Second Circuit with O'Connor Sitting Interprets Fee Shifting Statute

In Arbor Hill v. Albany, __ F.3d __ (2d Cir. 2008), the court in an amended opinion (amending a nearly 1-year old panel opinion!), addressed an award of fees to a successful plaintiff under the Voting Rights Act of 1965.  There's an article about the decision here.  Essentially, the issue was whether lawyers located in the Southern District of New York could base their fees on the rates they would charge in NYC, even though the case was pending in the Northern District of New York.

The case may have broader implications, since it essentially adops a "what would a reasonable client pay" approach to determining fees, abjuring strict reliance on a lodestar or "local lawyer" approach to determining fees.