MORRISON C. ENGLAND, JR., District Judge.
By way of this action, Plaintiff Regents of the University of California ("Plaintiff" or "Regents"), on behalf of the UC Davis Medical Center, sought payment for medical services provided to non-party patient Jack Franklin. Plaintiff alleged that Defendants unlawfully denied Franklin his rights to enroll in health insurance pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA"), 29 U.S.C. §§ 1161-1168. The original Defendants were Franklin's former employer, Stidham Trucking Inc. ("Stidham"); Stidham's insurance broker, Craig C. Hansen Insurance Services, Inc. ("Hansen"); Stidham's COBRA administrator, Worthington Olson, Inc., dba CobraHelp ("CobraHelp"); and Stidham's insurance provider, Anthem, Inc. ("Anthem"). Stidham, CobraHelp, and Anthem moved to dismiss Plaintiff's claims against them, and the Court granted those motions on September 1, 2017.
At that time, CobraHelp additionally moved for sanctions against Plaintiff's counsel ("Counsel") under Rule 11, which motion the Court also granted. ECF Nos. 9, 34. Because the Court has already determined that sanctions are warranted, it will not recount the facts surrounding the basis for those sanctions here. Suffice it to say the Court agreed with CobraHelp that certain allegations in Plaintiff's Complaint were directly contradicted by email evidence in Counsel's possession and that, as a result, Counsel had filed a Complaint containing statements or allegations that she knew were false in violation of Rule 11.
By way of its Rule 11 Motion, CobraHelp sought to recover "attorney's fees incurred defending Plaintiff's claims" but failed to provide the purported amount of those fees. Accordingly, CobraHelp was ordered to file a statement of fees which it has now done (ECF No. 35), and Plaintiff's counsel was permitted to thereafter file an objection to the amount requested, which it has done as well (ECF No. 36). In its statement, CobraHelp seeks fees in the amount of $26,326.00. The Court has now reviewed the parties' respective filings, and—for the reasons discussed below—has determined that sanctions in the amount of $13,015.00 are appropriate.
Federal Rule of Civil Procedure 11 provides, in relevant part:
Fed. R. Civ. P. 11. "If, after notice and a reasonable opportunity to respond, the court determines that Rule 11(b) has been violated, the court may impose an appropriate sanction on any attorney, law firm, or party that violated the rule. . . ."
Rule 11 "is designed to deter attorneys and unrepresented parties from violating their certification that any pleading, motion[,] or other paper presented to the court is supported by an objectively reasonable legal and factual basis; no showing of bad faith or subjective intent is required."
"[T]he central purpose of Rule 11 is to deter baseless filings."
CobraHelp has filed a statement containing the fees it purports to have expended in defending Plaintiff's claims. These fees include time spent in connection with the Rule 11 Motion, as well as time spent preparing its Motion to Dismiss, its Opposition to Plaintiff's Motion for Sanctions, and time spent performing general case management.
As an initial matter, Counsel's argument that CobraHelp improperly seeks fees incurred outside the preparation of the Rule 11 Motion itself is not well taken. More specifically, Counsel argues that the sanctions award must be limited to fees reasonably incurred as a result of an unwarranted filing (which is an accurate statement), and indicates that only CobraHelp's Motion for Sanctions falls within this description (which is not accurate). Rather, because the unwarranted filing in this case was Plaintiff's Complaint itself, CobraHelp is within its right to seek fees it incurred in defending against the action as a whole. Indeed, if a party were only allowed to seek the fees incurred in bringing the sanctions motion itself, the deterrent effect of Rule 11 would in many cases be negligible.
Additionally, Counsel's reliance on
Relatedly, Counsel argues that CobraHelp's request for fees generated in connection with its Motion to Dismiss and its Opposition to Plaintiff's Motion for Sanctions is improper because those motions were not the direct result of Counsel's Rule 11 violation. The Court disagrees.
Counsel additionally argues that the fees requested are excessive, not because of the rate at which CobraHelp's lawyers billed their clients, but because of the time spent on certain tasks. Regarding the former, the Court agrees that the hourly rates in this case are reasonable. $350.00 per hour for an experienced partner, $185.00 per hour for a more junior partner, and $90.00 per hour for paralegal time is in line with the rates customarily charged in the Eastern District for this kind of action. On review of the record as a whole and CobraHelp's lawyers' submitted invoices, however, the Court also agrees that a reduction is warranted to compensate for the amount of time spent on certain tasks.
More specifically, Plaintiff argues that 13.80 hours is an excessive amount of time to prepare a six-page letter regarding CobraHelp's Motion for Sanctions. Plaintiff contends the same with regard to CobraHelp's assertion that its lawyers spent a total of 32.2 hours on a Motion for Sanctions, 28.60 hours on a Motion to Dismiss, 12.40 hours for the related Reply brief, and 21.90 hours on an Opposition to Plaintiff's Motion for Sanctions.
Having already granted CobraHelp's Motion for Sanctions (ECF No. 34), the Court hereby issues sanctions against Plaintiff's counsel in the amount of $13,015.00.
Because all Defendants have been dismissed from this action (