WILLIAM H. STEELE, Chief District Judge.
This matter comes before the Court on plaintiff's Motion to Assess Attorney's Fees and Expenses (doc. 39). Defendant has elected not to avail himself of a reasonable opportunity to be heard on the request; therefore, the Motion is now ripe.
Plaintiff, SE Property Holdings, LLC, brought this action against defendant, Jay O. Stradley, alleging that he had defaulted on various loan and guaranty obligations to the tune of well over $1 million. The Complaint asserted nine separate causes of action against Stradley for breach of contract (one for each loan, continuing guaranty, or overdraft protection agreement that Stradley had allegedly breached). Stradley appeared (by and through counsel) and filed an answer, after which the normal discovery process ensued. Following the close of discovery, SE Property filed a Motion for Summary Judgment, seeking entry of judgment as a matter of law in its favor on all nine breach of contract causes of action. Stradley did not oppose the Rule 56 Motion.
On May 7, 2012, the undersigned entered an Order (doc. 38) granting the Motion for Summary Judgment in part, and denying it in part. The May 7 Order was favorable to SE Property, insofar as it granted summary judgment on Counts One through Five, Eight, and Nine, finding with respect to each of those claims that Stradley was in breach of his contractual obligation to SE Property, and that SE Property was entitled to recover unpaid principal amounts, as well as post-default interest and/or contractual finance charges. Specifically, the undersigned ruled in the May 7 Order that SE Property had established its legal right to a judgment against Stradley on these claims in the amount of $1,292,801.96 for unpaid principal, as well as $318,232.81 in post-default interest accrued through May 7, 2012 (with additional prejudgment interest accruing at the rate of $637.54 per day until the date of entry of final judgment). The May 7 Order also authorized plaintiff to file a memorandum and exhibits establishing the amount and reasonableness of attorney's fees and costs for which it seeks recovery, and established a briefing schedule to allow Stradley to be heard as to same.
Notwithstanding the foregoing, the May 7 Order was not an unqualified victory for SE Property. Indeed, the Rule 56 Motion was denied as to Counts Six and Seven. The Court found that SE Property was entitled to recover nothing on such claims, based on undisputed record evidence that the principal balance on the loans underlying those causes of action had been reduced to $0.00 in 2010, such that said loans had been paid off months before this lawsuit was ever filed.
As directed by the May 7 Order, SE Property has now filed a Motion to Assess Attorney's Fees and Expenses, along with affidavits of counsel and nearly 100 pages of backup documentation, including copies of underlying invoices showing fees and disbursements. In conjunction with these filings, plaintiff seeks an award of $49,211.27 in attorney's fees, as well as $2,906.92 in costs and expenses. As it is required to do, the Court has carefully reviewed plaintiff's evidentiary submission in support of the request for attorney's fees and costs.
"Alabama follows the American rule, whereby attorney fees may be recovered if they are provided for by statute or by contract...." Jones v. Regions Bank, 25 So.3d 427, 441 (Ala. 2009) (citations omitted); see also Battle v. City of Birmingham, 656 So.2d 344, 347 (Ala. 1995) (same).
It is well-settled that "[t]he determination of whether an attorney fee is reasonable is within the sound discretion of the trial court." Kiker v. Probate Court of Mobile County, 67 So.3d 865, 867 (Ala. 2010) (citations omitted). To guide this reasonableness inquiry, Alabama courts recognize a non-exhaustive list of criteria that may properly be considered, including: "(1) [T]he nature and value of the subject matter of the employment; (2) the learning, skill, and labor requisite to its proper discharge; (3) the time consumed; (4) the professional experience and reputation of the attorney; (5) the weight of his responsibilities; (6) the measure of success achieved; (7) the reasonable expenses incurred; (8) whether a fee is fixed or contingent; (9) the nature and length of a professional relationship; (10) the fee customarily charged in the locality for similar legal services; (11) the likelihood that a particular employment may preclude other employment; and (12) the time limitations imposed by the client or by the circumstances." Pharmacia Corp. v. McGowan, 915 So.2d 549, 552-53 (Ala. 2004) (citation omitted).
As a general proposition, "[t]he starting point for determining the amount of a reasonable fee is the number of hours reasonably expended on the litigation multiplied by a reasonable hourly rate.... The product of these two figures is the lodestar and there is a strong presumption that the lodestar is the reasonable sum the attorneys deserve." Bivins v. Wrap It Up, Inc., 548 F.3d 1348, 1350 (11
Plaintiff claims an award of attorney's fees of $49,211.27. The Court has reviewed SE Property's evidentiary submission on attorney's fees for reasonableness, and finds with four exceptions that the requested fees are reasonable. Those exceptions, and the award modifications necessitated by each, will be discussed in turn.
First, included in SE Property's fee request is substantial unbilled time (designated in plaintiff's filings as "WIP," or "work in progress") in the amount of $5,027.27. No itemization or detail of any kind has been provided for these fees, so the Court is unable to assess their reasonableness. It is plaintiff's burden to prove the reasonableness of its requested fees; however, SE Property's showing falls short as to the claimed "work in progress" time. Accordingly, unbilled time will be disallowed from the attorney's fee award. See generally Hensley v. Eckerhart, 461 U.S. 424, 433, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983) ("Where the documentation of hours is inadequate, the district court may reduce the award accordingly.").
Second, the Court's review of counsel's invoices reveals certain redundancies, particularly relating to the preparation, travel and attendance of two senior attorneys at defendant's deposition in Gulf Shores on October 18-19, 2011. "Redundant hours must be excluded from the reasonable hours claimed by the fee applicant." American Civil Liberties Union of Georgia v. Barnes, 168 F.3d 423, 432 (11
Third, the invoices reflect that SE Property seeks to include in its award some 48.4 hours of paralegal time, at an hourly rate of $110 per hour. Recent opinions from this District Court reflect that the going rate for paralegals in the Mobile market is substantially lower. See Branch Banking and Trust Co. v. Imagine CBQ, LLC, 2012 WL 1987830, *3 (S.D. Ala. June 4, 2012) ("this district has customarily awarded $75.00 per hour ... for paralegals in this district performing work traditionally performed by an attorney"); Ceres Environmental Services, Inc. v. Colonel McCrary Trucking, LLC, 2011 WL 1883009 (S.D. Ala. May 17, 2011) (reducing requested paralegal hourly rate of $101-$115 on the ground that "[j]udges in this district have repeatedly approved paralegal rates of $75 an hour" and do not go higher absent proof of "unusually advanced qualifications or expertise"); see also Trotter v. Columbia Sussex Corp., 2010 WL 383622, *11 (S.D. Ala. Jan. 29, 2010) (similar). Plaintiff's expert on fees proclaims the $110 paralegal rate to be "comparable to the fees charged by paralegals and/or law clerks with similar experience in the Mobile legal community" (doc. 39, Exh. C, ¶ 8); however, he neither reconciles his opinions with the cited authorities nor professes to have knowledge of any special qualifications or expertise these individuals might have that would justify such a substantial increase over the $75 rate typically approved in this District Court as reasonable. Accordingly, the 48.4 hours of paralegal time documented in the invoices will be compensated at a $75/hour rate rather than a $110/hour rate. This modification equates to a reduction of $1,694.00 (48.4 hours x $35/hour) from the requested fee amount.
Finally, some diminution of the fee award is appropriate to account for SE Property's degree of success in this matter. Recall that plaintiff filed suit against Stradley alleging breach of nine different agreements, and that plaintiff moved for summary judgment as to all nine breach of contract causes of action. Recall also that the May 7 Order found that SE Property was entitled to no relief, and would have and take nothing, on Counts Six and Seven because uncontroverted evidence showed that Stradley had paid off the entire principal balance of those loans before the Complaint was filed. A reduction of an attorney's fee award is warranted in such circumstances. See, e.g., Hensley, 461 U.S. at 436 ("If ... a plaintiff has achieved only partial or limited success, the product of hours reasonably expended on the litigation as a whole times a reasonable hourly rate may be an excessive amount."); Bivins, 548 F.3d at 1350 (enumerating these same options when hours claimed are unreasonably high). In that scenario, "[t]he district court may attempt to identify specific hours that should be eliminated, or it may simply reduce the award to account for the limited success." Id. The Court adopts the latter approach here. Although some of the hours billed were equally applicable to all of the breach-of-contract claims, others were specific to Counts Six and Seven. In the exercise of its discretion, the Court deems it equitable and reasonable to reduce the portion of the fee award concerning litigation billing (as contrasted with foreclosure billing, which was also part of plaintiff's collection costs for which it seeks recompense) by 10% across the board, for a total reduction of $3,288.50.
In short, then, the Court reduces plaintiff's requested fee award of $49,211.27 by $5,027.27 for undocumented "WIP" hours, by $2,517.50 for redundancy, by $1,694.00 for excessive paralegal billing rates, and by $3,288.50 for degree of success. Plaintiff will be awarded reasonable attorney's fees in the amount of
For all of the foregoing reasons, it is
DONE and ORDERED.