GEORGE B. DANIELS, District Judge.
Plaintiff Neil Rhodes seeks to recover from Defendant Gary Davis attorneys' fees, costs, and expert fees incurred during Plaintiff's successful litigation of a breach of contract claim for Defendant's violation of a September 3, 2008 Stipulation of Discontinuance between the parties. Defendant opposes this request, arguing that Plaintiff's counsel inappropriately seeks to be reimbursed for expenses that exceed the scope of this Court's limited referral to the magistrate judge which excluded fees and costs relating to Plaintiff's unmeritorious claims under the Employee Retirement Income Security Act of 1974 ("ERISA"), 29 U.S.C. § 1001, et seq. Defendant further contends that Plaintiff's counsel fails to explain how the billing entries submitted exclude work performed on ERISA issues.
On March 19, 2010, then United States District Judge Stephen C. Robinson issued an Opinion and Order finding that the Defendant breached the Stipulation by failing to execute an agreed-upon sale of shares. (See ECF No. 43 at 16.) In a September 27, 2012 Memorandum Decision and Order, this Court held that Plaintiff was entitled as the non-breaching party to recover reasonable attorneys' fees pursuant to the plain language of the Stipulation. (ECF No. 110 at 6-7. )
Plaintiffs counsel initially filed a motion for attorneys' fees and costs ("Motion I") on December 7, 2012. (Motion I, ECF No. 126).
This Court may accept, reject, or modify, in whole or in part, the findings set forth in the Report. 28 U.S.C. § 636(b)(1)(C). When there are objections to the Report, the Court must make a de nova determination of those portions of the Report to which objections are made. Id.; see also Rivera v. Barnhart, 423 F.Supp.2d 271, 273 (S.D.N.Y. 2006). The district judge may also receive further evidence or recommit the matter to the magistrate judge with instructions. See Fed. R. Civ. P. 72(b); 28 U.S.C. § 636(b)(1)(C). The Court need not conduct a de nova hearing on the matter. See United States v. Raddatz, 447 U.S. 667, 675-76 (1980). Rather, it is sufficient that the Court "arrive at its own, independent conclusion" regarding those portions of the Report to which objections were made. Nelson v. Smith, 618 F.Supp. 1186, 1189-90 (S.D.N.Y. 1985) (quoting Hernandez v. Estelle, 711 F.2d 619, 620 (5th Cir. 1983)). When no party files objections to a Report, the Court may adopt the Report if "there is no clear error on the face of the record." Adee Motor Cars, LLC v. Amato, 388 F.Supp.2d 250, 253 (S.D.N.Y. 2005) (quotation omitted).
Consistent with the November 14, 2013 Order, the following analysis constitutes this Court's de nova review of Magistrate Judge Yanthis's Report in light of Defendant's objection that "any award to Plaintiff should not include fees related to the litigation of Plaintiff's unsuccessful ERISA claims." (See November 14 Order at 3.)
Defendant correctly observes that the November 14, 2013 Order "was made for the limited purpose of determining whether Magistrate [Judge] Yanthis, in his Report[,] ... had made an Award to Plaintiff which included fees or expenses relating to Plaintiff's `failed' ERISA claims." (See Opp'n ¶ 2.) It was not an opportunity for Plaintiff to submit additional expenses incurred after October 2012-for instance, fees for "appeal issues," (see Motion II Decl. ¶ 14(D))-that were not before Magistrate Judge Yanthis. (See Opp'n ¶ 45 (noting that Motion II contains approximately thirty pages of time entries not previously submitted to Magistrate Judge Yanthis).)
"[T]he fee applicant bears the burden of establishing entitlement to an award and documenting the appropriate hours expended and hourly rates." Hensley v. Eckerhart, 461 U.S. 424, 437 (1983). To determine the attorneys' fees to which an applicant is entitled, a court must calculate each attorney's "presumptively reasonable fee," sometimes referred to as the "lodestar." Arbor Hill Concerned Citizens Neighborhood Ass'n v. Cnty. of Albany, 522 F.3d 182, 189-90 (2d Cir. 2008). This figure is calculated by multiplying the attorney's reasonable hourly rate by the number of hours reasonably expended on the matter at issue. See Millea v. Metro-N. R.R. Co., 658 F.3d 154, 166 (2d Cir. 2011). In calculating the reasonable number of hours expended, the court "exclude[s] excessive, redundant or otherwise unnecessary hours, as well as hours dedicated to severable unsuccessful claims." Quaratino v. Tiffany & Co., 166 F.3d 422, 425 (2d Cir. 1999). "Where the documentation of hours is inadequate, the district court may reduce the award accordingly." Hensley, 461 U.S. at 433. The court is guided by the principle that "the touchstone for an award of attorneys' fees pursuant to a contract is reasonableness." Carco Grp., Inc. v. Maconachy, 718 F.3d 72, 86 (2d Cir. 2013).
Magistrate Judge Yanthis, having reviewed the attorneys' experiences and relying on his knowledge of practitioner rates in the relevant community, correctly determined that the hourly amounts charged by the seven attorneys who worked on this matter were reasonable. (See Report at 5-7.)
The Report also properly found that a reduction in hours was warranted to establish a reasonable number of hours billed in light of the "numerous vague [time] entries" and inaccurate calculations submitted in the fee application. (See Report at 8-10 & n.2.) Many of these entries are plainly insufficient
However, a further reduction in fees is warranted given Plaintiff's counsel's failure to provide a thorough and accurate account of the number of hours to be excluded based on work performed on the unsuccessful ERISA claims. The November 14, 2013 Order limited "the award of fees and costs ... to work done in prosecution of Plaintiff's breach of contract claim only"; time spent on Plaintiff's ERISA claims was to be excluded. (See November 14 Order at 3-4.) Plaintiff's counsel represents that a review of the billing entries concerning ERISA issues "resulted in a slight reduction (less than 10 hours) from the original application." (Motion II Decl. ¶ 19.) This representation cannot be credited given Plaintiff's significant summary judgment briefing on the ERISA claims.
Because "it is unrealistic to expect a trial judge to evaluate and rule on every [time] entry in an application," N.Y. State Ass'n for Retarded Children, Inc. v. Carey, 711 F.2d 1136, 1146 (2d Cir. 1983), the court "may exercise its discretion and use a percentage deduction as a practical means of trimming fat from a fee application." McDonald v. Pension Plan of the NYSA-ILA Pension Trust Fund, 450 F.3d 91, 96 (2d Cir. 2006) (citation and internal quotation marks omitted). In this case, the Report does not account for the additional time Plaintiff's counsel spent preparing the additional papers for Motion II (including the review of and response to Defendant's lengthy fifty-five page opposition), and Plaintiff should be reimbursed for this time.
The Report recommended that Plaintiff receive $12,227 .12 in costs incurred for routine expenses such as filing, photocopying, postage, and Westlaw research. (Report at 11.) It is clear that "[a]ttorney's fees awards include those reasonable out-of-pocket expenses incurred by attorneys and ordinarily charged to their clients." LeBlanc-Sternberg v. Fletcher, 143 F.3d 748, 763 (2d Cir. 1998) (quotation omitted). Plaintiffs request for $12,227.12 in costs is reasonable, and he is hereby awarded this amount.
Magistrate Judge Yanthis correctly determined that Plaintiff is not entitled to recover expert fees as part of his request for fees and costs. (See Report at 11.) "The party seeking reimbursement for expert fees bears the burden of proving reasonableness." Matteo v. Kohl's Dep't Stores, Inc., No. 09 Civ. 7830 (RJS), 2012 WL 5177491, at *5 (S.D.N.Y. Oct. 19, 2012) (citation and internal quotation marks omitted), aff'd, 533 F. App'x l (2d Cir. 2013). Here, the Stipulation makes no reference to expert fees. (See Stipulation if 2). Moreover, Plaintiffs granted for time spent in applying for the award."), cert. denied sub nom. CSEA Local Union 1000, Am. Fed'n of State, Cnty. & Mun. Employees, AFL-CIO v. Brock, 479 U.S. 817 ( 1986). counsel's proffered documentation for these expenses is plainly deficient, which counsel acknowledges.
That portion of Magistrate Judge Yanthis's July 1, 2013 Report and Recommendation is adopted with regard to: (i) the reasonable hourly rates charged by the seven attorneys; (ii) Plaintiff's entitlement to recover $12,227.12 in costs; and (iii) that Plaintiff is not entitled to an award of expert fees. Plaintiff's motion for counsel fees and costs is GRANTED to the extent of a total award of
SO ORDERED.