BASF Corp. v. Old World Trading Co.

839 F. Supp. 528, 1993 U.S. Dist. LEXIS 12113, 1993 WL 492393
CourtDistrict Court, N.D. Illinois
DecidedAugust 30, 1993
Docket86 C 5602
StatusPublished
Cited by3 cases

This text of 839 F. Supp. 528 (BASF Corp. v. Old World Trading Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BASF Corp. v. Old World Trading Co., 839 F. Supp. 528, 1993 U.S. Dist. LEXIS 12113, 1993 WL 492393 (N.D. Ill. 1993).

Opinion

*529 MEMORANDUM OPINION AND ORDER

LEINENWEBER, District Judge.

I. INTRODUCTION

This memorandum addresses the most recent skirmish in a protracted legal battle which the parties first joined in 1986. Plaintiff, BASF Corporation (“BASF”), brought suit against defendant, The Old World Trading Company (“Old World”), under the Lanham Trade-Mark Act, 15 U.S.C. § 1117 (“Lanham Act”), and the Illinois Consumer Fraud and Deceptive Business Practices Act, *530 Ill.Rev.Stat., ch. 121½, ¶ 261 et seq. After a bench trial, plaintiff was,awarded damages totaling $2,498,726, significantly less than the amount plaintiff originally sought. On September 11, 1992, the court awarded plaintiff $272,860.71 in costs. Plaintiff is now before the court seeking attorney’s fees in the amount of $4,059,677 plus prejudgment interest on the attorney’s fees. Plaintiff subsequently filed a Supplemental Petition for Fees seeking recovery in the amount of $35,-332.50 for fees incurred between the cut-off date for fees and its-filing of the Fee Petition.

II. BACKGROUND

Plaintiffs original request for fees can be divided into two major categories: attorney’s fees and “out of pocket litigation expenses.” The two categories themselves can be further broken down as follows:

ATTORNEY’S FEES

Baker & McKenzie $1,929,107

Pennie & Edmonds . .58,436

OUT OF POCKET LITIGATION EXPENSES’

$ 376,775 Paralegal Fees

Expert Witnesses

$ 856,172 Coopers & Lybrand

297,947 Dennis Dugan

52,258 Russel Fay '

$ - 384,506 LEXIS

$ 77,028 Travel Expenses

$ 19,247 Long Distance Telephone

3,930 Postage

4,271 Messenger

TOTAL $4,059,677

Rather than attack individual receipts and billing practices of plaintiff, a task which would be extremely arduous for defendant in a long, detailed case such as this (and equally arduous for the court to review), defendant has raised five major challenges to plaintiffs fee petition.

First, defendant contends that plaintiff is no.t entitled to the $1,206,377 in witness fees under the Lanham Act. Second, defendant argues that plaintiff should be denied the $58,436 it seeks in attorney’s fees for work done by the firm of Pennie & Edmonds, on the ground that such recovery is inconsistent with plaintiffs chief legal counsel’s professed expertise in the matters involved in this litigation. 1 Third, defendant argues that plaintiffs LEXIS expenses (money expended for the creation and operation of a private computerized database) should be disallowed because such expenses are not related to legal research, are not legal fees, and are duplicative of costs already awarded plaintiff by the court. Fourth, defendant contends that plaintiff should not be awarded prejudgment interest on the attorney’s fees. Finally, defendant contends that the court should discount attorney’s fees because of plaintiffs alleged attempt to bankrupt defendant. Defendant supports its arguments that the Fee Petition submitted by plaintiff should be whittled down by applying the “sampling method” to some of the fees sought by plaintiff. Defendant argues that its sampling of plaintiffs fees reveals the unreasonableness of the Fee Petition.

The court now turns its attention to each of these arguments.

III. ANALYSIS

A. Expert Witness Fees

Plaintiff argues that it - is entitled to $1,206,377 in expert witness fees under the Lanham Act. Plaintiff argues that the award of such fees is necessary “to effectuate the equitable relief fashioned by this court.!’

The Lanham Act, however, does not explicitly provide for the award of witness fees. The Lanham Act states, “[t]he court in exceptional cases may award reasonable attorney fees to the prevailing party.” 15 U.S.C. § 1117(a). There is no mention of recovery for-expert witness fees in any part of section 1117, which specifically allows for damages and costs in addition to attorney’s fees.

Defendant, relying on the Supreme Court’s decision in West Virginia University Hosp., Inc. v. Casey, 499 U.S. 83, 111 S.Ct. 1138, 113 L.Ed.2d 68 (1991), argues that this failure specifically to permit the recovery of expert *531 witness fees means that such fees are not recoverable under the Lanham Act.

In West Virginia University Hosp., West Virginia University Hospital (“WVUH”) filed suit in federal court against the Governor of Pennsylvania under 42 U.S.C. § 1983. WVUH challenged the Medicaid reimbursement schedules promulgated by the Commonwealth of Pennsylvania for services provided by WVUH to Pennsylvania residents.

WVUH prevailed at trial and the district court awarded fees in accordance with 42 U.S.C. § 1988. West Virginia University Hosp., Inc., 499 U.S. 83, 86, 111 S.Ct. 1138, 1140. Included in these fees was more than $100,000 in “fees attributable to expert services.” Id. The Third Circuit disallowed the recovery of the expert fees save to the extent that they “fell within the $30-per-day fees for witnesses prescribed by 28 U.S.C. § 1821.” Id. The West Virginia court affirmed the decision of the Third Circuit.

The West Virginia court noted that while section 1988 was a fee shifting provision, it referred only to “attorney’s fees” and made no mention of expert witness fees. Id. 499 U.S. at 88, 111 S.Ct. at 1141. This was in contrast to 34 statutes in ten different titles of the United States code identified by the Court, a number of which were enacted or amended around the same time that section 1988 was enacted, which “explicitly shift attorney’s fees and expert witness fees.”' Id. 499 U.S. at 89, 111 S.Ct. at 1142.

The West Virginia court relied on its earlier decision in Crawford Fitting Co. v. J.T. Gibbons, Inc., 482 U.S. 437, 107 S.Ct. 2494, 96 L.Ed.2d 385 (1987), in coming to its decision. In Crawford, the Supreme Court held that 28 U.S.C.

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839 F. Supp. 528, 1993 U.S. Dist. LEXIS 12113, 1993 WL 492393, Counsel Stack Legal Research, https://law.counselstack.com/opinion/basf-corp-v-old-world-trading-co-ilnd-1993.