Berne Corp. v. Government of the Virgin Islands

52 V.I. 568, 2009 U.S. Dist. LEXIS 58474
CourtDistrict Court, Virgin Islands
DecidedJuly 9, 2009
DocketCivil Nos. 2000-141, 2000-167, 2001-151, 2001-155, 2001-181, 2001-196, 2001-197, 2001-228, 2002-057
StatusPublished

This text of 52 V.I. 568 (Berne Corp. v. Government of the Virgin Islands) is published on Counsel Stack Legal Research, covering District Court, Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Berne Corp. v. Government of the Virgin Islands, 52 V.I. 568, 2009 U.S. Dist. LEXIS 58474 (vid 2009).

Opinion

GÓMEZ, Chief Judge

MEMORANDUM AND ORDER

(July 9, 2009)

This matter is before the Court for a determination of an appropriate award of attorney’s fees for the various commercial property owners who are the plaintiffs in this matter (together, the “Plaintiffs”). Because the Court writes primarily for the parties, only a brief recitation of the factual and procedural history of these proceedings is required.

In May 2003, this Court enjoined the defendants, the Government of the Virgin Islands; Roy Martin, in his official capacity as Tax Assessor; and the Board of Tax Review (together, the “Government”), from assessing any and all real property in the Virgin Islands until certain conditions were met (the “May 2003 Decree”). In December 2007, the Government moved to vacate the May 2003 Decree, asserting that those conditions had been met. In August 2008, before the Court ruled on the Government’s motion, the Government informed the Court via an “Informative Notice” that it would begin issuing property tax bills notwithstanding the May 2003 Decree. In September 2008, the Court held a show-cause hearing to determine whether the Government was in violation of the May 2003 Decree.

On September 11, 2008, the Court partially vacated the May 2003 Decree. On that same day, the Court found the Government in contempt for violating the May 2003 Decree. The Court ordered the Government to rescind all property tax bills and stated that the Plaintiffs would be entitled to an award of reasonable attorney’s fees and costs. On September 12, 2008, the Defendants appealed both September 11, 2008, rulings.

While this matter was on appeal, the Plaintiffs filed motions for attorney’s fees in accordance with the Court’s September 11, 2008, contempt ruling. Those motions are pending.

[571]*571On June 16, 2009, the United States Court of Appeals for the Third Circuit affirmed both September 11, 2008, rulings in all respects.1

With respect to the fees incurred in connection with the contempt proceedings, Berne Corp., B & B Corp., Miller Properties, Inc., Robert Schmidt, Robert Schmidt Development Corp., Kim Holdsworth, Dori P. Derr, Shell Seekers, Inc., Charles W. Consolvo, Linda B. Consolvo, Snegle Gade Associates, LP, Charles W. Consolvo as Trustee of the Yvette B. Lederberg Trust, Arthur B. Choate, Stewart Loveland, Stacy Loveland, and Elizabeth Sharp (the “Berne Plaintiffs”) seek recovery of $11,550. Equivest St. Thomas, Inc. (“Equivest”) requests $11,977 in fees. The Cyril V. Francois Associates, LLC and Twenty-One Queens Quarter, Inc. (the “Francois Plaintiffs”) request $9,000 apiece for a total of $18,000. Lindon Corp. and Gordon L. Coffelt (the “Lindon Plaintiffs”) ask for $4,037.50.

The Government opposes the Plaintiffs’ fee requests. It argues that the requests are “excessive, exorbitant, unreasonable, and punitive and would amount to a windfall.” (Defs.’ Br. Opp’n Pis.’ Application Award of Fees and Costs 3.) The Government highlights several items it believes should be excluded from the fee award.

“[A]ttomeys’ fee awards are remedial and designed to compensate complainants for losses incurred as a result of [a] contemnors’ violations!.]” Robin Woods Inc. v. Woods, 28 F.3d 396, 401 (3d Cir. 1994) (internal quotation marks and citations omitted). Thus, a district court has the authority to order a contemnor to compensate a party for its “time and expense . . . incurred in enforcing” a court order. Id.; see also Ranco Industrial Products Corp. v. Dunlap, 776 F.2d 1135, 1139 (3d Cir. 1985) (“Attorneys’ fees and expenses certainly may be awarded for the prosecution of a willful civil contempt.” (citations omitted)).

Although the fees in this matter are not necessarily sought by a “prevailing party,” as that phrase is defined in the Virgin Islands’ fee-shifting statute, that statute offers useful guidance in determining an appropriate award of fees under the circumstances presented here.

Virgin Islands law allows for the recovery of the following fees and expenses:

[572]*572(1) Fees of officers, witnesses, and jurors;
(2) Necessary expenses of taking depositions which were reasonably necessary in the action;
(3) Expenses of publication of the summons or notices, and the postage when they are served by mail;
(4) Compensation of a master as provided in Rule 53 of the Federal Rules of Civil Procedure;
(5) Necessary expense of copying any public record, book, or document used as evidence in the trial; and
(6) Attorney’s fees as provided in subsection (b) of this section.

V.I. CODE Ann. tit. 5, § 541(a). The statute further provides that “there shall be allowed to the prevailing party in the judgment such sums as the court in its discretion may fix by way of indemnity for his attorney’s fees in maintaining the action or defenses thereto ....” Id. at (b).

“For work to be included in the calculation of reasonable attorneys’ fees, the work must be ‘useful and of a type ordinarily necessary’ to secure the final result obtained from the litigation.” Planned Parenthood v. AG, 297 F.3d 253, 266 (3d Cir. 2002) (quoting Pennsylvania v. Del. Valley Citizens’ Council, 478 U.S. 546, 561, 106 S. Ct. 3088, 92 L. Ed. 2d 439 (1986)); see also Gulfstream III Associates, Inc. v. Gulfstream Aerospace Corp., 995 F.2d 414, 420 (3d Cir. 1993) (noting that reasonable attorney’s fees may include charges for measures necessary to enforce district court judgments as well as other charges “reasonably expended” to advance the litigation). To that end, the Court considers “the time and labor required, the novelty and difficulty of the questions involved, the skill requisite properly to conduct the cause, the customary charges of the bar for similar services, the amount involved in the controversy, the benefits resulting to the client from the services, and the contingency or certainty of the compensation.” Lucerne Inv. Co. v. Estate Belvedere, Inc., 411 F.2d 1205, 1207, 7 V.I. 242 (3d Cir. 1969). A fee award decision rests in the sound discretion of the court. See Jo-Ann’s Launder Ctr., Inc. v. Chase Manhattan Bank, 31 V.I. 226, 234 (D.V.I. 1995); Bedford v. Pueblo Supermarkets of St. Thomas, Inc., 18 V.I. 275, 277 (D.V.I. 1981). A court “must explain on the record the reasons for its decisions.” Rode v. Dellarciprete, 892 F.2d 1177, 1187 (3d Cir. 1990).

[573]

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Related

Lucerne Investment Company v. Estate Belvedere, Inc.
411 F.2d 1205 (Third Circuit, 1969)
Robin Woods Inc. v. Woods
28 F.3d 396 (Third Circuit, 1994)
Morcher v. Nash
32 F. Supp. 2d 239 (Virgin Islands, 1998)
Good Timez, Inc. v. Phoenix Fire and Marine Ins. Co.
754 F. Supp. 459 (Virgin Islands, 1991)
Bedford v. Pueblo Supermarkets of St. Thomas, Inc.
18 V.I. 275 (Virgin Islands, 1981)
Ranco Industrial Products Corp. v. Dunlap
776 F.2d 1135 (Third Circuit, 1985)
Rode v. Dellarciprete
892 F.2d 1177 (Third Circuit, 1990)

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Bluebook (online)
52 V.I. 568, 2009 U.S. Dist. LEXIS 58474, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berne-corp-v-government-of-the-virgin-islands-vid-2009.