record APPENDICES APPENDIX A LODESTAR FEE COMPUTATION D istrict of Columbia Cir c u it : Copeland v. Marshall, 641 F.2d 880,890-900 (D.C. Cir. 1980) (en banc) (Title VII) ; see also, e.g., Donnell v. United States, 682 F.2d 240, 249-55 (D.C. Cir. 1982) (Voting Rights Act); National Treasury Employees Union v. Nixon, 521 F.2d 317, 322 (D.C. Cir. 1975) (common fund). F irst Cir c u it : Furtado v. Bishop, 635 F.2d 915, 919- 20 (1st Cir. 1980) (§ 1988); see also, e.g., Madeira v. Pagan, 698 F.2d 38, 39-41 (1st Cir. 1983) (LMRDA) ; Lamphere v. Brown University, 610 F.2d 46, 47 (1st Cir. 1979) (Title VII). Second Cir c u it : Detroit v. Grinnell Corp., 495 F.2d 448, 470-74 (2d Cir. 1974) (“Grinnell I”) (antitrust), and Detroit v. Grinnell Corp., 560 F.2d 1093, 1098-1102 (2d Cir. 1977) (“Grinnell II”) (antitrust) ; see also, e.g., Cohen v. West Haven Board of Police Commission ers, 638 F.2d 496, 505-06 (2d Cir. 1980) (Revenue Shar ing Act) ; Mid-Hudson Legal Services v. G & U, Inc., 578 F.2d 34, 38 (2d Cir. 1978) (§ 1988) ; Beazer v. New York City Transit Authority, 558 F.2d 97, 100 (2d Cir. 1977) (§ 1988), rev’d on other grounds, 440 U.S. 568 (1979). T hird Cir c u it : Lindy Bros. Builders v. American Radiator & Standard Sanitary Corp., 487 F.2d 161, 166- 70 (3d Cir. 1973) (“Lindy I”) (antitrust common fund), and Lindy Bros. Builders v. American Radiator & Stand ard Sanitary Corp., 540 F.2d 102, 109-15 (3d Cir. 1976) (en banc) (“Lindy II”) (antitrust common fund) ; see also, e.g., Pawlak v. Greenawalt, 713 F.2d 972 (3d Cir. 1983) (common benefit under the LMRDA) ; Prandini v. National Tea Co., 585 F.2d 47, 49 (3d Cir. 1978) (Title VII) ; Hughes v. Repko, 578 F.2d 483, 487-89 (3d Cir. 1978) (§ 1988) ; Rodriguez v. Taylor, 569 F.2d 1231, 2a 1247 (3d Cir. 1977) (ADEA), cert, denied, 436 U.S. 913 (1978). F ourth Cir c u it : Anderson v. Morris, 658 F.2d 246, 249 (4th Cir. 1981) (§ 1988) ; see also, e.g., Disabled in Action v. Mayor & City Council of Baltimore, 685 F.2d 881, 886 (4th Cir. 1982) (Rehabilitation Act). F if t h Cir c u it : Copper Liquor, Inc. v. Adolph Coors Co., 624 F.2d 575, 581-83 (5th Cir. 1980) (Clayton A ct); see also, e.g., Graves v. Barnes, 700 F.2d 220, 221-24 (5th Cir. 1983) (Voting Rights Act) ; c/., Johnson v. Georgia Highway Express, 488 F.2d 714, 717-20 (5th Cir. 1974) (Title VII). Six t h Circuit : Louisville Black Police Officers Organi zation v. Louisville, 700 F.2d 268, 273-81 (6th Cir. 1983) (§ 1988 and Title V II); see also, Northcross v. Board of Education of Memphis, 611 F.2d 624, 641-42 (6th Cir. 1979) (§ 1988), cert, denied, 447 U.S. 911 (1980). Sev en th Cir c u it : Waters v. Wisconsin Steel Works of Int’l Harvester, 502 F.2d 1309, 1322 (7th Cir. 1974) (Title VII), cert, denied, 425 U.S. 997 (1976), and Muscare v. Quinn, 614 F.2d 577, 579 (7th Cir. 1980) (§ 1988) ; see also, e.g., Chrapliwy v. Uniroyal, Inc., 670 F.2d 760, 763 n.5 (7th Cir. 1982) (Title VII) ; Kamberos v. GTE Automatic Electric, 603 F.2d 598, 603-04 (7th Cir. 1979) (Title VII), cert, denied, 454 U.S. 1060 (1981). E ig h t h Cir c u it : Avalon Cinema Corp. v. Thompson, 689 F.2d 137, 139-40 (8th Cir. 1982) (en banc) (§ 1988) ; see also, e.g., Taylor v. Jones, 653 F.2d 1193, 1205-06 (8th Cir. 1981) (§ 1988) ; DiSalvo v. Chamber of Com merce of Greater Kansas City, 568 F.2d 593, 599 (8th Cir. 1978) (Title VII). N in t h Circuit : Brandenburger v. Thompson, 494 F.2d 885, 890 n.7 (9th Cir. 1974) (private attorney general theory) ; see also, e.g., White v. Richmond, 713 F.2d 458 3a (9th Cir. 1983) (§ 1988) ; Moore v. Jas H. Matthews & Co., 682 F.2d 830, 839-41 (9th Cir. 1982) (Clayton Act) ; Thornberry v. Delta Air Lines, 676 F.2d 1240, 1242-43 (9th Cir. 1982) (Title VII) ; Manhart v. Los Angeles, Dep’t of Water and Power, 652 F.2d 904, 907- OS (9th Cir. 1981) (Title VII) ; cf., Kerr v. Screen Extras Guild, 526 F.2d 67, 68-70 (9th Cir. 1974) (LMRDA), cert, denied, 425 U.S. 951 (1976). T e n t h Cir c u it : Ramos v. Lamm, 713 F.2d 546, 551- 58 (10th Cir. 1983) (§ 1988). E lev e n t h Cir c u it : Fitzpatrick v. Internal Revenue Service, 665 F.2d 327, 332 (11th Cir. 1982) (Privacy A ct); see also, e.g., Freeman v. Motor Convoy, Inc., 700 F.2d 1339, 1356 (11th Cir. 1983) (Title VII). 4a APPENDIX B NO REDUCTION IN MARKET FEES FOR CIVIL RIGHTS ORGANIZATIONS D istrict op Columbia Circuit : Copeland v. Marshall, 641 F.2d 880, 898-900 (D.C. Cir. 1980) (en banc) (Title VII) (market value fees for all public interest organiza tions) ; see also Donnell v. United States, 682 F.2d 240, 251-52 (D.C. Cir. 1982) (Voting Rights Act) (Lawyers’ Committee). F irst Cir c u it : Palmigiano v. Garrahy, 616 F.2d 598, 601-02 (1st Cir. 1980) (§ 1988) (ACLU), cert, denied, 449 U.S. 839 (1980) ; see also, Reynolds v. Coomey, 567 F.2d 1166, 1167 (1st Cir. 1978) (Title VII) (Legal Defense Fund). Second Cir c u it : Carey v. New York Gaslight Club, 598 F.2d 1253, 1255 n.l (2d Cir. 1979) (Title VII) (NAACP), aff’d, 447 U.S. 54 (1980); Beazer v. New York City Transit Authority, 558 F.2d 97, 100 (2d Cir. 1977) (§ 1988) (Legal Action Center), rev’d on other grounds, 440 U.S. 568 (1979) ; Torres v. Sachs, 538 F.2d 10, 13-14 (2d Cir. 1976) (Voting Rights Act) (Puerto Rican Legal Defense Fund).* T hird Cir c u it : Rodriguez v. Taylor, 569 F.2d 1231, 1250 (3d Cir. 1977) (ADEA) (Community Legal Serv ices), cert, denied, 436 U.S. 913 (1978); see also, Pawlak v. Greenawalt, 713 F.2d 972 (3d Cir. 1983) (common benefit under the LMRDA) (Public Citizen Litigation Group). F ourth Cir c u it : Tillman v. Wheaton-Haven Recrea tion Ass’n, 517 F.2d 1141, 1148 (4th Cir. 1975) (Title II) (ACLU). * These decisions have been overruled by Judge Newman’s de cision for the panel in New York State Ass’n for Retarded Children v. Carey, 711 F.2d 1136, 1148-52 (2d Cir. 1983). 5a F ifth Circuit: Watkins v. Mobile Homing Board, 632 F.2d 565, 567 (5th Cir. 1980) (§ 1988) (Legal Services Corporation of Alabama) ; Thompson v. Madison County Board of Education, 496 F.2d 682, 689 (5th Cir. 1974) (ESAA) (Lawyers’ Committee); Fairley v. Patterson, 493 F.2d 598, 606 (5th Cir. 1974) (Voting Rights Act) (Lawyers’ Committee). Sixth Circuit: Louisville Black Police Officers Organi zation v. Louisville, 700 F.2d 268, 276-78 (6th Cir. 1983) (§ 1988 and Title VII) (Legal Defense Fund); Northcross v. Board of Education of Memphis, 611 F.2d 624, 637-38 (6th Cir. 1979) (§ 1988) (Legal Defense Fund), cert, denied, 447 U.S. 911 (1980). Seventh Circuit: Gautreaux v. Chicago Housing Au thority, 690 F.2d 601, 612-13 (7th Cir. '1982) (§ 1988) (ACLU) ; Mary and Crystal v. Ramsden, 635 F.2d 590, 601-02 (7th Cir. 1980) (§ 1988) (Youth Policy and Law Center); Hairston v. R. & R. Apartments, 510 F.2d 1090, 1092-93 (7th Cir. 1975) (Fair Housing Act) (Legal Services). E ighth Circuit: Collins v. Hoke, 705 F.2d 959, 964 (8th Cir. 1983) (§ 1988) (Legal Services Corporation of Iowa) ; Oldham v. Ehrlich, 617 F.2d 163, 168-69 (8th Cir. 1980) (§ 1988) (Nebraska Legal Aid Organization). N inth Circuit: Dennis v. Chang, 611 F.2d 1302, 1305-09 (9th Cir. 1980) (§ 1988) (Legal Aid Society of Hawaii). Tenth Circuit: Ramos v. Lamm, 713 F.2d 546, 551- 52 (10th Cir. 1983) (§ 1988) (ACLU). Eleventh Circuit: See Fifth Circuit decisions bind ing on the Eleventh Circuit. .