Perdue v. Kenny A. ex rel. Winn

Background

Children in Georgia’s foster-care system sued the State and state officials, alleging systemic failures that harmed thousands of children. The case settled by a consent decree resolving the reform claims, but the lawyers asked for more than $14 million in fees. A district court calculated a lodestar of about $6 million and then increased it by 75%, producing an extra $4.5 million enhancement; the Eleventh Circuit issued a fractured ruling, and the Supreme Court took the case to decide the legal standard for such enhancements.

Reasoning

The Court asked whether a lodestar fee (hours times market rate) may be increased for superior performance or results. It reaffirmed that enhancements are permitted only in rare, exceptional circumstances. The lodestar is presumptively sufficient; factors already reflected in hours or rates cannot justify an extra award. A fee applicant bears the burden of proving with specific, objective evidence that the lodestar fails to capture some proper consideration. Because the district court gave an essentially arbitrary 75% boost without adequately linking it to record evidence or a reviewable calculation, the Court reversed and sent the case back for further proceedings.

Real world impact

Lower courts must now apply a stricter, more documentary approach before awarding performance enhancements to attorneys under federal fee-shifting laws. State and local taxpayers, defendants facing settlements, plaintiffs’ lawyers, and courts will see clearer rules about when extra fees are allowed. The Supreme Court’s ruling sets the legal standard, but the final fee amount in this case will be determined on remand, so the outcome here is not yet settled.

Dissents or concurrances

Justices Kennedy and Thomas joined the judgment but emphasized that enhancements remain rare; Justice Breyer (joined by three others) would have upheld the district court’s enhancement on the record, arguing deference to the trial judge’s factfinding.