Arthur D. Little International, Inc. v. Dooyang Corp.

995 F. Supp. 217, 1998 U.S. Dist. LEXIS 2206, 1998 WL 84581
CourtDistrict Court, D. Massachusetts
DecidedFebruary 13, 1998
DocketCivil Action 94-11875-PBS
StatusPublished
Cited by15 cases

This text of 995 F. Supp. 217 (Arthur D. Little International, Inc. v. Dooyang Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arthur D. Little International, Inc. v. Dooyang Corp., 995 F. Supp. 217, 1998 U.S. Dist. LEXIS 2206, 1998 WL 84581 (D. Mass. 1998).

Opinion

MEMORANDUM AND ORDER ON ASSESSMENT OF ATTORNEYS’ FEES AND COSTS

SARIS, District Judge.

INTRODUCTION

This order assessing attorneys’ fees and costs comes at the end of the trial court phase of protracted and expensive litigation between two sophisticated corporations disputing a bill for consulting services involving a billion dollar aluminum smelter project in Venezuela that was never built.

On October 25, 1996, a jury awarded the plaintiff consulting firm, Arthur D. Little International, Inc. (“ADL”), $460,000.00 on a claim of breach of contract and rejected all of the contractual defenses and counterclaims of the defendants, Dooyang Corporation and Dooyang America, Inc. (collectively “Dooyang”). Defendants are members of a group of ten associated Korean corporations involved in steel production, real estate development, manufacturing, apparel and international finance. Altogether Dooyang incurred costs of over $9 million in connection with the failed aluminum project, including $2.2 million dollars paid to ADL.

Following the jury verdict, this Court ruled on September 13, 1997 that Dooyang had also violated the Massachusetts Consumer Protection Act, G.L. c. 93A, § 11 (“93A”), by affirmatively misrepresenting its intention to pay for the consulting services rendered by ADL pursuant to that contract in order to forestall litigation and then following a business strategy to use the expense of litigation as leverage to force ADL to compromise its bill. Because of this willful strategy of “commercial extortion,” the Court awarded ADL double damages under the statute and ordered the parties to attempt to agree on a reasonable assessment of attorneys’ fees and costs. As the parties were unable to reach an agreement, ADL now asks the Court to assess against Dooyang $975,752.00 in attorneys’ fees and $206,434.52 in costs.

Dooyang opposes the magnitude of ADL’s request for attorneys’ fees on five grounds: (1) that ADL should only recover for attorney time logged during the 93A “phase” of litigation following the jury verdict; (2) that ADL’s counsel should not recover fees associated with the substantial work on Dooyang’s counterclaims; (3) that the billing records of ADL’s counsel are inadequate to support the requested award; . (4)' that ADL’s counsel inappropriately includes the time-of ADL’s general counsel in its fee request; and (5) that the fee request is disproportionately high compared to ADL’s initial demand of $460,000.00. Dooyang does not separately state an objection to ADL’s request for costs, which include a substantial sum for expert witness fees. After considering the voluminous billing records and related materials submitted by the parties, the Court ORDERS Dooyang to pay ADL $915,707.00 in attorneys’ fees and $206,434.52 in costs.

BACKGROUND

The facts of this dispute are detailed in the Court’s two published opinions in this lengthy and acrimonious case. See 928 F.Supp. 1189 (D.Mass.1996) (mem. and order allowing in part and denying in part ADL’s motion for summary judgment) (“ADL I”) and 979 F.Supp. 919 (D.Mass.1997) (findings of fact, conclusions of law, and order of judgment) (“ADL II”). Here, the Court only reviews the procedural history of the case and summarizes the fee and cost request as background for the Court’s determination of what assessment is “reasonable” given the particular facts of the case.

ADL, represented by Hale and Dorr LLP of Boston, sued Dooyang in state court in *220 August 1994 to recover $460,000.00 in unpaid fees on the last of several contracts for consulting services rendered on the aluminum smelter project. ADL proceeded on theories of breach of contract, fraud and unfair and deceptive trade practices in violation of 93A, but it voluntarily dismissed its fraud claims on the. eve of trial. . The 93A claim was premised on Dooyang’s breach of contract having risen to a level of “rascality” because Dooyang re-enlisted the services of ADL in April and May 1991 without an intention to pay and then continuously misrepresented its intention to pay for the next several years.

Dooyang, represented by Gibson, Dunn & Crutcher LLP of New York and, locally, by Burns & Levinson of Boston, removed the case to federal court in September 1994. Dooyang answered that it had a legal excuse not to pay and asserted five counterclaims: (1) that ADL fraudulently induced Dooyang into signing the first of a series of consulting agreements on June 2,1989 and made continuous fraudulent misrepresentations to Dooyang thereafter so that it would retain ADL’s services; (2) that ADL made negligent misrepresentations to the same end; (3) that ADL negligently failed to provide Dooyang “with accurate and complete information” about the Venezuelan aluminum project; (4) that ADL breached the contract by failing to use “best efforts;” and (5) that ADL, not Dooyang, violated 93A through the unfair and deceptive business practices contained in the other four counterclaims.

The parties engaged in extensive discovery and litigated several discovery disputes before this Court and a Magistrate Judge. Later, ADL moved for summary judgment on Dooyang’s counterclaims. Though ADL’s motion was allowed only as to Dooyang’s fifth counterclaim (93A), the scope of potential recovery on three of Dooyang’s other four counterclaims was narrowed by the Court’s order. See ADL I, 928 F.Supp. at 1204,1205 & 1208. An eighteen-day jury trial on all remaining claims and counterclaims, except ADL’s 93A claim, concluded with a verdict on October 25, 1996. The jury rejected all of Dooyang’s defenses and counterclaims and found in favor of ADL on its single breach of contract claim.

The parties agreed that the Court should resolve ADL’s 93A claim based on the trial record and additional documentary evidence and deposition transcripts. The Court heard oral argument on December 16, 1996, and further memoranda were submitted to the Court on the 93A issue both before and after that hearing. The Court issued its order of judgment in favor of ADL on its 93A claim and awarded double damages, attorneys’ fees and costs on September 19, 1997. See ADL II, 979 F.Supp. at 928. In doing so, the Court specifically indicated that though it agreed that Dooyang had deceptive intent both when it entered into the final contract and throughout the course of the period of non-payment, its intent not to pay upon entering the final contract was not actionable under 93A because it did not occur substantially and primarily within the Commonwealth of Massachusetts. See id. at 926. The Court awarded double damages for the willful and knowing nature of the 93A violation; it awarded double, rather than treble, damages largely based on its view of the parties’ entire business relationship, which included ADL’s conflict of interest in consulting for both Dooyang and an arm of the Venezuelan government considering competitive bids from Dooyang and several other companies (e.g.ADCOA). See id. at 928.

In support of its request for attorneys’ fees, ADL has- submitted to the Court an accounting of legal services amounting to more than 3300 hours in attorney time and more than 900 hours in paralegal time.

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Cite This Page — Counsel Stack

Bluebook (online)
995 F. Supp. 217, 1998 U.S. Dist. LEXIS 2206, 1998 WL 84581, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arthur-d-little-international-inc-v-dooyang-corp-mad-1998.