Apple Corps Ltd. v. International Collectors Society

25 F. Supp. 2d 480, 1998 U.S. Dist. LEXIS 18292, 1998 WL 803354
District Court, D. New Jersey·Decided November 18, 1998·No. Civ. No. 96-1571(JAG)·Published·Cited by 34 cases

Opinion

OPINION

GREENAWAY, District Judge.

This matter comes before the Court on the application for costs and attorneys’ fees of Gold, Farrell & Marks, counsel for plaintiffs Apple Corps Limited, MPL Communications, Inc., Yoko Ono Lennon, as executrix of the estate of John Lennon, Subafilms, Ltd: and Yoko Ono Lennon (collectively “Plaintiffs”). The application is based on Plaintiffs’ successful motion seeking the issuance of an order of civil contempt against the defendants.

BACKGROUND

Plaintiffs commenced the above-captioned action against defendants International Collectors Society, John E. Van Emden, Scott L. Tilson, Jeffrey B. Franz and Howard E. Friedman (collectively “Defendants”) in April 1996. Plaintiffs alleged that Defendants were unlawfully trading off the good will associated with the legendary rock-n-roll band, The Beatles. Specifically, Plaintiffs alleged that Defendants created, marketed and sold, without any authorization from Plaintiffs, postage stamps featuring images of The Beatles, trademarks and copyrighted *484 photographs that Plaintiffs owned and controlled.

In June, 1997, the parties agreed to resolve the ease by a Consent Order which the Court entered on June 19, 1997. Paragraph 0 of the Consent Order provides:

In the event that defendants or any of them breaches any provision of paragraphs A-I or K-L of this Order and as a result of such breach, plaintiffs or any one of them initiates legal proceedings to enforce their rights under this Order, defendants and each of them hereby: ... (3) agree to reimburse plaintiffs for all their costs, including reasonable attorney’s fees incurred in connection with any successful action or proceeding brought by plaintiffs (or any one of them) to enforce their rights under this Order.

(Consent Order ¶ 0) (emphasis added).

On or about September 24, 1997, Plaintiffs brought a motion for contempt seeking to enforce the Consent Order. The Defendants filed a cross-motion to dissolve the Consent Order pursuant to Fed.R.Civ.P. 60(b) and a separate motion seeking to impose sanctions on Plaintiffs’ counsel for alleged ethical violations in connection with their investigation of the contempt.

On June 26, 1998, this Court granted Plaintiffs’ motion for contempt and denied Defendants’ cross-motion to dissolve the Consent Order and their motion for sanctions. 1 In accordance with Paragraph 0 of the Consent Order, the Court ordered “that Defendants shall reimburse Plaintiffs for all their costs, including reasonable attorneys’ fees incurred in bringing their motion for contempt.” Apple Corps Ltd. v. International Collectors Soc’y, 15 F.Supp.2d 456, 477 (D.N.J.1998). On July 9, 1998, Plaintiffs filed the instant application for attorneys’ fees and costs pursuant to Paragraph 0 of the Consent Order.

DISCUSSION

Attorneys’ fees and expenses may be awarded to a prevailing party in a federal litigation where authorized by statute, court rule or contract. See Hatco Corp. v. W.R. Grace & Co., 801 F.Supp. 1309, 1333 (D.N.J.1992), vacated on other grounds, 59 F.3d 400 (3d Cir.1995). The Court may also award fees and expenses “under the courts’ inherent power to reimburse a party for outlays incurred in securing an adjudication of contempt.” Halderman v. Pennhurst State Sch. & Hosp., 49 F.3d 939, 941 (3d Cir.1995) (citing Robin Woods Inc. v. Woods, 28 F.3d 396, 400-01 (3d Cir.1994)); see also Lichtenstein v. Lichtenstein, 425 F.2d 1111, 1113-14 (3d Cir.1970), modified, 454 F.2d 69 (3d Cir.1972). In the contempt setting, the “innocent party is entitled to be made whole for the losses it incurs as the result of the con-temnors’ violations, including reasonable attorneys’ fees and expenses.” Halderman, 49 F.3d at 941 (citing Robin Woods, 28 F.3d at 401). However, “these items are restricted to a reasonable amount incurred in prosecuting the petition” for contempt. Lichtenstein, 425 F.2d at 1113-14; see also Rode v. Dellarciprete, 892 F.2d 1177, 1183 (3d Cir.1990).

THE LODESTAR METHOD

“A reasonable [attorneys’] fee is one which is adequate to attract competent counsel, but which does not produce a windfall to attorneys.” Public Interest Research Group of New Jersey, Inc. v. Windall, 51 F.3d 1179, 1185 (3d Cir.1995) (internal quotations and citations omitted). The Supreme Court has held that “the most useful starting point for determining the amount of a reasonable fee is the number of hours reasonably expended on the litigation multiplied by a reasonable hourly rate.” Hensley v. Eckerhart, 461 U.S. 424, 433, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983). The product of this calculation is called the lodestar. Id. at 434, 103 S.Ct. 1933. The lodestar is presumed to yield a reasonable fee. Washington v. Philadelphia County Court of Common Pleas, 89 F.3d 1031, 1035 (3d Cir.1996) (citing City of Burlington v. Dague, 505 U.S. 557, 112 S.Ct. 2638, 120 L.Ed.2d 449 (1992)). However, the lodestar calculation requires that the court *485 “carefully and critically evaluate the hours and the hourly rate set forth by counsel.” Blakey v. Continental Airlines, Inc., 2 F.Supp.2d 598, 602 (D.N.J.1998) (citations omitted).

The party seeking attorneys’ fees has the burden of establishing the reasonableness of the fees by “submitting] evidence supporting the hours worked and the rates claimed.” Rode, 892 F.2d at 1183 (citing Hensley, 461 U.S. at 433, 103 S.Ct. 1933). Thus, Plaintiffs’ counsel “must produce satisfactory evidence — in addition to [them] own affidavits — that the requested rates are in line with those prevailing in the community for similar services by lawyers of reasonably comparable skill, experience and reputation.” Blum v. Stenson, 465 U.S. 886, 896 n. 11, 104 S.Ct. 1541, 79 L.Ed.2d 891 (1984). 2

Free access — add to your briefcase to read the full text and ask questions with AI

Apple Corps Ltd. v. International Collectors Society, 25 F. Supp. 2d 480, 1998 U.S. Dist. LEXIS 18292, 1998 WL 803354 (D.N.J. 1998).

25 F. Supp. 2d 480 (Apple Corps Ltd. v. International Collectors Society) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related