Weinfeld et al v. Minor et al

Filing 195

ORDER that Defendants' Motion for Attorneys' Fees and Costs ECF No. 160 is GRANTED; Defendants' are awarded attorneys' fees in the amount of $179,747.50 and non-taxable costs and paralegal fees in the amount of $39,218.15; that Plaintiffs' Motion for Re-Taxation of Costs ECF No. 186 is DENIED. Signed by Judge Robert C. Jones on 3/11/2019. (Copies have been distributed pursuant to the NEF - KW)

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1 2 3 UNITED STATES DISTRICT COURT 4 DISTRICT OF NEVADA 5 6 7 JOSEPH WEINFELD, et al., 8 Plaintiffs, 9 10 3:14-cv-00513-RJC-WGC vs. ORDER BILL L. MINOR, et al., 11 Defendants. 12 Pending before the Court are Defendants’ Motion for Attorneys’ Fees and Costs (ECF 13 14 No. 160) and Plaintiffs’ Motion for Re-Taxation of Costs (ECF No. 186). Defendants argue that 15 they should be awarded attorneys’ fees and costs, because Plaintiffs brought this suit without 16 reasonable grounds, and because Defendants are the prevailing party. The Court agrees. 17 I. FACTS AND PROCEDURAL HISTORY 18 Sixteen individuals and Congregation Beth Joseph brought this shareholder derivative 19 action in the Eastern District of New York on behalf of Precious Minerals Mining & Refining 20 Corp. (“PMMR”) against Bill Minor, John Reynolds, and Walter Marting for breach of fiduciary 21 duties, unjust enrichment, abuse of control, usurpation of corporate opportunities, and ultra vires 22 actions. PMMR is a Nevada corporation holding certain mining rights in Lyon County, which it 23 exercises under permission of the U.S. Forest Service (“USFS”) (which owns the relevant land) 24 to mine a substance sold commercially as Orykta and used as fertilizer and animal feed. (Third 1 of 15 1 Am. Compl. ¶ 1, ECF No. 54.) From 1999 to 2001, Minor sold shares of PMMR to investors 2 throughout the United States and Canada, including Plaintiffs, who are New York residents. (Id. 3 ¶¶ 3, 31.) 4 The U.S. District Court for the Eastern District of New York transferred the case to this 5 District under 28 U.S.C. § 1404(a) as an alternative to a request to dismiss for lack of personal 6 jurisdiction and improper venue. The transferor court did not rule on contemporaneous requests 7 to dismiss the First Amended Complaint (“FAC”) for failure to comply with Rules 8(a), 9(b), 8 and 23.1(b). This Court dismissed the FAC under the latter rule and Rule 11(a) because it was 9 not verified or even signed by any attorney. Plaintiffs filed the Second Amended Complaint 10 (“SAC”), and Defendants moved to dismiss it. The Court ruled that the SAC was not precluded 11 by either of two previous actions litigated in the New York and Nevada state courts but 12 dismissed it with leave to amend because it failed to comply with Rule 23.1’s requirement to 13 plead demand or futility with particularity. Plaintiffs filed the Third Amended Complaint (“TAC”), and Defendants moved to 14 15 dismiss it. The Court refused to dismiss the TAC under Rule 23.1 but dismissed certain claims 16 on the merits, with leave to amend some of them. Specifically, the Court permitted the claim for 17 breach of fiduciary duty to proceed against all Defendants as to the allegations concerning 18 usurpation of corporate opportunities and compensation packages and permitted the claim to 19 proceed against Minor as to the allegations concerning false statements and improper 20 withholding of financial records. The Court otherwise dismissed the breach of fiduciary duty 21 claim, as well as the claims for unjust enrichment and abuse of control, without leave to amend, 22 and dismissed the claim for ultra vires acts, with leave to amend. Plaintiffs did not further 23 amend. 24 2 of 15 After further litigation, both parties moved for summary judgment, and the Court granted 1 2 summary judgment for Defendants on all Plaintiffs’ remaining claims. (ECF No. 157.) 3 Defendants have now filed a motion seeking costs and attorneys’ fees, and Plaintiffs’ have filed a 4 motion for re-taxation of costs. 5 II. LEGAL STANDARDS All parties agree that “[i]n diversity actions, federal courts are required to follow state 6 7 law in determining whether to allow attorneys’ fees.” Swallow Ranches, Inc. v. Bidart, 525 F.2d 8 995, 999 (9th Cir. 1975). Nevada Revised Statute § 18.010(2)(b) provides that a prevailing party 9 can obtain an award of attorneys’ fees if the court finds that the action was “brought or 10 maintained without reasonable ground.” The Nevada Supreme Court has often expressed that the 11 decision to award attorneys’ fees under section 18.010(2)(b) is “within the sound discretion of 12 the district court.” Kahn v. Morse & Mowbray, 117 P.3d 227, 238 (Nev. 2005). However, courts 13 are required by statute to “liberally construe the provisions of [NRS § 18.010] in favor of 14 awarding attorney’s fees in all appropriate situations . . . to punish for and deter frivolous or 15 vexatious claims and defenses.” Nev. Rev. Stat. § 18.010(2)(b). To support such an award, “there 16 must be evidence in the record supporting the proposition that the complaint was brought without 17 reasonable grounds or to harass the other party.” Semenza v. Caughlin Crafted Homes, 901 P.2d 18 684, 687 (Nev. 1995). Such analysis depends on the circumstances of the case. Id. at 688. 19 III. 20 ANALYSIS a. Attorneys’ Fees 21 Defendants argue that they should be awarded attorneys’ fees. The Court agrees: 22 Defendants are a prevailing party, because they successfully defended the law suit and obtained 23 summary judgment. Valley Elec. Ass’n v. Overfield, 106 P.3d 1198, 1200 (Nev. 2005) (stating 24 that a party can prevail under NRS § 18.010 if a party succeeds on any significant issue in 3 of 15 1 litigation which achieves some of the benefit it sought in bringing the suit, counterclaim, or 2 motion). And the Court finds that there is evidence in the record to support the proposition that 3 Plaintiffs brought their complaint without reasonable grounds. 4 The Nevada Supreme Court has recognized that a claim is groundless if the complaint 5 contains allegations which are not supported by any credible evidence at trial. Semenza, 901 P.2d 6 at 688. The court has clarified, however, that “[i]f an action is not frivolous when it is initiated, 7 then the fact that it later becomes frivolous will not support an award of [attorneys’] fees.” Id. 8 (quoting Duff v. Foster, 885 P.2d 589, 591 (Nev. 1994). Therefore, “the proper inquiry is 9 whether the claim ‘was brought’ without reasonable grounds.” Barozzi v. Benna, 918 P.2d 301, 10 11 303 (Nev. 1996) (quoting Duff, 885 P.2d at 591). In Barozzi, the Nevada Supreme Court confirmed that under NRS 18.010(2)(b) 12 groundlessness “is determined at the time the claim is initiated.” Id. Although Allianz Ins. Co. v. 13 Gagnon, 860 P.2d 720, 724 (Nev. 1993) stated that a claim is groundless if it is not supported by 14 credible evidence at trial, the court explained that Allianz did not state a sufficient condition. 15 Barozzi, 918 P.2d at 303. In Allianz, the court recognized the argument that respondents’ claims 16 were well grounded when brought but had become stale prior to trial, if factually true. 860 P.2d 17 at 725. However, Allianz held that respondents’ argument was not factually true and was 18 inconsistent with the district court’s finding of fraud. Id. The district court determined that 19 respondents’ claims were fraudulent, but did not grant attorneys’ fees, because it could not find 20 authority to support the proposition that fraudulent claims were also groundless. Id. at 724. 21 Reversing the district court, the court stated in Allianz that a claim is groundless if it is not 22 supported by credible evidence at trial. Id. Thus, no conflict exists in the caselaw regarding the 23 “point in time when a claim is determined to be groundless.” Barozzi, 918 P.2d at 303. Allianz 24 did not need to analyze whether respondents’ claims were well grounded but had become stale 4 of 15 1 prior to trial, and later cases have verified that groundlessness is determined at the time of filing. 2 Id. 3 Here, Plaintiffs assert that their claims were well grounded when filed; however, 4 Plaintiffs’ argument is inconsistent with this Court’s Order granting summary judgment. This is 5 not a case that the Supreme Court of Nevada has recognized where a claim is well grounded 6 when filed but becomes stale, either through time or new developments. This is a case where 7 plaintiffs filed a complaint without sufficient evidence and after months of litigation have failed 8 to find any meaningful evidence to survive summary judgment. The evidence has not grown 9 stale, because it never existed. 10 First, summary judgment was granted on Plaintiffs’ usurpation of corporate opportunities 11 claims, because after Defendants presented evidence to negate usurpation, Plaintiffs did not 12 adduce any contrary evidence or even “address [Defendants’] claim in response.” (Order Grant. 13 Summ. J. 7:3–7:11, ECF No. 157.) 14 Second, summary judgment was granted concerning Plaintiffs’ breach of fiduciary duties 15 claim over Defendants compensation packages, because Plaintiffs adduced “no evidence to 16 create a triable issue of material fact” and again failed to “address . . . [Defendants’] claim in 17 their response.” (Id. 7:13–8:8.) 18 Third, summary judgment was granted over Plaintiffs’ claim that Minor lied about the 19 existence of a contract to sell in China. Although there was a genuine issue of material fact 20 whether there was any purported contract to sell in China, summary judgment was granted, 21 because there was “no evidence adduced that Minor ever made any false statements to any 22 Plaintiff, directly or indirectly, concerning any contract to sell Orykta in China.” (Id. 9:9–10:17.) 23 In fact, Plaintiffs could not even provide “a single self-interested attestation that Minor ever 24 made any statement to any of them concerning the sale of Orykta in China.” (Id. 10:8–10:10.) 5 of 15 1 Fourth, summary judgment was granted concerning purported false statements that Minor 2 had promised to pay Plaintiffs dividends, because Defendants demonstrated “a complete lack of 3 evidence to support [this claim], and Plaintiffs [did] not adduced any evidence in response that 4 any false statements promising to pay dividends were made.” (Id. 11:14–11:24.) 5 Fifth, summary judgment was granted over Plaintiffs’ claim that Minor made materially 6 false statements concerning his majority shareholder status, because Plaintiffs provided “no 7 evidence that Minor was not the majority shareholder at the time he made any relevant 8 statements.” (Id. at 12:12–12:14.) Moreover, Plaintiffs could not “point to any alleged statements 9 by Minor concerning his majority shareholder status at all, identify to whom he made any such 10 statements, or show how they relied on those claims to their detriment, or critically, . . . show 11 how those alleged statements harmed PMMR.” (Id. at 12:14–12:17.) 12 Sixth, summary judgment was granted on Plaintiffs’ misrepresentation of company sales 13 claim, because Plaintiffs were unable to provide any evidence of misrepresentation and did not 14 even claim in their response “that such evidence exists.” (Id. 14:6–14:13.) Thus, this Court found 15 that no evidence existed that Minor made any false statements or misrepresentation of sales. (Id.) 16 Seventh, the Court granted summary judgment on the claim that Plaintiffs were denied 17 access to company financial records, because Plaintiffs produced no evidence of written demand 18 and did not even “claim the requirements of the statute were satisfied.” (Id. 15:3–15:20.) The 19 statute in question required written demand, and in six Plaintiff depositions individual plaintiffs 20 admitted that they failed make any written demand. (Id.) Plaintiffs produced no contrary 21 evidence, and simply argued that the statute should not apply. Although a good faith argument 22 for the modification of existing law is not a groundless claim, Plaintiffs did not make a good 23 faith argument for the modification of law. (Id.) Plaintiffs did not argue that the statute should 24 not apply on its face or that the legislative intent or commentary supported an alternative 6 of 15 1 interpretation that differed from the plain meaning of the statute. (Id.) Plaintiffs “used the words 2 ‘intent of this statute’ but simply ma[d]e conclusory statements about the bad effect of 3 interpreting the statute as it is written.” (Id.) The statute “clearly” applied, and the Court 4 determined that Plaintiffs “clearly” had no evidence that they satisfied it. (Id.) 5 Accordingly, new developments did not alter Plaintiffs’ evidence. Plaintiffs lacked 6 adequate evidence from the start, and they failed to obtain evidence through discovery. At the 7 summary judgment stage, which represented the apex of Plaintiffs’ evidentiary knowledge, 8 summary judgment was granted because Plaintiffs did not have evidence to support their claims. 9 Although some of Plaintiffs claims survived motions to dismiss, that does not mean that 10 those claims were well grounded. At the motion to dismiss stage, a court is not examining a 11 party’s evidence, which is what determines whether a complaint is reasonably grounded. A claim 12 survives a motion to dismiss when it is sufficiently pled, meaning that a plaintiff has included 13 enough factual content, viewed as true, “to state a claim to relief that is plausible on its face.” 14 Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). The plausibility standard “does not 15 impose a probability requirement at the pleading stage; it simply calls for enough fact[s] to raise 16 a reasonable expectation that discovery will reveal evidence” of wrongdoing. Id. at 556. Thus, if 17 a plaintiff includes enough facts “a well-pleaded complaint may proceed even if it strikes a savvy 18 judge that actual proof of those facts is improbable, and ‘that a recovery is very remote and 19 unlikely.’” Id. (citation omitted). Consequently, surviving a motion to dismiss is not equivalent 20 to being well grounded, which is a determination based on evidence. It only means that a claim 21 was well pled—a determination based on legal and factual assertions. 22 Moreover, the Nevada legislature has decreed that courts are to “liberally” construe NRS 23 § 18.010 toward granting attorneys’ fees. It is simply not enough to avoid paying attorneys’ fees 24 for Plaintiffs to claim that they believed their lawsuit was well grounded based on conclusory 7 of 15 1 and self-serving averments. “Reasonable grounds” is an objective benchmark not satisfied by 2 mere subjective belief. When a plaintiff chooses to file a lawsuit believing that he will find 3 supporting evidence during discovery, he risks the consequences when he does not. As this Court 4 has stated: “Implicit in NRS § 18.010(2)(b) is the Nevada Legislature’s judgment that litigants in 5 this state must be cautious in their pursuit of legal claims, and take upon themselves the 6 responsibility of ensuring that there is a reasonable basis for those claims before asserting them 7 in court.” Greenwood v. Ocwen Loan Servicing LLC, No. 316CV00527RCJVPC, 2018 WL 8 3550217, at *2 (D. Nev. July 24, 2018). Thus, a plaintiff must ensure that there is a reasonable 9 basis for his subjective belief before filing a lawsuit in Nevada, or risk paying for it. Plaintiffs 10 11 failed to do that here. In the present case, Plaintiffs filed their law suit without reasonable grounds and persisted 12 without sufficient evidence, amassing legal expenses for both Plaintiffs and Defendants. Nevada 13 has determined that the Plaintiffs should pay for their decisions. Therefore, based upon this 14 Court’s previous Order and findings, the Court awards Defendants reasonable attorneys’ fees to 15 be paid by Plaintiffs. Plaintiffs further argument that Defendants did not comply with the 16 perquisite rules of itemization is incorrect and will be addressed below. 17 18 b. Reasonableness of Fee In diversity cases, courts apply federal law if the law is procedural and state law if the 19 law is substantive. Walsh v. Kelly, 203 F.R.D. 597, 598 (D. Nev. 2001) (citing Erie R.R. Co. v. 20 Tompkins, 304 U.S. 64 (1938)). Accordingly, the first step in any Erie analysis is to determine 21 whether the law involved is procedural or substantive. “If the law is procedural, the federal law 22 will apply, if substantive, the court will apply the law of the forum state.” Id. Because state law 23 governing recovery of attorneys’ fees is considered substantive for Erie purposes, “federal courts 24 are required to follow state law in determining whether to allow attorneys’ fees.” Swallow 8 of 15 1 Ranches, 525 F.2d at 999. See Shakey’s Inc. v. Covalt, 704 F.2d 426, 435 (9th Cir. 1983). As a 2 result, both the deservedness and reasonableness of attorneys’ fees are governed by state law, 3 since both components are substantive state law determinations. 4 Under Nevada law, this Court has the discretion to determine whether attorneys’ fees are 5 reasonable, tempered by reason and fairness. Shuette v. Beazer Homes Holdings Corp., 124 P.3d 6 530, 548-49 (Nev. 2005). In determining the amount of fees to award, the Court is not limited to 7 one specific approach, “its analysis may begin with any method rationally designed to calculate a 8 reasonable amount, including those based on a ‘lodestar’ amount or a contingency fee.” Id. at 9 549. However, the Court must consider the requested amount in light of the factors enumerated 10 in Brunzell v. Golden Gate Nat. Bank, 455 P.2d 31 (Nev.1969), which include the advocate’s 11 professional qualities, the nature of the litigation, the work performed, and the result. See also 12 Greenwood v. Ocwen Loan Servicing LLC, No. 316CV00527RCJVPC, 2018 WL 3550217, at *3 13 (D. Nev. July 24, 2018) (using the same framework under § 18.010(2)(b) to determine the 14 reasonableness of attorneys’ fees); Blom v. Floodsuckers, LLC, No. 3:12-CV-570-RCJ-WGC, 15 2013 WL 3463260, at *4 (D. Nev. July 9, 2013) (same). The Supreme Court of Nevada has made 16 clear that whatever method a court uses, “the result will prove reasonable as long as the court 17 provides sufficient reasoning and findings in support of its ultimate determination.” Shuette, 121 18 Nev. at 865. 19 Defendants request a total of $179,747.50 in attorneys’ fees. The Court finds that this 20 amount is reasonable. First, the amount is reasonable in light of the total hourly rate and 21 distribution of work. Approximately 92% of the work was billed at a very reasonable hourly rate 22 of $275 or lower, and the amount of attorneys’ fees was significantly reduced by 269 hours of 23 work completed by paralegals. While one of the attorneys, Michael J. Morrison’s, hourly rate of 24 $500 was high compared to the rates of the three other attorneys who worked on Defendants’ 9 of 15 1 case, Mr. Morrison did less than ten percent of the hourly work. Thus, Defendants’ counsel 2 appropriately distributed the workload and took effective steps to mitigate their fees leading to a 3 reasonable average rate of $263.95 per hour. 4 Second, the amount is reasonable in light of the professional qualities of Defendants’ 5 counsel. Four experienced attorneys worked on Defendants’ behalf. Mr. Morrison charged the 6 highest rate but was the most experienced attorney. Mr. Morrison is a sole practitioner and has 7 practiced law in Nevada since 1977. Mr. Morrison has significant experience in cases involving 8 the type of claims and issues raised by Plaintiffs, specifically including corporate law, securities 9 law, and mining law. The other three attorneys who worked on Defendants’ behalf, Jason Peak, 10 Ryan Leary, and Josh Halen, are attorneys with Laxalt and Nomura, which also represented 11 Defendants. They charged $275, $225, and $225 per hour, respectively. Mr. Peak was admitted 12 to practice law in Nevada in 1999 and has worked at Laxalt and Nomura since 2002 practicing 13 general litigation. Mr. Leary was admitted to the Nevada Bar in 2009 and the California Bar in 14 2012, and he has worked at Laxalt and Nomura since 2011; Mr. Halen is a similarly experienced 15 attorney. Reading this information alone, it is clear that Defendants were not represented by 16 novices—they were represented by highly experienced attorneys with 69 years or more of 17 combined legal experience. Accordingly, the experience of Defendants’ counsel supports their 18 individual and overall fees. 19 Third, the amount is reasonable given the work performed and the result obtained. 20 Counsel successfully had this case transferred to this district after demonstrating that the U.S. 21 District Court for the Eastern District of New York lacked personal jurisdiction and was an 22 improper venue. In this Court, Defendants’ counsel successfully moved to dismiss Plaintiffs’ 23 First and Second Amended Complaints and had several claims dismissed on the merits from 24 Plaintiffs’ Third Amended Complaint. After further litigation, counsel obtained summary 10 of 15 1 judgment on all of Plaintiffs’ remaining claims. While a considerable number of hours were 2 invested in this case, Plaintiffs’ actions increased the complexity and amount of work required. If 3 Plaintiffs had filed in the proper jurisdiction originally and had filed a suitable complaint that 4 conformed to the rules on the first, instead of third, try, the amount of fees would have been less. 5 Defendants cannot be penalized for Plaintiffs mistakes that required more work. Counsel’s 6 motions were well-written, addressed pertinent legal issues, and cited relevant and accurate law. 7 As a result, given the work performed, the complexity of the case involving numerous claims 8 and issues, and the result obtained, the total hours and attorneys’ fees requested are reasonable. 9 Plaintffs’ arguments about the local rules are unpersuasive and this Court declines to 10 exercise its discretion to deny Defendants’ Motion for Attorneys’ Fees. After four years of 11 litigation brought about and maintained without evidence, foisting significant legal expenses on 12 Defendants, it would be inequitable to deny reasonable attorneys’ fees over a technicality in the 13 local rules, and it would be superfluous to deny the current motion but allow Defendants to 14 amend their request. Defendants are entitled to attorneys’ fees and further document is not 15 needed. While Plaintiffs cite, and in some cases, italicize and bolden portions of the local rules, 16 Defendants fail to identify a crucial word: may. When discussing what should be included, the 17 local rules state that failure to include information identified “may” be considered “a consent to 18 the denial of the motion.” LR II 54-14(d). Furthermore, Plaintiffs’ argument about itemization is 19 factually incorrect. 20 Defendants’ Errata, which this Court approved, provides full documentation for the 21 attorneys’ fees requested. Based on the Errata, the Court was able to reach the exact amount 22 requested by Defendants—$179,747.50. The following is a breakdown of the itemized billing 23 statements included in the Errata. 24 11 of 15 1 2 3 Attorneys’ Fees Oct. 2014-March 2018 Apr. 2017 Att’y Rate Hrs Att’y Rate Hrs Fee MJM $500.00 54.90 $27,450.00 JP $275.00 25.00 RL $225.00 1.20 Fee $6,875.00 $270.00 4 5 6 7 8 9 10 11 12 Total 54.90 $27,450.00 Total 26.20 May 2017 Sept. 2017 Att’y Rate Hrs Att’y Rate Hrs Fee JP $275.00 68.9 $18,947.50 JP $275.00 2.1 RL $225.00 110.4 $24,840.00 RL $225.00 4.3 $7,145.00 Fee $577.50 $967.50 Total 179.3 $43,787.50 Total 6.4 $1,545.00 July 2017 Aug. 2017 Att’y Rate Hrs Att’y Rate Hrs Fee Fee JP $275.00 120.7 $33,192.50 JP $275.00 11.8 $3,245.00 RL $225.00 173.9 $39,127.50 RL $225.00 86.1 $19,372.50 JH $225.00 13.5 $3,037.50 JH $225.00 8.2 $1,845.00 Total 308.1 $75,357.50 Total 106.1 $24,462.50 13 The months in the table correspond to the months that legal services were rendered through. In 14 the table, paralegal fees associated with Chris Behling (CB) and Deborah Penhale (DP) were 15 eliminated. When adding the fees associated with the four lawyers who worked on Defendants’ 16 behalf—Michael J. Morrison (MJM); Jason Peak (JP); Ryan Leary (RL); and Josh Halen (JH)— 17 the total corresponds to the amount requested. The number that Plaintiffs claim is appropriate is 18 only reachable by subtracting the fees billed through July 2017. Although Plaintiffs are correct 19 that complete invoices were not provided for fees billed through July 2017 in Defendants’ 20 original filing on April 10 and subsequent filing on April 11, Defendants’ Errata includes 21 complete invoices and itemization for the fees billed through July 2017. Nearly every day is 22 accounted for in the documentation provided in Defendants’ Errata for the period in question, 23 May 31, 2017 to July 31, 2017, and the Court cannot find any omissions in the twenty-three 24 pages accounting for that period. Therefore, no reason exists to exclude fees rendered through 12 of 15 1 July 2017 by Laxalt & Nomura. Accordingly, the Court awards Defendants’ $179,747.50 in 2 attorneys’ fees. c. Costs 3 “An award of standard costs in federal district court is normally governed by Federal 4 5 Rule of Civil Procedure 54(d), even in diversity cases.” Champion Produce, Inc. v. Ruby 6 Robinson Co., 342 F.3d 1016, 1022 (9th Cir. 2003). Rule 54(d)(1) provides that “costs other than 7 attorneys’ fees shall be allowed as of course to the prevailing party unless the court otherwise 8 directs.” By its terms, “costs are to be awarded as a matter of course in the ordinary case,” but 9 discretion is vested in the district court to refuse to award costs. Ass’n of Mexican-Am. Educators 10 v. State of California, 231 F.3d 572, 593 (9th Cir. 2000). When denying costs, however, a district 11 court’s discretion is not unlimited. The Court of Appeals has stated that “[a] district court must 12 ‘specify reasons’ for its refusal to award costs,” and those reasons must be appropriate. 13 Champion Produce, 342 F.3d at 1022 (quoting Mexican-Am. Educators, 231 F.3d at 591). Thus, 14 the “requirement that a district court give reasons for denying costs is, in essence, a requirement 15 that the court explain why a case is not ‘ordinary’ and why, in the circumstances, it would be 16 inappropriate or inequitable to award costs.” Id. (quoting Mexican-Am. Educators, 231 F.3d at 17 593). 18 Applying that standard here, the Court finds that this is an ordinary case and 19 circumstances do not exist to justify denying costs. Plaintiffs argument that paralegal fees should 20 not be awarded is unpersuasive. Failing to award paralegal fees to prevailing parties would 21 perversely incentivize lawyers to do more work themselves driving up the cost of legal services. 22 Parties should not be punished because their lawyers effectively reduced their overall fee by 23 appropriately dividing the work between paralegals and attorneys. Consequently, the Court 24 awards Defendants’ $39,218.15 in non-taxable costs and paralegal fees. 13 of 15 1 Plaintiffs further argument that Defendants are attempting to recover the same costs twice 2 is inaccurate. Compiling the billings for paralegal fees and non-taxable costs, the total amount of 3 non-taxable costs is $39,218.15. Based on the information provided in Defendants’ Errata, the 4 Court composed the following tables for paralegal fees and costs. 5 Paralegal Fees 6 Para. May. 31 2017 Rate Hrs CB RL 8 9 Para. 10 CB $135.00 65.4 Fee $8,829.00 Total 7 65.4 Para. $8,829.00 Aug. 2017 Rate Hrs $135.00 Total 12.1 12.1 Fee $1,633.50 $1,633.50 CB DP Para. July. 2017 Rate Hrs $135.00 $135.00 Total 113.7 78.4 192.1 Sept. 2017 Rate Hrs 0 0 Fee $15,349.50 $10,584.00 $25,933.50 Fee $0.00 11 12 13 14 Costs Laxalt & Nomura Firm MJM Date Oct. 2014-March 2018 Apr. 2017 May 2017 July 2017 Aug. 2017 Sept. 2017 Oct. 2017 Feb. 2018 Costs $2,822.15 $10.66 $433.77 $7,110.96 $6,430.90 $48.71 $37.50 $72.80 Type Non-taxable Costs Taxable Costs 15 When the total amount of paralegal fees and non-taxable costs are added together, the amount 16 matches the exact amount requested by Defendants—$39,218.15. The remaining taxable costs 17 were generated from bills by Laxalt & Nomura, which in total amount to $14,145.30 in costs. Of 18 that number, Defendants only asked for $11,457.35 in taxable costs, which was granted. 19 Therefore, Plaintiffs’ argument that taxable costs were excessive and duplicative fails. As a 20 result, the Court denies Plaintiffs’ Motion for Re-Taxation of Costs (ECF No. 186) and awards 21 Defendants $39, 218.15 in non-taxable costs and paralegal fees. 22 /// 23 /// 24 /// 14 of 15 CONCLUSION 1 2 IT IS HEREBY ORDERED that Defendants’ Motion for Attorneys’ Fees and Costs (ECF 3 No. 160) is GRANTED. Defendants’ are hereby awarded attorneys’ fees in the amount of 4 $179,747.50 and non-taxable costs and paralegal fees in the amount of $39,218.15. 5 6 IT IS FURTHER ORDERED that Plaintiffs’ Motion for Re-Taxation of Costs (ECF No. 186) is DENIED. 7 IT IS SO ORDERED. 8 DATED: This 11th day of March, 2019. 9 10 _____________________________________ ROBERT C. JONES United States District Judge 11 12 13 14 15 16 17 18 19 20 21 22 23 24 15 of 15

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