FRANK MAAS, Magistrate Judge.
This suit pits two competing laser hair-removal businesses against each other in a dispute involving claims of false advertising, unfair competition, and defamation. In November 2012, the plaintiff, Romeo & Juliette Laser Hair Removal, Inc. ("Romeo"), moved to compel the defendants (collectively "Assara") to respond to several allegedly outstanding discovery requests and to remedy certain of their existing responses that Romeo believed were insufficient. Assara responded with its own motion to compel, seeking certain documents that Romeo allegedly had failed to produce. Following a discovery conference in which I granted Romeo's motion and denied Assara's requests in substantial part, Romeo filed an application for attorneys' fees pursuant to Rule 37 of the Federal Rules of Civil Procedure. In that application, Romeo, which is represented by the law firm Butler, Fitzgerald, Fiveson & McCarthy, seeks reimbursement for $24,562.50 in fees that it allegedly accrued in connection with the discovery dispute. For the reasons set forth below, Romeo's fee application is granted, but the amount of the award is reduced to $6,945.
On November 28, 2012, Romeo's counsel, Claudia G. Jaffe, Esq., wrote to the Court requesting a conference to address a number of discovery issues. (Aff. of Claudia G. Jaffe, Esq., sworn to on Jan. 18, 2013 ("Jaffe Aff.") (ECF No. 114), ¶ 3). Ms. Jaffe's principal grievance concerned Assara's responses to Romeo's Requests to Admit, which she alleged were deficient and did not comply with Rule 36 of the Federal Rules of Civil Procedure. (
On December 4, 2012, Assara's counsel, Will Shuman, Esq., himself a defendant in this action, responded to Romeo's letter. In that response, Assara raised a number of its own complaints regarding discovery responses allegedly due from Romeo. Among other things, Assara's letter sought an order compelling Romeo to produce documents relating to its sales records and its Google Analytics and other website tracking records. Because neither side had complied with my Individual Practices or the Local Civil Rules, I directed the parties to submit revised letters itemizing their concerns in a manner consistent with Local Civil Rule 37.1. (ECF No. 57). I also scheduled an in-person conference for December 27, 2012. (
The discovery conference was adjourned twice — once at Ms. Jaffe's request and once at the request of Mr. Shuman, who represented that he was unavailable because he needed to "appear" in an unrelated trial taking place in another city. (Jaffe Aff. ¶¶ 21-22). The conference ultimately was rescheduled for January 10, 2013.
Although the Court had accommodated his alleged trial schedule, Mr. Shuman inexplicably was absent on the day of the conference. After waiting for over thirty minutes for him to arrive, my Chambers staff reached him by telephone, only to learn that he was still in Washington, D.C., where he resides. Instead of sending Ms. Jaffe home and rescheduling the conference yet again, I permitted Mr. Shuman to participate by telephone. (ECF No. 121 ("Transcript" or "Tr.") at 2). Mr. Shuman sought at first to explain his absence by claiming that he had been under the impression that the conference was to occur the following week. (
With respect to Romeo's motion, I concluded that Assara's responses to Romeo's Requests for Admission were insufficient and directed Assara to provide amended responses. I further ordered Assara to produce its original operating agreement, as well as documents reflecting the identities of its members. Turning to the issue of Ms. Tayar's outstanding deposition, I indicated that the Court would issue an arrest warrant based upon her failure to comply with the Court-ordered subpoena if she did not contact Ms. Jaffe by January 16 to schedule the deposition. I then denied Assara's motion to compel production of Romeo's sales records and its Google Analytics reports. These rulings were incorporated into a Discovery Order dated January 10, 2013. (ECF No. 108).
On January 24, 2013, Assara filed a motion for reconsideration of my ruling rejecting its request for production of the Google Analytics and other website tracking records. (ECF No. 116). Because Ms. Jaffe continued to represent that there were no such documents, I denied the motion, but directed Romeo to certify that it had performed a diligent search that had not unearthed any responsive documents. (ECF No. 155). Romeo's principal, Christian Karavolas, executed that certification on March 29, 2013. (ECF No. 156).
On January 18, 2013, Ms. Jaffe filed an affidavit in support of Romeo's application for reimbursement of the attorneys' fees that it claims to have accrued in connection with this dispute. (Jaffe Aff.). On February 5, Ms. Jaffe filed a supplemental affidavit, in which she annexed her firm's redacted time records.
"The great operative principle of [Rule 37] is that the loser pays" the expenses incurred in making or opposing a motion to compel.
"As a concession to the mortality of judges, the law does not require a line-item review of fee applications."
Assara's opposition papers raise a laundry list of objections to various aspects of Romeo's fee application. Most of these arguments are without merit and can be dealt with in short order. First, Assara contends that Romeo's fee application should be denied in its entirety because of certain alleged "[u]njustifiable, [c]ulpable, and [i]mproper conduct" on Romeo's part, which would render an award of expenses unjust under the circumstances. (Def.'s Mem. at 11). However, other than complaints that Romeo has changed the nature of the relief it seeks in this suit — which has nothing to do with the present discovery dispute — and that Romeo failed to perform a diligent search for the Google Analytics records — an argument that simply revisits Assara's motion to reconsider, which I denied — Assara has failed to identify any "culpable" or "improper" conduct that would warrant disallowing Romeo an award of its reasonable fees. In the absence of any showing that an award of fees would be unjust under the circumstances, Assara's argument must be rejected.
Assara next contends that fees associated with the motion to compel production of its corporate documents should be disallowed because its failure to disclose them was substantially justified. (Def.'s Opp. Mem. at 19). Assara was not substantially justified; I directed production of those documents back in October, (ECF No. 56), and Assara has not provided any valid excuse for why they were not disclosed. Rule 37 "places the burden on the disobedient party to avoid expenses [including attorneys' fees] by showing that his failure is justified."
Assara further argues that any fees Romeo incurred in responding to Assara's motion to compel are not compensable because Assara was substantially justified in filing its motion. (
Finally, Assara asserts that fees incurred in connection with Romeo's fee application itself must be excluded because they are not reimbursable as a matter of law. (
To determine the amount of attorneys' fees to which a prevailing party in a discovery dispute is entitled, the Court must calculate the "presumptively reasonable fee," often referred to as the "lodestar."
In assessing the reasonableness of an attorney's hourly rate, consideration is given to whether "the requested rates are in line with those prevailing in the community for similar services by lawyers of reasonably comparable skill, experience and reputation."
(1) the time and labor required; (2) the novelty and difficulty of the questions; (3) the skill requisite to perform the legal service properly; (4) the preclusion of employment by the attorney due to acceptance of the case; (5) the customary fee; (6) whether the fee is fixed or contingent; (7) time limitations imposed by the client or the circumstances; (8) the amount involved or the results obtained; (9) the experience, reputation, and ability of the attorneys; (10) the `undesirability of the case;' (11) the nature and length of the professional relationship with the client; and (12) awards in similar cases.
According to Romeo's time records, one partner, one associate, and one legal intern/paralegal worked on the discovery matters at issue. (Jaffe Aff. ¶ 29). David K. Fiveson, Esq., a partner who has been practicing law in New York for over thirty years, billed at a rate of $450 per hour. (
These rates clearly are in line with the prevailing market rates for partners and associates in the Southern District of New York.
To enable a court to determine whether counsel's time charges are reasonable, a party must submit contemporaneous time records indicating the number of hours expended and the nature of the work done.
In evaluating the reasonableness of a fee request, the Court must "examine the particular hours expended by counsel with a view to the value of the work product of the specific expenditures to the client's case, and if it concludes that any expenditure of time was unreasonable, it should exclude these hours from the calculation of the reasonable fee."
First, Ms. Jaffe's records reveal numerous inefficiencies and instances of excessive billing that warrant a significant reduction to her fees overall. To cite but one of many examples, the records indicate that nearly fifteen hours were billed for preparation of the December 12 discovery letter. Although that letter was lengthy, most of it consisted of quotes taken verbatim from Romeo's Requests for Admission and Assara's responses. Likewise, Ms. Jaffe's objections to Assara's responses, which were almost entirely boilerplate, were simply copied directly from her November 28 letter and repeated over and over throughout the letter. This kind of cut-and-paste work, part of which surely could have been assigned to a paralegal, obviously should not have required a great deal of effort or time. To have spent fifteen hours on the letter is unreasonable.
The relative simplicity of the matters in dispute also augurs in favor of a hefty reduction in Ms. Jaffe's fees. Indeed, the discovery letters concerned only basic issues, were not substantive, and did not require a great deal of legal research. (Ms. Jaffe's submissions did not cite a single case.) It should not reasonably have taken an attorney with twenty-five years' experience, like Ms. Jaffe, anywhere near the more-than-sixty hours that were billed to complete three discovery letters. Considering the straightforward nature of the discovery issues involved, Ms. Jaffe's claimed fees are egregiously high.
In addition, further reductions are appropriate because many of Ms. Jaffe's billing entries are either vague or "block-billed." "Though not forbidden, block-billing makes it `difficult if not impossible for a court to determine the reasonableness of the time spent on each of the individual services or tasks provided.'"
The records attached to Ms. Jaffe's supplemental affidavit include a great deal of block-billed entries that make evaluating Romeo's fee request quite difficult. By way of example, on December 17, Ms. Jaffe billed 9 hours for work she described as follows: "further draft letter to Magistrate Maas in opposition to Shuman's letter of December 12; emails to and from Chris regarding various matters related to response to Shuman's letter; write Shuman regarding Yahoo affidavit." (Jaffe Supp. Aff. Ex. B). Because it is unclear how much time Ms. Jaffe actually devoted to each of these individual tasks, all of which would have required differing amounts of time and effort, it is impossible to determine whether her time was spent reasonably.
In addition, Ms. Jaffe's block-billing has made it difficult to separate tasks that are compensable from those that are not, or tasks that should have been billed at lower rates from those compensable at ordinary rates. For example, on January 11, Ms. Jaffe billed 2.1 hours for activities including: "writ[ing] Mr. Shuman regarding [Ms. Tayar's deposition], email[ing] to and from [Ms. Levine] regarding obtaining transcript[; and beginning] drafting fee application in accordance with Judge Maas' orders from hearing Jan. 10." Fees stemming from Romeo's request to compel Ms. Tayar to appear for her deposition may not be assessed against Assara because Ms. Tayar is a non-party; although she may be the wife of one of the individual defendants and possibly may have performed work for Assara, Romeo has made no showing either that
Similarly, on January 10, the day of the discovery conference, Ms. Jaffe billed an aggregate 6.9 hours for tasks including: "[r]eview documents for appearance before Magistrate Judge Maas on discovery issues; prepare documents for the Court and Mr. Shuman for the conference; travel to and from SDNY to appear at discovery conference with client, Court and Mr. Shuman appearing telephonically." (Jaffe Supp. Aff. Ex. B). In keeping with the custom in this District, the time spent traveling to and from the Courthouse should have been billed to Romeo at one-half of Ms. Jaffe's usual rate.
When reducing an overall fee award, a "district court may exercise its discretion and use a percentage reduction `as a practical means of trimming fat from a fee application.'"
Applying a seventy-five percent reduction, Ms. Jaffe's hours total 19.575. At her $300 hourly rate, her fees amount to $5,872.50. Mr. Fiveson spent 2.3 hours on the discovery motion at a rate of $450 per hour. Therefore, his fees amount to $1,035. (
For the foregoing reasons, Romeo's fee application (ECF No. 113) is granted, but the award is reduced to the amount of $6,945.
SO ORDERED.