Kraft et al v. Arden et al

Filing 92

OPINION & ORDER: Defendants Dennis Arden and Alice Rice's Statement of Attorney Fees 83 is Granted in Part in the amount of $1,377.49. Defendants' Supplemental Bill of Costs 86 is Granted in the amount of $101.62. Signed on 3/9/09 by Judge Paul Papak. (gm)

09

I N T H E UNITED S T A T E S D I S T R I C T C O U R T F O R T H E DISTRICT OF OREGON

JUSTIN KRAFT and KRAFT PIANO S E R V I C E S , LLC, Plaintiffs,

CV.07-487-PK OPINION A N D O R D E R

v.
D E N N I S A R D E N , Individually; N E W O C T A V E CORPORATION, a domestic c o r p o r a t i o n a n d d/b/a! I N T E R N A T I O N A L P I A N O SUPPLY; a n d I N T E R N A T I O N A L P I A N O S U P P L Y , INC., a d o m e s t i c corporation, Defendants.

P A P A K , M a g i s t r a t e Judge: This matter is before the COUlt o n Defendants Dennis Arden and Alice Rice's Statement o f A t t o r n e y F e e s ( # 8 3 ) a n d d e f e n d a n t s ' S u p p l e m e n t a l B i l l o f C o s t s ( # 8 6 ) . T h i s c o u r t has diversity jurisdiction pursuant to 28 U.S.C. § 1332. For the reasons set forth below, I grant i n p m t d e f e n d a n t s ' a t t o r n e y fees m o t i o n , i n t h e a m o u n t o f $ 1 , 3 7 7 . 4 9 . I g r a n t c o s t s i n t h e a m o u n t o f

Page 1 - OPINION AND ORDER

$101.62. S T A T E M E N T O F FACTS P l a i n t i f f s J u s t i n K r a f t a n d K r a f t P i a n o Services, LLC b r o u g h t t h i s d i v e r s i t y a c t i o n alleging claims for interference w i t h business relations against Dennis Arden and breach o f c o n t r a c t a g a i n s t d e f e n d a n t s I n t e m a t i o n a l P i a n o Supply, N e w O c t a v e Corporation, D e n n i s A r d e n and Alice Rice. Justin Kraft is Kraft Piano's sole member and investor. Before 2006, N e w Octave and Intemational Piano were two divisions o f the same corporation, operating under the n a m e N e w Octave. I n 2 0 0 6 , I n t e m a t i o n a l P i a n o b e c a m e a s e p a r a t e c o r p o r a t i o n , o w n e d b y N e w Octave. Defendants Arden and Rice are officers o f N e w Octave. P l a i n t i f f s w e r e a w a r e t h a t A r d e n a n d R i c e w e r e c o r p o r a t e officers. T h e c o m p l a i n t a l l e g e d Arden and Rice did business as Intemational Piano Supply and recognized that Intemational P i a n o w a s n o t i n c o r p o r a t e d until 2 0 0 6 . I t f u r t h e r r e c o g n i z e d t h a t A r d e n a n d R i c e w e r e o f f i c e r s o f N e w Octave, a n d a l l e g e d N e w O c t a v e w a s t h e p a r e n t c o m p a n y o f I n t e r n a t i o n a l Piano. P l a i n t i f f s also had a proposed agreement for the sale ofInternational Piano, signed by Alice Rice, as vicep r e s i d e n t o f N e w Octave. P l a i n t i f f s ' b r e a c h o f c o n t r a c t c a u s e o f a c t i o n a r o s e out o f d i s c u s s i o n s b e t w e e n Kraft, acting as a representative for Kraft Piano Services, and Arden, acting as a representative o f N e w Octave. I n the original complaint, the alleged contract concemed "the purchase o f Arden's retail p i a n o s u p p l y business." D u r i n g h i s d e p o s i t i o n i n e a r l y 2 0 0 8 , h o w e v e r , K r a f t t e s t i f i e d t h a t t h e r e was never an agreement to sell the business and the agreement was actually for a distributorship. I n March 2008, defendants offered to settle the case w i t h plaintiffs for a nominal sum. P l a i n t i f f s r e f u s e d d e f e n d a n t s ' offer. P a g e 2 - O P I N I O N AND O R D E R

In May 2008, two weeks before the dispositive motion deadline, plaintiffs moved to amend their complaint, to allege that the purported contract was for a distributorship, as Kraft h a d t e s t i f i e d d u r i n g h i s d e p o s i t i o n . I g r a n t e d p l a i n t i f f s ' m o t i o n to a m e n d , o v e r d e f e n d a n t ' s o p p o s i t i o n , a n d i n J u n e 2 0 0 8 , p l a i n t i f f s filed a f i r s t a m e n d e d c o m p l a i n t , w h i c h a s s e r t e d c l a i m s for interference with business relations against Arden and breach o f contract against Arden, I n t e r n a t i o n a l P i a n o a n d N e w O c t a v e Corporation. The a m e n d e d c o m p l a i n t d r o p p e d t h e a l l e g a t i o n s a g a i n s t A l i c e Rice. On November 7, 2008, I grante