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2012 Conference Executive Record Report.pdf - YMCA of Greater ...

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Team 48 v 51<br />

CHUCK MAZE ON BEHALF OF 15<br />

MINOR, Appellant, v. THE CITY OF<br />

ALBANY, NEW YORK, Respondent.<br />

Supreme Court, Appellate Division, First<br />

Department, New York<br />

March 10, <strong>2012</strong>, Argued<br />

March 10, <strong>2012</strong>, Decided<br />

COUNSEL: Mikhail Lindsay and Alvin<br />

Moreira, for Appellant.<br />

Jon Nelson and Ferdousi<br />

Jahan for Respondent.<br />

JUDGES: Orr, Mazzeo, Jacobs, Cicerelli,<br />

Kappel, Sutton<br />

OPINION BY: Last<br />

OPINION<br />

We the Appellate Court <strong>of</strong> the State <strong>of</strong> New<br />

York find that the judge abused her<br />

discretion during the determination <strong>of</strong> fees.<br />

As cited in Matakov v. Kel-Tech, the “trial<br />

court’s fee award in a class action is entitled<br />

to broad deference, and will not be<br />

overturned absent an abuse <strong>of</strong> discretion,<br />

such as mistake <strong>of</strong> law or a clearly erroneous<br />

factual finding.” This original fee is<br />

determined by the Lodestar test, which<br />

multiplies the number <strong>of</strong> hours by the<br />

reasonable hourly rate, and several<br />

adjustments can be made to this. Both the<br />

appellant and respondent showed that the<br />

trial judge incorrectly applied the Lodestar<br />

test and accordingly an abuse <strong>of</strong> discretion<br />

existed thus allowing us to reexamine the<br />

determination <strong>of</strong> fees.<br />

First, the appellant cited Flemming v.<br />

Barnell Nursing Home to prove that the<br />

“determination as to the proper amount <strong>of</strong> an<br />

award <strong>of</strong> counsel fees lies largely within the<br />

discretion <strong>of</strong> the court, the discretion is not<br />

unlimited.” Because the appellant showed<br />

that the courts original ruling can be<br />

changed, we then move to the prongs which<br />

can be used to adjust the fee amount. As<br />

cited in the case <strong>of</strong> Rahmey v. Blum,<br />

novelty is one such prong to be considered<br />

when adjusting the Lodestar fee amount.<br />

Judge Kheleher originally increased the fee<br />

amount by $50,000 because <strong>of</strong> its novelty.<br />

However, we believe that this estimate was<br />

not sufficient. The appellant successfully<br />

proved that this case was novel because it is<br />

a unique issue that had not previously been<br />

brought to court. We rule to change this<br />

increase to $125,000.<br />

The respondent also made compelling<br />

arguments to have the Lodestar fee adjusted.<br />

First, they claimed that the $300 per hour<br />

rate given to Katie was not accurate because<br />

that rate is the American Bar Association’s<br />

rate for an experienced attorney. The<br />

respondents adequately showed that because<br />

Katie is just out <strong>of</strong> law school, has never had<br />

a case before, and much work for this case<br />

consisted <strong>of</strong> merely interviews, giving her<br />

this rate is not accurate. Because <strong>of</strong> this, we<br />

choose to lower Katie’s rate to $225 per<br />

hour. The respondents also successfully<br />

argued that the amount recovered was<br />

significantly disproportional to the fees<br />

received. The Boardman’s received<br />

$708,000, which is significantly<br />

disproportional to the $46.22 each student<br />

received. Because <strong>of</strong> this, we choose to<br />

increase the $25,000 reduction to $100,000.<br />

After these adjustments, we have determined<br />

that final total the Boardman’s will receive<br />

will be $550,500.<br />

72

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