JOHN MICHAEL VAZGUEZ, District Judge.
This matter comes before the Court on Plaintiff TD Auto Finance LLC's ("TDAF" or "Plaintiff') Motion for Attorney Fees. D.E. 84. Defendant filed opposition, D.E. 88, to which Plaintiff replied, D.E. 90.
Plaintiff commenced this action against Defendant Cinema Car II, Inc. ("Cinema" or "Defendant") on July 10, 2013. D.E. 1. From approximately June 4, 2012 to January 2, 2013, Cinema "participated in the TDAF Retail Installment Contract and Lease Program" which was governed by the Retail Installment Contract and Lease Program Agreement (the "Program Agreement"). Plaintiff's Statement of Undisputed Material Facts in Support of Plaintiff's Motion for Partial Summary Judgment ("PSOMF") ¶¶ 3-4; D.E. 55. Pursuant to the Program Agreement, Cinema "originate[d] motor vehicle retail installment contracts" ("RICs"),
On December 14, 2016, the Court granted Plaintiff's motion for partial summary judgment and denied Defendant's cross-motion for summary judgment. D.E. 80. In doing so, the Court found that Plaintiff is entitled to reasonable attorneys' fees and costs pursuant to the express terms of the Program Agreement. Id. The current motion followed. The question before the Court is whether Plaintiff's requested amount of attorneys' fees, $184,844.78, is reasonable.
This case involves an exception the American rule, where each legal party bears its own fees and expenses. Alyeska Pipeline Serv. Co. v. Wilderness Soc'y, 421 U.S. 240, 247 (1975). Here, the parties agree that the Program Agreement is governed by New Jersey law, see PSOMF ¶ 13, and while New Jersey law generally disfavors fee-shifting, "a prevailing party can recover [attorneys'] fees if they are expressly provided for by statute, court rule, or contract." Packard-Bamberger & Co., Inc. v. Collier, 167 N.J. 427, 440 (2001). When a contract provides for fee shifting, the applicable contractual provision "should be strictly construed in light of [New Jersey's] general policy disfavoring the award of attorneys' fees." Litton Indus., Inc. v. IMO Indus., Inc., 200 N.J. 372, 385 (2009). In granting Plaintiff's motion for partial summary judgment, the Court found that the Program Agreement expressly states that if TDAF is required to retain an attorney to protect its rights under the contract, it would be entitled to recover reasonable attorneys' fees and costs associated with enforcing the terms of the Program Agreement. D.E. 80; PSOMF ¶ 13.
Under New Jersey law, a court determining the reasonableness of an attorneys' fees award first looks to see whether the party entitled to attorneys' fees prevailed in the litigation and whether the litigation "was causally related to securing the relief obtained; a fee is justified if [the party's] efforts are a necessary and important factor in obtaining relief." Litton Indus., Inc., 200 N.J. at 386 (internal quotations omitted). Here, the Court found that TDAF was the prevailing party and that its litigation efforts were effectuated to protect its rights pursuant to the Program Agreement. D.E. 80.
Once the threshold issue has been resolved, a court considers the non-exhaustive factors provided by the New Jersey Rules of Professional Conduct to determine reasonableness, including:
N.J. Rules Prorl Conduct R. 1.5(a). Litton Indus., Inc., 200 N.J. at 386 (finding that Rule of Professional Conduct 1.5(a) requires a court to consider these factors in determining the reasonableness of an attorneys' fees award).
In addition, a court compares the requested attorneys' fees award against the Court's own fee calculation pursuant to the "lodestar" method. The lodestar method is the "number of hours reasonably expended by the successful party's counsel in the litigation, multiplied by a reasonable hourly rate." Litton Industries, Inc., 200 N.J. at 386.
Here, Cinema opposes TDAF's requested amount of attorneys' fees as being excessive and duplicative. Lodato Decl. ¶ 3. Cinema provides several specific examples
The Court will first address Cinema's claims that the number of hours Plaintiff billed are excessive and duplicative. Cinema opposes awarding attorneys' fees to more than one attorney for working on this matter. Lodato Decl. ¶¶ 4-6. Plaintiff in response provides information on which Pepper Hamilton attorneys worked on particular portions of the litigation and how long the tasks took. Pl. Rep. at 3. Specifically, Plaintiff explains that one partner, Angelo Stio, and one associate, Chad Holtzman, were the primary attorneys on this case and that four other attorneys seeking fees did minimal work, "totaling less than 23 hours and $9,840.75 in fees." Id. Plaintiff also provides invoices that further detail the dates, times, and work performed by the Pepper Hamilton lawyers. Stio Decl. Ex. A-C. Pepper Hamilton's records and explanation demonstrate that it was reasonable for more than one attorney to work on the matter and that the total hours worked were reasonable.
Cinema next claims that Plaintiff's bill of 30.95 hours for drafting, revising, and editing the Complaint is excessive. Lodato Decl. ¶¶ 7-10. Plaintiff, in turn, argues that 30.95 hours is not an excessive amount of time to bill for the Complaint since "[t]he Complaint relates to 52 separate [RICs] whose files had to be reviewed and whose relevant information had to be condensed into a simplified pleading." Pl. Rep. at 4. Given Plaintiff's explanation of the number of contracts involved, the Court finds that 30.95 hours is a reasonable amount of time to draft the Complaint.
Cinema takes further issue with the attorneys' fees requested in preparing the subpoena and motion to compel the deposition of Robert Marchiani
Plaintiff, however, claims that the document subpoenas were of a complex nature and that the motion to compel was necessitated "by Aftermarket sales' failure to comply with the subpoena and unreasonable delay."
Cinema next argues that Plaintiff's bill of 106.3 hours (15.5. of which are redacted) relating to its summary judgment motion is excessive. Cinema also takes issue with Plaintiff billing eight times for editing and reviewing its summary judgment motion. Lodato Decl. vii 20-21. Plaintiff did not respond in any detail to these claims, so the Court's analysis is based on a review of the lodestar calculation in light of the time that might reasonably be necessary to prepare the summary judgment papers. As noted, Plaintiff's motion included a memorandum in support, D.E. 56, a statement of material facts in support of the motion, D.E 55, two declarations with a total of 16 exhibits, D.E. 57-58, and the text of a proposed order, D.E. 54. Of course, it cannot be overlooked that in accumulating the information submitted, Plaintiff's counsel had to perform a thorough review of all discovery following more than three years of litigation. As noted, Plaintiff prevailed on its summary judgment motion. Given the heft of the motion and the detailed breakdown of hours spent and tasks performed by Plaintiff's counsel, D.E. 85, the Court finds the 106.3 hours to be reasonable.
Cinema also takes issue with Plaintiff's redacting 15.5 hours of billed time related to its summary judgment motion. Lodato Decl. ¶ 32. The Court ordered that un-redacted invoices be provided for an in camera review, and Plaintiff complied. D.E. 95. After reviewing the unredacted invoices, the Court finds that the redactions were appropriate pursuant to the attorney-client privilege
Cinema further argues that Plaintiff's claim for attorneys' fees for 5.6 hours of strategy calls is unreasonable. Lodato Decl. ¶ 30. Plaintiff counters with case law supporting the merit of strategy calls as a litigation tool, Apple Corps. v. International Collectors Soc'y, 25 F.Supp.2d 480, 488 (D.N.J 1998), and argues that 5.6 hours of strategy calls over a three and a half year period is not excessive. Plaintiff points out that the "5.6 hours spent on calls over the life of the case equates to less than two hours per year discussing strategy with the client." P1. Rep. at 7. The Court agrees. This case involved over three years of active litigation. It is reasonable that during this time Plaintiff counsel would (at a minimum) occasionally consult with its client, TDAF, concerning strategy. Therefore, Plaintiff's requested attorneys' fees for hours spent on strategy calls are reasonable.
The Court, therefore, finds that the total hours Plaintiff's counsel expended on the case, as well as the specific hours spent on the contested areas, are reasonable. The Court must next decide whether the Pepper Hamilton rates were reasonable.
As explained above, in determining the reasonableness of counsel's hourly rate, the Court must compare the prevailing attorneys' rates to the "rates for similar services by lawyers of reasonably comparable skill, experience, and reputation in the community." Litton Indus., Inc., 200 N.J. at 387 (internal quotations and citation omitted). This "determination need not be unnecessarily complex or protracted, but the trial court should satisfy itself that the assigned hourly rates are fair, realistic, and accurate, or should make appropriate adjustments." Rendine v. Pantzer, 141 N.J. 292, 337 (1995).
In this matter, Plaintiff's billing rates are reasonable. Plaintiff provides the billing rates and titles for the Pepper Hamilton attorneys who worked on this matter.
Defendant argues that Plaintiff's declaration is insufficient because Stio "state[s] what [Pepper Hamilton's] normal billing rates are, not what the reasonable hourly rate is for competent counsel to handle this type of case." Lodato Decl. ¶ 29. While, the Court agrees that it would have been better practice for Plaintiff to include an affidavit from a non-interested party attesting to the reasonableness of the requested rates, it is not necessary here. Defendant fails to raise a specific complaint about the billing rates or provide comparative information to strengthen its argument that the requested hourly rates are unreasonable. Stio wrote his declaration as an officer of the court and provided sufficient information for this Court to do its own analysis and determine that the hourly billing rates are reasonable. Moreover, based on the Court's own knowledge of counsel rates in federal commercial litigation in this area, the Court agrees that Pepper Hamilton's hourly charges are reasonable.
For the foregoing reasons, Plaintiff's motion is GRANTED in the amount of $184,844.78 for attorneys' fees and costs associated with litigating this matter. An appropriate Order accompanies this Opinion.