Cree Inc v. BHB Energy LLC et al

Filing 86

ORDER signed by Judge Pamela Pepper on 1/10/2019 AWARDING petitioner sanctions of $106,119.47 against BHP Energy Mexico. (cc: all counsel)(cb)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF WISCONSIN

CREE, INC.,
Petitioner,
v.

Case No. 16-cv-1508-pp

BHB ENERGY, LLC, and
BHP ENERGY MEXICO S. DE R.L. DE C.V.,
Respondents.
ORDER AWARDING PETITIONER FEES AND COSTS
AGAINST BHP ENERGY MEXICO S. DE R.L. DE C.V.

Earlier in this litigation, Magistrate Judge Nancy Joseph granted the
petitioner’s motion to compel arbitration as to BHB Energy LLC and to stay
litigation. Dkt. No. 39. After exhaustive efforts to serve BHP Energy Mexico S.
de R.L. de C.V. (BHP), the petitioner moved for default judgment and sanctions
against BHP and its principal Alan Barson for their “willful and repeated efforts
to avoid service of process” over a ten-month period. Dkt. No. 65. On
September 14, 2018, the court granted the petitioner’s motion for default
judgment against BHP, granted the petitioner’s motion for sanctions against
BHP, and denied the petitioner’s motion for sanctions against non-party Alan
Barson. Dkt. No. 81. The court ordered the petitioner to file an itemization
supporting its request for damages relating to expenses incurred after
December 7, 2016 in trying to serve BHP, explaining that it would enter

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judgment after deciding the amount of sanctions. Dkt. No. 82. Neither
respondent objected to the itemization filed by the petitioner.
The court awarded damages for expenses incurred after December 7,
2016, because it found that by that date Barson knew that the petitioner had
named BHP as a respondent. Attorney Patrick C. Harrigan filed a declaration,
because he had personal knowledge of the procedural history of the case and
was lead counsel for the petitioner. Dkt. No. 82 at ¶¶2, 3. The declaration
states that after Attorney Harrigan’s December 7, 2016 phone call with Barson,
he paid a private investigation firm $1,000 to conduct record searches and
attempt service on Barson in New York City. Id. at ¶9. He says that translation
and Hague Convention form preparation fees totaled $1,800. Id. at ¶10.
Attorney Harrigan’s fees for his professional services, and for those of an
associate, totaled $99,382. These fees covered the coordination of the
investigation and preparation of the Hague documents, legal research
regarding service on a foreign entity through the Hauge Convention and
alternative means, research and preparation of an expedited motion to serve
via e-mail and Facebook, service attempts, research and preparation of the
motion for sanctions, and preparation for oral argument. Associated Westlaw
charges totaled $3,937.47. Id. at ¶13. The court has received no objections to
the requested fees, and has no reason to question their reasonableness, given
what it knows of the case.

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The court AWARDS the petitioner sanctions in the amount of
$106,119.47 against BHP Energy Mexico, who actively avoided service, abused
the judicial process and acted in bad faith.
Dated in Milwaukee, Wisconsin this 10th day of January, 2019.
BY THE COURT:
_____________________________________
HON. PAMELA PEPPER
United States District Judge

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