NOEL L. HILLMAN, District Judge.
This matter comes before the Court on motion of Hari Hotels, LLC ("Plaintiff") for an award of attorneys' fees and costs (the "Motion"). (ECF No. 30). SNG Properties LLC and A Hunts Mills Associates LLC (collectively, "Defendants") challenge the reasonableness of the fee requested by Plaintiff. For the reasons that follow, the Court will grant Plaintiff's Motion in its entirety.
On September 21, 2017, Plaintiff agreed to purchase a Holiday Inn in Clinton, New Jersey from Defendants (the "Agreement").
Before the due diligence period expired, Plaintiff exercised its right to terminate the Agreement and asked that its deposit be returned. Defendants refused and Plaintiff filed suit seeking return of the deposited funds, along with attorneys' fees and costs related to the litigation.
After various court-sponsored conferences and settlement efforts, the parties presented this Court with a stipulated order largely resolving this matter, which this Court entered on July 12, 2019. (ECF No. 29). In the stipulated order, the parties agreed that Defendant would return Plaintiff's entire deposit, and the parties further agreed that Plaintiff shall "be considered a `prevailing party' entitled to submit a . . . Motion for recovery of its reasonable attorneys' fees and costs incurred in connection with the dispute." (ECF No. 29).
On August 23, 2019, Plaintiff submitted its Motion. Defendants oppose the request on the basis that the fee Plaintiff seeks is not reasonable. (ECF No. 33). This matter is fully briefed and ripe for adjudication.
The Court exercises subject matter jurisdiction pursuant to 28 U.S.C. § 1332.
New Jersey law governs the parties' relationship. (Agreement at ¶22(i)). As such, in determining the reasonableness of Plaintiff's fee request, the Court looks to New Jersey law for guidance.
"In determining the reasonableness of an attorneys' fee award, the threshold issue `is whether the party seeking the fee prevailed in the litigation.'"
"The next step in determining the amount of the award is to calculate the `lodestar,' which is that number of hours reasonably expended by the successful party's counsel in the litigation, multiplied by a reasonable hourly rate."
The lodestar method "yields a fee that is presumptively sufficient[.]"
There is no dispute that Plaintiff is the prevailing party in this action. (ECF No. 29) (stipulating that Plaintiff is the prevailing party and may pursue its fees). As such, the Court turns to the lodestar calculation.
Defendants do not challenge the hourly rate billed by Plaintiff's counsel or their staff. (ECF No. 33 ("Def. Br.") at 5) ("Defendants do not object to the hourly rates of Plaintiff[']s counsel for work that needed to be performed by attorneys of their skill levels and experience."). The following individuals billed at the following rates during times relevant to the current fee petition:
and $365 per hour;
(3) Molly Hanford, a senior paralegal, billed $175 per hour; and
Because Defendants do not challenge these rates, the Court will adopt them in conducting the present lodestar analysis.
Plaintiff seeks a total fee and cost award of $74,384.08. (ECF No. 36 at 2). Plaintiff supports its request by submitting individualized time entries from counsel's firm along with an explanation of its fees incurred for each phase of litigation. Specifically, Plaintiff represents its counsel spent
(ECF No. 36 at 2).
Plaintiff also explains that it incurred $1,602.08 in litigation costs in this action. (ECF No. 36 at 2). Plaintiff submits all individual time entries from the billing attorneys and staff for the Court's review. These time entries clearly identify the date the work was completed, the amount of time spent, the individual completing the task, the fee sought for the task completed, and the task completed during that timeframe.
Defendants argue that the fee requested by Plaintiff is (1) unreasonable in light of the amount in dispute, (2) inflated due to overstaffing and unnecessary use of senior lawyer time on associate-level tasks, (3) inflated because Plaintiff seeks fees for administrative tasks, and (4) should be reduced due to vague time entries. (ECF No. 33 at 1). The Court disagrees with Defendants' objections.
While Defendants argue generally that "Plaintiff's fees are not reasonable given the amount in dispute," (Def. Br. at 1), Defendants do not explain why the amount at issue requires a reduction in the fee to be awarded. In fact, available precedent suggests that a fee award should not be reduced solely because of its relation to the amount of damages awarded.
"[A] court may not reduce a fee award based on a proportionality analysis between the damages awarded and the fees requested[.]"
In this case, Plaintiff obtained a complete victory: it sought return of its $100,000 deposit and obtained a refund of $100,000. As such, the Court finds no reason to reduce the fee award for reduced success, as Plaintiff fully succeeded. If anything, Plaintiff's complete victory supports a finding that no reduction is necessary.
Defendants argue that any fee award should be reduced because Plaintiff used more expensive senior lawyer time for tasks that could have been completed by less expensive, more junior lawyers. (ECF No. 33 at 5-6). Defendants specifically identify time entries for tasks they argue should have been handled by more junior lawyers.
As such, the evidence proves the time billed by Plaintiff's counsel was not inflated by staffing the matter with more expensive counsel; instead, Plaintiff staffed this matter with lawyers adequately billing at associate-level rates for associate level tasks — rates Defendants do not challenge. Replacing Mr. Katz with Mr. Gould would have no material effect on the fee application. As such, this specific objection is rejected.
Defendants challenge more than fifty of Plaintiff's counsel's time entries as vague. Plaintiff argues that it has adequately supported its fee expenditures.
Attorneys seeking compensation must document the hours for which payment is sought "with sufficient specificity."
However, specificity is only required to the extent necessary for the court "to determine if the hours claimed are unreasonable for the work performed."
Defendants challenge dozens of time entries, each of which the Court has reviewed. The Court finds the entries challenged are not so vague as to require reduction of the fee requested. For example, Defendants challenge as vague Mr. Gould's billing entries for "[r]eview notice of removal; review issues regarding litigation strategy" and "review issues regarding settlement." The Court is confident in its ability to understand what Mr. Gould was accomplishing during those times with the degree of specificity required by
The Court's confidence in its understanding is bolstered by Plaintiff's phase-by-phase explanation of the time it spent, which the Court has used to cross-reference the time entries submitted.
Defendants argue that almost all tasks delegated to the paralegals employed by Plaintiff's counsel's firm are not chargeable or reasonably recoverable. The Court disagrees.
Nearly all of the paralegal time entries refer to reviewing and revising pleadings, preparing documents for filing and transmittal, working with process severs, calendaring case management deadlines, reviewing filing deadlines and orders from the court, and other case management related tasks. Defendants point this Court to its decision in
In
Defendants argue that fees relating to Plaintiff's motion and reply papers should not be awarded because (1) the work should have been done by less senior, less expensive counsel,
In a proceeding to determine an award of attorneys' fees, an attorney may include in a supporting affidavit fees for preparing the petition seeking fees and litigation costs.
The Court finds Plaintiff did not spend excessive time on the fee petition. Once drafted, Defendants submitted a multifaceted opposition, challenging the fees on numerous grounds, which Plaintiff was forced to respond to. Plaintiff was forced to incur legal fees in doing so, which Plaintiff actually paid to counsel. Pursuant to the Agreement, Defendant is responsible for those expenses. Consistent with the parties' Agreement, the Court will not reduce the fees sought by Plaintiff for briefing the present motion.
Defendants argue that Plaintiff fails to adequately support its cost application. The Court disagrees.
Plaintiff seeks $1,602.08 in litigation costs, which includes (1) $250 for its complaint filing fee in state court, (2) $43.12 for parking and mileage relating to court appearances, (3) $195 for subpoena service costs, (4) $28.96 for FedEx charges, and (5) $1,085 for the deposition transcript of Jerry Swon. (ECF No. 30-4 at ¶78). Plaintiff submitted supporting documents for these costs.
Finding no basis to reduce the fees and costs sought by counsel, Plaintiff shall be awarded $72,782 in fees and $1,602.08 in costs, for a total award of $74,384.08. An appropriate Order will follow.