LAWRENCE R. LEONARD, United States Magistrate Judge.
On March 12, 2014, the Court granted Plaintiff's Motion for a Protective Order, ECF No. 80, and then on May 1, 2014, pursuant to Federal Rule of Civil Procedure 37(a)(5)(A) ("Rule 37") directed Plaintiff Hedwig Lismont ("Lismont") to file "a motion substantiating its costs and fees pursuant to the factors enumerated in Robinson v. Equifax Info. Servs., LLC, 560 F.3d 235, 243-44 (4th Cir.2009)." ECF No. 112 at 7. Now before the Court is Lismont's Motion Substantiating His Attorneys' Fees and Costs, ECF No. 118, filed on July 23, 2014. Defendants Alexander Binzel Corp., et al. ("Binzel") filed a timely response on August 6, 2014, ECF No. 120, and Lismont replied on August 12, 2014, ECF No. 121. Accordingly, the Motion is ripe for disposition.
Having previously discussed this case's extensive procedural history in the Court's Orders granting Plaintiff's Motion for Protective Order, ECF No. 80, and Plaintiff's Request for Attorneys' Fees, ECF No. 112, the Court will not repeat said details here. Rather, only a summary of the present dispute is necessary to establish the context for the present motion. The dispute originated when Lismont moved for entry of a protective order, ECF No. 68, which Binzel opposed on the grounds that "sensitive financial information that the party has maintained as confidential" should be designated as Attorneys' Eyes Only ("AEO"), ECF No. 75, attach. 1 at 2. In response, Lismont alleged that the AEO designation was unnecessary because Lismont was previously given access to Binzel's financial information as a consultant and during previous litigation in Germany between the same parties. ECF No. 78 at 2. Upon finding, in part, that an AEO designation would be overly restrictive, the Court entered Lismont's version of the protective order. ECF No. 80 at 3-4. While the Court found it undisputed that Lismont had access to some financial documents during his role as a consultant, it noted that there was a material dispute as to whether Lismont had ever been granted access during the German litigation. Id. at 3 n. 3. Specifically, Binzel alleged, through the declaration of Dr. Emil Schubert, Binzel's Managing Director, that Lismont was not provided access to any financial information during the German litigation, ECF No. 75, attach. 4 at 2, ¶ 6, and thus Binzel objected to Lismont's access to sensitive financial information under a general argument that Lismont might not be trustworthy with such information, and could disclose it or benefit from it. Binzel buttressed this position by averring that, since Lismont did not have access to sensitive financial information before, Lismont's trustworthiness was an unsettled question, which could only be remedied by an AEO designation for the disclosure of sensitive financial information. ECF No. 75 at 4-6.
Lismont, on the other hand, through his own declaration, claimed that he had been given access to financial information during the German litigation, ECF No. 69, attach. 1 at 26, ¶ 5, and therefore contended that his trustworthiness had been established.
The parties filed supplemental briefs on March 17, 2014. ECF Nos. 82, 85. The next day, Lismont filed an additional unauthorized supplemental brief without requesting leave of Court. ECF No. 86; see ECF No. 112 at 3. Binzel then filed a motion for leave to file an additional supplemental brief, ECF No. 90, which was granted by the Court, ECF No. 98, and filed by Binzel on April 15, 2014, ECF No. 103.
After considering the supplemental briefing, the Court found that Dr. Schubert's statement and Binzel's argument in response to Plaintiff's motion for entry of a protective order had not been "entirely accurate, and thus, Binzel's opposition and request for AEO designation was not substantially justified." ECF No. 112 at 4-5. Specifically, the Court noted that after making a definitive statement in response to the proposed protective order that "[d]uring the German litigation, Mr. Lismont was not provided access to any of Binzel-Germany's financial documents," ECF No. 75, attach. 4 at 2, ¶ 6 (emphasis added) (statement of Emil Schubert), Binzel attempted to "not so subtly retract from" that statement in the supplemental briefing, ECF No. 112 at 5. In their supplemental briefing, Binzel stated that Lismont "was not given access to detailed financial information in the German litigation." Id. (quoting ECF No. 82 at 2) (emphasis added). Presented with these differing statements, the Court held that Binzel was not substantially justified in insisting upon the AEO designation because Lismont had at least some access to financial information during the German litigation, and therefore had established his trustworthiness. Id. at 7. On that basis, the Court awarded attorneys' fees and directed Lismont to submit a statement of his fees and costs incurred in making the motion for the protective order. Id. Lismont then filed his Motion Substantiating His Attorney's Fees and Costs, ECF No. 118, which is now before the Court.
In support of his request for attorneys' fees, Lismont proffered, inter alia, the declaration of one of his counsel, Paul J. Korniczky. ECF No. 119, attach. 1 at 2-12. Mr. Korniczky stated that Lismont's attorneys performed five tasks for which Lismont was entitled to attorneys' fees:
Considering the voluntary reduction of the number of hours claimed for work performed by his attorneys "incurred in making the motion," Lismont argued that the total hours for which reimbursement was sought was reasonable in light of the novelty and difficulty of the questions raised. ECF No. 119 at 4. Specifically, Lismont alleged that the time was reasonable "given (i) how crucial it was to the future conduct of Plaintiff's case that Mr. Lismont be permitted to review and consider both Defendants' technical and financial information, and (ii) the need to review and analyze a number of foreign language documents." Id. at 7. Moreover, Lismont argued that "[i]f Defendants' confidentiality order-with its highly restrictive "Attorneys' Eyes Only" provision-had been entered, Mr. Lismont would have been unable to assist trial counsel in reviewing, translating, and analyzing Defendants' financial data severely handicapping, at a minimum, the proper development
Lismont cited multiple cases in support of the reasonableness his legal fees, most notably Vienna Metro LLC v. Pulte Home Corp., No. 1:10-cv-00502 (E.D.Va. Aug. 24, 2011),
In response, Binzel alleged that Lismont's request is excessive and unreasonable. ECF No. 120 at 1. Specifically, Binzel argued that the time spent by Lismont's attorneys was unreasonable as "well beyond any reasonable amount of time for a simple discovery motion," and noted that defense counsel spent 1/3 of the time Lismont's attorneys spent on the matter. Id. at 2-3. Additionally, Binzel argued that Lismont's use of senior partners to work on the motion was "redundant and unnecessary." Id. at 5. Regarding Lismont's attorneys' hourly rate, Binzel contended that the hourly rate was unreasonable because it reflected prevailing market rates outside of the Norfolk Division of the Eastern District of Virginia. Id. at 4 n. 5. Lastly, Binzel argued that Lismont should not be awarded fees for the initial draft and negotiation of the confidentiality order or the second supplemental brief filed without leave of court because fees for these tasks are inappropriate as outside of the scope of the Court's fee award. Id. at 7.
The Court evaluates the reasonableness of attorneys' fees by comparing the requested amount to the lodestar amount, which is defined as a "reasonable hourly rate multiplied by hours reasonably expended." Grissom v. The Mills Corp., 549 F.3d 313, 320-21 (4th Cir.2008). "In deciding what constitutes a `reasonable' number of hours and rate, [the Fourth Circuit] has instructed that a district court's discretion should be guided by the following twelve factors:"
Robinson v. Equifax Info. Servs., LLC, 560 F.3d 235, 243-44 (4th Cir.2009) (citation omitted). Because this matter involves a discovery motion rather than the complete disposition of a case after trial, the Court finds that the fourth, sixth, seventh, eighth,
The basis of Lismont's motion for protective order was his contention that Binzel's production of financial information should not have been limited to AEO. The first task for which Lismont seeks attorneys' fees is for time and labor expended in preparing and negotiating the proposed protective order. According to the chart from the declaration Mr. Korniczky submitted in support of the fee request, counsel spent 10.4 hours
The second task for which reasonable expenses is sought is for the preparation of the motion, research regarding each party's position, and preparation of the declaration of Mr. Lismont. Lismont's counsel provided detailed billing invoices showing work performed. ECF No. 119, attach. 1, at 18-37. According to the chart in Mr. Korniczky's declaration, four of Lismont's attorneys spent 44 hours
The party requesting fees bears the burden of demonstrating the reasonableness of what it seeks to recover. Plyler v. Evatt, 902 F.2d 273, 277 (4th Cir. 1990); Cook v. Andrews, 7 F.Supp.2d 733, 736 (E.D.Va.1998). The fee applicant bears the burden of establishing by clear and convincing evidence the amount of a reasonable fee in the circumstances. See Hensley v. Eckerhart, 461 U.S. 424, 433, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983). Based on the issue being contested, the Court
The third task for which reasonable expenses is sought is for the review of Binzel's opposition and preparation of a reply. Similarly, the Court also
The fourth task for which Lismont seeks an award of reasonable expenses is the preparation of his supplemental brief
As the Court noted in its March 12, 2014 Order granting Lismont's motion for entry of a protective order, the representations of Mr. Lismont and Dr. Schubert in their respective declarations as to whether Mr. Lismont had been entrusted by Binzel with confidential financial information in the German litigation were contradictory. ECF No. 80 at 5. Accordingly, the Court ordered each side to submit a supplemental brief addressing the sole question of whether Lismont had been provided such financial information during the German litigation.
With respect to the time which will be allowed, the predominant hours billed for work on Lismont's first supplemental brief and declaration were performed by Mr. Korniczky, who billed 21.4 hours
The final task for which Lismont seeks an award of reasonable expenses is for his preparation of the motion and affidavits in support of his request for attorneys' fees. Although Binzel does not object to the principle that Lismont's attorneys may recover under Rule 37 for time spent preparing the fee affidavit, the issue of whether time spent preparing a fee affidavit can be included in a Rule 37 fees request has not been addressed in the Eastern District of Virginia.
In its preliminary motion and memorandum in support of its request for fees and expenses, Lismont sought to recover for 16 hours of time for Mr. Korniczky and 8.9 hours of time for Ms. Furby. Specific tasks associated with this endeavor included researching the legal standard for an attorneys' fee award, preparing the necessary declarations, locating and preparing billing records and invoices, and preparing the motion and legal brief. ECF No. 119, attach. 1, at 11, ¶ 15. The Court FINDS that the time expended is somewhat excessive, as neither the issues presented nor the research required were novel or complex. Accordingly, the Court reduces the time recoverable for Mr. Korniczky to 8 hours and for Ms. Furby to 4 hours. After Binzel filed an opposition to Lismont's request for fees, Mr. Korniczky and Ms. Furby each expended an additional 4 hours to research and prepare their reply to respond to the various arguments raised by Binzel, including drafting an additional declaration and locating additional billing records and invoices to attach as exhibits. ECF No. 121 at 7. In light of the matters to which Lismont was required to respond, the Court
In summary, the Court
Task 1 Task 2 Task 3 Task 4 Task 5 Total per Attorney hours hours Hours hours Hours Attorney Korniczky 0 12.5 14.0 21.4 12 59.9 Hartmann 0 2.6 0 3.5 0 6.1 Hesterberg 0 0 6.0 0 0 6.0 Furby 0 4.0 2.3 3.2 8 17.5Total per task 0 19.1 22.3 28.1 20 89.5 hours
Beginning with the second factor, the novelty and difficulty of the questions raised in Lismont's motion seeking entry of a protective order were somewhat unique and were of some difficulty compared to the ordinary discovery dispute, given the necessity of coordinating with German citizens, locating and translating German documents to present to the Court, and presenting to the Court supplemental briefs. As the Court noted in its Order granting Lismont's motion to enter the protective order, "`attorneys' eyes only' is a drastic limitation that is `reserved for only those rare instances in which it is truly justified,'" ECF No. 80 at 2 (citing Ragland v. Blue Cross Blue Shield of N.D., No. 1:12-cv-80, 2013 WL 3776495, at *2 (D.N.D. June 25, 2013)), and protective orders designed to shield evidence from public view are to be narrowly tailored, ECF No. 80 at 2 (citing Brittain v. Stroh Brewery Co., 136 F.R.D. 408, 412-13 (M.D.N.C.1991) (additional citations omitted)). In light of Binzel's opposition, Lismont's original motion was necessary, and inasmuch as that opposition was based on an argument regarding Mr. Lismont's trustworthiness that might or might not be established by reference to previous litigation in Germany, overcoming that opposition was somewhat difficult. Hence, a fair amount of skill was required to muster the evidence and argument necessary to rebut Binzel's position, and such skill was ably demonstrated by Lismont's attorneys.
Binzel further contends that such work should not have been performed by senior partners but, instead, most of it could have been accomplished by associates. The Court rejects this argument. As Lismont pointed out, Mr. Korniczky was in the best position to resolve the discovery dispute in this case, given his knowledge of the history of the litigation, his role in it, and his relationship with Mr. Lismont. ECF No. 121 at 6. Moreover, as noted previously, "[i]t is reasonable and customary for both associates and partners to work on the same motion and their time expended is not duplicative, but appropriate." Mitile, Ltd., 2013 WL 5525685, at *7. Further, as Lismont also noted, there are circumstances when it is perfectly appropriate and more efficient for a partner to perform certain tasks rather than assign them to an associate with significantly less knowledge and experience in the particulars of the dispute. ECF No. 121 at 6 (citing Laffey v. Nw. Airlines, Inc., 572 F.Supp. 354, 365-66 (D.D.C.1983), aff'd in part, rev'd in part on other grounds, 746 F.2d 4 (D.C.Cir.1984)). Here, the particulars of the dispute, including knowledge of the German litigation a decade before, were personally known by Mr. Korniczky. Hence, the second and third factors weigh in Lismont's favor.
The remaining three categories the Court must consider here in determining Lismont's fee request all impact the hourly rate at which Lismont seeks reimbursement for its attorneys. The Court starts with the ninth factor, i.e. the experience, reputation and abilities of the attorneys. Lismont proffered the law firm profiles of Messrs. Hartmann, Hesterberg and Korniczky, all registered patent attorneys with between twenty-eight and thirty-eight years of experience and partners of the Chicago law firm of Leydig, Voit & Mayer, Ltd., and of Ms. Furby, an associate practicing
Concerning the fifth factor, Lismont posited the following billing rates for its four attorneys who worked on this matter: Mr. Hartmann — $650 per hour; Mr. Hesterberg — $530 per hour; Mr. Korniczky — $510 per hour; and Ms. Furby — $270 per hour. Id. at 11-12, ¶¶ 17-20. It is Lismont's burden to "produce satisfactory specific evidence of the prevailing market rates in the relevant community for the type of work for which he seeks an award." Plyler, 902 F.2d at 277 (citations omitted). Binzel challenged these billing rates, claiming that they were not appropriate for the legal market for the Norfolk Division of the Eastern District of Virginia, not in line with rates charged by Binzel's attorney in other litigation, and excessive "in the context of a simply [sic] discovery dispute." ECF No. 120 at 4-5. In support, Binzel relies on certain cases from the Eastern District of Virginia rejecting similar hourly rate requests as unreasonable. Id.
In determining whether Lismont's rate requests are reasonable, the Court finds it appropriate first to consider the Declaration of Mr. Paul Werner, an attorney who is not counsel in this case. See ECF No. 119, attach. 1, at 14-16. As the Fourth Circuit explained in Robinson, "[i]n addition to the attorney's own affidavit[], the fee applicant must produce satisfactory specific evidence of the prevailing market rates in the relevant community for the type of work for which he seeks an award." Robinson, 560 F.3d at 244 (citation omitted) (emphasis omitted) (finding that the district court abused its discretion in awarding attorneys' fees where the applicant offered no specific evidence, besides an affidavit of a firm member, that the hourly rates sought for her attorneys coincided with the then prevailing market rates of attorneys in the Eastern District of Virginia of similar skill and for similar work, which the Fourth Circuit's case law required her to do); see SunTrust Bank v. Nik, No. 1:11cv343, 2012 WL 1344390, at *4 (E.D.Va. Mar. 22, 2012) (considering two declarations submitted by persons who were not counsel of record in the case to determine the customary fee for like work and attorney's fees and awards in similar cases). Through his declaration and citing specific examples, Mr. Werner posited that the rates sought by Lismont's attorneys are in line with rates of other similarly experienced attorneys who have litigated complex civil litigation in the Eastern District of Virginia. ECF No. 119, attach. 1 at 15, ¶¶ 5-6. The cases relied on by Mr. Werner in his declaration, however, are two cases from the Alexandria Division of this Court.
With respect to Binzel's argument that the rates applicable to the Alexandria Division of this Court do not establish rates in the Norfolk Division, Binzel relies on several Norfolk Division cases. The first, Project Vote/Voting for America, Inc. v. Long, was a case wherein plaintiffs sued the General Registrar of Norfolk, Virginia to obtain access to voter registration information. 887 F.Supp.2d 704 (E.D.Va.2012). The Court there found that reliance on the Laffey Matrix, a formula established in Laffey v. Nw. Airlines, Inc., 572 F.Supp. 354 (D.D.C.1983), and "frequently used by the United States District Court for the District of Columbia, and other courts, as a `useful starting point' for determining the prevailing hourly rates for attorneys in
Notably, none of the cases Binzel relied on to suggest that the hourly rates were too high were patent cases, thus ignoring the fact that "[p]atent law is a highly specialized area and requires a high level of expertise; therefore, hourly rates that are higher than those of general practitioners is to be expected." Rutherford Controls Int'l Corp. v. Alarm Controls Corp., No. 3:08cv369, 2009 WL 4015357, at *4 (E.D.Va. Nov. 17, 2009). However, Lismont does cite to one Norfolk Division case where fees as high as $675 per hour for an experienced patent attorney were found to be reasonable. ECF No. 121 at 5 (citing Swimways Corp. v. Tofasco of America, Inc., No. 2:08cv481, Docket No. 242, at 10 (E.D.Va. Sept. 3, 2009) (unpublished)). In Swimways, the plaintiff was successful in pursuing sanctions against the defendant for its conduct in violating the Court's injunction, a much more complex issue than presented here. Id. at 2. Additionally, Swimways proffered the declaration of a local attorney who attested to the reasonableness of the rates in the Norfolk Division. Id. at 10. On the other hand, Mr. Werner's declaration more generally addressed billing rates in the Eastern District of Virginia instead of the Norfolk Division specifically.
Turning the Court's attention to Binzel's other arguments as to the reasonableness of Lismont's attorneys' billing rates, the Court gives little weight to the billing rate charged by attorney Dozeman, whatever it was,
Finally, with respect to the twelfth factor, Lismont identified two cases in which similarly situated claimants who were successful on their motions to compel were awarded $23,442.50 for 44.7 hours of time,
In sum, then, the Court arrives at the proper lodestar amount per Grissom, 549 F.3d at 320-21, by multiplying the time and labor authorized by the Court in Section II.A.1 of this Memorandum Opinion, by the billable rates allowed for each attorney, and, accordingly,
Attorney Hours authorized Hourly Rate Fee Korniczky 59.9 $410 $24,559 Hartmann 6.1 $550 $3,355 Hesterberg 6.0 $430 $2,580 Furby 17.5 $170 $2,975Total Fee Award $33,469
In addition to attorneys' fees, Lismont also seeks costs in the amount of $404.01 for Westlaw research fees. ECF No. 191-1, Ex. 3. Binzel did not object to this expense, and the Court
Plaintiff Hedwig Lismont's Motion Substantiating His Attorneys' Fees and Costs, ECF No. 118, is
The Clerk is
It is so
ECF No. 112 at 6-7.