Bollom v. Brunswick Corporation

CourtDistrict Court, D. Minnesota
DecidedMarch 30, 2021
Docket0:18-cv-03105
StatusUnknown

This text of Bollom v. Brunswick Corporation (Bollom v. Brunswick Corporation) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bollom v. Brunswick Corporation, (mnd 2021).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

PATRICK BOLLOM and COLLEEN BOLLOM,

Plaintiffs,

v. MEMORANDUM OF LAW & ORDER Civil File No. 18-3105 (MJD/HB)

BRUNSWICK CORPORATION, a foreign corporation transacting business in the State of Minnesota d/b/a Sea Ray Boats, and MARINEMAX, INC., a foreign corporation,

Defendants.

Todd E. Gadtke, Gadtke Law Firm, P.A., and David M. Bolt, Bolt Hoffer Boyd, Counsel for Plaintiffs

Anthony W. Finnell, Jr., and Daniel J. Connolly, Faegre Drinker Biddle & Reath LLP, Counsel for Defendants.

I. INTRODUCTION This matter is before the Court on Defendant MarineMax, Inc.’s Motion for Award of Attorneys’ Fees and Nontaxable Costs. [Docket No. 88] For the reasons that follow, the Court grants Defendant’s motion. II. BACKGROUND A. Background Facts The background facts of this case are set forth in detail in the Court’s

Summary Judgment Order. [Docket No. 62] As set forth in the Order, on October 21, 2015, Plaintiffs Patrick Bollom and Colleen Bollom purchased a new

2015 Sea Ray Venture 370 Sport Cruiser (“Vessel”) from Defendant MarineMax, Inc. (“MarineMax”). The Vessel was manufactured by Defendant Sea Ray Boats, a division of Brunswick Corporation (“Sea Ray”).

The Purchase Agreement is governed by Minnesota law. ([Docket No. 88- 1] MarineMax Ex. A, Purchase Agreement.) Paragraph 9 of the Purchase

Agreement provides: ATTORNEY’S FEES. In the event it is necessary for Seller to employ an attorney to enforce any of the terms of this Agreement or to defend any lawsuit arising out of this Agreement, then Buyer shall pay all of Seller’s costs, including reasonable attorney fees, whether incurred in trial, appellate or bankruptcy court proceedings, plus court costs, deposition, investigation and travel expense and any other necessary expenses unless a judgment is entered against Seller for the complete relief sought in any complaint or pleading.

Plaintiffs asserted that, in the three years after taking delivery of the Vessel, they experienced a variety of problems with it. B. Procedural History On October 5, 2018, Plaintiffs commenced an action in Minnesota state

court against Sea Ray and MarineMax by serving MarineMax with the summons and Complaint. The matter was removed to this Court on November 5, 2018 based on diversity and federal question jurisdiction. [Docket No. 1]

The Complaint alleged: Count 1: Violation of 15 U.S.C. § 2301, et. seq., Magnuson-Moss Warranty Act (Sea Ray and MarineMax); Count 2: Breach of

Express Warranty, Violation of Minn. Stat. §§ 336.2-607 and 336.2-714 (Sea Ray); Count 3: Breach of Implied Warranty of Merchantability, Violation of Minn. Stat. § 336.2-314 (Sea Ray and MarineMax); and Count 4: Revocation of Acceptance,

Violation of Minn. Stat. § 336.2-608 (Sea Ray and MarineMax). The Complaint explicitly stated that Counts 1, 3, and 4 were asserted “AGAINST BOTH

DEFENDANTS.” On April 10, 2020, the Court granted in part and denied in part Defendants’ Motion for Summary Judgment. [Docket No. 62] The Court granted

summary judgment as to MarineMax and dismissed with prejudice all claims against MarineMax. With respect to Defendant Sea Ray, the Court denied

summary judgment as to Count 4: Revocation of Acceptance and granted summary judgment as to all remaining claims against Sea Ray. The Court

granted both Daubert motions brought by Defendants. On October 22, 2020, the Court granted MarineMax’s unopposed motion for entry of final judgment as to MarineMax pursuant to Federal Rule of Civil

Procedure 54(b). [Docket No. 86] MarineMax now moves for an award of reasonable attorneys’ fees of

$134,847.05 and award of nontaxable costs1 of $13,401.88. Plaintiffs oppose MarineMax’s motion. In MarineMax’s reply, it requests an additional $16,656.00 in legal fees incurred in responding to Plaintiffs’ opposition to motion for

attorneys’ fees. III. DISCUSSION A. Standard

Under Minnesota law, “[a]ttorney fees are recoverable if specifically authorized by contract or statute.” Horodenski v. Lyndale Green Townhome Ass’n, Inc., 804 N.W.2d 366, 371 (Minn. Ct. App. 2011) (citation omitted).

Recoverable fees and costs include those incurred as result of having to file a

1 MarineMax separately filed a Bill of Costs as the prevailing party seeking taxable costs under 28 U.S.C. § 1920, which was granted by the Clerk’s Office. [Docket No. 122] In the motion before the Court, MarineMax does not seek reimbursement for any of the taxable costs that it claims in its Bill of Costs. motion to enforce an attorneys’ fee provision in a contract. See, e.g., In re RFC,

399 F. Supp. 3d 827, 858 (D. Minn. 2019). Generally, Minnesota and federal courts use the lodestar method to determine the reasonableness of attorneys’ fees. See, e.g., Hanig v. Lee, 415 F.3d

822, 825 (8th Cir. 2005); Green v. BMW of N. Am., LLC, 826 N.W.2d 530, 535 (Minn. 2013). “The lodestar method requires the court to determine the number

of hours reasonably expended on the litigation multiplied by a reasonable hourly rate.” Green, 826 N.W.2d at 535 (citation omitted). “[T]he fee applicant bears the burden of establishing entitlement to an award and documenting the appropriate

hours expended and hourly rates.” Hensley v. Eckerhart, 461 U.S. 424, 437 (1983).

B. Plaintiffs’ Objections to the Fee Request Plaintiffs do not dispute that MarineMax was the prevailing party; nor do they dispute that the Purchase Agreement is a valid contract that requires

Plaintiffs to pay MarineMax’s attorneys’ fees and costs that were necessarily incurred to defend this lawsuit. Plaintiffs assert four reasons that MarineMax’s motion should be denied: 1) it was not “necessary” for MarineMax to employ

attorneys for this case because Sea Ray was legally obligated to employ and pay for counsel for the claims asserted against MarineMax; 2) MarineMax had no legal obligation to pay for attorneys’ fees or litigation costs, so the fees and costs

were not “incurred;” 3) Plaintiffs have a right to a jury trial on MarineMax’s attorneys’ fees and costs claim under the Minnesota constitution; and 4) MarineMax’s requested fees and costs are unreasonable.

C. Whether It Was “Necessary” for MarineMax to Employ Attorneys Plaintiffs assert that MarineMax is not entitled to attorneys’ fees because the Purchase Agreement only provides for award of attorneys’ fees “[i]n the

event it is necessary for [MarineMax] to employ an attorney . . . to defend any lawsuit arising out of this Agreement.” Plaintiffs claim that it was not necessary

for MarineMax to hire an attorney to defend itself in this lawsuit because the Sales and Service Agreement between MarineMax and Sea Ray requires Sea Ray to indemnify and hold harmless MarineMax for any attorneys’ fees incurred in

this case. The Sales and Service Agreement states: Sea Ray agrees to indemnify and hold harmless Dealer [MarineMax] for losses, cost and expense to the extent such losses, cost or expense result from any third party claim related to (1) Sea Ray’s negligent acts or omissions involving the original design or manufacture of any Product at the time it left Sea Ray’s possession or control, or the repair of any Product performed by Sea Ray, or (2) any breach of this Agreement by Sea Ray.

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