United States of America v. Academy Mortgage Corporation

Background

The court’s January 27, 2023 order approving a partial dismissal dismissed Thrower’s claims but left pending her claims for reasonable expenses, attorneys’ fees, and costs. On May 31, 2024, the court granted in part Thrower’s earlier fee motion and awarded $8,585,530.20 in attorneys’ fees and $89,437.77 in expenses. The parties later agreed to add $11,645.54 in prejudgment interest on certain merits fees.

On July 1, 2024, Academy Mortgage paid $5,405,714.33, which represented the uncontested portion of the fee and expense award. The parties could not agree about the date when post-judgment interest began, the 1.75% multiplier awarded in the May 31 order, certain previously unaddressed fees, and additional fees incurred in litigating and collecting the fee award. Thrower sought $550,614.40 in supplemental fees for 660.9 hours of work.

Academy Mortgage appealed the 1.75% multiplier, totaling $3,280,899.19. The parties stipulated to stays of enforcement while addressing the appeal and related issues.

Interest Accrual

The court applied 28 U.S.C. § 1961(a), which provides for interest on a money judgment from the date of entry of the judgment. Thrower argued that interest should run from January 27, 2023, because that order preserved her legal entitlement to fees under the False Claims Act. Academy Mortgage argued that the January 27 order was not a money judgment because the court had not yet determined the amount of fees.

The court concluded that post-judgment interest began accruing on May 31, 2024, the date of the order that awarded fees in a specified amount. The court set the applicable interest rate at 5.20%.

Authority to Decide Supplemental Fees

The court held that Academy Mortgage’s appeal did not deprive it of authority to decide the supplemental fee requests. Although an appeal generally transfers control over the appealed aspects of a case to the court of appeals, the district court may decide matters collateral to the appeal. The court found that Academy was appealing only the multiplier awarded for fees already incurred, while Thrower’s supplemental requests concerned work that was not included in the May 31 order. The court therefore retained jurisdiction over those requests.

Supplemental Attorneys’ Fees

The court explained that the usual fee calculation begins with the lodestar: the reasonable hours worked multiplied by a reasonable hourly rate. The court found that Thrower’s counsel’s hourly rates were reasonable, but it found the claimed time excessive in light of the work performed. The request included 383.5 hours for the first period, 244.8 hours for the second period, and 32.6 hours for the third period.

The court found that a 15% reduction was warranted. It rejected Academy Mortgage’s request for a 50% reduction because Academy did not provide enough analysis to support such a large cut. The court awarded $468,022.24 in supplemental attorneys’ fees, calculated as $550,614.40 multiplied by 85%.

Disposition

The court granted in part Thrower’s motion concerning interest and supplemental attorneys’ fees. It ruled that interest on the attorneys’ fees and expenses began accruing from the May 31, 2024 order at 5.20% and awarded $468,022.24 in supplemental attorneys’ fees after the 15% reduction.