Washoe-Mill Apartments v. U.S. Bank National Association

Filing 81

ORDER awarding U.S. Bank fees in the amount of $18,891.90 and costs in the amount of $228.91. US Bank and HUD shall file notice with the Court to identify address for the funds to be sent within 5 days. Upon receipt of notice, Clerk dire cted to disburse interpleaded funds as follows: (1) $18,891.90 to U.S. Bank National Association; and (2) the balance to Secretary of Department of Housing and Urban Development. Signed by Judge Miranda M. Du on 5/18/15. (Copies have been distributed pursuant to the NEF - JC)

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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***

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WASHOE-MILL APARTMENTS,

Case No. 3:12-cv-00418-MMD-WGC
Plaintiff,

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ORDER

v.
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U.S. BANK NATIONAL ASSOCIATION,
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Defendant.
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U.S. BANK NATIONAL ASSOCIATION,
Counterclaimant,

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v.
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WASHOE-MILL APARTMENTS;
SECRETARY SHAUN DONOVAN,
Counter-Defendants.

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The Court previously denied U.S. Bank National Association’s request for fees

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relating to the interpleader action, finding that its requested fees of $29,148.41 exceeded

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the scope of U.S. Bank’s role as interpleader. (Dkt. no. 76.) The Court noted that

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services rendered in connection with tasks relating to U.S. Bank’s counterclaim for

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interpleader appear to be limited to: the motion to interplead that was never filed

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because the parties stipulated to interplead the funds, response to HUD’s motion for

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summary judgment, motion to be relieved as a stakeholder, and requests for fees.

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However, the difficulty the Court had with U.S. Bank’s second motion for fees was that,

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as presented, the Court would be required to shift through the billings to determine what

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services provided really relate to these tasks. The Court directed U.S. Bank to submit an

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affidavit of fees to identify the fees incurred relating to these tasks.

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In response, U.S. Bank essentially submits the same billings (and billings in

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connection with its request for attorneys’ fees since the second motion for fees was filed)

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and removed some items as combined billings. (Dkt. no. 77.) U.S. Bank requests that

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the fees billed for the combined billings be split 50%-50% instead of its previously

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proposed 75%-25% split. U.S. Bank then requests $32,620.40, which reflects additional

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fees incurred on its motion for attorneys’ fees.

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The Court finds that U.S. Bank has not demonstrated that the fees requested are

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directly related to the interpleader action or are even reasonable. It is not clear why U.S.

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Bank proposes to do a fifty-fifty split on tasks that involved the claim and the

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interpleader. It appears to the Court that some tasks would relate more to non-

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recoverable costs and less to the interpleader action. For example, U.S. Bank’s

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response to HUD’s motion for summary judgment mainly involved U.S. Bank’s request

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for fees under the Trust Indenture Agreement. (Dkt. no. 27.) An even split of fees for this

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task does not seem to be reasonable.

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The Court has given U.S. Bank two opportunities to submit requests for fees

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relating to the interpleader action, but U.S. Bank has failed to demonstrate that its fees

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requests are related to the interpleader action and are reasonable. While HUD asks that

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the Court disallow fees entirely or award no more than $2,310.00, the Court finds that

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either alternative would be unfair. In light of U.S. Bank’s failure to demonstrate that the

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amount of fees requested are reasonable, the Court finds that a reasonable and fair

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approach is to award U.S. Bank the amount of fees it identified as relating to the

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interpleader action, but not any of the fees relating to the combined billings for the claim

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and the interpleader. Accordingly, the Court will award U.S. Bank $18,891.90.

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It is therefore ordered that U.S Bank be awarded fees in the amount of

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$18,891.90 and costs in the amount of $228.91. It is further ordered that U.S. Bank and

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HUD shall file a notice with the Court to identify the address for the funds to be sent
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within five (5) days from issuance of this Order. Upon receipt of said notice, the Clerk is

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directed to disburse the interpleaded funds as follows: (1) $18,891.90 to U.S. Bank

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National Association; and (2) the balance of the interpleaded funds to the Secretary of

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the Department of Housing and Urban Development.

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DATED THIS 18th day of May 2015.

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MIRANDA M. DU
UNITED STATES DISTRICT JUDGE

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