ORDER
CALLIE V. S. GRANADE, District Judge.
This matter is before the Court on the motions of Defendants The Boeing Company ("Boeing"), Honeywell International, Inc. ("Honeywell"), Lockheed Martin Corporation ("Lockheed Martin"), and United Technologies Corporation ("UTC") for attorneys' fees and costs
I. BACKGROUND
On June 22, 2012, Plaintiff commenced a lawsuit in this Court alleging certain damages from wrongful exposure to asbestos. (Doc. 1 ¶¶ 5, 20.) Approximately two months later, Defendants moved for judgment on the pleadings, arguing that Plaintiff's action was time-barred under Alabama law. (Docs. 108, 109, 111, 112, 116.) Plaintiff then sought leave to voluntarily dismiss his case without prejudice. (Doc. 117.) On September 13, 2012, this Court granted Plaintiff's motion, but concluded that payment of certain of Defendants' attorneys' fees was a proper and necessary condition for dismissal under Federal Rule of Civil Procedure 41(a)(2). (Doc. 154 at 5, hereinafter "the September 13 Order") Specifically, the Court found that it was "appropriate for Plaintiff to reimburse Defendants for the cost of researching Alabama's statute of limitations, briefing the issue in support of its motions for judgment on the pleadings (Docs. 108, 112 & 150), and responding to Plaintiff's motion for voluntary dismissal (Doc. 151)." (Doc. 154 at 5.) The Court set September 27, 2012 as the deadline for Defendants to submit an accounting of their fees and expenses. (
II. LEGAL STANDARD
To determine a reasonable fee, this Court begins by calculating the "lodestar," which is the product of a reasonable hourly rate by the number of hours reasonably expended.
After calculating the lodestar amount, the court should then proceed with an analysis of whether any portion of the fee should be adjusted upwards or downwards.
In making the above determinations, the Court is guided by the twelve factors set out in
III. REASONABLENESS OF THE FEES
The quantum of Defendants' fee requests vary significantly from $3,580 at the low end to more than $22,000 at the opposite extreme. Plaintiff objects that the hours expended by all Defendants are excessive and that the hourly rates charged by Defendants' lawyers (except for Honeywell's) are unreasonable. Plaintiff also requests that Lockheed Martin's recovery be reduced due to counsel's unprofessional conduct during a deposition. (Doc. 165 at 8-9.)
The Court will address each fee application in turn, however, it pauses to make one note at the outset: the September 13 Order was deliberately tailored to allow Defendants to recover certain, but not all, of the fees they had incurred. At the point of dismissal, Plaintiff's lawsuit had subsisted for all of 57 days, and formal discovery had not yet commenced.
A. Boeing
Boeing has requested $21,391.50 in fees and costs. This amount is broken down and justified by an "affidavit of fees and costs" (Doc. 159-1), an itemization of $92.00 in court costs (Doc. 159-2), and a seven-page itemization of $21,299.50 of legal fees (Doc. 159-3). The Court has also reviewed Boeing's reply to Plaintiff's objections. (Doc. 173.)
Whereas the September 13 Order did not authorize the recoupment of court costs related to procuring a certificate of good standing, pro hac vice status, and Pacer downloads, the Court hereby strikes such costs of $92.00 before calculating the lodestar. Additionally, the Court strikes as beyond the scope of Boeing's authorized recovery $289.00 of fees related to the drafting of corporate disclosures, $165.00 of fees related to preparing and filing pro hac vice applications, and $280.50 of fees relating to preparing and filing the Answer — which reflects 3.9 hours of work.
1. Reasonable Rate
The Court first considers whether Boeing's rates are reasonable. Boeing's fee itemization reflects three different rates: $125.00/hour, $210.00/hour, and $255.00/hour. In an affidavit, Boeing's lead counsel, Kay Baxter, Esq., declares the work performed by her firm, Swetman Baxter Massenburg, LLC, to have been "normal, reasonable, and routine" (Doc. 159-1 at 1), but such conclusory declarations are insufficient to satisfy Boeing's burden of demonstrating the reasonableness of its attorneys' rates in Mobile, Alabama.
Ms. Baxter's affidavit recounts her experience as a law firm partner who has been licensed since 1994. While not explicitly stated anywhere in Boeing's submission, it is reasonable to assume that Ms. Baxter's billing rate is the highest of the three noted above. Two hundred and fifty-five dollars an hour is a reasonable rate for a partner with 18 years of experience.
However, Ms. Baxter's affidavit says nothing about the identity or experience of the associate that her firm billed out at $210/hour. Accordingly, reasonable hours billed by Ms. Baxter's associate will be credited at a rate of $150/hour.
Similarly, $125/hour is not a reasonable rate for the services performed by Boeing's paralegal. In this district, paralegal work is consistently charged at a rate of $75/hour.
2. Hours Reasonably Expended
Though Boeing did not provide the Court with a total number of hours, the Court has undertaken its own analysis, and has counted 94.4 total hours submitted. As for whether the remaining 90.5 hours were reasonably expended, the Court begins with the five entries reflecting work performed by Boeing's paralegal. The Court has reviewed the paralegal's time entries, and the majority of the work performed was either beyond the scope of the Court's September 13 Order or was work not typically performed by a lawyer. "The law is quite clear that `purely clerical or secretarial tasks should not be billed at a paralegal rate, regardless of who performs them.'"
Of the remaining 87.1 hours, the Court must determine if associate hours of 44.2 and partner hours of 42.9 hours was reasonable. Plaintiff makes several arguments that Boeing's hours are excessive, and recommends that Boeing's hours should be reduced by two-thirds.
As a preliminary matter, the Court will determine whether the 20.1 hours Ms. Baxter spent reviewing Plaintiff's deposition for use in two motions is compensable. In its objection, Plaintiff asserts that the hours spent reviewing the deposition goes beyond the Court's September 13 Order. (Doc. 169 at 5) Boeing replies that Plaintiff's deposition had to be thoroughly reviewed to support a number of arguments advanced in the motion for voluntary dismissal and in reply to the motion for judgment on the pleadings. Boeing's time entries support this characterization. However, the Court was clear in its September 13 Order that it "believes that the limited discovery conducted to date (i.e.,
The Court recognizes that, in reviewing Plaintiff's deposition, Boeing's focus may have been different had it not had to contend with the statute of limitations issue. However, this Court cannot grant Boeing its fees for reviewing the deposition transcript where the knowledge and familiarity with the testimony it undoubtedly gained will unquestionably aid its defense in Connecticut.
Of the 67 hours that remain, 22.8 hours were recorded by Ms. Baxter and 44.2 were recorded by her associate. Many of counsel's entries are so vague as to frustrate the Court's ability to determine whether the tasks described are within the ambit of the September 13 Order. Entries such as "receipt of emails," "receipt of notice of joinder," "receipt of order," "office conference with paralegal regarding setting a telephone conference," "receipt of notices from Court," "plan and prepare for e-mail to defense counsel," and "plan and prepare for drafting motion" are problematic and cast doubt upon the reasonableness of the remaining entries. There are also a number of entries describing tasks devoted to "common interest issues" — which are not only vague, but also are much broader than just the Alabama statute of limitations' issue. Rather than parsing the remaining time entries on a line-by-line basis to identify and exclude purely clerical work or work falling outside the scope of the Court's September 13 Order, the Court instead imposes a one-third across-the-board cut.
3. Lodestar
Based on the foregoing discussion, the lodestar for Boeing is $8,361.00:
B. Honeywell
Honeywell seeks $3,580.00 in fees and costs. (Doc. 163 at 4) Plaintiff has objected to both the merits and timeliness of Honeywell's motion. (Doc. 164 at 1) The Court first addresses the issue of timeliness.
Leaving no room for interpretation or confusion, this Court, in its September 13 Order, directed the parties to quantify their attorneys' fees and submit supporting evidence by a date certain, specifically September 27, 2012. Honeywell filed its fee motion on September 28 — one day late — without explaining or even acknowledging its tardiness. (Doc. 163) Only after Plaintiff objected that Honeywell's motion was untimely did Honeywell file a "Motion for Relief from Court's Prior Scheduling Order," requesting that the Court exercise its discretion and review Honeywell's motion on the merits, despite having been filed one day late. (Doc. 172.) In support of its prayer for relief, Honeywell says only that it was unable to complete the task of aggregating its fees within the 14-day schedule set by the Court and that it would be unduly prejudicial to deny its motion as untimely. (
Pursuant to Rule 6(b) of the Federal Rules of Civil Procedure, a party that is unable to adhere to a schedule set by the court has two options. Before an act is to be done, the party charged with performance may ask the court for an extension. Fed. R. Civ. P. 6(b)(1)(A). After the time allowed has expired, the party may move the court for a retroactive extension, which the court can grant "for good cause." Fed. R. Civ. P. 6(b)(1)(B). However, "[a]bsent an affirmative showing . . . of excusable neglect according to Fed. R. Civ. P. 6(b)," a court does not abuse its discretion in denying a late motion on timeliness grounds.
Honeywell has not shown excusable neglect for its failure to timely file its fee motion or to timely request an extension of the September 27 deadline. Honeywell says only that its "attorneys had problems completing their Motion, especially reviewing the Bills for Legal Services and Costs to be redacted and submitted in support of its Motion, and could not complete this task until 28 September 2012." (Doc. 172) Honeywell has not attempted to argue that its unspecified "problems" constitute excusable neglect as its brief does not even acknowledge Rule 6(b) or the relevant standard. In any event, to the extent that the Court understands Honeywell's explanation to be that its attorneys were so occupied by the press of other matters that they could not, in the 14 days provided, analyze the billing records of two attorneys as those records pertain to two motions filed within a month of each other, it is well-settled that "[t]he fact that counsel has a busy practice does not establish `excusable neglect' under Rule 6(b)(2)."
Honeywell is in no way redeemed by the fact that its fee motion was filed only one day after the September 27 deadline.
Whereas Honeywell's motion was not timely filed, and whereas Honeywell has not demonstrated excusable neglect for its failure to either abide by this Court's order or seek permission to file out of time, its motion for attorneys' fees (Doc. 162) is
C. Lockheed Martin
Lockheed Martin seeks $22,101.80 in fees and costs. Broken down, this number encompasses $21,876.00 in attorney fees and $225.80 of court costs and filing fees. While the Court appreciates Lockheed Martin's specificity in breaking down its costs, the Court's September 13 Order did not authorize costs for printing, copying, PACER searches or expenses related to pro hac vice admission and certificates of good standing. Therefore, Lockheed Martin's request for court costs of $225.80 is denied.
1. Reasonable Rate
Moving on to the question of reasonable rate, Lockheed Martin has submitted three declarations which set forth the hourly rates for the partners ($345 and $375), associate ($225), and litigation support clerks ($70) who worked on the case. (Docs. 155-1 at 1-3, 155-2, 155-3.). Plaintiff objects that these rates are unreasonable and submits that a maximum rate of $180 for attorney work is customary for asbestos defense work in Alabama.
Laura Patricia Yee is a founder and partner of Glazier Yee LLP with 20 years experience. Her billing rate is $375 per hour. Brian T. Clark is a partner with 14 years of product liability experience. His billing rate is $345/hour. As an initial matter, the Court has reviewed the itemization of Ms. Yee's and Mr. Clark's fees, and concludes that a single rate for all partner-level attorneys is appropriate. There is no indication that the work performed by Ms. Yee required greater experience or expertise than that of Mr. Clark. Indeed, it appears that Mr. Clark performed the majority of the work, as he performed 38.1 hours of work while Ms. Yee performed only 4.5 hours.
Mr. Clark's experience places him within a range of reasonable hourly rates of $200 to $250.
The remainder of the work was performed by Nina C. Irani, an associate who has a little more than three years experience, and Song Kim and Caroline Caldwell, who are litigation support clerks. All three of these timekeepers worked exclusively on Lockheed Martin's attorneys' fees motion. (Doc. 155-1 at 7-8.) While the Court greatly appreciates the considerable effort Lockheed Martin devoted to preparing and organizing its fee motion, that work is beyond the scope of the Court's September 13 Order.
2. Partner Hours Reasonably Expended
As discussed above, the lodestar is limited to the reasonable hours worked by Yee and Clark. Partners Yee and Clark worked a total of 42.6 hours. (Doc. 155-1 at 5-6.) However, Lockheed Martin admits it only spent 31.9 hours on "tasks that the Court specifically deemed appropriate for reimbursement." (Doc. 155 at 4.) The remaining 10.7 hours were spent preparing an answer and disclosure statement, conferring with co-defendants regarding the joint report, and analyzing the scheduling order — tasks that Lockheed Martin represents it will need to duplicate when this case is refilled in Connecticut. Upon careful review, the Court has confirmed that Lockheed Martin has supported its claim that it spent 31.9 hours on tasks within the scope of the Court's September 13 Order. Plaintiff objects to the 31.9 hour total and submits that only 20 of Lockheed Martin's hours are reasonable. As evidence, Plaintiff argues that Lockheed Martin claimed to have spent approximately six hours drafting its own motion for judgment on the pleadings, even though its motion was only four pages long and "virtually identical" to the motion that had been filed previously by Boeing. (Doc. 165 at 5.) Plaintiff also submits that Lockheed Martin claims to have spent more than two full days working on the response to Plaintiff's motion for voluntary dismissal, even though billing records submitted by UTC reflect that it was responsible for drafting that brief. (
The Court finds that Plaintiff's first objection is well taken. A comparison of Boeing's motion (Doc. 108) to Lockheed Martin's (Doc. 112) reveals that Lockheed Martin's motion is a near replica of Boeing's. Lockheed Martin raised no novel arguments, and it is difficult to believe that its attorneys spent 5.7 hours drafting a virtually identical motion, particularly when it appears that their work was commenced after Boeing's motion had been filed and served. (
As for Plaintiff's second objection, the Court does not agree that counsel's work on the motion for voluntary dismissal was necessarily duplicative. "There is nothing inherently unreasonable about a client having multiple attorneys . . . if they are not unreasonably doing the same work . . . ."
After a thorough review of Lockheed Martin's time sheets, the Court concludes Lockheed Martin reasonably spent 23.2 hours on work within the scope the Court's September 13 Order.
3. Lodestar
The lodestar amount for Lockheed Martin is $5,800.00 ($250 multiplied by 23.2 hours).
D. UTC
UTC requests $18,732.19 in fees and costs. With leave of the Court, it filed its motion and billing records under seal. (Docs. 156, 161) As such, the Court will try to limit any reference to the specific details of the billing records whenever possible.
UTC seeks reimbursement for fees and expenses associated with preparing and filing its Answer and application for pro hac vice admission on July 16, 2012 and July 17, 2012. For reasons previously articulated, the Court declines to grant those costs. The Court also concludes that costs billed as "Westlaw Computer Research" are beyond the scope of the Court's September 13 Order, and additionally, the entry is too vague to justify reimbursement.
1. Reasonable Rate
UTC has submitted a summary of fees with rates ranging from $110/hour for RLM, $155/hour for CY, $195/hour for WLR, and $230/hour for NBJ. In support, UTC has also submitted the affidavit of W. Larkin Radney, IV, in which he avers that the "billing rates . . . are reasonable given the complexity of this litigation." (Doc. 161-2 at 3) Plaintiff objects that these rates are unreasonable, that no information is provided about the experience and skill level of the individuals charging these hours, and that UTC provides no objective evidence that such rates are customarily charged for asbestos defense litigation. (Doc. 166 at 4.)
UTC, as the party requesting fees, has not met its burden to supply the Court with specific and detailed evidence from which the Court can determine reasonable hourly rates for UTC's attorneys and paralegals.
"Where documentation is inadequate, the district court is not relieved of its obligation to award a reasonable fee . . . ."
As for Messrs. Yearout and Radney, the Court is unable to determine the reasonableness of their rates because UTC's fee application is silent as to their expertise. Because both individuals are listed as "attorneys of record," the Court is aware of their status as attorneys, but cannot award fees beyond those appropriate for an associate with indeterminate experience. Therefore, both attorneys are awarded a $150/hour rate.
2. Hours Reasonably Expended
Considering the Court's prior analysis that fees incurred on 7/16/12 and 7/17/12 are non-reimbursable, the Court begins by analyzing Mr. Radney's 53.4 hours and Mr. Yearout's 32.5 hours. This work was completed over the course of twenty days in August.
In addition to objecting that UTC has included fees for work outside the scope of the Court's September 13 Order, Plaintiff submits that UTC has claimed too much time on correspondence regarding the relevant motions, and has submitted duplicative time for researching and briefing the relevant motions. Plaintiff asks this Court to reduce the hours claimed by more than half, which would result in an award of 20 hours for the reply brief (Doc. 150), and 10 hours for the response brief to the motion to dismiss (Doc. 151).
The Court agrees that included within UTC's submission is time spent on tasks unquestionably outside the scope of the Court's September 13 Order. For instance, several entries describe UTC's efforts to coordinate with another co-defendant on a summary judgment motion. There are also entries relating to drafting a motion for extended pages and email correspondence related thereto, entries relating to research on issues other than Alabama's statute of limitations, attorney correspondence relating to filing a joinder motion, drafting the joinder motion, and various clerical matters, such as gathering exhibits and reviewing of the court's briefing schedule. These non-compensable entries are peppered throughout UTC's fee submission.
The Court finds it impossible in this case to determine the exact number of reasonably expended hours due to the fact that UTC's fee petition does not adequately separate compensable items from non-compensable items. Moreover, due to the high number of hours billed over a short period of time, and because three other defendants were working on identical briefs, the Court is especially concerned that duplicative work has been billed.
Where an attorney has failed to exercise billing judgment, the court may do so for him by striking problematic entries or by reducing the hours requested by a percentage intended to substitute for the exercise of billing judgment.
For the reasons cited herein, the Court finds that a reasonable amount of time expended by UTC in this case is 40 hours.
3. UTC's Lodestar
The lodestar amount for UTC is $6,000.00 ($150 multiplied by 40 hours).
CONCLUSION
As stated herein, Boeing's, Lockheed Martin's, and UTC's motions are
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