In a civil rights case, Padgett v. Loventhal, the U.S. Court of Appeals for the Ninth Circuit overruled a decision of a trial court, and remanded the case for further consideration.  U.S. District Court Judge James Ware reduced attorney fees from $3.2 million to $500,000 and reduced costs from $900,000 to $100,000 without detailed explanation or computation of the reasons for reducing the attorney fee claim.  The appeals panel was critical of the reduction as the district judge slashed the fees and costs without detailed description or supporting calculations for the reductions ordered.

The Ninth Circuit reversed the decision of the trial judge, noting that district courts must give reasons for declining to award costs and for reducing costs based on a partial victory.  “While it identified the correct rules, it provided no explanation for how it applied those rules in calculating the costs and attorney’s fees.  Therefore, we vacate the district court’s award of costs and fees and remand to the district court for an explanation of how it used the lodestar method Padgett’s fees and how it calculated Padgett’s reduced costs,” the Ninth Circuit wrote in its decision (pdf).