UBS Financial Services, Inc v. Carolyn Garrett et al
Filing
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ORDER granting 96 Motion for Clarification and denying 98 Motion to Stay. Signed by Judge Larry R. Hicks on 7/8/15. (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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CAROLYN GARRETT,
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Plaintiff,
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vs.
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GARRETT BULLOCK; DIANN MARTIN;
CATHERINE HINTZEN; JASON
GARRETT,
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Defendants.
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) 3:14-cv-00141-LRH-WGC
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) ORDER
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Before the Court is Carolyn Garrett’s (“Garrett”) Motion for Clarification of Orders (Doc.
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#96),1 and Motion for Stay Pending Appeal (Doc. #98). Remaining Defendants Garrett Bullock,
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Diann Martin, Catherine Garrison, and Jason Garrett did not file responses.
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On March 10, 2015, the Court entered an Order granting Garrett’s Motion for Joinder in
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part, denying Garrett’s Motion for Summary Judgment, granting Garrett’s Motion for Default
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Judgment, and denying Garrett’s Motion for Further Extension to File a Motion for Judgment on
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the Pleadings. Doc. #71. The Court also granted UBS’s Motion to Deposit Funds, Motion for
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Discharge, Motion for Permanent Injunction, and Motion to File for Reasonable Attorney Fees.
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Id. UBS filed its Motion for Attorney Fees on March 16, 2015 (Doc. #72), and Garrett filed a
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Motion to Reconsider on April 7, 2015 (Doc. #77). On May 28, 2015, the Court denied Garrett’s
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Motion to Reconsider, and granted UBS $20,000 in attorney fees. Doc. #91. On June 25, 2015,
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Garrett filed a Notice of Appeal (Doc. #97), and a Motion to Stay pending her appeal (Doc. #98).
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Refers to the Court’s docket number.
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A.
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Garrett uses her Motion to Clarify largely as an opportunity to challenge the Court’s
Motion for Clarification
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Order granting attorney fees to former interpleader plaintiff UBS (Doc. #91), and to reargue her
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claims that UBS acted improperly throughout the interpleader proceedings, and that the Court
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improperly denied Garrett her final request for additional time to file a motion for judgment on
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the pleadings. It is improper for parties to use motions to reconsider or clarify merely to reargue
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their positions. See Am. Ironworks & Erectors, Inc. v. N. Am. Const. Corp., 248 F.3d 892, 899
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(9th Cir. 2001). The Court has already found that UBS’s actions were not improper (Doc. #71 at
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9; Doc. #91 at 8-9), and believes that further clarification on that point is not needed.
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Additionally, the Court previously explained that it did not grant Garrett’s final request for
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additional time to file a motion for default judgment because the Court had already granted
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Garrett numerous extensions of time and Garrett failed to abide by the Court’s time line despite
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two warnings that no further extensions would be granted. See Doc. #91 at 7. That said, the
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Court will respond to those portions of Garrett’s Motion to Clarify that appear to appropriately
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seek clarification.
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First, Garrett asks when she can file for a re-tax of costs pursuant to Local Rule 54-14.
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Rule 54-14 states that “[a]ny motion to retax costs shall be filed and served within seven (7) days
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after receipt” of the clerk of court’s notice of taxation of costs provided for in Local Rule 54-13.
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UBS filed its Bill of Costs on March 16, 2015, requesting $1,060.00 in costs related to service of
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summonses and subpoenas. Doc. #73. The clerk of court has not yet filed notice of taxation of
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costs, so the seven days in which to respond has not yet begun.
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Second, Garrett requests clarification regarding the Court’s non-itemized award of
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attorney fees. “The amount of attorney fees to be awarded in an interpleader action is committed
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to the sound discretion of the district court.” Trs. of Dirs. Guild of Am.-Producer Pension
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Benefits Plans v. Tise, 234 F.3d 415, 426 (9th Cir. 2000). Attorney fees to banks in interpleader
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actions are “typically modest,” and compensable expenses include “preparing the complaint,
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obtaining service of process on the claimants to the fund, and preparing an order discharging the
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stakeholder from liability and dismissing it from the action.” Id. at 426-27. An award of
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attorney fees in an interpleader action is typically calculated based on the lodestar
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method—multiplying a reasonable fee by the number of hours reasonably expended. See John
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Hancock Life Ins. Co. (U.S.A.) v. Jacobs, No. 2:13-cv-0557, 2014 WL 587521, at *2 (D. Nev.
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Feb. 13, 2014) (citing Hensley v. Eckerhart, 461 U.S. 424, 433 (1983)). Courts can reduce a
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bank’s lodestar figure to ensure that it is not excessive compared to the interpleaded fund. Tise,
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234 F.3d at 427.
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UBS requested that the Court award attorney fees based on the lodestar method in the
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amount of $43,551.90, which represented a total of 133.80 hours of work at a blended hourly rate
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of $325.50. The Court found this figure to be excessive compared to the total value of the
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interpleaded fund. Doc. #91 at 11. However, the Court recognized that UBS expended
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significant time and effort responding to Garrett’s numerous pleadings, which required written
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responses and court appearances. After reviewing UBS’s itemized documentation of hours
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expended in this case (Doc. #72, Ex. B), the Court determined that an award of $20,000 in
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attorney fees was appropriate and fair to compensate UBS without depleting the funds available
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to claimants. Doc. #91 at 11. The Court reiterates that it believes this to be an appropriate award
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of attorney fees, and that the reduction of UBS’s lodestar was within the Court’s discretion. Tise,
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234 F.3d at 426.
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Third, Garrett requests clarification for what she considers “conflicting rulings.” On the
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one hand, the Court reaffirmed its denial of Garrett’s final motion for extension of time to file a
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motion for judgment on the pleadings—filed three weeks after the final deadline set by the Court,
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and after the Court twice warned that it would not grant further extensions. Doc. #91 at 7. On
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the other hand, the Court found that Garrett failed to show that the Court’s prior rulings were
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obtained by UBS’s fraud. Id. at 9 n.6. Garrett argues that these rulings are conflicting because
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the Court effectively prevented Garrett from presenting such evidence by declining to grant an
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additional extension of time. However, Garrett argued in multiple previous briefings that UBS
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engaged in misconduct throughout the interpleader process, and the Court nonetheless found that
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no evidence supported these claims. Doc. #71 at 9; Doc. #91 at 8-9. Moreover, it was within the
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Court’s discretion to deny a further extension of time given Garrett’s repeated failure to meet the
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Court’s deadlines. See Manley v. Zimmer, No. 3:11-cv-0636, 2014 WL 4471662, at *6 (D. Nev.
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Sept. 10, 2014) (“[I]t is the trial court’s responsibility to exercise its discretion in granting or
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denying extensions of time as it manages the progress of litigation.”).
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B.
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A party must seek leave to file an interlocutory appeal. See Hughes v. Sharp, 476 F.2d
Motion to Stay
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975, 975 (9th Cir. 1973) (finding that the appellate court lacked jurisdiction where petitioner did
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not seek leave to file an interlocutory appeal). District courts can interpret a timely notice of
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appeal as a motion for leave to appeal. See, e.g., In re Frick, No. 3:11-cv-0898, 2012 WL
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3206527, at *6 (D. Nev. Aug. 3, 2012). Application for an interlocutory appeal “shall not stay
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proceedings in the district court unless the district judge or the Court of Appeals” so orders. 28
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U.S.C. § 1292(b). “The decision whether to grant leave to file an interlocutory appeal is . . .
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discretionary, and ‘should be granted sparingly’ and only in ‘rare cases.’” Evon v. Law Offices of
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Sidney Mickell, 688 F.3d 1015, 1023 n.2 (9th Cir. 2012) (internal citations omitted).
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The Court has reviewed Garrett’s Motion for Stay pending appeal, and determines that a
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stay is not warranted at this time. Accordingly, the Court denies Garrett’s Motion for Stay
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Pending Appeal.
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C.
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The parties have failed to submit an acceptable joint pre-trial order. Doc. #92; Doc. #95.
Show Cause Hearing
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To address this issue, Magistrate Judge William Cobb has scheduled a show cause hearing on
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Friday July 17, 2015, at 10:00 am in Reno Courtroom 2. Doc. #92. The District Judge and the
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Magistrate Judge will both be present at this hearing. The Court strongly encourages all parties
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to appear, either telephonically or in person. Parties wishing to appear telephonically shall dial
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1-877-873-8017, enter access code 3416460, and enter the security code 71715 approximately
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five (5) minutes prior to the hearing.
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D.
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Conclusion
IT IS THEREFORE ORDERED that Garrett’s Motion for Clarification (Doc. #96) is
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GRANTED.
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IT IS FURTHER ORDERED that Garrett’s Motion to Stay pending appeal (Doc. #98) is
DENIED.
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IT IS SO ORDERED.
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DATED this 8th day of July, 2015.
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________________________________
LARRY R. HICKS
UNITED STATES DISTRICT JUDGE
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