AKAI Custom Guns, LLC v. KKM Precision, Inc.

CourtDistrict Court, S.D. Florida
DecidedAugust 29, 2025
Docket0:20-cv-61469
StatusUnknown

This text of AKAI Custom Guns, LLC v. KKM Precision, Inc. (AKAI Custom Guns, LLC v. KKM Precision, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AKAI Custom Guns, LLC v. KKM Precision, Inc., (S.D. Fla. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

Case No. 20-CV-61469-SMITH/VALLE AKAI CUSTOM GUNS, LLC, et al., Plaintiffs, v. KKM PRECISION, INC., et al.,

Defendants. / REPORT AND RECOMMENDATION TO DISTRICT JUDGE THIS CAUSE is before the Court upon Defendant KKM Precision, Inc.’s (“KKM”) Renewed Verified Motion for Attorneys’ Fees and Non-Taxable Expenses (ECF No. 337) (the “Motion”).1 United States District Judge Rodney Smith has referred all motions for attorneys’ fees and costs to the undersigned for appropriate resolution. (ECF No. 36 at 2). Having reviewed the Motion, Plaintiffs’ Response (ECF No. 345), KKM’s Reply (ECF No. 346), KKM’s Notice of Previously Awarded Fees and Costs (ECF No. 295), and being otherwise fully advised on the matter, the undersigned recommends that the Motion be GRANTED IN PART AND DENIED IN PART as set forth below. More specifically, KKM should be awarded $428,781.46 in attorneys’ fees and $65,573.35 in costs.

1 KKM’s initial motion for fees and costs (ECF No. 281) was denied without prejudice, pending the District Judge’s ruling on Plaintiffs Akai Custom Gun, LLC (“Akai”) and Shay Horowitz’s (“Horowitz”) (together, “Plaintiffs”) Rule 60 Motion for Relief from Judgment (ECF No. 297). On January 28, 2025, the District Judge denied Plaintiffs’ Rule 60 Motion. (ECF No. 335). The instant Motion followed. I. BACKGROUND This case involves a dispute between Plaintiffs, a manufacturer and retailer of custom pistols (Akai) and its sole proprietor (Horowitz), against KKM (a gun parts manufacturer) and co- Defendant Shooters Connection, Inc. (“SCI”) (a parts retailer) regarding the quality/strength of the steel used in certain pistol barrels manufactured by KKM, which Plaintiffs purchased both directly

from KKM and through SCI. (ECF No. 208 at 2-3). The factual background and procedural history of the case is set forth in the District Judge’s Order on Cross-Motions for Summary Judgment (the “Summary Judgment Order”), which is incorporated by reference. See (ECF No. 208); see generally (ECF No. 1-1 at 111-534) (the Amended Complaint) (“Am. Compl.”). In July 2020, Plaintiffs filed a 29-count Amended Complaint against KKM and SCI. See generally Am. Compl. As to KKM, the Amended Complaint alleged: (i) misleading advertising (Count 1) (Akai against KKM); (ii) violation of Florida’s Deceptive and Unfair Trade Practices Act (“FDUTPA”) (Count 3) (Akai against KKM and SCI); (iii) fraudulent inducement (Count 4) (Akai against KKM and SCI);2 (iv) strict liability (Count 5) (Akai and Horowitz against KKM and SCI);3 (v) breach of express warranties (Count 6) (Akai against KKM and SCI); (vi) breach of

implied warranty of merchantability (Count 7) (Akai against KKM and SCI); (vii) breach of implied warranty of fitness for a particular purpose (Count 8) (Akai against KKM and SCI); (viii) revocation of acceptance (Count 9) (Akai against KKM and SCI); (ix) defamation (Count 10) (Akai and Horowitz against KKM); (x) defamation per se (Count 11) (Akai and Horowitz

2 Although Counts 1, 3, and 4 in the Amended Complaint list Akai and Horowitz as Plaintiffs on these claims, the parties agree that these counts relate solely to Akai. (ECF Nos. 337 at 5, 345 at 2); see (ECF No. 113-2 at 146-49) (8/17/22 Horowitz deposition); see also (ECF No. 56 at 17) (District Judge’s Order dismissing Horowitz from the fraudulent inducement claim for lack of standing but allowing Akai to proceed with the claim). 3 The Court dismissed with prejudice Count 5 (alleging strict liability). See (ECF No. 56 at 17- 18); see also (ECF Nos. 46, 49, 50). against KKM); (xi) defamation by implication (Count 12) (Akai and Horowitz against KKM); (xii) commercial disparagement (Count 22) (Akai against KKM); and (xiii) civil conspiracy to commit commercial disparagement (Count 26) (Akai against KMM). (ECF No. 1-1 at 134-37, 143-51, 151-74, 340-45, 401-08). On December 23, 2022, KKM served Akai and Horowitz with Proposals for Settlement,

pursuant to Fla. Stat. § 768.79. See (ECF No. 337 at 24-29). In the Proposals, KKM offered to pay each Plaintiff $25,000 in settlement of all claims. Id. Plaintiffs, however, did not accept the offer and proceeded with the litigation. Thereafter, on December 6, 2023, the Court granted partial summary judgment in favor of KKM on several counts, leaving for trial only the four claims alleged in Count 1 (misleading advertising), Count 3 (FDUTPA), Count 4 (fraudulent inducement), and Count 12 (defamation by implication). (ECF No. 208 at 10-11, 14-15, 21-25). On December 22, 2023, after a ten-day trial, the jury returned a verdict in favor of KKM on all four counts. See (ECF No. 236 at 1-10). In January 2024, the Court entered final judgment on the verdict, finding that KKM was “the prevailing party for all claims asserted against it by Plaintiffs.” (ECF No. 244

at 2). Subsequently, Plaintiffs filed their Rule 60 Motion for Relief from Judgment, which the Court denied. See (ECF Nos. 297, 335). The instant Motion followed. See generally (ECF No. 337). II. THE MOTION FOR FEES AND NONTAXABLE COSTS A. KKM’s Motion KKM seeks recovery of $428,781.46 in fees and $78,068.35 in nontaxable costs against Akai and Horowitz for all claims.4 See (ECF Nos. 337 at 17, 18, 20, 346 at 5); see also (ECF

4 Although in the Motion, KKM initially requests $441,880.50 in fees, KKM concedes in its Reply that a reduction is appropriate and reduced its fees to $428,781.46 ($271,051.50 + $157,729.96). Compare (ECF No. 337 at 17, 20), with (ECF No. 346 at 5). The undersigned accepts KKM’s No. 349) (Plaintiffs’ and KKM’s Notice of Satisfaction as to taxable costs); (ECF No. 354) (Plaintiffs’ and SCI’s Stipulation of Dismissal with prejudice, with agreement to bear their own fees and costs incurred in this action). KKM asserts entitlement to fees on several grounds.5 First, KKM argues that it is entitled to statutory fees based on its Proposals for Settlement, pursuant to Fla. Stat. § 768.79.6 (ECF No. 337 at 2, 24-29). Second, KKM seeks fees as the prevailing party

on Count 1 (misleading advertising), pursuant to the fee provision in Fla. Stat. § 817.41(6).7 Id. at 3-5. Relatedly, KKM argues that “the fees and costs incurred in defending Count [1] are inextricably intertwined with the fees and costs incurred in defending the other claims asserted” against KKM so that it is “entitled to [an] award of all of its fees and costs” under § 817.41. Id. at 2 (emphasis added). Lastly, KKM argues that it is entitled to a discretionary award of fees on

reduced fee amount as the relevant request. 5 The Motion divides the requested fees and costs into three litigation periods: (i) the period from the filing of the initial complaint to the serving of the Proposals for Settlement (April 30, 2020 to December 22, 2023); (ii) the period within the scope of the Proposals for Settlement, from the date of service of the Proposals through the jury’s verdict (December 23, 2022 to December 31, 2023); and (iii) the period related to Plaintiffs’ Rule 60 post-judgment motion (January 1, 2024 to December 31, 2024). (ECF No. 337 at 2-3, 10, 11, 16). Because the undersigned finds that fees should be awarded for the entire litigation period (as the claims are all inextricably intertwined), KKM’s suggested time periods are irrelevant to the undersigned’s determination. 6 Pursuant to § 768.79(1), “[i]n any civil action for damages . . .

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