Bannum Place of Saginaw, LLC v. NLRB

CourtCourt of Appeals for the Sixth Circuit
DecidedMay 17, 2024
Docket21-2690
StatusPublished

This text of Bannum Place of Saginaw, LLC v. NLRB (Bannum Place of Saginaw, LLC v. NLRB) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bannum Place of Saginaw, LLC v. NLRB, (6th Cir. 2024).

Opinion

RECOMMENDED FOR PUBLICATION Pursuant to Sixth Circuit I.O.P. 32.1(b) File Name: 24a0112p.06

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

┐ NATIONAL LABOR RELATIONS BOARD, │ Petitioner, │ > Nos. 21-2664/2690 │ v. │ │ BANNUM, INC; BANNUM PLACE OF SAGINAW, LLC, │ │ Respondents. ┘

On Motion for Attorney Fees. Nos. 07-CA-207685; 07-CA-211090; 07-CA-215356.

Decided and Filed: May 17, 2024

Before: MOORE, COLE, and NALBANDIAN, Circuit Judges.

_________________

COUNSEL

ON MOTION AND REPLY: Shawnnell T. Barnett, NATIONAL LABOR RELATIONS BOARD, Washington, D.C., for NLRB. ON RESPONSE: Frank T. Mamat, DINSMORE & SHOHL, LLP, Troy, Michigan for Bannum.

The court delivered a PER CURIAM order. NALBANDIAN, J. (pp. 10–11), delivered a separate opinion dissenting in part. _________________

ORDER _________________

PER CURIAM. On February 23, 2024, we held Bannum, Inc. and Bannum Place of Saginaw, LLC (collectively “Bannum”) in civil contempt and ordered Bannum to pay to the National Labor Relations Board (“NLRB”) reasonable attorney fees. The NLRB now seeks Nos. 21-2664/2690 Bannum Place of Saginaw, LLC v. NLRB Page 2

$14,872.80 in attorney fees. For the following reasons, we GRANT in full the NLRB’s request, and we order Bannum to pay the NLRB attorney fees in the amount of $14,872.80.

I.

After unlawfully terminating two employees in violation of the National Labor Relations Act, Bannum was ordered to pay $112,476.53, plus interest and tax offsets, to make the two employees whole.1 See NLRB v. Bannum, Inc., 93 F.4th 973, 977 (6th Cir. 2024) (per curiam) (discussing the procedural history). Following Bannum’s failure to satisfy its backpay obligations, we issued a protective restraining order in July 2023 prohibiting Bannum from disposing of its assets and aiming to ensure Bannum’s ability to satisfy its liabilities. NLRB v. Bannum, Inc., 2023 WL 4842837 (6th Cir. July 27, 2023). On February 23, 2024, we held Bannum in civil contempt for failing to comply with that protective restraining order.2 Bannum, 93 F.4th at 984. “Given Bannum’s repeated contumacious conduct,” we ordered Bannum, as relevant here, “to pay to the NLRB all costs, expenses and reasonable attorney fees, calculated at the prevailing market rate in Washington, D.C., incurred by the NLRB in the investigation, preparation, presentation, and final disposition of [the contempt] motion.” Id. at 982, 984. We further ordered that “[a]ll of said costs . . . shall be fixed by further order of this court upon submission by the NLRB of a certified statement of such costs and expenses.” Id. at 984. On March 8, 2024, the NLRB filed a statement of attorney fees with attached declarations by Pia Winston and Shawnnell T. Barnett, the two attorneys who worked on the contempt motion. D. 69 (Pet’r V.S.) (6th Cir. Mar. 8, 2024).

On March 21, 2024, thirteen days after the NLRB filed its motion and statement of attorney fees, Bannum filed objections to the attorney fees. D. 70 (Resp’t Opp’n Mot.) (6th Cir. Mar. 21, 2024). Pursuant to Rule 27 of the Federal Rules of Appellate Procedure, a party “fil[ing] a response to a motion . . . must [file] within 10 days after service of the motion unless the court shortens or extends the time.” Fed. R. App. P. 27(a)(3)(A). Because the NLRB’s

1 The factual background of this case can be found in Bannum Place of Saginaw, LLC v. NLRB, 41 F.4th 518, 522–23 (6th Cir. 2022). 2 In that order, we also denied without prejudice the NLRB’s motion for spoliation sanctions. Bannum, 93 F.4th at 976. Nos. 21-2664/2690 Bannum Place of Saginaw, LLC v. NLRB Page 3

motion and statement of attorney fees was filed and served on March 8, 2024, Bannum’s response was due by March 18, 2024. Bannum’s March 21, 2024 filing is, accordingly, untimely. Despite this three-day late filing, Bannum fails to justify its tardiness or move to extend its time to file. We are disturbed by Bannum’s repeated disregard of this court’s orders and procedure and caution Bannum that further defiance will not be tolerated.3 That said, we consider Bannum’s arguments below.

II.

“The starting point for determining the amount of a reasonable attorney fee is the ‘lodestar’ amount, which is calculated by multiplying the number of hours reasonably expended on the litigation by a reasonable hourly rate.” Imwalle v. Reliance Med. Prods., Inc., 515 F.3d 531, 551 (6th Cir. 2008). The party seeking attorney fees bears the initial burden to substantiate “the hours worked and the rates sought.” The Ne. Ohio Coal. for the Homeless v. Husted, 831 F.3d 686, 702 (6th Cir. 2016). To substantiate the hours and receive an award of attorney fees, “[t]he documentation offered in support of the hours charged must be of sufficient detail and probative value to enable the court to determine with a high degree of certainty that such hours were actually and reasonably expended in the prosecution of the litigation.” United Slate, Tile & Composition Roofers Ass’n, Local 307 v. G & M Roofing & Sheet Metal Co., 732 F.2d 495, 502 n.2 (6th Cir. 1984). If “the documentation is inadequate,” we “may reduce the award accordingly.” Imwalle, 515 F.3d at 553. Adequate documentation need not “record in great detail how each minute of [an attorney’s] time was expended,” but “the general subject matter of his time expenditures” should be identified. Hensley v. Eckerhart, 461 U.S. 424, 437 n.12 (1983); see also Imwalle, 515 F.3d at 553.

Bannum does not dispute that the NLRB is entitled to recover attorney fees. See D. 70 (Resp’t Opp’n Mot.) (6th Cir. Mar. 21, 2024). Bannum, moreover, does not dispute the hourly rate that the NLRB claims for each attorney that worked on the contempt motion. See id. Rather, it disputes only the number of hours that the NLRB is claiming. See id. at 2. Bannum argues that we “should reduce the Board’s award of attorney fees” because (1) the NLRB

3 We direct Bannum to the deadlines set in our February 23, 2024 order. See Bannum, 93 F.4th at 984. Failure to meet these deadlines may warrant sanctions. Nos. 21-2664/2690 Bannum Place of Saginaw, LLC v. NLRB Page 4

attorneys’ “declarations are lacking in the detail required to determine whether the amount of time they expended was reasonably-suited to the tasks,” and (2) the NLRB is improperly seeking fees for “time its counsel spent on clerical tasks.” Id. at 2, 3, 8. Bannum points to specific hours for which it claims fees should be reduced. Its arguments are unavailing.

A. Attorney Winston’s 2.6 Hours

Bannum objects to the 2.6 hours that Attorney Pia Winston billed. Winston billed one hour to review “Bannum’s response to the PRO” and 1.6 hours to “[p]repare and email correspondence to Bannum counsel.” D. 69-2 (Winston Decl. at 2) (6th Cir. Mar. 8, 2024). Bannum objects to both bills on the ground that the entries fail to provide enough detail for the court to determine if it was reasonable to spend 2.6 hours reviewing “three pages of correspondence and draft[ing] a short letter in response.” D. 70 (Resp’t Opp’n Mot. at 4) (6th Cir. Mar. 21, 2024).

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