Blum v. Stenson

Blum v. Stenson

Opinion

 [*888]  [***895]  [**1543]    JUSTICE POWELL delivered the opinion of the Court.

  Title 42 U. S. C. § 1988 (1976 ed., Supp. V) provides that in federal civil rights actions ] "the court, in its discretion, may allow the prevailing party, other than the United States, a reasonable attorney's  [**1544]  fee as part of the costs." The initial estimate of a reasonable attorney's fee is properly calculated by multiplying the number of hours reasonably expended on the litigation times a reasonable hourly rate. Hensley v. Eckerhart, 461 U.S. 424  [***896]  (1983). [****6]  Adjustments to that fee then may be made as necessary in the particular case. The  [*889]  two issues in this case are whether Congress intended fee awards to nonprofit legal service organizations to be calculated according to cost or to prevailing market rates, and whether, and under what circumstances, an upward adjustment of an award based on prevailing market rates is appropriate under § 1988.

This suit was brought in 1978 by respondent on behalf of a statewide class of Medicaid ² recipients pursuant to 42 U. S. C. § 1983 in the District Court for the Southern District of New York. Under New York law, one who is eligible to receive benefits under the Supplemental Security Income (SSI) program, 42 U. S. C. § 1381 et seq. (1976 ed. and Supp. V), automatically is eligible to receive Medicaid benefits. N. Y. Soc. Serv. Law § 363 et seq. (McKinney 1976).  Prior to this suit, persons who qualified for Medicaid in this fashion automatically lost their benefits if they thereafter became ineligible for SSI payments. The case was decided on cross-motions for summary judgment after only one set of plaintiff's interrogatories [****7]  had been served and answered. On these motions, the District Court certified the class ³ and rendered final judgment in favor of the class.

 [*890]  The court enjoined the prior practice of automatic termination of benefits, and [****8]  prescribed procedural rights for the certified class that included "(a) an ex parte determination of continued eligibility for Medicaid, independent of eligibility for SSI; (b) timely and adequate notice of such termination; (c) an opportunity for a hearing." Stenson v. Blum, 476 F.Supp. 1331, 1335 (1979). The Court of Appeals for the Second Circuit affirmed in an unpublished oral opinion from the bench.  Affirmance order, Stenson v. Blum, 628 F.2d 1345, cert. denied, 449 U.S. 885 (1980). Respondent's subsequent request for an award of reasonable attorney's fees under § 1988 is the subject of the present case.

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