Blue Chip Alliance, LLC v. CHETU, Inc.

District Court, S.D. Florida·Decided February 6, 2025·No. 0:22-cv-61602·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

CASE NO. 1:22-CV-61602-LEIBOWITZ/REID

BLUE CHIP ALLIANCE, LLC,

Plaintiff,

vs.

CHETU, INC.,

Defendant. ________________________

ORDER ON PLAINTIFF’S AMENDED OMNIBUS MOTION FOR ATTORNEYS’ FEES RELATED TO DISCOVERY MATTERS

This cause is before the Court on Plaintiff Blue Chip Alliance, LLC’s (“Plaintiff” or “Blue Chip”) Amended Omnibus Motion for Attorneys’ Fees Related to Discovery Matters. [ECF No. 174]. The Motion was referred to the Undersigned by the Honorable David S. Leibowitz for appropriate resolution. [ECF No. 168]. The Court has reviewed the Motion, Defendant Chetu, Inc.’s (“Defendant” or “Chetu”) Opposition [ECF No. 178], and Plaintiff’s Reply [ECF No. 184]. For the reasons addressed below, it is ORDERED that Plaintiff’s Amended Omnibus Motion for Attorneys’ Fees Related to Discovery Matters [ECF No. 174] is GRANTED IN PART and DENIED IN PART.1 BACKGROUND

1 “Under 28 U.S.C. § 636(b)(1)(A) and Rule 72(a) of the Rules of Civil Procedure, [a Magistrate Judge has] the authority to enter a final order on [a] Motion for Attorneys’ Fees and Costs because it is not case-dispositive.” CityPlace Retail, L.L.C. v. Wells Fargo Bank, N.A., No. 18-81689, 2021 WL 3361172, at *1 n.1 (S.D. Fla. Jan. 12, 2021) (citing Collar v. Abalux, Inc., No. 16-20872, 2018 WL 3328682, at *13-14 (S.D. Fla. July 5, 2018)). This lawsuit arises out of a failed business relationship between Chetu, a software developer, and Blue Chip, an owner and operator of eleven barber shops in Washington and Montana. [ECF No. 86 at 3]. The facts underpinning this case have been recounted in the Court’s prior orders and need not be duplicated here. On August 8, 2024, the undersigned found that

attorneys’ fees are warranted due to Defendant’s discovery violations. [ECF No. 170]. Further, the Court ordered that Plaintiff re-file its Motion for Attorney’s Fees, discussing only the fees and costs associated with the discovery disputes addressed in the Court’s September 6, 2023 [ECF No. 62], and October 23, 2023 [ECF No. 95], discovery orders. LEGAL STANDARD In determining attorneys’ fees, courts look to the reasonableness of (1) the hourly rate and (2) the number of hours expended. Under the “lodestar” method, a reasonable attorney’s fee award is “properly calculated by multiplying the number of hours reasonably expended on the litigation times a reasonable hourly rate.” ACLU v. Barnes, 168 F.3d 423, 427 (11th Cir. 1999) (quoting Blum v. Stenson, 465 U.S. 886, 888 (1994)). Under certain circumstances, the lodestar may be

adjusted to reach a more appropriate attorneys’ fee. See Blum, 465 U.S. at 888. A. Reasonable Hourly Rate A reasonable hourly rate is to be measured by “prevailing market rates in the relevant community.” Id. at 895. In determining this, the Court should consider the rate “for similar services by lawyers of reasonably comparable skills, experience, and reputation.” Norman v. Housing Auth. of Montgomery, 836 F.2d 1292, 1299 (11th Cir. 1988) (citing Blum, 465 U.S. at 895–96 n.11). To determine reasonable hourly rates, a court may consider certain factors, including “the attorney’s customary fee, the skill required to perform the legal services, the attorney’s experience, reputation and ability, the time constraints involved, preclusion of other employment, contingency, the undesirability of the case, the attorney’s relationship to the client, and awards in similar cases.” Mallory v. Harkness, 923 F. Supp. 1546, 1555 (S.D. Fla. 1996) (citing factors articulated in Johnson v. Highway Express, Inc., 488 F.2d 714, 717–19 (5th Cir. 1974)). “In the end, however, the Court remains an expert on the issue of attorneys’ fees and may consider its own knowledge

and experience concerning reasonable and proper fees.” Warren Tech., Inc. v. UL LLC, No. 18- 21019-CV, 2020 WL 9219127, at *7 (S.D. Fla. Dec. 17, 2020), report and recommendation adopted in part, No. 1:18-CV-21019-UU/LMR, 2021 WL 911238 (S.D. Fla. Mar. 10, 2021), aff'd, No. 21-11168, 2021 WL 4940833 (11th Cir. Oct. 22, 2021) (quoting Norman, 836 F.2d at 1303) (internal citations and quotations omitted). Importantly, the trial court “need not, and indeed should not, become green-eyeshade accountants. The essential goal in shifting fees . . . is to do rough justice, not to achieve auditing perfection.” Katz v. Chevaldina, 127 F. Supp. 3d 1285, 1301–02 (S.D. Fla. 2015) (citing Fox v. Vice, 563 U.S. 826, 838 (2011)). As such, “trial courts may take into account their overall sense of a suit, and may use estimates in calculating and allocating an attorney’s time.” Id.

B. Reasonable Number of Hours Expended The Court must also evaluate Plaintiff’s requested fees for reasonableness in terms of the total hours expended by counsel and paralegals. See Norman, 836 F.2d at 1303. The burden rests on the plaintiff to submit a request for fees that will enable the court to determine what time was reasonably expended. See Loranger v. Stierheim, 10 F.3d 776, 782 (11th Cir. 1994). “Attorneys who anticipate making a fee application must maintain contemporaneous, complete and standardized time records which accurately reflect the work done by each attorney.” Wales- Walden v. Ak “N” Eli, LLC, No. 17-20658-CIV, 2018 WL 6812692, at *3 (S.D. Fla. Oct. 12, 2018), report and recommendation adopted sub nom. Wales-Walden v. Ak N Eli, LLC, No. 1:17- CV-20658-UU, 2018 WL 6807316 (S.D. Fla. Oct. 29, 2018) (quoting Nat’l Ass’n. of Concerned Veterans v. Sec’y of Def., 675 F.2d 1319, 1327 (D.C. Cir. 1982)). When ascertaining the number of reasonable hours, a court must deduct “excessive, redundant or otherwise unnecessary hours” from those claimed. See Norman, 836 F.2d at 1303.

The Court can either evaluate counsel’s time records by applying an hour-by-hour analysis or can make an across-the-board cut. See Bivins v. Wrap it Up, Inc., 548 F.3d 1348, 1350 (11th Cir. 2008). “Courts are not authorized to be generous with the money of others, and it is as much the duty of courts to see that excessive fees and expenses are not awarded as it is to see that an adequate amount in awarded.” ACLU, 168 F.3d at 428. DISCUSSION The Court has already determined that attorneys’ fees and costs are warranted. [See ECF No. 170]. Therefore, the Court will analyze the reasonableness of Plaintiff’s requested fees of $28,675.00 and costs of $572.14. I. ATTORNEYS’ FEES

A. The Hourly Rates Are Reasonable The Court must first evaluate Plaintiff’s attorney’s requested hourly rate. Attorney William Cassidy, a partner at his firm, has been a member of the Florida bar since 2000 and has extensive trial and appellate experience, having worked at several prominent firms. [ECF No. 174 at 5]. Attorney Aaron McKown, also a partner at his firm, is admitted to practice law in California, Texas, and Florida. [Id. at 6]. He, too, has extensive experience and focuses his practice on intellectual property and commercial litigation. [Id.]. Both Mr. Cassidy and Mr. McKown’s standard hourly rates were reduced from $625.00 to $500.00. [Id. at 6, 7]. Sylvia Li, who handled associate and paralegal tasks in this case, received her LLM in 2017 from the University of Illinois College of Law and has been licensed to practice in California and New York since 2020. [Id. n. 3]. Her standard hourly rate was reduced from $300.00 to $250.00.

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

Blue Chip Alliance, LLC v. CHETU, Inc., (S.D. Fla. 2025).

Blue Chip Alliance, LLC v. CHETU, Inc. (Blue Chip Alliance, LLC v. CHETU, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Gray v. Lockheed Aeronautical Systems Co.
125 F.3d 1387 (Eleventh Circuit, 1997)
Bivins v. Wrap It Up, Inc.
548 F.3d 1348 (Eleventh Circuit, 2008)
Blum v. Stenson
465 U.S. 886 (Supreme Court, 1984)
Norelus v. Denny's, Inc.
628 F.3d 1270 (Eleventh Circuit, 2010)
Fox v. Vice
131 S. Ct. 2205 (Supreme Court, 2011)
Mallory v. Harkness
923 F. Supp. 1546 (S.D. Florida, 1996)
Loranger v. Stierheim
10 F.3d 776 (Eleventh Circuit, 1994)
Katz v. Chevaldina
127 F. Supp. 3d 1285 (S.D. Florida, 2015)
Booker v. Stauffer Seeds, Inc.
817 F.2d 47 (Eighth Circuit, 1987)