GREGG COSTA, Circuit Judge.
This ruling addresses HeartBrand's request for attorneys' fees not sought in prior motions. Docket Entry No. 327. The Court previously awarded HeartBrand attorneys' fees, expenses, and costs for work performed through March 31, 2016, in the amount of $3,259,972.93. Bear Ranch, LLC v. Heartbrand Beef, Inc., 2016 WL 3549483, at *5 (S.D. Tex. June 30, 2016), aff'd, 885 F.3d 794, 804 (5th Cir. 2018); Docket Entry No. 275 at 6. HeartBrand now pursues $115,259.44 in fees and costs related to (1) the fee litigation in this Court after March 31, 2016, (2) the appeal of the fee award, (3) litigation of post-trial motions after March 31, 2016, and (4) data-hosting expenses after that date. Docket Entry Nos. 331; 335 at 7.
Courts must determine whether a fee award is reasonable. See La. Power & Light Co. v. Kellstrom, 50 F.3d 319, 327-28 (5th Cir. 1995); Arthur Anderson & Co. v. Perry Equip. Corp., 945 S.W.2d 812, 818 (Tex. 1997). One judge has called the task "among the most challenging" federal district judges perform. John F. Grady, Reasonable Fees: A Suggested Value-Based Analysis for Judges, 184 F.R.D. 131, 131 (1999). The multiple rounds of fee litigation in this case certainly show it is among the most frustrating.
The Court has already addressed the reasonableness of the fees as a general matter in this case. Bear Ranch, 2016 WL 3549483, at *3-*5. It reviewed whether HeartBrand's requested fees bore a rational relationship to the complexity of the case (they did) and whether the rates charged were consistent with the prevailing market (they were). Id. Indeed, although it challenges the fees related to the earlier fee litigation and raises other minor objections, Bear Ranch does not contest the general reasonableness of HeartBrand's latest request. Docket Entry No. 334; cf. Kellstrom, 50 F.3d at 328 (noting that when an attorney's billing rate is not contested it is prima facie reasonable). In light of its familiarity with this complex and contentious case, the Court approves as reasonable the additional fee request. Fee and cost issues disputed by the parties are addressed below.
HeartBrand requests $44,497.60 for fees and costs incurred litigating attorneys' fees before this Court after March 31, 2016. Docket Entry No. 335 at 2; see Kellstrom, 50 F.3d at 336 (finding a court may award fees for time spent litigating a fee request). But that amount includes a mistake per the Court's calculations. After Bear Ranch identified an error in HeartBrand's attorneys' fees calculation of $9,188.75, Docket Entry Nos. 330-1 at 2; 335 at 2, HeartBrand reduced its fee request by the entirety of that error. But the original request was calculated using a 85.78% discount rate. The percentage corresponds to the amount of attorneys' fees this Court awarded in its June 30, 2016 order compared to HeartBrand's segregated fee request. Docket Entry No. 331 at 4. The erroneous $9,188.75 should have been discounted as well, so the reduction would only be $7,882.11 ($9,188.75 × .8578). As such, HeartBrand's corrected request for this category of fees and costs stands at $45,804.24 ([$44,497.60 + $9,188.75] - [$9,188.75 × .8578]).
Bear Ranch contends that HeartBrand is not entitled to even that reduced amount because HeartBrand refused, in its 2015 request, to segregate fees as Texas law requires. Docket Entry No. 334 at 3 (citing Tony Gullo Motors I, L.P. v. Chapa, 212 S.W.3d 299, 311 (Tex. 2006)). But work on recoverable and unrecoverable claims may be so inextricably intertwined that it need not be segregated. Navigant Consulting, Inc. v. Wilkinson, 508 F.3d 277, 298 (5th Cir. 2007). Indeed, after reviewing submissions related to the initial fee request, this Court determined that "most of the work incurred by HeartBrand cannot be segregated." Bear Ranch, LLC v. Heartbrand Beef, Inc., 2016 WL 1588312, at *5 (S.D. Tex. Apr. 20, 2016). Although some of that work was ultimately segregable, the Court will not now reduce the additional fee request because HeartBrand failed to segregate initially. The segregation issue was complex given the number of claims and counterclaims and the fact that much of the work overlapped. And, of course, HeartBrand would have incurred fees related to segregating its work even had it not first argued the claims were nonsegregable. See, e.g., Docket Entry Nos. 275; 279; 285.
Bear Ranch also contests HeartBrand's request for $251.94 in PACER fees
In any event, back to the issue the Court must decide: HeartBrand actually seeks only $294.73 in costs, Docket Entry No. 330-1 at 2—85.78% of those incurred litigating the attorneys' fees request. Cf. Bear Ranch, 2016 WL 3549483, at *3 (reducing HeartBrand's requested vendor costs and expenses by applying the percentages used to discount its attorneys' fees). In addition to the attorneys' fees HeartBrand is owed under the contract, it shall recover "any other costs incurred in enforcing the terms of this agreement."
The Court finds HeartBrand is entitled to $294.73 in printing and PACER costs incurred after March 31, 2016 for time spent litigating the original fee request. Accordingly, HeartBrand is entitled to $45,804.24 in attorneys' fees and costs incurred for fee litigation after March 31, 2016.
HeartBrand also seeks the $38,455.45 it spent preserving the fee award.
But it does again contest various costs, including printing fees totaling $7,825.65 and PACER costs in the amount of $325. Id. at 8-9. For the same reasons described above, the Court with one exception awards those costs to HeartBrand at the 14.39% discount rate. That exception is for the 11,461 page printing job, which HeartBrand contends was for one copy of the appellate record. Docket Entry No. 335 at 5. That job cost $7,449.65 because it was done for "color copies @ 0.65 per page," Docket Entry No. 330-2 at 74, even though emails provided by HeartBrand suggest that few if any of the pages were in color, see Docket Entry No. 335-1 at 3. Black and white printing cost HeartBrand 15 cents per page. See, e.g., Docket Entry No. 330-2 at 6. So printing the record should have cost $1,719.15 (11,461 × 0.15). The Court will therefore reduce HeartBrand's appellate fee and cost request ($38,455.45) by $824.62 ([$7,449.65 - $1,719.15] × .1439).
HeartBrand is entitled to $37,630.83 in appellate fees and costs.
For fees and costs related to post-trial filings that occurred after March 31, 2016, HeartBrand requests $29,822.60. Docket Entry No. 331 at 3. As with the Phase 3 (post-trial) filings discussed in the original fee request, HeartBrand proposes a discount benchmark that looks to pages in the post-trial briefing attributable to recoverable claims. Bear Ranch, 2016 WL 3549483, at *3 (approving of that benchmark). Of 39.25 total pages filed, 16.75—or 40.76%— addressed recoverable claims on which HeartBrand prevailed. Docket Entry No. 330 at 6. Bear Ranch does not dispute that number, see Docket Entry No. 334 at 10, and HeartBrand is thus entitled to 40.76% of fees and costs incurred litigating post-trial motions after March 31, 2016.
Bear Ranch does however contest the $389.77 in PACER fees associated with this post-trial briefing. Docket Entry No. 334 at 10. But as the Court has already said here and in prior rulings, the contract allows for the recovery of any costs associated with enforcing the agreement. So HeartBrand may recover PACER fees at the discounted rate.
HeartBrand is therefore entitled to $29,822.60 in post-trial fees and costs incurred after March 31, 2016.
HeartBrand lastly requests $2,483.79 in data-hosting expenses incurred after March 31, 2016. Docket Entry No. 335 at 7. That amount represents 44% of HeartBrand's total data-hosting costs ($5,644.97) for that period. The 44% figure was the post-trial rate applied to the original fee request.
HeartBrand is thus entitled to $2,300.89 ($5,644.97 × .4076) in data-hosting costs.
The Court awards HeartBrand additional attorneys' fees and costs totaling $115,558.56.