Green Tree Servicing LLC v. Collegium Fund LLC-Series 31 et al

Filing 91

ORDER that Plaintiff Green Tree Servicing LLC must pay the amount of $1,277.50 to Defendant Tierra De Las Palmas Owners Association, the amount of $2,231.25 to Third-Party Defendant Absolute Collection Services, and the amount of $3,3 25.00 to Defendant Collegium. IT IS FURTHER ORDERED that Plaintiff is to make the payments to Defendant Tierra De Las Palmas Owners Association, Third-Party Defendant Absolute Collection Services, and Defendant Collegium by 10/19/2016 unless an objection is filed. Signed by Magistrate Judge George Foley, Jr on 10/5/16. (Copies have been distributed pursuant to the NEF - JM)

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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GREEN TREE SERVICING, LLC,

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Plaintiff,
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vs.
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COLLEGIUM FUND LLC-SERIES 31, et al.,
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Defendants.
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__________________________________________)

Case No. 2:15-cv-00700-GMN-GWF
ORDER

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This matter is before the Court on Defendant Tierra De Las Palmas Owners Association’s

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Memorandum in Support of Request for Attorney’s Fees (ECF No. 84), Defendant Collegium Fund

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Series 31's (“Collegium”) Memorandum of Costs and Fees (ECF No. 85), and Third-Party

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Defendant Absolute Collection Services LLC’s Memorandum of Costs and Fees (ECF No. 87), filed

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on August 24, 2016. Plaintiff Green Tree Servicing LLC filed its Opposition to Defendant

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Collegium’s Memorandum of Costs and Fees (ECF No. 88) on September 7, 2016.

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BACKGROUND
This case arises from a real property dispute where Plaintiff seeks to declare its rights and

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interests in the property and to resolve the parties’ adverse claims in the property. See Second

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Amended Complaint (ECF No. 53). On June 2, 2016, a settlement conference commenced at 9:00

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am. In the order setting the settlement conference, the Court outlined the attendance requirements.

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(ECF No. 68). None of the parties requested an exception to the attendance requirements. During

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the settlement conference, the undersigned magistrate judge recommended a settlement amount that

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was to be made to all parties. Plaintiff’s counsel and its representative indicated that they were

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receptive to the proposed settlement amount. After the Defendants conferred and accepted the

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proposed settlement amount, Plaintiff’s counsel and its representative indicated for the first time

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that they needed to make a phone call to obtain authority to agree to the proposed settlement. The

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undersigned is advised that Plaintiff’s counsel telephoned Andrew Holm, Esq., assistant general

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counsel for Plaintiff, in Minneapolis, Minnesota, for settlement authority. Mr. Holm refused to

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authorize the proposed settlement. The parties did not reach a settlement and settlement discussions

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concluded.

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Plaintiff failed to comply with this Court’s Order Scheduling a Settlement Conference (ECF

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No. 68). The Court issued an Order to Show Cause (ECF No. 73) on June 15, 2016 to show why

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sanctions should not be imposed on the basis of Plaintiff’s failure to comply with this Court’s Order.

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Plaintiff filed its Response (ECF No. 74) on June 29, 2016. Defendant Collegium Fund LLC Series

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31 (“Collegium Fund”) filed its Opposition (ECF No. 75) on July 18, 2016. Third-Party Defendant

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Absolute Collection Services, LLC filed its Joinder (ECF No. 76) to Defendant Collegium Fund’s

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Opposition on July 18, 2016. Defendant Tierra De Las Palmas Owners Association filed its Limited

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Response (ECF No. 77) on July 18, 2016. Plaintiff filed its Reply (ECF No. 81) on July 28, 2016.

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The Court conducted a show cause hearing on August 8, 2016. (ECF No. 82). During the hearing

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conducted on August 8, 2016, Defendant Collegium requested attorneys’ fees and costs for

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preparing for and attending the show cause hearing. The Court permitted Defendants to include

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documentation of its attorneys’ fees and costs relating to attendance and preparation for the show

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cause hearing in its briefs. The Court sanctioned Plaintiff in the amount of Defendants’ reasonable

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attorneys’ fees and costs incurred in preparing for and attending the settlement conference for its

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failure to comply with this Court’s Order. See ECF No. 83.

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DISCUSSION
The Supreme Court has held that reasonable attorney fees must “be calculated according to

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the prevailing market rates in the relevant community,” considering the fees charged by “lawyers of

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reasonably comparable skill, experience, and reputation.” Blum v. Stenson, 465 U.S. 886, 895-96 n.

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11, 104 S.Ct. 1541 (1984). Courts typically use a two-step process when determining fee awards.

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Fischer v. SJB-P.D. Inc., 214 F.3d 1115, 1119 (9th Cir. 2000). First, the Court must calculate the

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lodestar amount “by taking the number of hours reasonably expended on the litigation and

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multiplying it by a reasonable hourly rate.” Id. Furthermore, other factors should be taken into

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consideration such as special skill, experience of counsel, and the results obtained. Morales v. City
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of San Rafael, 96 F.3d 359, 364 n. 9 (9th Cir. 1996). “The party seeking an award of fees should

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submit evidence supporting the hours worked and rates claimed . . . [w]here the documentation of

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hours is inadequate, the district court may reduce the award accordingly.” Hensley v. Eckerhart,

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461 U.S. 424, 433 (1983). Second, the Court “may adjust the lodestar, [only on rare and

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exceptional occasions], upward or downward using a multiplier based on factors not subsumed in

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the initial calculation of the lodestar.” Van Gerwen v. Guarantee Mut. Life Co., 214 F.3d 1041,

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1045 (9th Cir. 2000).

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Defendant Tierra De Las Palmas Owners Association requests $1,277.50 in attorney’s fees
based on 7.3 hours of work performed in preparing for, attending, and traveling to the settlement

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conference. That amount is based on work performed by Elizabeth B. Lowell, Esq. at an hourly rate

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of $175.00, which is her hourly rate that is billed to the insurance carrier. After reviewing

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Defendant Tierra De Las Palmas Owners Associations counsel’s affidavit, the Court finds that 7.3

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hours in attorney labor to prepare for, attend, and travel to the settlement conference at the hourly

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rate of $175.00 is reasonable. As a result, the Court will award Defendant Tierra De Las Palmas

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Owners Association reasonable attorneys’ fees in the amount of $1,277.50.

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Third-Party Defendant Absolute Collection Services requests $2,231.25 in attorney’s fees

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based on 10.5 hours of work performed in attending the settlement conference, traveling to the

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settlement conference, drafting its confidential settlement conference statement, and drafting its

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joinder to Defendant Collegium’s Opposition to Plaintiff’s Response to Order to Show Cause (ECF

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No. 76). Although Shane D. Cox, Esq., Third-Party Defendant Absolute Collection Services’

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counsel, works as in-house counsel and does not bill an hourly rate to Absolute Collection Services,

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he states in his affidavit that in his outside employment as an attorney representing clients other than

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Absolute Collection Services his hourly rate ranges from $200.00 to $275.00. The Court finds that

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Third-Party Defendant’s counsel’s requested rate of $212.50 an hour is reasonable. The Court finds

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that Third-Party Defendant’s itemization of spending 7.20 hours traveling to and attending the

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settlement conference, 3.10 hours drafting the confidential settlement conference statement, and .20

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hours drafting and filing its joinder to Defendant Collegium’s Opposition to Plaintiff’s Response to

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the Order to Show Cause (ECF No. 76) is reasonable. Therefore, the Court will award Third-Party
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Defendant Absolute Collection Services reasonable attorneys’ fees in the amount of $2,231.25.
Defendant Collegium requests $6,000 in attorney’s fees based on 24 hours of work

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performed in preparing a confidential settlement conference statement, attending the settlement

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conference, preparing a response to the Court’s Order to Show Cause, and attending the Order to

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Show Cause hearing. According to Defendant Collegium’s counsel’s affidavit, that amount is based

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on work performed by Tara D. Newberry, Esq. at an hourly rate of $250.00. After reviewing

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Defendant Collegium’s counsel’s affidavit, the Court finds that Defendant Collegium’s counsel has

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provided sufficient evidence showing that her hourly rate is reasonable. However, the Court

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believes that 24 hours of attorney labor is excessive. The Court finds that the hours involved in

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preparing a confidential settlement conference statement, attending the settlement conference,

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preparing a response to the Court’s Order to Show cause, and attending the Order to Show Cause

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hearing should take no more than 13.30 hours of attorney labor. As a result, the Court will award

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reasonable attorneys’ fees to Defendant Collegium in the amount of $3,325.00.

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IT IS HEREBY ORDERED that Plaintiff Green Tree Servicing LLC must pay the amount

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of $1,277.50 to Defendant Tierra De Las Palmas Owners Association, the amount of $2,231.25 to

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Third-Party Defendant Absolute Collection Services, and the amount of $3,325.00 to Defendant

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Collegium.

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IT IS FURTHER ORDERED that Plaintiff is to make the payments to Defendant Tierra

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De Las Palmas Owners Association, Third-Party Defendant Absolute Collection Services, and

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Defendant Collegium by October 19, 2016 unless an objection is filed.

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DATED this 5th day of October, 2016.

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______________________________________
GEORGE FOLEY, JR.
United States Magistrate Judge

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