ZURICH AMERICAN INSURANCE COMPANY v. Silver Sage Insurance Brokers et al

Filing 53

ORDERED that the motion for attorney's fees (# 50 ) is GRANTED in the requested amount of $66,433.50. Signed by Judge Edward C. Reed, Jr on 8/8/2012. (Copies have been distributed pursuant to the NEF - DRM) Modified on 8/8/2012 to add hyperlink (DRM).

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UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA

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7 ZURICH AMERICAN INSURANCE COMPANY, )
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Plaintiff,
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vs.
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SILVER SAGE INSURANCE BROKERS,
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LTD., a Nevada corporation, JOHN
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STOKER, individually, and as
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President of Silver Sage Insurance )
Brokers, Ltd., and JOAN PAGE,
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individually,
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Defendants.
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3:09-cv-00433-ECR-WGC

Order

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On October 22, 2010, Plaintiff filed a motion for summary
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judgment (#33) against Defendants Silver Sage Insurance Brokers,
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Ltd. (“Silver Sage”) and John Stoker.

Despite prompting and

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additional time granted by the Court, Defendants Silver Sage and
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John Stoker failed to respond to the motion for summary judgment
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(#33).

On December 23, 2010, the Court granted summary judgment on

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the fourth, fifth, seventh, and eighth causes of action in favor of
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Plaintiff.
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On September 9, 2011, judgment was entered against Silver Sage
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in the amount of $133,542.80 plus pre-judgment interest.

Judgment

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was not entered against John Stoker due to bankruptcy.
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On September 23, 2011, Plaintiff filed a motion for attorney’s
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fees (#50).
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Plaintiff requests attorney’s fees against Defendant

1 Silver Sage due to Silver Sage’s unreasonableness in forcing
2 Plaintiff to initiate suit and to pursue it through judgment,
3 despite having no meritorious defense.

For example, Plaintiff

4 points to depositions of persons most knowledgeable at Silver Sage
5 in which Silver Sage admits that Plaintiff paid certain amounts that
6 were obligations of Defendants.

Despite these admissions, Plaintiff

7 states that Silver Sage refused to pay the amounts due or to
8 participate in any meaningful way in the lawsuit.

Plaintiff filed a

9 motion for summary judgment (#33) which was unopposed by Defendants,
10 and eventually stipulated to dismiss the remaining claims against
11 Silver Sage in order to obtain final judgment against it.

Silver

12 Sage has also failed to oppose the motion for attorney’s fees (#50)
13 in a timely manner.
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In Hall v. Cole, the Supreme Court stated that:

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[A]lthough the traditional American rule ordinarily
disfavors the allowance of attorneys fees in the absence
of statutory or contractual authorization, federal
courts, in the exercise of their equitable powers, may
award attorneys fees when the interests of justice so
require. Indeed the power to award such fees is part of
the authority of the chancellor to do equity in a
particular situation, and federal courts do not hesitate
to exercise this inherent equitable power whenever
overriding considerations indicate the need for such a
recovery.

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21 Hall v. Cole, 412 U.S. 1, 4-5 (1973) (internal citations omitted)).
22 In Hall, the Supreme Court stated that attorney’s fees may be
23 awarded to a successful party when an opponent has acted “in bad
24 faith, vexatiously, wantonly, or for oppressive reasons.”

Id. at 5

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In addition, this is a diversity case brought under Nevada law,

27 and statutes allowing attorney’s fees are substantive for Erie
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1 purposes and will apply in diversity cases unless they conflict with
2 a federal statute or procedural rule.
3 597, 598 (D. Nev. 2001).

Walsh v. Kelly, 203 F.R.D.

Under Nev. Rev. Stat. § 18.010, a court

4 may allow attorney’s fees if it finds that a defense of the opposing
5 party was brought or maintained without reasonable ground or to
6 harass the prevailing party.

Section 18.010 further provides that a

7 court should liberally construe this paragraph in favor of awarding
8 attorney’s fees in all appropriate situations.
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In this case, Defendants Silver Sage and John Stoker were

10 served and appeared, and also participated in various stipulations.
11 Both Silver Sage and Stoker gave depositions, and are represented by
12 an attorney.

Despite this, Defendants did not respond or oppose to

13 the motion for summary judgment or the motion for attorney’s fees.
14 Stipulations were entered into after the motion for summary judgment
15 was filed, but despite their presence and participation in various
16 stipulations, defendants simply did not respond to any substantive
17 motions. Therefore, we agree with Plaintiff that Defendants’ actions
18 in refusing to pay the amounts due while admitting fault, and
19 refusing to participate in this action while essentially driving
20 Plaintiff to file and litigate it, constitute maintaining a defense
21 without reasonable ground.
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Plaintiff seeks $66,433.50 in attorney’s fees.

Local Rule 54-

23 16 provides that a court may consider factors such as (a) results
24 obtained and the amounts involved; (b) the time and labor required;
25 © the novelty and difficulty of the questions involved; (d) the
26 skill requisite; etc.

Plaintiff provides an itemization and

27 description of the work performed and fees incurred in the action,
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1 as well as a brief summary of the information required in Local Rule
2 54-16. Plaintiff states that about three hundred and fourteen hours
3 were spent commencing litigation, obtaining summary judgment, and
4 attempting to collect on the debt. No opposition was timely filed,
5 and Plaintiff’s exhibits and affidavits support Plaintiff’s request
6 for fees.

In light of the time expended and after consideration of

7 the other factors in Local Rule 54-16, we find that the attorney’s
8 fees requested herein are reasonable.
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IT IS, THEREFORE, HEREBY ORDERED that the motion for attorney’s

10 fees (#50) is GRANTED in the requested amount of $66,433.50.
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13 DATED: August 8, 2012.
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UNITED STATES DISTRICT JUDGE

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