The National Grange of the Order of Patrons of Husbandry v. California State Grange

Filing 154

ORDER granting 142 Motion for Attorney Fees signed by Senior Judge William B. Shubb on 9/9/16. (Kaminski, H)

Download PDF
1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10 ----oo0oo---- 11 12 13 CIV. NO. 2:14-676 WBS AC THE NATIONAL GRANGE OF THE ORDER OF PATRONS OF HUSBANDRY, a District of Columbia nonprofit corporation, MEMORANDUM AND ORDER RE: MOTION FOR ATTORNEY’S FEES 14 Plaintiff, 15 v. 16 17 CALIFORNIA STATE GRANGE d/b/a “CSG,” a California corporation, 18 Defendant. 19 20 ----oo0oo---Plaintiff the National Grange of the Order of Patrons 21 22 of Husbandry brought this action against defendant California 23 State Grange, currently known as the California State Guild, for 24 violations of the Lanham Act. 25 plaintiff’s motion for attorney’s fees in the amount of 26 $154,230.80 pursuant to the Lanham Act and this court’s Order of 27 April 20, 2016. 28 /// Presently before the court is (Docket No. 142.) 1 1 I. Factual and Procedural Background 2 A detailed factual background of this case is set forth 3 in the court’s April 20, 2016 Order granting plaintiff’s motion 4 for an injunction. 5 Husbandry v. Cal. State Grange, Civ. No. 2:14-676 WBS AC, 2016 WL 6 1587193 (E.D. Cal. Apr. 20, 2016). 7 to repeat that background in full here. 8 9 Nat’l Grange of the Order of Patrons of It is therefore unnecessary In July 2015, the court granted summary judgment in favor of plaintiff on its claims for (1) trademark infringement, 10 15 U.S.C. § 1114; and (2) unfair competition and false 11 designation of origin, 15 U.S.C. § 1125(a). 12 In September 2015, the court entered an Order permanently 13 enjoining “[d]efendant and its agents, affiliates, and assigns, 14 or any party acting in concert with [them] from using marks 15 containing the word ‘Grange.’” 16 appealed the court’s July and September 2015 Orders; that appeal 17 is currently pending before the United States Court of Appeals 18 for the Ninth Circuit. 19 2016, this court denied defendant’s motion to stay the September 20 2015 permanent injunction pending defendant’s appeal. 21 No. 108.) (Docket No. 60.)1 (Docket No. 86.) (Docket Nos. 87, 89, 95.) Defendant In January (Docket 22 In February 2016, plaintiff moved for an order to show 23 cause why defendant should not be held in contempt for violating 24 the court’s September 2015 injunction (the “Contempt Motion”). 25 (Docket No. 109.) The court denied that motion without prejudice 26 27 28 1 Plaintiff dismissed its remaining two claims against defendant with prejudice. (Id.) 2 1 to plaintiff filing a motion for further injunctive relief based 2 on the issues that were litigated in this case. 3 117.) 4 clarification of the September 2015 injunction. 5 125.) (Docket No. The court additionally denied plaintiff’s motion for 6 (Docket No. On April 20, 2016, the court granted in part 7 plaintiff’s motion for further injunctive relief based on the 8 issues that were litigated in this case (the “Injunction 9 Motion”). (Apr. 20, 2016 Order (Docket No. 138).) In its April 10 20, 2016 Order, the court held that plaintiff was entitled to 11 reasonable attorney’s fees under section 1117(a) of the Lanham 12 Act in connection with (1) plaintiff’s Injunction Motion; (2) 13 plaintiff’s Contempt Motion; (3) Ed Komski’s February 1, 2016 14 declaration filed in support of plaintiff’s Contempt Motion, 15 (Docket No. 109-1); and (4) Komski’s December 28, 2015 16 declaration filed in support of plaintiff’s opposition to 17 defendant’s motion to stay the court’s September 2015 injunction 18 pending defendant’s appeal, (Docket Nos. 99-2 to 99-43). 19 Pursuant to the court’s April 20, 2016 Order, plaintiff now moves 20 for attorney’s fees in the amount of $154,230.80. 21 No. 142); Mem. at 2 (Docket No. 142-1).) 22 II. 23 24 (Mot. (Docket Discussion A. Entitlement to Fees Section 1117(a) of the Lanham Act authorizes reasonable 25 attorney’s fees to the prevailing party in an exceptional case. 26 See 15 U.S.C. § 1117(a); Horphag Research Ltd. v. Garcia, 475 27 F.3d 1029, 1039 (9th Cir. 2007). 28 the court held that plaintiff was the prevailing party on its In its April 20, 2016 Order, 3 1 Injunction and Contempt Motions for purposes of a fee award 2 because it obtained the relief it sought in those motions. 3 20, 2016 Order at 32-33.) 4 (Apr. The court also found that this was an “exceptional 5 case” within the meaning of § 1117(a) because there was 6 “significant evidence” that defendant willfully and deliberately 7 continued to infringe plaintiff’s trademark rights and engage in 8 unfair competition against plaintiff following the court’s 9 September 2015 injunction. (See id. at 33-36 (“The court is hard 10 pressed to find that defendant’s acts were anything other than 11 deliberate and willful.”)); see also Fifty-Six Hope Rd. Music, 12 Ltd. v. A.V.E.L.A., Inc., 778 F.3d 1059, 1078 (9th Cir. 2015) 13 (stating that a trademark case is exceptional for purposes of a 14 fee award under § 1117(a) where the defendant’s conduct “is 15 malicious, fraudulent, deliberate, or willful,” and neither 16 egregious conduct nor bad faith is required for such a finding). 17 18 B. Amount of the Fee Award The determination of a reasonable fee involves a two- 19 step inquiry. 20 622 (9th Cir. 1993). 21 lodestar method” by “multiplying the number of hours reasonably 22 expended by a reasonable hourly rate.” 23 Inc., 786 F.3d 754, 763 (9th Cir. 2015) (citing Hensley v. 24 Eckerhart, 461 U.S. 424, 433 (1983)). 25 frequently called the ‘lodestar’ amount.” 26 Fontana, 565 F.3d 1097, 1102 (9th Cir. 2009). 27 the award should provide documentary evidence to the court 28 concerning the number of hours spent, and how it determined the Intel Corp. v. Terabyte Int’l, Inc., 6 F.3d 614, First, “the district court applies the 4 Ryan v. Editions Ltd. W., “The resulting number is McCown v. City of “The party seeking 1 hourly rate(s) requested.” 2 433). 3 Id. (citing Hensley, 461 U.S. at Second, “in appropriate cases, the district court may 4 adjust the ‘presumptively reasonable’ lodestar figure based upon 5 the factors listed in Kerr v. Screen Extras Guild, Inc., 526 F.2d 6 67, 69-70 (9th Cir. 1975), that have not been subsumed in the 7 lodestar calculation.” 8 amount presumably reflects the novelty and complexity of the 9 issues, the special skill and experience of counsel, the quality Intel, 6 F.3d at 622. “The lodestar 10 of representation, and the results obtained from the litigation.” 11 Id. 12 only those called into question by the case at hand and necessary 13 to support the reasonableness of the fee award.” 14 Franklin Mint Co., 292 F.3d 1139, 1158 (9th Cir. 2002) (citation 15 omitted). 16 “The court need not consider all [of the Kerr] factors, but 1. 17 18 Cairns v. Reasonable Rate a. Prevailing Market Rate To determine a reasonable hourly rate, the court must 19 look to the prevailing rates in the relevant legal community “for 20 similar work performed by attorneys of comparable skill, 21 experience, and reputation.” 22 928 (9th Cir. 2011) (citation omitted). 23 community is the forum in which the district court sits.” 24 v. Dalton, 132 F.3d 496, 500 (9th Cir. 1997). 25 that the relevant community in this case is the Eastern District 26 of California. 27 applicant to produce satisfactory evidence--in addition to the 28 attorney’s own affidavits--that the requested [hourly] rates are Ingram v. Oroudjian, 647 F.3d 925, See id. at 502. “Generally, the relevant Barjon The parties agree The “burden is on the fee 5 1 in line with those prevailing in the community for similar 2 services by lawyers of reasonably comparable skill, experience 3 and reputation.” 4 Blum v. Stenson, 465 U.S. 886, 896 n.11 (1984). Plaintiff requests the following hourly rates here: 5 (1) $530 for James Bikoff, a partner at Smith, Gambrell and 6 Russell, LLP (“SGR”) with 40 years of experience in trademark 7 litigation; (2) $450 for Bruce McDonald, a partner at SGR with 35 8 years of experience in intellectual property litigation; (3) $330 9 for Holly Lance, an associate at SGR with 5 years of experience 10 in intellectual property litigation; and (4) $720 for Michael 11 Turrill, a partner at Arent Fox, LLP with 20 years of experience 12 in commercial litigation, including intellectual property 13 disputes. 14 Turrill Decl. ¶ 5 (Docket No. 142-5).) 15 dispute the reasonableness of the rates that Bikoff, 16 McDonald, or Lance seek and thus the court will award fees at 17 those undisputed rates. 18 rate of $720 is not reasonable for trademark litigation work 19 in Sacramento, and the court agrees. 20 Turrill’s rate should be no greater than $550 per hour. 21 (Bikoff Decl. ¶¶ 3, 6-8, Exs. D-F (Docket No. 142-2); Defendant does not Defendant contends that Turrill’s Defendant suggests that Notably, none of the declarations submitted in this 22 case state that $720 is the prevailing rate in Sacramento for a 23 lawyer of Turrill’s experience. 24 plaintiff relies on in support of the requested rates 25 establish prevailing rates in Sacramento or support a rate 26 $720 for a partner with 20 years of legal experience. 27 example, the American Intellectual Property Law Association’s 28 2015 Report of the Economic Survey (“AIPLA survey”) provides only Moreover, none of the sources 6 For 1 national average billing rates for intellectual property 2 attorneys and indicates that the average rate for law firm 3 partners with 20 years of experience like Turrill is $475 per 4 hour. 5 Health & Human Servs., 73 F.3d 895, 908 (9th Cir. 1995) (holding 6 that “a couple of published surveys of ranges of fees charged by 7 various law firms based in Seattle, Washington, and other cities 8 across America . . . told the district court nothing about the 9 prevailing rate in [the relevant communities of] Portland or (Bikoff Decl. ¶ 5, Ex. C); see also Schwarz v. Sec’y of 10 Phoenix for similarly qualified lawyers working on a similar type 11 of case”). 12 Plaintiff also relies on the Laffey Matrix, which is 13 “an inflation-adjusted grid of hourly rates for lawyers of 14 varying levels of experience in Washington, D.C.” 15 News v. Schwarzenegger, 608 F.3d 446, 454 (9th Cir. 2010) 16 (citations omitted). 17 prepared and updated by the Civil Division of the United States 18 Attorney’s Office for the District of Columbia and used in fee 19 shifting cases, among others.” 20 Inc., 694 F. Supp. 2d 1039, 1067 (N.D. Cal. 2010). 21 courts have relied on the Laffey Matrix and attempted to adjust 22 its rates to account for legal communities outside of Washington, 23 D.C., this court has criticized the use of the Laffey Matrix 24 without a reliable method to adjust the rates to account for the 25 difference between the prevailing market rates in Washington, 26 D.C. and Sacramento. 27 No. 2:13-1610 WBS, 2014 WL 6634324, at *7 (E.D. Cal. Nov. 21, 28 2014). Prison Legal “The Laffey matrix has been regularly Craigslist, Inc. v. Naturemarket, Although See Johnson v. Wayside Prop., Inc., Civ. Nonetheless, even the Laffey Matrix provides that 7 1 attorneys with 20 years of experience like Turrill bill $504 per 2 hour in Washington, D.C. 3 Turrill also submits a 2014 National Law Journal survey 4 of billing rates charged by partners in the nation’s 350 5 largest firms (the “NLJ survey”). 6 Turrill, who is a partner at Arent Fox, states that his firm “is 7 ranked number 117 in the AmLaw 200 and has offices in Washington, 8 D.C., New York City, San Francisco, and Los Angeles.” 9 Turrill contends that a rate of $720 per hour is reasonable (Turrill Decl. ¶ 6, Ex. 1.) (Id. ¶ 4.) 10 because it “is consistent with the market rate for partners with 11 [20 years] of experience” in “law firms of similar size and 12 reputation and which are either based in Los Angeles or have Los 13 Angeles offices.” 14 rate of $720 per hour is in line with the “prevailing rates in 15 Southern California.” 16 County Superior Court ruling on a fee motion brought under 17 California Government Code section 12965(b) where the Superior 18 Court found that “each attorney’s hourly rate ($700 and $400) is 19 a reasonable rate for comparable legal services in the L.A. metro 20 area for noncontingent employment litigation.” 21 Hancock v. Time Warner Cable Servs., LLC, 2015 WL 5923311 (Cal. 22 Super. Ct. Sept. 1, 2015). 23 the relevant community here is Sacramento, and not Los Angeles or 24 Southern California. 25 that the district court correctly “appl[ied] the rates of the 26 local forum--the Sacramento area--rather than the rates of 27 Wallace’s place of business--the San Francisco area” because 28 “Sacramento, not San Francisco, was the relevant market”). (Id. ¶¶ 5-6.) Turrill also contends that a (Id. ¶ 7.) He submits a Los Angeles (Id. ¶ 7, Ex. 2); This evidence is unhelpful because See Barjon, 132 F.3d at 499-500 (holding 8 1 The fee award in Hancock also involved a state law 2 employment discrimination action litigated in Los Angeles and the 3 fee request there was analyzed under California law. 4 Turrill Decl. Ex. 2.) 5 claims under the Lanham Act, was litigated in Sacramento, and 6 federal law governs the present fee motion pursuant to § 1117(a). 7 See Jadwin v. County of Kern, 767 F. Supp. 2d 1069, 1135 n.76 8 (E.D. Cal. 2011) (Wanger, J.) (observing that the lodestar 9 analysis under federal law is different from that under state (See By contrast, this action involves federal 10 law); see also 99 Only Stores v. 99 Cent Family Sav., Civ. No. 11 1:10-1319 LJO MJS, 2011 WL 2620983, at *3 (E.D. Cal. June 29, 12 2011) (“[C]osts of practicing law, and hence legal fees, can be 13 significantly higher in Southern California where Plaintiff’s 14 firm is located than in the Central Valley of California.”). 15 a result, neither the NLJ survey nor the Superior Court’s fee 16 award establishes that Turrill’s $720 hourly rate is a reasonable 17 rate in Sacramento for comparable trademark litigation services 18 performed by attorneys with Turrill’s skill and experience. 19 As In sum, the court is not persuaded that the reasonable 20 rate in Sacramento for an attorney of Turrill’s skill and 21 experience is $720. 22 per hour because defendant does not object to that rate for him. The court will therefore award Turrill $550 23 2. 24 “A district court, using the lodestar method to Reasonable Number of Hours 25 determine the amount of attorney’s fees to award, must determine 26 a reasonable number of hours for which the prevailing party 27 should be compensated.” 28 1196, 1202 (9th Cir. 2013). Gonzalez v. City of Maywood, 729 F.3d “Ultimately, a ‘reasonable’ number 9 1 of hours equals the number of hours which could reasonably have 2 been billed to a private client.” 3 marks omitted). 4 prevailing party could have reasonably billed the hours they 5 claim to their private clients, the district court should begin 6 with the billing records the prevailing party has submitted.” 7 Id. 8 9 Id. (alterations and quotation “[T]o determine whether attorneys for the “The fee applicant bears the burden of documenting the appropriate hours expended in the litigation and must submit 10 evidence in support of those hours worked.” 11 987 F.2d 1392, 1397 (9th Cir. 1992) (citing Hensley, 461 U.S. at 12 433, 437). 13 exclude from a fee request hours that are excessive, redundant, 14 or otherwise unnecessary.” 15 743 F.2d at 1384-85 (applying this standard to fee requests under 16 the Lanham Act). 17 to the winning lawyer’s professional judgment as to how much time 18 he or she was required to spend on the case.” 19 763 (alterations and citation omitted). 20 Gates v. Deukmejian, A fee applicant must “make a good faith effort to Hensley, 461 U.S. at 434; see Sealy, “By and large, the district court should defer Ryan, 786 F.3d at “The party opposing the fee application has a burden of 21 rebuttal that requires submission of evidence to the district 22 court challenging the accuracy and reasonableness of the hours 23 charged or the facts asserted by the prevailing party in its 24 submitted affidavits.” Gates, 987 F.2d at 1397-98 (citing Blum, 25 465 U.S. at 892 n.5). “The district court may reduce the amount 26 of requested fees to reflect a party’s limited degree of success, 27 to account for block billing, or to deduct those hours the court 28 deems excessive.” Ryan, 786 F.3d at 763 (citations omitted). 10 1 Although “[t]here is no precise formula or methodology that the 2 district court is obligated to follow” when reducing fees, id. at 3 765, “a more specific articulation of the court’s reasoning is 4 expected” the greater the “disparity between the requested fees 5 and the district court’s award,” id. at 764. 6 Counsel submitted billing statements indicating the 7 following hours spent on the matters for which plaintiff is 8 entitled to attorney’s fees here: Bikoff (79.9 hours); McDonald 9 (188.7 hours); Lance (68.2 hours); and Turrill (37.4 hours). 10 (See Bikoff Decl. ¶ 3, Ex. B; Turrill Decl. ¶ 8, Ex. 3.) 11 also proposes a 15% reduction to the total fees billed by Bikoff, 12 McDonald, and Lance. 13 14 a. SGR (Bikoff Decl. ¶¶ 3-4.) Fees for Unrelated Matters The court held in its April 20, 2016 Order that 15 plaintiff was entitled to attorney’s fees associated with its 16 Injunction Motion, its Contempt Motion, and Komski’s two 17 declarations. 18 that counsel billed for matters unrelated to those four items 19 must be excluded. 20 counsel worked on plaintiff’s motion for clarification, which it 21 filed on March 11, 2016. 22 122); see Opp’n at 7-8 (Docket No. 146).) 23 2016 Order did not hold that plaintiff was entitled to attorney’s 24 fees associated with its motion for clarification. 25 2016 Order at 31-39.) 26 hours billed by counsel for working on plaintiff’s motion for 27 clarification: Bikoff (1 hour on March 18, 2016); Lance (0.2 28 hours on March 8, 2016); and Turrill (4 hours on March 17-18, (Apr. 20, 2016 Order at 38-39.) Any attorney time Plaintiff requests fees for the time that (Mot. for Clarification (Docket No. The court’s April 20, (See Apr. 20, The court will thus reduce the following 11 1 2016). 2 (Bikoff Decl. Ex. B at 30; Turrill Decl. Ex. 3 at 32). Plaintiff is also not entitled to fees for the 1 hour 3 billed by Bikoff for attending a lunch conference on April 6, 4 2016 with a University of California representative to discuss 5 the University’s rental payments under a 2002 lease agreement 6 with defendant. 7 Because that issue is unrelated to the four matters for which 8 plaintiff was granted fees, the court will reduce Bikoff’s billed 9 time by 1 hour. 10 (Bikoff Decl. Ex. B at 35; Opp’n at 9-10.) b. 11 Block Billing Defendant contends that “substantially all time entries 12 for each counsel [a]re block-billed.” 13 billing is the time-keeping method by which each lawyer . . . 14 enters the total daily time spent working on a case, rather than 15 itemizing the time expended on specific tasks.” 16 at 945 n.2 (citations omitted). 17 spent by an attorney on each discrete task is not identified, but 18 instead all hours spent during the course of a day on multiple 19 tasks are billed together.” 20 WBS JFM, 2010 WL 1689225, at *1 (E.D. Cal. Apr. 26, 2010). 21 Counsel’s billing statements indeed contain significant block 22 billing; over 80% of counsel’s billing entries are in block 23 format. 24 billing makes it “hopelessly impossible to tell the amount of 25 time spent on each task” and thus requests a 40% reduction in 26 plaintiff’s fee award. 27 28 (Opp’n at 10.) “Block Welch, 480 F.3d As a result, “the amount of time Yeager v. Bowlin, Civ. No. 2:08-102 Defendant argues that the extent of counsel’s block- (Opp’n at 10.) District courts may not account for block billing by applying an across-the-board reduction to all hours claimed in a 12 1 fee petition; rather, courts may apply a percentage reduction 2 only to those hours that are actually block-billed. 3 Potts, Civ. No. 2:06-1283 WBS, 2014 WL 788429, at *4 (E.D. Cal. 4 Feb. 25, 2014). 5 thirty percent of the hours that are block-billed.” 6 e.g., Welch, 480 F.3d at 948 (affirming district court’s 7 authority to reduce block-billed hours by 10% to 30%); Willis v. 8 City of Fresno, Civ. No. 1:09-1766 BAM, 2014 WL 3563310, at *18– 9 19 (E.D. Cal. July 17, 2014) (reducing impermissibly block-billed 10 11 Deocampo v. “Courts in the Ninth Circuit have reduced up to Id.; see, entries by 30%). “The court also retains discretion not to reduce hours 12 that are purportedly block billed if those time entries ‘are 13 detailed enough for the court to assess the reasonableness of the 14 hours billed.’” 15 omitted) (quoting Campbell v. Nat’l Passenger R.R. Corp., 718 F. 16 Supp. 2d 1093, 1103 (N.D. Cal. 2010)); see also Trulock v. Hotel 17 Victorville, 92 F. App’x 433, 434 (9th Cir. 2004) (stating that 18 the “use of block billing” is only one factor in determining 19 whether the number of hours claimed are reasonable). 20 it is true that the fee applicant bears the burden of submitting 21 ‘evidence supporting the hours worked and rates claimed,’ the 22 Supreme Court has also stated that plaintiff’s counsel ‘is not 23 required to record in great detail how each minute of his time 24 was expended.’” 25 (9th Cir. 2000) (quoting Hensley, 461 U.S. at 433, 437 n.12). 26 “Instead, plaintiff’s counsel can meet [the] burden” of 27 adequately documenting the number of hours billed “by simply 28 listing [the] hours and identifying the general subject matter of Deocampo, 2014 WL 788429, at *4 (alterations “Although Fischer v. SJB-P.D. Inc., 214 F.3d 1115, 1121 13 1 [the] time expenditures.” 2 omitted). 3 Id. (quotations and alterations In Fischer, for example, the Ninth Circuit held that 4 counsel’s block-billed time records were sufficient even though 5 they provided summaries of time spent on broad categories of 6 tasks such as pretrial motions and court appearances. 7 Similarly, in Secalt S.A. v. Wuxi Shenxi Construction Machinery, 8 668 F.3d 677 (9th Cir. 2012), the Ninth Circuit held in reviewing 9 a fee award under the Lanham Act that even when “billing entries 10 list numerous tasks performed over multi-hour spans, it [is] not 11 an abuse of discretion for the district court to award the 12 associated fees because counsel ‘is not required to record in 13 great detail how each minute of his time was expended.’” 14 690 (quoting Hensley, 461 U.S. at 437 n.12)). 15 entry is only “a problem where it obscures the nature of some of 16 the work claimed.” 17 and alterations omitted). 18 Id. Id. at A block-billed Willis, 2014 WL 3563310, at *18 (quotations Although a majority of the entries submitted here are 19 in block-billed format, the billing entries identify the 20 particular tasks performed with great detail and specificity. 21 For example, McDonald billed 6.5 hours on December 16, 2015 for 22 the following activities: 23 24 25 26 27 28 Examine documents received from Mr. Komski including correspondence dated 12/15/2015 from McFarland “Regards, Boutin Jones Inc. by Robert D. Swanson,” to Annie Waters, President, Little Lake Grange, Willits, CA; email circa 11/25/2015 from McFarland to Woodbridge Grange Members; investigation and research re cause of action by National Grange for contempt of September 30 injunction; new and independent acts of trademark infringement, unfair competition, false advertising, trade libel, interference in contractual relations, copyright infringement, with 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 availability of exemplary damages and award of costs and attorney’s fees, supported by motion for TRO or preliminary injunction under Federal Rule 65; memorandum to Mr. Bikoff re above; draft memo to Messrs. Komski, Jensen, Riordan and Skinner in response to inquiries re availability of relief; continued work on Komski Declaration; memorandum to Mr. Komski re terminology and contents of declaration; memorandum to Ms. Lance with instructions re Huber Declaration; memorandum to Mr. Bikoff and Ms. Lance re problems with use of word “chartered” whereas there is only one California State Grange, recommending amendment of case caption to avoid confusing appearance that California State Grange is defendant; memorandum to Messrs. Bikoff, Komski, Skinner et al. with final declaration; examine comments from Mr. Skinner; examine Shaw Declaration and Komski Declarations filed last week in state court action; conference with Mr. Komski re same; examine and respond to Mr. Komski re exhibit used to document McFarland’s statements at December 8 meeting; add content to declaration re rearrangement of Ranchito Grange and new evidence for independent causes of action; memoranda to Mr. Skinner re new additions to declaration; examine and incorporate further comments[.] 15 (Bikoff Decl. Ex. B at 11.) The remaining time entries submitted 16 here are similarly detailed and specific. Counsel’s billing statements here are thus sufficiently 17 18 detailed for the court to assess the reasonableness of the hours 19 billed. 20 Inc. v. Pieta, Civ. No. 04-9626 ABC MCX, 2006 WL 4725707, at *2 21 (C.D. Cal. July 17, 2006). 22 warranted on the ground that the billing entries submitted here 23 are block-billed. 24 c. 25 Accord Willis, 2014 WL 3563310, at *18; Gucci America, Accordingly, no reduction is Komski’s December 28, 2015 Declaration Defendant next argues that the court should exclude any 26 fees associated with Komski’s December 28, 2015 declaration 27 because plaintiff filed the declaration in support of its 28 opposition to defendant’s motion to stay the court’s injunction 15 1 pending appeal. 2 the declaration did not relate to the Contempt or Injunction 3 Motions and should thus be excluded from the fee award. 4 Defendant also argues that any time spent on Komski’s December 5 declaration before defendant filed its motion to stay pending 6 appeal should be excluded because defendant’s motion to stay is 7 what triggered the December declaration. 8 9 (Opp’n at 5-6, 12-14.) Defendant argues that These arguments are unavailing. (Id. at 5.) Plaintiff submitted Komski’s December declaration “to describe the public confusion, 10 mistake and deception created by the actions of the Defendant 11 . . . subsequent to this Court’s injunction issued on September 12 30, 2015.” 13 described defendant’s actions from the entry of the September 14 2015 injunction until December 28, 2015. 15 December declaration was relevant to more than just defendant’s 16 motion to stay pending appeal. 17 example, relied on “the Declaration of Ed Komski dated December 18 28, 2015.” 19 Injunction Motion was “based on exhibits and evidence that 20 plaintiff had submitted with its contempt motion,” including 21 Komski’s December declaration. 22 (Komski Decl. ¶ 2, Dec. 28, 2015.) The declaration (Id.) Thus, Komski’s Plaintiff’s Contempt Motion, for (Komski Decl. ¶ 2, Feb. 1, 2016.) Plaintiff’s (Apr. 20, 2016 Order at 33.) The court also relied on Komski’s December declaration 23 in its April 20, 2016 Order in finding that the California Grange 24 Foundation was bound by the September 2015 injunction because it 25 was defendant’s agent or affiliate, (id. at 20); that defendant 26 had some control over the contents of its online business 27 directory listings, (id. at 28); and that defendant willfully 28 deceived the public after the September 2015 injunction was 16 1 issued, (id. at 34-36). 2 reduce plaintiff’s attorney’s fees associated with Komski’s 3 December 28, 2015 declaration. 4 5 d. Accordingly, the court declines to Time Spent on the Contempt Motion Defendant argues that time spent on the Contempt Motion 6 should be excluded because counsel started work on the Contempt 7 Motion prematurely and did so while simultaneously communicating 8 with defendant about its compliance with the September 2015 9 injunction. (Opp’n at 4-6.) The court declines to reduce 10 plaintiff’s fee award on that ground because “the Court will not 11 second guess attorney efforts to conduct the litigation strategy 12 for the case,” including when to start work on a motion. 13 Techs., Inc. v. 3Com Corp., Civ. No. C-00-2255 DLJ, 2007 WL 14 4170514, at *8 (N.D. Cal. Nov. 14, 2007). 15 E-Pass Defendant also argues that fees associated with the 16 Contempt Motion should be excluded because the motion was denied. 17 (Opp’n at 11-12.) 18 support this argument. 19 denied without prejudice to plaintiff bringing its subsequent 20 Injunction Motion. 21 plaintiff’s Injunction Motion, the court held that plaintiff was 22 entitled to fees associated with its Contempt Motion because the 23 Injunction Motion was “based on exhibits and evidence that 24 plaintiff had submitted with its contempt motion” and the 25 Contempt Motion “sought much of the same relief the court” 26 granted in the Injunction Motion. 27 apparent to the court that the time expended on the Contempt 28 Motion was utilized in the Injunction Motion. Defendant does not provide any authority to Plaintiff’s Contempt Motion here was (Apr. 20, 2016 Order at 4.) 17 In granting (Id. at 33:8-14.) It was 1 Defendant further requests that the court exclude any 2 fees for the Contempt Motion incurred between the Contempt 3 Motion’s filing on February 1, 2016 and plaintiff’s receipt of 4 defendant’s opposition to that motion on February 22, 2016, 5 because counsel had no need to continue working on the Contempt 6 Motion until plaintiff received defendant’s opposition. 7 at 7, Attach. 3.) 8 after plaintiff filed its Contempt Motion, plaintiff’s counsel 9 continued to investigate, analyze, and document new information (Opp’n The billing records indicate, however, that 10 regarding defendant’s violations of the September 2015 11 injunction. 12 plaintiff obtained the relief it sought in its Contempt Motion, 13 the court must “defer to the winning lawyer’s professional 14 judgment as to how much time he or she was required to spend on 15 the case.” 16 omitted). 17 requested by counsel on these grounds. 18 19 (Bikoff Decl. Ex. B at 23-24.) In addition, because Ryan, 786 F.3d at 763 (citation and alterations Accordingly, the court declines to reduce the hours e. McDonald’s Fees for Attending Hearings Defendant argues that the court should exclude 20 McDonald’s billed hours for attending the March 7, 2016 Contempt 21 Motion hearing and April 18, 2016 Injunction Motion hearing 22 because McDonald did not argue at those hearings. 23 “[I]t is not uncommon to have co-counsel in litigation, and fees 24 are commonly awarded to multiple counsel.” 25 Toll Bros., Civ. No. C-08-0221 EMC, 2011 WL 1334444, at *12 (N.D. 26 Cal. Apr. 7, 2011), aff’d, 521 F. App’x 592 (9th Cir. 2013). 27 court has direction, however, to reduce a fee award “due to 28 unreasonable inefficiencies and duplicative efforts engendered by 18 (Opp’n at 9.) Stonebrae, L.P. v. The 1 multiple counsel and law firms.” 2 Id. McDonald billed 6.50 and 6 hours, respectively, on 3 March 7 and April 18, 2016 for the following activities: 4 conferring with Bikoff to prepare for the Contempt and Injunction 5 Motion hearings; attending those hearings; conferring with 6 plaintiff, co-counsel, and opposing counsel following the 7 hearings; and drafting follow-up memoranda, reports, and 8 recommendations relating to the motion hearings. 9 Ex. B at 29, 38.) (Bikoff Decl. It is not unreasonable “for two attorneys to 10 work together on such activities, especially when they are 11 working on different components of a brief or working together on 12 a motion.” 13 of Omaha Life Ins. Co., Civ. No. 95-0447 MHP, 1999 WL 33227443, 14 at *4 (N.D. Cal. Oct. 12, 1999) (finding it “reasonable that the 15 lead attorneys chose to be present during two pivotal points” in 16 the litigation). 17 “does not prevent two attorneys from working together on certain 18 tasks that are divisible, or conferencing together to determine 19 strategy.” 20 No. 12-668 JMS KSC, 2015 WL 1013834, at *12 (D. Haw. Mar. 9, 21 2015). 22 might contribute to one end product.” 23 at *4. Garcia, 2012 WL 3778852, at *7; see Chabner v. United The general rule against overstaffing cases De-Occupy Honolulu v. City & County of Honolulu, Civ. “Common sense dictates that . . . a number of people Chabner, 1999 WL 33227443, 24 Given plaintiff’s ultimate success in obtaining much of 25 the relief that it sought in its Contempt and Injunction Motions, 26 McDonald’s billed time for attending the motion hearings is 27 reasonable. 28 should defer to the winning lawyer’s professional judgment as to See Ryan, 786 F.3d at 763 (“[T]he district court 19 1 how much time he or she was required to spend on the case.” 2 (alterations and citation omitted)). 3 finds that the hours billed by McDonald for attending the 4 hearings on plaintiff’s Contempt Motion and Injunction Motions 5 are reasonable. 6 7 f. Accordingly, the court Travel Time Defendant also seeks to exclude McDonald’s travel time 8 to the motion hearings. 9 hours on April 17, 2016 for time spent reviewing case files, (Opp’n at 8-9.) McDonald billed 4.5 10 conducting research, and conferring with co-counsel in 11 preparation for the hearing on plaintiff’s Injunction Motion and 12 “travel to California with Mr. Bikoff” to attend that hearing. 13 (Bikoff Decl. Ex. B at 37-38.) 14 that mentions travel time in counsel’s billing statements. 15 Plaintiff states that the inclusion of the “travel to California” 16 language in McDonald’s billing entry was a clerical error and no 17 travel time was actually billed to plaintiff. 18 This is the only billing entry (Reply at 8-9.) The court finds plaintiff’s explanation credible. Had 19 McDonald actually billed plaintiff for his travel time, he would 20 have billed at least 6 hours for traveling from Washington, D.C. 21 to Sacramento. 22 April 17, 2016, the court finds that 4.5 hours is a reasonable 23 amount of time for conferring with co-counsel, conducting legal 24 research, and reviewing case files in preparation for the 25 Injunction Motion hearing on April 18, 2016. 26 because counsel did not bill any travel time to plaintiff, the 27 court declines to reduce plaintiff’s fee award on this ground. 28 As for the 4.5 hours that McDonald billed on g. Accordingly, Fees Incurred after April 18, 2016 20 1 Defendant argues that any fees incurred after the 2 Injunction Motion hearing on April 18, 2016 should be excluded 3 because “the briefing and hearing were concluded.” 4 The court’s April 20, 2016 Order, however, granted plaintiff 5 “attorney’s fees associated with its motion for an injunction 6 [and] its motion for an order to show cause why defendant should 7 not be held in contempt.” 8 added).) 9 preparing the Injunction and Contempt Motions, attending the 10 hearings on those motions, conferring with plaintiff and co- 11 counsel after the hearings, and reviewing the court’s subsequent 12 Orders on those motions. (Opp’n at 8.) (Apr. 20, 2016 Order at 38 (emphasis Plaintiff is thus entitled to any fees incurred in 13 Bikoff and McDonald billed 7 and 3 hours, respectively, 14 on April 19 and 20, 2016 on time spent conferring with co-counsel 15 and communicating with plaintiff regarding the Injunction Motion 16 hearing and the court’s subsequent April 20 Order on that motion. 17 (Bikoff Decl. Ex. B at 38.) 18 with” plaintiff’s Injunction Motion and are thus recoverable. 19 The court thus declines to exclude the attorney’s fees that 20 plaintiff incurred after the April 18, 2016 hearing. These tasks are clearly “associated 21 3. 22 Accordingly, the final lodestar figure for purposes of 23 Lodestar Calculation this fee motion is $144,715.70, calculated as follows: 24 Bikoff: $530 x 77.9 = 41,287.00 -15% = $ 35,093.95 25 McDonald: $450 x 188.7 = 84,915.00 -15% = $ 72,177.75 26 Lance: $330 x 68 = 22,440.00 -15% = $ 19,074.00 27 Turrill: $550 x 33.4 = 15,030.00 28 $ 18,370.00 TOTAL = 21 $144,715.70 1 C. 2 Adjustments to the Lodestar A “strong presumption” exists that the lodestar figure 3 represents a “reasonable fee” and should therefore be enhanced or 4 reduced only in “rare and exceptional cases.” 5 Del. Valley Citizens’ Council for Clean Air, 478 U.S. 546, 565 6 (1986) (quotations omitted); see also Gates, 987 F.2d at 1402 7 (stating “a district court may make upward or downward 8 adjustments to the presumptively reasonable lodestar” in “rare 9 cases”); Cunningham v. County of Los Angeles, 879 F.2d 481, 488 Pennsylvania v. 10 (9th Cir. 1988) (“[D]istrict courts [must] treat the lodestar 11 figure as presumptively reasonable and adjust it only in rare or 12 exceptional cases.”). 13 exceptional circumstances warrant an enhancement to the lodestar 14 here. 15 The court does not find that any Defendant argues that a reduction to the fee award is 16 warranted here because defendant did not willfully violate the 17 court’s September 2015 injunction and because this is not an 18 exceptional case under § 1117(a) of the Lanham Act. 19 at 1-2, 12-14.) 20 entitled to attorney’s fees under § 1117(a). 21 Order at 36 (“[D]efendant has willfully and deliberately 22 continued to deceive the public by infringing plaintiff’s 23 trademark and engaging in unfair competition against 24 plaintiff.”).) 25 court’s April 20, 2016 Order, and not the reasonableness of the 26 fee amount. 27 award on these grounds. 28 (See Opp’n The court has already found that plaintiff is (See Apr. 20, 2016 Defendant’s arguments challenge the merits of the The court thus declines to reduce plaintiff’s fee IT IS THEREFORE ORDERED that plaintiff’s motion for 22 1 attorney’s fees, (Docket No. 142), be, and the same hereby is, 2 GRANTED; and (2) defendant is directed to pay plaintiff 3 $144,715.70 in attorney’s fees and file an affidavit with the 4 court confirming payment within fourteen (14) business days from 5 the date this Order is signed. 6 7 IT IS SO ORDERED. Dated: September 9, 2016 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 23

Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.


Why Is My Information Online?