T.S. ELLIS, III, District Judge.
At issue post-judgment and post-appeal in this copyright infringement case is defendants' claim for attorney's fees and costs pursuant to Section 505 of the Copyright Act of 1976, which provides that "the Court in its discretion may allow the recovery of full costs" and "reasonable attorney's fees to the prevailing party." 17 U.S.C. § 505. This dispute arises from plaintiff's recent copyright infringement suit, which, in the end, was resolved by entry of summary judgment in favor of defendants. Plaintiff's appeal failed as the Court of Appeals for the Fourth Circuit affirmed the grant of summary judgment. See Humphreys & Partners Architects, L.P. v. Lessard Design, Inc., 790 F.3d 532, 543 (4th Cir.2015). Now at bar are defendants' fee claims, which plaintiff disputes, raising the following issues:
Plaintiff Humphreys & Partners Architects, L.P. is a Texas limited partnership that designs multi-family residential buildings. The eight defendants still remaining in this case fall into three groups: (1) the Lessard defendants, (2) the Penrose defendants, and (3) the Northwestern defendants.
In 2000 and 2001, plaintiff designed a high-rise residential tower known as Grant Park, which it registered as an architectural work with the United States Copyright Office in 2003. Thereafter, in 2004, the Grant Park building was constructed in Minneapolis, Minnesota. Grant Park is a 27-story condominium building that contains 11 units per floor. The building has two separate elevator cores, and each floor has two elevator lobbies. On a typical floor, about half the units open directly into one lobby and the other half open directly into the other lobby. Each lobby also provides access to a stairwell and to a trash chute or to a mechanical room. An unfinished service corridor connecting the lobbies allows residents to access both utility
In 2008, the Penrose defendants began developing a high-rise apartment building known as Two Park Crest for construction in McLean, Virginia. In 2010, the Penrose defendants solicited design proposals from three architecture firms, including plaintiff and the Lessard defendants. In September and October 2010, plaintiff submitted illustrations of its Grant Park design and then met with the Penrose defendants to discuss the design.
On November 3, 2010, the Penrose defendants informed the Lessard defendants that they wanted the Two Park Crest design to feature dual elevator cores connected by a service corridor and emailed the Lessard defendants the Grant Park floorplan to illustrate the concept. Shortly thereafter, on November 15, the Lessard defendants emailed the Penrose defendants a preliminary sketch of a design with two elevator cores. In response, the Penrose defendants indicated that the design was consistent with their request. The Lessard defendants ultimately submitted a design for a 19-story building with 17 units per floor that incorporated three elevator cores — two passenger elevator cores and a service elevator core. On a typical floor, about half of the units would open directly into each passenger elevator lobby.
On November 17, 2010, the Penrose defendants informed plaintiff that they had hired the Lessard defendants to design the Two Park Crest project. The Penrose defendants subsequently sold the project to the Northwestern defendants. In November 2011, the Northwestern defendants hired the Clark Builders Group to construct Two Park Crest, and in January 2012, the Clark Builders Group began constructing the building.
In April 2013, plaintiff filed an action against the defendants under 17 U.S.C. § 101 et seq., alleging one count of copyright infringement against each defendant. Following discovery, the parties filed cross-motions for summary judgment. Defendants argued that they were not liable to Humphreys because, inter alia, they did not copy the Grant Park design and the two designs were not substantially similar. Defendants supported their motions with expert reports filed by three architects, who concluded that the two designs were not substantially similar.
In response, plaintiff argued that the Lessard defendants copied the Grant Park design after receiving that design from the Penrose defendants. Plaintiff claimed that the speed with which the Lessard defendants created the Two Park Crest design was direct evidence of copying and that the similarities between the two designs was circumstantial evidence of copying. Plaintiff supported its claim that the two designs are substantially similar with a declaration from an expert, who identified nine features shared by both designs.
Promptly thereafter, each of the defendant groups moved to recover full costs and reasonable attorney's fees. The Clark Builders Group withdrew its motion after it entered into an undisclosed agreement with Humphreys. Thus, the Lessard defendants, the Northwestern defendants, and the Penrose defendants remain as parties seeking recovery of attorney's fees and full costs.
The Lessard defendants seek $1,403,121.60 in attorney's fees and $463,530.91 in full costs.
The Copyright Act of 1976 provides, in pertinent part, that in any copyright infringement action "the court in its discretion may allow the recovery of full costs" and "may also award reasonable attorney's fees to the prevailing party." 17 U.S.C. § 505. By its terms, Section 505 does not mandate an automatic fee award to the prevailing party in every case. Fogerty v. Fantasy, Inc., 510 U.S. 517, 534, 114 S.Ct. 1023, 127 L.Ed.2d 455 (1994). Rather, the decision whether to award recovery is committed to the discretion of the trial court. See Hensley v. Eckerhart, 461 U.S. 424, 436-37, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983). The fee applicant bears the burden of establishing its entitlement to a fee award. See id.
Analysis properly begins by considering whether defendants are prevailing parties, and therefore eligible to recovery attorney's fees and costs pursuant to Section 505. Plaintiff does not dispute that the Penrose defendants and the Northwestern defendants are prevailing parties, but plaintiff does dispute that the Lessard defendants share that status. Specifically, plaintiff contends that the Lessard defendants are not prevailing parties because the Lessard defendants lost on a counterclaim in the underlying dispute.
Plaintiff's argument fails because plaintiff sets the bar too high, as a prevailing party need not be a completely prevailing party. In this respect, the Supreme
Plaintiff cites cases from the Second and Eighth Circuits for the proposition that neither litigant is "the prevailing party" when a defendant's failed counterclaim was something more than purely defensive.
Carefully read, however, these cases are distinguishable and do not support the proposition for which they are cited by plaintiff. Kropp v. Ziebarth is plainly distinguishable. There, the Eighth Circuit concluded that neither party was a prevailing party, not simply because the defendant's counterclaim was more than defensive, but rather because both parties won an award of damages equal in amount on their respective claims, and hence the parties were in equipoise with respect to their relative success. 601 F.2d at 1358. Thus, Kropp is factually distinguishable and does not stand for the proposition that a prevailing party must be a completely prevailing party. Similarly, Srybnik v. Epstein is also distinguishable. There, the Second Circuit did not conclude, as a matter of law, that a defendant who loses an offensive counterclaim cannot be a prevailing party, but rather that the lower court did not abuse its discretion in determining that such a defendant was not a prevailing party. 230 F.2d at 686. Similarly, the district in Tao reached its conclusion within the province of its discretion under the relevant statute. 412 F.Supp.2d at 574
In sum, the Lessard defendants — along with the Penrose defendants and the Northwestern defendants — are prevailing parties for purposes of recovering fees and costs under Section 505. Although the Lessard defendants lost on their counterclaim, they prevailed in all other respects.
Analysis next properly considers whether attorney's fees and costs should be awarded to defendants in this case pursuant to Section 505. The statutory language simply leaves the decision to the "discretion" of the court, but the Supreme Court and the Fourth Circuit have provided some guidance on the question. 17 U.S.C. § 505.
The Supreme Court has made clear that, when applying Section 505, a court must use an "evenhanded approach in which no distinction is made between prevailing plaintiff's and prevailing defendants" when applying Section 505. Fogerty, 510 U.S. at 521, 114 S.Ct. 1023. In so holding, the Supreme Court expressly rejected (i) the "dual standard" under which "plaintiff's [would] generally [be] awarded attorney's fees as a matter of course, while prevailing defendants [would be required to] show that the original suit was frivolous or brought in bad faith," and (ii) the "British Rule," which would allow all prevailing parties to recovery of attorney's fees as a matter of course, absent exceptional circumstances. Id. at 520, 533, 114 S.Ct. 1023. Instead, the Supreme Court, without being specific, pointed to a middle road between these two positions, namely the evenhanded approach. In justifying the evenhanded approach, the Supreme Court stated that the "a defendant seeking to advance meritorious copyright defenses should be encouraged to litigate them to the same extent that plaintiff's are encouraged to litigate meritorious infringement claims." Id. at 527, 114 S.Ct. 1023. Importantly, in adopting the evenhanded approach, the Supreme Court made clear that "[t]here is no precise rule or formula for making these determinations, but instead equitable discretion should be exercised." Id. at 534, 114 S.Ct. 1023 (citation omitted). Nonetheless, the Supreme Court invited lower courts to utilize "several nonexclusive factors to guide [their] discretion." Id. at 534 n. 19, 114 S.Ct. 1023.
Despite the importance of the objective reasonableness factor to the Rosciszewski inquiry, the case law does not helpfully elucidate how the objective reasonableness standard should be applied. Only two guideposts are clear: (i) frivolous legal and factual positions are objectively unreasonable,
Here, plaintiff's legal and factual positions were not frivolous. Instead, plaintiff's infringement action was based on the plausible, but fatally flawed theory that a plaintiff in an architectural copyright case need not show how individually protected extrinsic elements relate to one another. Although the Fourth Circuit ultimately rejected this theory, there was no precedent directly on point at the time the suit was brought. Rather, plaintiff supported its theory with cases from the Eighth Circuit.
Yet, the conclusion that plaintiff's case was not frivolous does not end the analysis; it does not follow from that conclusion that plaintiff's case was objectively reasonable. To begin with, as defendants correctly note, plaintiff asserted infringement largely on the basis of ideas, concepts, and individual standard features, all of which the Copyright Act clearly excludes as bases for infringement.
In the end, the objective reasonableness inquiry in this case is a close question. Plaintiff's legal and factual positions were not frivolous, but they do fall somewhere between frivolousness and objective reasonableness, in some respects closer to the latter and in other respects closer to the former. Thus, on the whole, plaintiff's legal and factual positions were objectively unreasonable. Yet, because plaintiff's legal and factual positions were not frivolous, less weight is accorded to this factor than would otherwise be appropriate. Therefore, analysis of the other Rosciszewski factors is important to the Section 505 determination.
Even assuming, arguendo, that plaintiff's legal and factual positions were objectively reasonable, fee awards are appropriate
As an initial matter, Section 505 should be applied in a way that generally sets proper incentives for parties litigating infringement disputes. The Supreme Court has made plain that "defendants who seek to advance a variety of meritorious copyright defenses should be encouraged to litigate them to the same extent that plaintiff's are encouraged to litigate meritorious claims of infringement." See Fogerty, 510 U.S. at 527, 114 S.Ct. 1023. Indeed, the need for a fee award is greater for prevailing defendants than it is for prevailing plaintiff's, as prevailing defendants obtain no affirmative relief from a victory on the merits. Without the prospect of obtaining attorney's fees, a defendant's costs of vindicating its rights would often, if not always, exceed the private benefit to the defendant, and thus defendants would be more inclined to settle. Moreover, fee awards deter plaintiff's from bringing frivolous and unreasonable infringement suits. In light of these considerations, the Seventh Circuit has adopted a strong presumption in favor of awarding attorney's fees to prevailing defendants under Section 505. See Assessment Techs. of WI, LLC v. WIREdata, Inc., 361 F.3d 434 (7th Cir.2004) (Posner, J.) (holding that "[w]hen the prevailing party is the defendant, who by definition receives ... no award, the presumption in favor of awarding fees is very strong" because "without the prospect of such an award, the [defendant] might be forced into a nuisance settlement or deterred altogether from exercising [its] rights"). Other circuits have adopted similar approaches.
In addition to setting the proper incentives in all cases, particular compensation and deterrence interests in the present case point persuasively to a fee award. There is some indication that plaintiff brought this lawsuit in an effort to extract money through a settlement rather than protecting its purported copyright;
In essence, the second and third Rosciszewski factors point persuasively to fee awards for the prevailing defendants in this case. Such awards are needed to set proper incentives for defendants with meritorious defenses and to compensate defendants for the legal costs incurred in plaintiff's efforts to drive up the costs of litigation by seeking unusually high damages and naming a number of parties. Thus, fee awards of some amount are appropriate for all three groups of defendants.
Because fee awards of some amount are appropriate, the next question to address is whether the fee awards claimed by defendants are reasonable in the circumstances. They are not. Some hourly rates are excessive and the descriptions of many tasks are deficient, as many time entries lump multiple tasks together and contain vague task descriptions.
The well-settled and familiar lodestar methodology is the important starting point in a fee claim evaluation. As the Supreme Court has noted, "the lodestar figure has, as its name suggests, become the guiding light." See Gisbrecht v. Barnhart, 535 U.S. 789, 801, 122 S.Ct. 1817, 152 L.Ed.2d 996 (2002).
Lodestar analysis begins by assessing the reasonableness of the hourly rates claimed in the fee petition. The prevailing market rate of attorney's fees must be determined based on the "relevant community where the district court sits." Grissom, 549 F.3d at 321. Accordingly, a defendant must support the rates claimed by producing "satisfactory specific evidence of the prevailing market rates in the relevant community." Robinson v. Equifax Info. Servs., LLC, 560 F.3d 235, 244 (4th Cir.2009) (internal quotation marks and citations omitted). Such evidence consists of "affidavits of other local lawyers who are familiar both with the skills of the fee applicants and more generally with the type of work in the relevant community." Id. at 245.
Lodestar analysis next properly examines defendants' fee petition to determine the appropriate number of attorney hours to multiply by the hourly rates. Time entries can create barriers to reasonableness review if they suffer from lumping or vague task descriptions. As one court in this district has recently noted, "[e]ntries that lump multiple tasks together under a single time entry present a significant barrier to a reasonableness review" because "lumping `simply does not provide the court with a sufficient breakdown to meet [the] burden to support [a] fee request in specific instances'" Route Triple Seven Ltd. P'ship v. Total Hockey, Inc., 127 F.Supp.3d 607, 621, No. 1:14-cv30, 2015 WL 5123302, at *11 (E.D.Va. Aug. 28, 2015) (quoting Project Vote/Voting for Am., Inc. v. Long, 887 F.Supp.2d 704, 716 (E.D.Va.2012)). Vague task descriptions also impede reasonableness review because "[e]ntries that do not disclose the nature, volume, or relevance of the documents frustrate any attempt to assess the reasonableness of the time devoted to that task." Id.
Where time entries suffer from inadequate documentation, such as lumping and vague task descriptions, a court must exercise sound judgment based on knowledge of the case and litigation experience to reduce the number of hours by an appropriate percentage. When "faced with excessively vague or inadequate task descriptions in fee claims," courts "have reduced fee claims by percentages ranging from 20% to 90%." Route Triple Seven, 127 F.Supp.3d at 621, 2015 WL 5123302, at *11.
The Lessard defendants seek $1,403,121.60 in attorney's fees for 2,777.45 hours worked. Appropriately, the Lessard defendants do not seek attorney's fees for hours billed in connection with its unsuccessful counterclaim. Nonetheless, the Lessard defendants fee claim is excessive for several reasons.
The Lessard defendants are represented by Finnegan, Henderson, Farabow, Garrett, & Dunner, LLP ("Finnegan"). The hourly rates of the attorneys and litigation support staff that worked on this case are as follows:
Timekeeper Position 2013 Rate 2014 Rate 2015 Rate Christopher P. Foley Partner $712.00 $716.00 $752.00 Patrick J. Coyne Partner $692.00 $728.00 $764.00 Donald O. Burley Partner - - $832.00 Margaret Esquenet Partner $512.00 - - Jay Westermeier Of Counsel $528.00 $544.00 - Hala Mourad Associate $352.00 $396.00 - Brian Westley Associate $292.00 - - Karthik Kumar Associate - $340.00 $388.00 Tom Carrol Legal Assistant $212.00 $220.00 - Jacob Mersing Legal Assistant $212.00 $220.00 - Jeremy Miller Legal Assistant - $264.00 $272.00 Pamela A. Neal Legal Assistant $152.00 - - Catherine Sandler Legal Assistant - - $228.00 Kenny Pegram Information Technologist $216.00 $224.00 - Faith Ottenhoff Research Librarian $196.00 - - Bianca Hamilton Research Librarian - $152.00 -
The Lessard defendants present several declarations to bolster the claim that these
In addition to the unreasonably high hourly rates, the Lessard defendants' documentation is inadequate for several reasons. The adjusted timesheet submitted by the Lessard defendants' counsel includes more than 400 lumped entries,
In light of the Lessard defendants' unreasonable hourly rates and inadequate documentation, a significant reduction to their fee award is proper. An initial 25% reduction is appropriate to account for the excessive hourly rates; this brings the amount to $1,052,341. 20.
The Penrose defendants claim $990,995.00 in attorney's fees for 2,707.8 hours worked. Appropriately, this amount does not include recovery of (i) $21,317 in attorney's fees associated with coordination among the other defendants and (ii) $11,812 in fees associated with calendaring, docketing, and file management. Nonetheless, the Penrose defendants fee claim is unreasonable in certain respects.
The Penrose defendants are represented by Cloudigy Law, PLLC. The hourly rates of the attorneys and litigation support staff that worked on this case are as follows:
These hourly rates are reasonable, as they are at or below the hourly rates awarded in several recent cases in this district,
Although the rates are generally reasonable, the time billed is inadequately documented. As plaintiff correctly notes, 66 of counsel's time entries suffer from lumping,
Accordingly, a reduction to the Penrose defendants' fee petition is proper. Although the Penrose defendants generally seek reasonable hourly rates, their documentation is inadequate and, in some instances,
The Northwestern defendants claim $246,775.00 in attorney's fees for 582.7 hours of work. As with the other defendants, a reduction is appropriate because the Northwestern defendants' fee claim is unreasonable in certain respects.
The Northwestern defendants are represented by London & Mead and Craig C. Reilly, and the hourly rates of the attorneys and litigation support staff that worked on this case are as follows:
With the exception of Reilly, all of these hourly rates are above the rates recently awarded in similar cases in this district.
In the end, a reduction to the Northwestern defendants' fee petition is proper in order to account for the unreasonable hourly rates claimed and the lumped time entries. An initial 15% reduction is appropriate for the excessive hourly rates, bringing the fee award to $209,758.75.
Defendants also seek to recover taxable costs. Specifically, the Lessard defendants seek taxable costs in the amount of $36,937.00; the Penrose defendants seek taxable costs in the amount of $36,450.51; and the Northwestern defendants seek taxable costs in the amount of $7,093. 20.
The Penrose defendants and the Northwestern defendants are entitled to all taxable costs they seek, as plaintiff does not dispute that these costs are recoverable. But as plaintiff correctly notes, the Lessard defendants' taxable costs must be reduced in two respects. First, the Lessard defendants may not recover the $3,825.25 it incurred by ordering a copy of Robert Swedroe's deposition transcript because that deposition was related to the Lessard defendants' unsuccessful counterclaim. Second, although the Lessard defendants may recover transcript fees necessary to litigation, they may not recover for additional fees incurred for expedited transcripts without proof that expedited delivery was necessary to the litigation. Quantum Sys. Integrators, Inc. v. Sprint Nextel Corp., No. 1:07-cv-491, 2009 WL 3423848, at *9 (E.D.Va. Oct. 16, 2009). Plaintiff contests fifteen deposition transcripts for a total of nine witnesses (including Swedroe) on this basis. Plaintiff objects only to the portion of transcript fees associated with expedited delivery, but it is impossible to determine what portion of the claimed transcript fees relate to this unnecessary service because, unlike the Penrose defendants, the Lessard defendants did not provide invoices for their transcript fees. Without an evidentiary basis for the necessary costs incurred for transcripts, the Lessard defendants cannot recovery any portion of these fees. As a result of these reductions, the Lessard defendants are entitled to recover only $2,563.55 in taxable costs.
Defendants also seek non-taxable costs.
With respect to Section 505, there is a circuit split on whether or not "full costs" encompasses more than the costs recoverable pursuant to Sections 1821 and 1920. 17 U.S.C. § 505. Courts on both sides of the circuit split agree that Crawford Fitting requires "careful[] insepect[ion of] § 505 for clear evidence of congressional intent" before concluding that "nontaxable costs should be available." Twentieth Century Fox Film Corp. v. Entm't Distrib., 429 F.3d 869, 885 (9th Cir.2005) (holding that the scope of Section 505 costs is broader than the scope of Section 1920 costs); see also Pinkham v. Camex, Inc., 84 F.3d 292, 295 (8th Cir.1996) (holding that the scope of Section 505 costs is equal to the scope of costs recoverable under Sections 1821 and 1920). But courts disagree as to whether the term "full" is clear evidence that non-taxable costs are available under Section 505. The Eighth and Eleventh Circuits have held that the term "full" is not clear evidence that Congress intended the scope of recoverable costs pursuant to Section 505 to be broader than the scope of recoverable costs pursuant to Sections 1821 and 1920. See Pinkham, 84 F.3d at 295; Artisan Contractors Ass'n. of Am., Inc. v. Frontier Ins. Co., 275 F.3d 1038, 1039-40 (11th Cir.2001). The Seventh and Ninth Circuits, in contrast, have held that "full" is clear evidence that the scope of recoverable costs pursuant to Section 505 is broader than the scope of recoverable costs pursuant to Sections 1821 and 1920. See Twentieth Century Fox Film, 429 F.3d at 885; Susan Wakeen Doll Co. v. Ashton Drake Galleries, 272 F.3d 441, 458 (7th Cir.2001). The Fourth Circuit has not addressed the question, but a district court in this Circuit has embraced the narrow position adopted by the Eighth and Eleventh Circuits. See Arista Records, LLC v. Gaines, 635 F.Supp.2d 414, 418-19 (E.D.N.C.2009).
The Eight and Eleventh Circuit's narrow interpretation of "full costs" in Section 505 — embodying only the scope of recoverable costs under Sections 1821 and 1920 — is persuasive. The phrase "full costs" is, at a minimum, ambiguous as to whether it includes costs beyond the scope of those
Defendants rely on the Ninth Circuit's reasoning in support of the broader interpretation. The Ninth Circuit determined that there was evidence of a broader scope on the ground that "[c]onstruing § 505 as limiting the costs that may be awarded to any particular subset of taxable costs effectively reads the word `full' out of the statute," and therefore such a construction would "violate the long standing principle... that `statutes should not be construed to make surplusage of any provision.'" Twentieth Century Fox Film, 429 F.3d at 885 (quoting Northwest Forest Res. Council v. Glickman, 82 F.3d 825, 834 (9th Cir.1996)). But the Ninth Circuit's reasoning presupposes a false dichotomy — that the term "full" must mean either (i) beyond the scope of Sections 1821 and 1920 or (ii) nothing at all. Contrary to the Ninth Circuit's presupposition, the term "full" has another possible, non-superfluous meaning; it could refer to the degree of costs recoverable under §§ 1821 and 1920. Put differently, without the term "full," Section 505 would be ambiguous as to whether "costs" is as broad in scope as the costs recoverable under the general bill of costs statutes. Importantly, the meaning of "full" need not be definitively determined in the present case. What matters here is that the term is ambiguous insofar as there are at least two reasonable, non-superfluous readings of "full," and therefore that term alone is not clear evidence of congressional intent that the scope of Section 505 recoverable costs is broader than that of Sections 1821 and 1920. Thus, the general bill of costs statutes limit the additional costs defendants seek under Section 505.
Here, defendants seek additional costs that are not recoverable pursuant to Sections 1821 and 1920, and hence are not recoverable pursuant to Section 505. Specifically, defendants seek recovery costs for (i) electronically stored information ("ESI") fees and outside duplicating costs, (ii) expert witness fees, (iii) outside counsel, (iv) legal research and investigation, and (v) travel expenses; (vi) deposition videography; and (vii) other costs. None of these costs is recoverable. Each category of costs is addressed in turn.
The Lessard defendants seek to recover electronic discovery vendor fees and outside duplication costs in the amount of $114,126.94, which includes $110,448.40 in costs for electronic discovery and $3,678.54 in cost for the production of various large-format architectural plans and other documents. See Coyne Decl. ¶¶ 16-19. The Penrose defendants seek to recover $35,927.50 for electronic discovery vendor fees and $687.87 for electronic document and data fees. Peyton Decl. ¶¶ 21-48. As plaintiff correctly argues, however, the ESI costs claimed by both sets of defendants are outside the scope of Section 1920. See Country Vintner v. E & J Gallo Winery, Inc., 718 F.3d 249, 260-61 (4th Cir.2013) (holding that the expense of collecting and organizing documents prior to production were not recoverable under Section 1920 because "`the presumption is that the responding party must bear the expense of complying with discovery requests'") (quoting Oppenheimer Fund, Inc. v. Sanders, 437 U.S. 340, 358, 98 S.Ct. 2380, 57 L.Ed.2d 253 (1978)). With respect to outside duplication costs, a party may recover "the costs of making copies of any materials where copies are necessarily obtained for use in this case." 28 U.S.C. § 1920 (emphasis added). Here, the Lessard defendants have not demonstrated that any of the outside duplication costs it
In addition, the Lessard defendants seek $83,830.84 in expert fees, and the Penrose defendants seek to recover $64,218.43 in expert fees. Coyne Decl. ¶¶ 22-26; Peyton Decl. ¶¶ 49-55. As plaintiff correctly notes, defendants are "not entitled to recoup expert witness fees in excess of those permitted under 28 U.S.C. §§ 1821[] and 1920." Silicon Knights, Inc. v. Epic Games, Inc. 917 F.Supp.2d 503, 524 (E.D.N.C.2012). All of the expert fees requested by defendants involve preparation and research, which are not recoverable under Sections 1821 and 1920. Thus, defendants are not entitled to recover expert fees.
The Lessard defendants also seek costs in the amount of $82,375.23 for the outside counsel they retained to oppose plaintiff's subpoenas to the Lessard defendants' trial counsel. As plaintiff correctly notes, these so-called "costs" are not recoverable under Section 1920. Indeed, they are properly characterized as attorney's fees, and hence any recovery of these fees would be subject to the requirements of lodestar proof. Because the Lessard defendants have not provided any evidence that the rates of these lawyers are reasonable, the Lessard defendants are not entitled to the expenses it incurred by retaining outside counsel. See Robinson, 560 F.3d at 244.
The Lessard defendants also seek to recover costs of travel expenses incurred by its counsel when attending various depositions in the amount of $4,188.70, and the Penrose defendants seek $2,219.33 in travel fees incurred in the course of attending depositions. Not only are these costs unrecoverable under Section 1920, a portion of the travel expenses relate to the Swedroe deposition, which was taken in connection with the Lessard defendants' counterclaim. Thus, defendants may not recover travel expenses.
The Penrose defendants further seek to recover $2,190 for the costs incurred for deposition videography. Peyton Decl. ¶ 70-72. Deposition costs are taxable under § 1920, but costs associated with a deposition that are "merely incurred for convenience, to aid in thorough preparation," are not recoverable. E.E.O.C. v. W & O, Inc., 213 F.3d 600, 620-21 (11th Cir.2000). As plaintiff correctly notes, the Penrose defendants make no showing of why videography of the depositions was necessary rather than simply convenient. Thus, the Penrose defendants are not entitled to recover these costs.
The Lessard defendants also seek to recover $5,330.76 for legal research fees. Coyne Decl. ¶ 129-33.
In sum, defendants may not recover any of the non-taxable costs they seek under Section 505.
For the reasons stated here, it is appropriate that: (i) the Lessard defendants be awarded $841,872.96 in attorney's fees and $2,563.55 in taxable costs; (ii) the Penrose defendants be awarded $792,796.00 in attorney's fees and $36,450.51 in taxable costs; and (iii) the Northwestern defendants be awarded $167,807.00 in attorney's fees and $7,093. 20 in taxable costs.
A final comment is worth noting. Although the reductions in this case have been substantial, the reasonableness of the fees finally awarded is apparent from another perspective. Large law firms often task far more attorneys than is necessary in a lawsuit like this. Indeed, in this case, a litigation team of sixteen individuals worked on behalf of one group of defendants. With such a large litigation team, the number of hours billed grows rapidly. If multiple lawyers assigned to the case all read a memorandum or meet to confer about the status of the case, each lawyer bills time and there is a risk of duplicative effort. Put another way, this case could have been fully and fairly litigated with each party devoting no more than two experienced, competent lawyers to the case. Indeed, many years ago, before the rise of large law firms, this was the norm. Had that occurred in this case, it seems likely that the matter would have been fully and fairly litigated, resulting in the same outcome but with legal fees significantly lower than those sought here.
An appropriate order will issue.