The U.S. Supreme Court today decided Murphy v. Smith, No. 16-1067:
This could be an important case on statutory interpretation, beyond the context of the Prison Litigation Reform Act.
If you hadn't guessed from the style of the above paragraphs, the opinion is by Justice Gorsuch. Justice Sotomayor dissented, joined by Justices Ginsburg, Breyer, and Kagan.
This is a case about how much prevailing prisoners must pay their lawyers. When a prisoner wins a civil rights suit and the district court awards fees to the prisoner's attorney, a federal statute says that "a portion of the [prisoner's] judgment (not to exceed 25 percent) shall be applied to satisfy the amount of attorney's fees awarded against the defendant. If the award of attorney's fees is not greater than 150 percent of the judgment, the excess shall be paid by the defendant." 42 U. S. C. §1997e(d)(2). Whatever else you might make of this, the first sentence pretty clearly tells us that the prisoner has to pay some part of the attorney's fee award before financial responsibility shifts to the defendant. But how much is enough? Does the first sentence allow the district court discretion to take any amount it wishes from the plaintiff 's judgment to pay the attorney, from 25% down to a penny? Or does the first sentence instead mean that the court must pay the attorney's entire fee award from the plaintiff 's judgment until it reaches the 25% cap and only then turn to the defendant?* * *At the end of the day, what may have begun as a close race turns out to have a clear winner. Now with a view of the full field of textual, contextual, and precedential evidence, we think the interpretation the court of appeals adopted prevails. In cases governed by §1997e(d), we hold that district courts must apply as much of the judgment as necessary, up to 25%, to satisfy an award of attorney's fees.
This could be an important case on statutory interpretation, beyond the context of the Prison Litigation Reform Act.
If you hadn't guessed from the style of the above paragraphs, the opinion is by Justice Gorsuch. Justice Sotomayor dissented, joined by Justices Ginsburg, Breyer, and Kagan.
The Court concludes that the attorney's fee apportionment provision of the Prison Litigation Reform Act of 1995 (PLRA), 42 U. S. C. §1997e(d)(2), requires that a district court endeavor to fulfill the entirety of an attorney's fee award from the monetary judgment awarded to a prevailing prisoner-plaintiff, and only if 25 percent of the judgment is inadequate to cover the fee award can the court require contribution from the defendant. Ante, at 8. I cannot agree. The text of §1997e(d)(2)--"a portion of the judgment (not to exceed 25 percent) shall be applied to satisfy the amount of attorney's fees awarded against the defendant"--and its statutory context make clear that the provision permits district courts to exercise discretion in choosing the portion of a prisoner-plaintiff 's monetary judgment that must be applied toward an attorney's fee award, so long as that portion is not greater than 25 percent. I therefore respectfully dissent.

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