Takiguchi et al v. MRI International, Inc. et al

Filing 692

ORDER denying without prejudice ECF Nos. 615 / 666 Defendants' Motions for Attorney Fees. Any renewed briefing shall address the concerns outlined in order. Signed by Magistrate Judge Nancy J. Koppe on 05/30/2017. (Copies have been distributed pursuant to the NEF - KW)

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UNITED STATES DISTRICT COURT
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DISTRICT OF NEVADA
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SHIGE TAKIGUCHI, et al.,

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Pending before the Court are two motions for attorney fees filed by Defendants Junzo and

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Paul Suzuki (“Defendants”). Docket Nos. 615, 666. Plaintiffs filed responses in opposition and

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Defendants filed replies. Docket Nos. 628, 640, 670, 672.

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Plaintiffs,

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vs.

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MRI INTERNATIONAL, INC., et al.,
et al.,

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Defendants.

Case No. 2:13-cv-01183-HDM-NJK
ORDER
(Docket Nos. 615, 616)

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On September 18, 2014, United States District Judge Howard D. McKibben entered a

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preliminary injunction freezing Defendants’ assets. Docket No. 183. Judge McKibben’s order

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provided a limited exception so that Defendants could pay “normal living expenses and legal fees.”

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Id. at 17. Judge McKibben further ordered that “Defendants may petition the court to modify this

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order to allow the transfer, conversion, sale, disbursement, spending, withdrawing, liquidation,

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encumberance, pledging, assignment, or other disposal of a specific asset for good cause shown.”

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Id. at 18.

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At a hearing on May 2, 2016, Judge McKibben discussed with Defendants’ counsel the

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potential modification of the injunction order for specification of a reasonable monthly limit for

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attorney’s fees in connection with this litigation. Docket No. 424. Judge McKibben ordered

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Defendants to submit a proposal as to a reasonable monthly fee limit within two weeks of the

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hearing. Id. On May 17, 2016, Defendants submitted a schedule of anticipated monthly costs and

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fees, requesting a monthly allowance of $90,000 for attorneys’ fees. Docket No. 439.

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On June 30, 2016, Judge McKibben issued an order wherein he found that the amount

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Defendants sought in their schedule was unreasonable and unauthorized by the provision of the

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injunction “allowing payment of reasonable fees relating to this litigation only.” Docket No. 443

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at 2. Judge McKibben ordered that Defendants “may pay up to $10,000.00 per month for attorney’s

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fees relating to this litigation only.” Id. Judge McKibben further ordered that all requests for

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expenditures in excess of $10,000 shall be submitted to the Court for consideration and must contain

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an itemization of the funds expended such that the Court can determine the reasonableness of such

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expenditures. Id. at 3. Judge McKibben ordered that, after considering any objections submitted by

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Plaintiffs, the Court “may” increase the amount authorized by his order “for good cause shown.”

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Id.

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Defendants have submitted requests for attorney fees above the $10,000 Judge McKibben

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deemed reasonable for every month, since he issued his order on June 30, 2016. See Docket No. 447

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(requesting the release of $71,206.29 for attorneys’ fees and costs for June 2016); Docket No. 469

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(requesting the release of $25,672.70 for attorneys’ fees and costs for July 2016); Docket No. 504

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(requesting the release of $39,742.89 for attorneys’ fees and costs for August 2016); Docket No. 519

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(requesting the release of $48,521.90 for attorneys’ fees and costs for September 2016); Docket No.

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554 (requesting the release of $29,619.17 for attorneys’ fees and costs for October 2016); and Docket

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No. 594 (requesting the release of $57,630.18 for attorneys’ fees and costs for November 2016).

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Defendants have now filed motions for attorneys’ fees and costs above the $10,000 that

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Judge McKibben deemed reasonable for the months of December 2016, as well as January and

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February 2017. Docket Nos. 615, 666. These motions are currently before the Court.

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The Court finds the briefing for the instant motions insufficient. Defendants make no attempt

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to cite which standards that they contend apply to their motions. See Docket Nos. 615, 666; Local

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Rule 7-2(a) (all motions “must be supported by a memorandum of points and authorities”).

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Similarly, Plaintiffs’ oppositions consist of less than one page of analysis each, cite no authority, and

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impermissibly rely on arguments set forth in prior briefing. See Docket Nos. 628, 670. Neither party

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explains why Defendants’ counsel should be permitted to seek fees based on out-of-state hourly rates

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when competent counsel exist here who could perform this work at substantially lower rates than

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those requested. See Docket Nos. 615, 628, 640, 670, 672. Finally, the parties fail to address

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whether the monthly filing of requests for additional fees comports with Judge McKibben’s order

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that $10,000 per month for attorneys’ fees is reasonable. See id.; Docket No. 443 at 2-3.

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Accordingly, the Court hereby DENIES without prejudice Defendants’ motions for attorney
fees. Docket Nos. 615, 666. Any renewed briefing shall address the concerns outlined above.

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IT IS SO ORDERED.

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DATED: May 30, 2017.

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_____________________________________
NANCY J. KOPPE
United States Magistrate Judge

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