DENISE COTE, District Judge.
On February 29, 2016, defendants Will Shuman ("Shuman") and Assara I LLC ("Assara") were found liable for unfair competition under the Lanham Act, and for defamation, disparagement, and unfair competition under New York law. Plaintiff Romeo & Juliette Laser Hair Removal, Inc. ("Romeo & Juliette") now moves for attorneys' fees and costs pursuant to 15 U.S.C. § 1117(a). For the reasons that follow, the plaintiff's motion is granted in the amount of $30,000.
This litigation has been long and contentious. The facts of this case are set out in this Court's February 29, 2016 Opinion granting in part the plaintiff's motion for summary judgment,
Plaintiff Romeo & Juliette and defendant Assara were competing New York City laser hair removal businesses. Shuman and two others founded Assara in February 2006. Beginning in early 2006, a series of negative comments about the plaintiff's business appeared on the internet consumer forums HairTell.com, Yelp.com, CitySearch.com, and consumerbeware.com. The posts came from anonymous users who claimed to have used the plaintiff's laser hair removal services. Among those responsible for these negative posts were Shuman and Assara employees. A description of some of the negative posts as well as the evidence linking those posts to these defendants can be found in the
On January 17, 2008, the plaintiff filed a complaint against Assara, Shuman, and three co-defendants asserting five causes of action for trademark infringement and unfair competition.
On April 6, 2015, plaintiff filed a motion for summary judgment seeking (1) a judgment of liability on its Lanham Act claim of unfair competition under 18 U.S.C. § 1125, and its state law claims of defamation, disparagement, and unfair competition; (2) an entry of a permanent injunction under the Lanham Act pursuant to 15 U.S.C. §§ 1116 and 1125; and (3) an award of costs and attorneys' fees pursuant to 15 U.S.C. § 1117(a). The motion became fully submitted on June 22. In response, the defendants filed a cross-motion for summary judgment on June 8, which became fully submitted on June 30.
On January 14, 2016, this case was reassigned to this Court. On January 25, the Court held a conference with all parties, during which the Court,
On February 29, the Court granted the plaintiff's motion for summary judgment on liability as to defendants Assara and Shuman, and denied the motion as to the co-defendants.
The plaintiff filed its renewed motion for attorney's fees and costs on February 5, which became fully submitted on March 9. Given that the
Under the Lanham Act, when a violation of § 1125(a) has been established in a civil action, a plaintiff is entitled "subject to the principles of equity . . . to recover . . . the costs of the action." 15 U.S.C. § 1117(a). Section 1117(a) further "authorizes the award of attorney's fees to prevailing parties in exceptional cases, which [is] understood to mean instances of fraud or bad faith."
Bad faith, however, is only a "prerequisite to a finding that a case is sufficiently exceptional to warrant an award of fees,"
By any measure, this case is exceptional. Shuman, on behalf of himself and all of the defendants, denied for many years that any of the defendants were responsible for the negative reviews of the plaintiff posted on the internet, and only began admitting responsibility for some of the posts when forced to respond to the evidence presented in the plaintiff's 2012 motion for summary judgment. To assemble this evidence, the plaintiff had to engage the services of Management Analytics and to engage in third party discovery of internet service providers and others to track down the source of the postings. This was a burdensome and time-consuming task made necessary by the defendants' bad faith litigation tactics. As described in the
The plaintiff requests $334,934.26 in attorneys' fees and costs incurred through December 31, 2015, plus additional fees and costs incurred since that date.
Among the reasons to exclude an award for the work preceding and following 2012 are the following. This lawsuit was filed in 2008, but it was not until the first amended complaint was filed in April of 2009 that the plaintiff added to its pleadings the legal theories related to the defamatory internet postings. Following that filing and a May 28, 2009 Order denying the plaintiff's motion for default judgment, this litigation was largely dormant until 2012. Indeed, the case was administratively closed. At the end of 2011, the Judge to whom this case was then assigned asked for an update from the parties. It was only after that inquiry that the plaintiff engaged in the bulk of discovery relevant here. Then, the plaintiff filed a motion for summary judgment in December of 2012. It is that motion that prompted the defendants' partial admission of involvement in the internet postings.
It is also significant that on January 10, 2013, the plaintiff represented to Magistrate Judge Maas that it was no longer seeking monetary damages. As a result, the only relief the plaintiff could legitimately seek after that point was an injunction and an award of attorney's fees and costs.
Since the bulk of the relevant discovery and motion practice that forced the defendants' partial admission of wrongdoing occurred in 2012, it is that year's fees and costs that are most relevant to this motion. But, because the plaintiff has only achieved partial success, it would be inappropriate to award it fees for anything close to all of its fees and expenses for even that one year. Having examined its billing statements for 2012, with particular attention given to those associated with preparation of its summary judgment motion, the Court concludes that an award of $30,000 for attorney's fees is warranted.
The plaintiff's motion for attorneys' fees and costs is granted against defendants Shuman and Assara, jointly and severally. The plaintiff is awarded fees in the amount of $30,000.
SO ORDERED.