No Barriers, Inc. v. Brinker Chili's Texas, Inc.

IN THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT _______________ m 00-10791 _______________ NO BARRIERS, INC.; LESLIE GREER, Plaintiffs-Appellants, VERSUS BRINKER CHILI’S TEXAS, INC., D/B/A CHILI’S GRILL & BAR, Defendant-Appellee. _________________________ Appeal from the United States District Court for the Northern District of Texas _________________________ September 5, 2001 Before JOLLY, SMITH, and WIENER, The district court held in favor of Brinker and Circuit Judges. awarded it $8,000 in attorney’s fees as a pre- vailing party pursuant to FED. R. CIV. P. 54(d)- JERRY E. SMITH, Circuit Judge: (2)(A) and 42 U.S.C. § 12205.1 NBI appeals No Barriers, Inc., a nonprofit organization 1 of persons who use wheelchairs, and Leslie The statute states in full: Greer, a disabled person who uses a wheelchair for mobility (collectively “NBI”), In any action or administrative sued Brinker Chili’s Texas, Inc. (“Brinker”), proceeding commenced pursuant to this chapter, the court or agency, in its under the Americans with Disabilities Act discretion, may allow the prevailing party, (“ADA”) for failing to remove architectural other than the United States, a reasonable barriers, as allegedly required by 42 U.S.C. attorney’s fee, including litigation expenses, § 12182(b)(2)(A)(iv), in several restaurants. (continued...) only the fact and amount of the fee award. Texas as the owner and a potential party.4 Although NBI agreed that Brinker Texas was I. an owner, it never joined it as a party. Under the ADA, a plaintiff may sue for injunctive relief to order alterations to NBI claims that Brinker, as general partner, facilities. 42 U.S.C. § 12188(a)(2). The was an “operator” within the meaning of the statute applies, however, only to “any person ADA, but Brinker contends that this theory who owns, leases (or leases to), or operates a merely exhibits a post hoc rationalization. place of public accommodation.” 42 U.S.C. Despite Brinker’s repeated protestations and a § 12182(a).2 The parties stipulated that the strong suggestion from the district court, two restaurants are places o f public weeks before trial, that NBI should amend its accommodation subject to the ADA3 and that complaint to include Brinker Texas, NBI wait- Brinker Texas, L.P. (“Brinker Texas”), the ed until the morning of trial to seek leave to limited partner of which Brinker is the general amend. The court denied the motion and partner, owns them. found that Brinker was not the operator of a place of public accommodation. In pretrial motions, Brinker repeatedly de- nied that it owned, leased, or operated a II. Chili’s restaurant. Rather, it identified Brinker We review an award of attorney’s fees for abuse of discretion and the underlying factual findings for clear error. See United States v. Miss., 921 F.2d 604, 609 (5th Cir. 1991). The 1 (...continued) ADA states that the court may award a and costs, and the United States shall be prevailing party reasonable attorney’s fees; it liable for the foregoing the same as a private does not specify when such an award is individual. appropriate. See 42 U.S.C. § 12205. Each 42 U.S.C. § 12205. circuit that has addressed the issue has concluded that the considerations that govern 2 Section 302(a) of the ADA provides in fee-shifting under § 706(k) of title VII or pertinent part: under 42 U.S.C. § 1988 apply to the ADA’s fee-shifting provision, because the almost [N]o individual shall be discriminated identical language in each indicates Congress’s against on the basis of disability in the full and equal enjoyment of . . . [the] facilities . . . or accommodations of any place of public 4 accommodation by any person who owns, NBI also alleged violations of the ADA in leases (or leases to), or operates a place of various parking facilities, but Brinker stated that it public accommodation. had no obligation or right to maintain them, poin- ting out that (1) the restaurant was erected on a 42 U.S.C. § 12182. ground lease covering a small portion of a com- mercial center, (2) the lease of premises does not 3 The ADA defines “a restaurant, bar, or other include any of the center’s parking area, and establishment serving food and drink” as a “public (3) Brinker’s lessor remains responsible for the en- accommodation,” provided its operations affect tire parking area of the center, including that commerce. 42 U.S.C. 12181(7)(B). adjacent to the restaurant. 2 intent to enforce them similarly.5 Under this The district court found that NBI sued standard, a prevailing defendant may not Brinker in its individual corporate capacity, receive fees “unless a court finds that [the not in its capacity as general partner. NBI has plaintiff’s] claim was frivolous, unreasonable, not challenged this finding on appeal. Thus, or groundless, or that the plaintiff continued to even if NBI had a colorable argument that it litigate after it clearly became so.” Christians- need not have joined Brinker Texas, it failed to burg Garment Co. v. EEOC, 434 U.S. 412, sue Brinker in the correct capacity. 422 (1978). While maintaining that Texas law does not Without belaboring the merits of an issue require the joinder of the limited partner, NBI not before usSSbecause it has not been ap- relies more heavily on the fact that whether it pealedSSwe must examine briefly the argument could sue Brinker without joining Brinker to evaluate whether it is frivolous. NBI Texas is an open question under the ADA. In- contends that under Texas law, it is not deed, the district court noted that “[t]his is a required to join the limited partner to sue the case of first impression under both the [ADA] general partner as an operator of a place of and the Texas Architectural Barriers Act as to public accommodation. It correctly observes the requirements of pleading the capacity of a that a general partner of a limited partnership general partner in a limited partnership.” has the same rights and responsibilities as a general partner without limited partners. See NBI asserts that Brinker, as general TEX. REV. CIV. STAT. art. 6132a-1, § 4.03. partner, “operates” the restaurant within the meaning of the ADA. An entity “operates” a NBI claims that no Texas case has place of public accommodation for purposes of addressed the precise issue of required joinder the ADA if it “specifically controls the presented here. Even if this is correct, Texas modifications of the [buildings] to improve law requires that, to impose liability on a gen- their accessibility to the disabled.” Neff v. Am. eral partner of a limited partnership, the Dairy Queen Corp., 58 F.3d 1063, 1066 (5th plaintiff must plead and prove a cause of Cir. 1995). Brinker continually alleged that it action against that entity in its capacity as the did not have such control, and NBI presented general partner.6 no evidence to the contrary. Because NBI sought injunctive relief requiring the restaurants to alter their facilities, the district 5 See Small v. Dellis, 211 F.3d 1265, 2000 U.S. court rightly thought it important that NBI sue App. LEXIS 7739 (4th Cir. 2000); Bruce v. City the entity with the control needed to make the of Gainesville, 177 F.3d 949, 951-52 (11th Cir. changes. 1999); Bercovitch v. Baldwin School, Inc., 191 Regardless of the viability of the pleading F.3d 8, 11 (1st Cir. 1999); see also Adkins v. argument or of the theory that a general Briggs & Stratton Corp., 159 F.3d 306, 307-08 partner “operates” a place of public (7th Cir. 1998); Summers v. A. Teichert & Son, accommodation under the ADA, existing Inc., 127 F.3d 1150, 1154 (9th Cir. 1997). 6 See Texaco v. Wolfe, 601 S.W.2d 737 (Tex. Civ. App.SSHouston [1st Dist.] 1980, writ ref’d 6 (...continued) n.r.e.); Shawell v. Pend Oreille Oil & Gas Co., 823 S.W.2d 336 (Tex. App.SSTexarkana, 1992, (continued...) writ denied). 3 precedent neither supported nor absolutely that NBI unreasonably continued to litigate.8 foreclosed these interpretations. Thus, had III. NBI sued Brinker in the correct capacity and NBI contests the calculation of fees. We presented factual support for its theory, the review a determination of reasonable hours court might not have deemed frivolous its and rates for clear error and the application of decision to proceed to trial.7 NBI, however, the relevant factors for abuse of discretion. made no evidentiary showing that Brinker La. Power & Light Co. v. Kellstrom, 50 F.3d owned, leased, or operated a Chili’s in its 319, 329 (5th Cir. 1995). individual corporate capacity nor that it exercised any control over the architectural NBI contends that the court erred in failing design of the property. to calculate a “lodestar” amount determined by the reasonable number of hours expended Significantly, the court shifted the multiplied by the reasonable hourly rates for attorney’s fees only for the trial portion of the the attorneys involved. See Hensley v. Ecker- litigation. Thus, the court penalized NBI only hart, 461 U.S. 424 (1983). The “lodestar” for continuing the trial after it had failed re- may be adjusted according to (1) the time and peatedly to sue the proper party; before trial, labor required for the litigation; (2) the novelty NBI could have corrected the defect by and difficulty of the questions presented; (3) amending its complaint. Because, however, the skill required to perform the legal services NBI utterly failed to sue the proper party and properly; (4) the preclusion of other em- did not present any evidence supporting its ployment by the attorney by acceptance of the theory at trial even had it pleaded properly, the case; (5) the customary fee; (6) whether the court did not abuse its discretion in finding fee is fixed or contingent; (7) time limitations 8 Cf. Durrett v. Jenkins Brickyard, Inc., 678 F.2d 911 (11th Cir. 1982) (awarding fees to a de- fendant that had been forced to continue litigation solely because of plaintiff’s failure to correct an error); Sullivan v. Sch. Bd., 773 F.2d 1182, 1189 (11th Cir. 1985) (observing that cases in which a finding of frivolity is sustained typically include a 7 The court noted: plaintiff’s failure to produce evidence in support of his claims). NBI correctly observes that the court [T]he law in Texas would have allowed you to could have chosen not to award fees. See, e.g., have served Brinker Texas, LP by serving the Adkins v. Briggs & Stratton Corp., 159 F.3d 306, general partner had you clarified that was what 307-08 (7th Cir. 1998) (“Nothing in 12205 you were doing, but you did not clarify that. . . . suggests that the court must award fees to a party I know of no authority that would hold the defending against a frivolous claim . . . .”); general partner liable for the acts of the limited Summers v. A. Teichert & Son, Inc., 127 F.3d partnership, as opposed to you’re [sic] having 1150 (9th Cir. 1997) (refusing to award fees to de- been able to serve the limited partnership by fendant where ADA plaintiff had failed to ask for serving the general partner, which you could accommodation for his disability). This does not have done had you clarified that’s what you mean, however, that the court abused its discretion were doing. in choosing the opposite course. 4 imposed by the client or circumstances; (8) the here, the party challenging the attorney’s fees amount involved and the result obtained; (9) did not explain why they were unreasonable. the experience, reputation and ability of the Id. at 823. The court upheld the award, attorneys; (10) the “undesirability” of the case; stating: (11) the nature and length of the professional relationship with the client; and (12) awards in Under these circumstances, given the similar cases. Shipes v. Trinity Indus., 987 district court’s familiarity with the legal F.2d 311, 319-20 (5th Cir. 1993) (citing work done on this relatively Johnson v. Ga. Hwy. Express, Inc., 488 F.2d straightforward [legal issue] as well as 714 (5th Cir. 1974)). Moreover, NBI asserts our deferential standard of review, we that because Brinker’s application for fees did are constrained to hold that the district not state how long the participating attorneys court had sufficient information before it had been practicing law, the court could not to determine reasonable hours. (and did not) calculate a reasonable hourly rate. Id. Similarly, the district court acted within its discretion in granting a small portion of the Brinker presented details of the work com- fees requested on the information before it.11 pleted and the rates charged by each attorney, a total of 818.8 hours and $112,796. AFFIRMED. Although the court did not provide a specific calculation, it awarded only a small fraction of the amount requestedSS$8,000. When a prevailing party submits a fee ap- plication without proper documentation, the court has the discretion to reduce the award to a reasonable amount.9 Moreover, the court need not explicitly calculate the lodestar to make a reasonable award.10 In Wegner, as 9 Von Clark v. Butler, 916 F.2d 255, 259 (5th Cir. 1990) (“Absent a reliable record of the time expended on the prevailing claim, it is within the discretion of the district court to determine a rea- sonable number of hours that should have been expended.”). 10 See Wegner v. Standard Ins. Co., 129 F.3d 814, 822-23 (5th Cir. 1997) (concluding that even 10 (...continued) though a prevailing party submitted only a meaningful review”). summary of total hours expended and hourly rates, 11 this data was “not so vague and incomplete that the At oral argument, Brinker stated that it will district court was precluded from conducting a not seek additional attorney’s fees if successful on (continued...) this appeal. 5