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