Opinion

Hales v. Secretary of Health and Human Services

Court
United States Court of Federal Claims
Filed
Apr 13, 2017
Status
Unpublished
On the bench
Christian J. Moran
Cited by
0 cases
Authority
More cited than 3.7%

The opinion

In the United States Court of Federal Claims

OFFICE OF SPECIAL MASTERS

*********************

STEPHEN B. HALES, * No. 14-552V

* Special Master Christian J. Moran

Petitioner, *

* Filed: March 9, 2017

v. *

* Attorneys’ fees and costs

SECRETARY OF HEALTH *

AND HUMAN SERVICES, *

*

Respondent. *

*********************

Douglas Lee Burdette, Burdette Law, PLLC, Seattle, WA, for Petitioner

Alexis B. Babcock, U.S. Dep’t of Justice, Washington DC, for Respondent

UNPUBLISHED DECISION ON FEES AND COSTS1

After receiving compensation through the Vaccine Program, Stephen B.

Hales filed a motion for attorneys’ fees and costs. Mr. Hales is awarded

$59,279.32.

* * *

Mr. Hales alleged that the influenza vaccine he received caused him to

develop polymyalgia rheumatic (“PMR”). Mr. Hales was awarded compensation

based on the parties’ stipulation. Decision, filed Oct. 28, 2016, 2016 WL 6945267.

With the merits of Mr. Hales’ case resolved, the parties turned to the issue of

attorneys’ fees and costs.

1

The E-Government Act, 44 § 3501 note (2012) (Federal Management and Promotion of

Electronic Government Services), requires that the Court post this decision on its website.

Pursuant to Vaccine Rule 18(b), the parties have 14 days to file a motion proposing redaction of

medical information or other information described in 42 U.S.C. §300aa-12(d)(4). Any

redactions ordered by the special master will appear in the document posted on the website.

On November 1, 2016, Mr. Hales filed the pending motion for attorneys’

fees and costs. Mr. Hales requested $24,065.00 in attorneys’ fees and $35,214.32

in attorneys’ costs. On November 18, 2017, the Secretary filed a response to Mr.

Hales’ application. The Secretary stated that Mr. Hales had “satisfied the statutory

requirements for an award of attorneys’ fees and costs.” Resp’t’s Resp., filed Nov.

18, 2016, at 2. However, the Secretary asserted that the reasonable range for

attorneys’ fees and costs was $45,000.00 to $55,000.00 based upon similar cases

and his experience litigating Vaccine Act claims. Id. at 3. The Secretary cited

three cases he considered comparable in support of his proposed range. Further,

the Secretary recommended that “the special master exercise his discretion” when

determining the award for attorneys’ fees and costs within that range. Id.

This matter is now ripe for adjudication.

* * *

Because Mr. Hales received compensation, he is entitled to an award of

reasonable attorneys’ fees. 42 U.S.C. § 300aa-15(e). As to the amount, the

Federal Circuit has approved the lodestar approach to determine reasonable

attorneys’ fees and costs under the Vaccine Act. This is a two-step process. Avera

v. Sec’y of Health & Human Servs., 515 F.3d 1343, 1348 (Fed. Cir. 2008). First, a

court must determine an “initial estimate … by ‘multiplying the number of hours

reasonably expended on the litigation times a reasonable hourly rate.’” Id. at 1347-

48 (quoting Blum v. Stenson, 465 U.S. 886, 88 (1984)). Second, the court may

make an upward or downward departure from the initial calculation of the fee

award based on specific findings. Id. at 1348.

* * *

Mr. Hales requests compensation for his attorney, Mr. Douglass Lee

Burdette. For work on this case, Mr. Burdette charged $350 per hour. Mr.

Burdette was assisted by Ms. Kelly Burdette, who charged $250 per hour for her

work on this case. These rates have been found reasonable. See Jackson v. Sec’y

of Health & Human Servs., No. 15-391, 2016 WL 8136090, at *1 (Fed. Cl. Spec.

Mstr. Dec. 5, 2016); Klopfenstein v. Sec’y of Health & Human Servs., No. 16-

42V, 2016 WL 5799765, at *1 (Fed. Cl. Spec. Mstr. Sept. 7, 2016). These rates

also reflect each attorney’s experience and are consistent with the rates proposed in

the McCulloch rate matrix. See generally McCulloch v. Sec’y of Health & Human

Servs., No. 09-923V, 2015 WL 5634323, at *18 (Fed. Cl. Spec. Mstr. Sept. 1,

2015), reconsideration denied, No. 09-293V, WL 6181910 (Fed. Cl. Spec. Mstr.

2

Sept. 21, 2015). The Secretary did not directly challenge the requested rates as

unreasonable. Therefore, the proposed rates are accepted as reasonable.

The second factor in the lodestar formula is a reasonable number of hours.

For the number of hours to be considered reasonable, they must not be excessive,

redundant, or otherwise unnecessary. See Saxton v. Sec’y of Health & Human

Servs., 3 F.3d 1517, 1521 (Fed. Cir. 1993). In this case, Mr. Hales requested

compensation for the 55.65 hours Mr. Burdette spent working on this case and the

18.35 hours Ms. Burdette spent working on this case. The Secretary did not

directly challenge either of these requests for hours worked as unreasonable.

Additionally, Mr. Burdette reviewed the hours billed and deleted time entries that

he deemed should not be submitted to the Vaccine Program. See Pet’r’s Mot. filed

Nov. 1, 2016, at 2. This voluntary removal of hours demonstrates “billing

judgment.”

In light of the Secretary’s lack of objection, the undersigned has reviewed

the fee application for its reasonableness. See Shea v. Sec’y of Health & Human

Servs., No. 13-737V, 2015 WL 9594109, at *2 (Fed. Cl. Spec. Mstr. Dec. 10,

2015) (“special masters are not obligated to evaluate an attorney’s billing records

on a line-by-line basis in making the reasonableness determination … and certainly

need not do so when Respondent has not attempted to highlight any specific

alleged inefficiencies”). All aspects of the application for attorneys’ fees appear

reasonable.

In addition to seeking an award for attorneys’ fees, Mr. Hales seeks

compensation for costs expended. The amount requested represents costs

associated with routine items, such as gathering medical records, and the cost of an

expert. The routine costs are adequately documented, reasonable, and awarded in

full.

The bulk of the costs are for Dr. Zizic, who served as an expert in this case.

Dr. Zizic billed at a rate of $400 per hour for a total 80.9 hours. To support the

number of hours billed, three extremely detailed invoices were submitted which

logged the date, Dr. Zizic’s activity, and the time spent on each item. For example,

one entry reads “10/3/15 Read Crowson et al. Arth. Rheum 63:633, 2011 0.5

hours.” See Pet’r’s Costs, filed Nov. 1, 2016, at 25. These logs provide adequate

documentation for the work Dr. Zizic performed. Furthermore, in a May 8, 2015

order, the undersigned informed the parties that the expert’s reports could serve as

direct testimony. It appears that counsel for Mr. Hales and Dr. Zizic took this

direction to heart and prepared thorough reports. These factors indicate that the

3

amount of time Dr. Zizic took, although perhaps high at first blush, was actually

reasonable. Therefore, no adjustment is made to his time.

Additionally, Dr. Zizic opined on a subject matter in which he had

significant experience, supporting his requested hourly rate. Dr. Zizic has been an

Associate Professor of Medicine at Johns Hopkins University School of Medicine

for approximately 20 years. Exhibit 14, filed Dec. 18, 2015, at 1. He served as the

Associate Director of the Rheumatic Disease unit for Johns Hopkins for

approximately nine years and has also served on various committees and boards.

Id. Further, Dr. Zizic conducts research which requires him to maintain a working

knowledge in the fields of rheumatology, toxicology, pharmacology, and

epidemiology. Id. at 2. Dr. Zizic’s expertise and adequate documentation of his

work illustrate that the costs associated with his work as an expert are reasonable

and therefore are awarded in full.

While the foregoing analysis is the basis for this decision the undersigned

also considered the cases the Secretary offered as relevant comparisons. The three

cases involved the award of attorneys’ fees and costs when cases had been resolved

after the filing of expert reports. See Wilson v. Sec’y of Health & Human Servs.,

No. 10-483V, 2015 WL 720814, at *1 (Fed. Cl. Spec. Mstr. Jan. 26, 2015)

(awarding $52,031.18 in attorneys’ fees and costs); Sankaran v. Sec’y of Health &

Human Servs., No. 11-248V, 2015 WL 2357739, at *1 (Fed. Cl. Spec. Mstr. Apr.

20, 2015) (awarding $54,224.42 in attorneys’ fees and costs); Velk v. Sec’y of

Health & Human Servs., No. 14-59V, 2016 WL 1762194, at *1 (Fed. Cl. Spec.

Mstr. Apr. 8, 2016) (awarding $53,460.50 in attorneys’ fees and costs).

Further, $55,000 was given by the Secretary as the maximum in the range

for reasonable attorneys’ fees and costs. Here, the difference between the

Secretary’s maximum limit and the amount requested by Mr. Hales is $4,279.32.

Based upon the undersigned’s experience in adjudicating fee applications, it is

highly probable that counsel for the parties could have engaged in discussions to

reach a compromise, but the Secretary’s resistance to do so has led to an increase

in litigation. See Whitney v. Sec’y of Health & Human Servs., No. 10-809V, 2017

WL 4491499, at *7 (Fed. Cl. July 17, 2016).

* * *

The Vaccine Act permits an award of reasonable attorneys’ fees and costs.

§15(e). The undersigned finds $59,279.32 ($24,065.00 in fees and $35,214.32 in

costs) to be a reasonable amount for all attorneys’ fees and costs incurred.

4

Pursuant to General Order No. 9, Mr. Hales states that he did not personally incur

any costs in pursuit of this litigation. The undersigned GRANTS the petitioner’s

motion and awards $59,279.32 in attorneys’ fees and costs. This shall be paid as

follows:

A lump sum of $59,279.32, in the form of a check made payable to

petitioner and petitioner’s attorney, Douglas Lee Burdette, of Burdette

Law, for attorneys’ fees and other litigation costs available under 42

U.S.C. §300aa-15(e).

In the absence of a motion for review filed pursuant to RCFC Appendix B, the

clerk of court is directed to enter judgement herewith.2

IT IS SO ORDERED.

s/Christian J. Moran

Christian J. Moran

Special Master

2

Pursuant to Vaccine Rule 11(a), entry of judgment can be expedited by the parties’ joint

filing of notice renouncing the right to seek review.

5

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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