Boulevard Associates v. Sovereign Hotels, Inc.

868 F. Supp. 70, 1994 U.S. Dist. LEXIS 16328, 1994 WL 646024
CourtDistrict Court, S.D. New York
DecidedNovember 14, 1994
Docket90 Civ. 351 (TFGD)
StatusPublished
Cited by5 cases

This text of 868 F. Supp. 70 (Boulevard Associates v. Sovereign Hotels, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boulevard Associates v. Sovereign Hotels, Inc., 868 F. Supp. 70, 1994 U.S. Dist. LEXIS 16328, 1994 WL 646024 (S.D.N.Y. 1994).

Opinion

MEMORANDUM OPINION ON ATTORNEY’S FEES

MOTLEY, District Judge.

Background

In this court’s opinion of August 30, 1994, 861 F.Supp. 1132, plaintiff was awarded reliance damages, punitive damages, offer of judgment interest on the reliance damages, punitive damages and attorney’s fees beginning from the date that plaintiff filed its complaint until the date of the opinion. Simultaneously, the court entered an order to that effect. Plaintiff moved for reconsideration which was granted. The court thereafter on September 19,1994 amended its order to provide for offer of judgment interest to run from the date the complaint was filed to the date of entry of final order as to all damage awards. The court rendered its opinion on August 30, 1994 and it did not address the specific amount to be awarded as attorney’s fees to plaintiff since no hearing on same had been held or as to the amount recoverable as costs and expenses incurred in connection with this litigation under the contract between the parties. Since there had been no hearing as to these items or response from defendants as to these items, we now address those issues.

Discussion

In this court’s opinion of August 30, 1994, it concluded that plaintiff was entitled to attorney’s fees and costs under the very terms of the lease agreement. As Article 9.0 of the lease provides in pertinent part:

The Tenant shall indemnify and hold harmless the Landlord against all liabilities, damages and other expenses, including reasonable attorneys’ fees, which may be imposed upon, incurred by, or asserted against the Landlord by reason of any of the following occurring during the terms of this Lease:
* * * * * *
(b) Any failure on the part of the Tenant to perform or comply with any covenant required to be performed or complied with by the Tenant hereunder.

This court has already found that Sovereign willfully breached the lease agreement by intentionally defaulting on its rent obligation; therefore, plaintiff is fully entitled to recover reasonable costs and attorney’s fees under the lease.

In the alternative, attorney’s fees may be awarded to plaintiff based upon the Connecticut Unfair Trade Practices Act (CUTPA). In order to award fees under CUTPA, the plaintiff must have prevailed on the CUTPA cause of action. Vezina v. Nautilus Pools, Inc., 27 Conn.App. 810, 610 A.2d 1312 (1992). As this court stated in its earlier opinion:

This court finds that plaintiff has introduced sufficient evidence at trial to find a *72 CUTPA violation. It is undisputed that defendants, notwithstanding the losses they allegedly incurred under the lease, willfully breached the lease when Sovereign stopped paying the minimum rent in May 1989. Moreover, we are persuaded by the evidence presented that Sovereign’s decision to breach the lease was caused by Daka International’s desire to protect the financial health of its corporate group. In light of this evidence, this court finds that defendant’s actions have offended traditional common law concepts of fairness and have caused substantial injury to plaintiff. Thus, defendants are jointly and severally liable to plaintiff for an amount of damages which shall be determined by this court during the damages phase of this trial. Boulevard Associates v. Sovereign Hotels, Inc., 852 F.Supp. 127, 135 (S.D.N.Y.1994).

Pursuant to Conn.Gen.Stat. § 42-110g(d), plaintiffs are entitled to reasonable attorney’s fees. This section provides in relevant part:

In any action brought by a person under this section, the court may award, to the plaintiff, in addition to the relief provided in this section, costs and reasonable attorneys’ fees based on the work reasonably performed by an attorney and not on the amount of recovery.

This Section allows the award of attorneys’ fees without reference to plaintiffs actual monetary award to further the policy of encouraging “private attorney generals” to bring law suits to vindicate important rights. Freeman v. Alamo Management Co., 24 Conn.App. 124, 586 A.2d 619 (1991), rev’d on other grounds, 221 Conn. 674, 607 A.2d 370 (1992); Gill v. Petrazzuoli Bros., Inc., 10 Conn.App. 22, 521 A.2d 212, 218 (1987). The rights referred to in Gill are such rights as freedom from commercial fraud and commercial unfair dealing. Therefore, this court can properly award attorney’s fees under CUT-PA to plaintiff because of defendants’ egregious behavior in performing its obligations under the lease.

The remaining part of the inquiry concerns the fairness and reasonableness of the counsel fees requested by plaintiff. It is within this court’s discretion to award fair and reasonable attorney’s fees to the plaintiff. Staehle v. Michael’s Garage, Inc., 35 Conn.App. 455, 646 A.2d 888 (1994). Plaintiff claims attorney’s fees and disbursements of $265,946.67 in connection with the prosecution of this case from September 1989 to August 1994. Defendants raise some objections to this figure and they will be addressed below.

A. Costs for Expert Witness Mr. Hanrahan

Defendants claim that the costs and expenses for the expert, Hanrahan, cannot be deemed either reasonable or necessary insofar as he did not, according to the court’s findings, opine on anything relevant to damages. Although the court did not use Mr. Hanrahan’s analysis to award expectation damages and denied same, this does not mean that the expenses for his testimony were unnecessary or unreasonable or unfair. The proper inquiry is not whether a particular theory succeeded for plaintiff but that plaintiff achieved success on the merits of its case. Versyss Inc. v. Holbrook, 1993 WL 280126 at * 1 (Conn.Super.Ct. July 7, 1993). The Connecticut Supreme Court in Russell v. Dean Witter Reynolds, Inc., 200 Conn. 172, 510 A.2d 972 (1986) ruled directly on this issue. In that ease, the defendants claimed that the trial court erred by awarding full attorneys’ fees against them when plaintiff had only succeeded on three out of five counts of his complaint. In rejecting any reduction of attorneys’ fees, the court wrote:

Because the amount he expended on litigation, including the dollars spent on his unsuccessful claims, were devoted to the pursuit of a goal that he achieved, the trial court permissibly rejected the defendants’ demand that it reduce the award by two-fifth. 510 A.2d at 984.

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868 F. Supp. 70, 1994 U.S. Dist. LEXIS 16328, 1994 WL 646024, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boulevard-associates-v-sovereign-hotels-inc-nysd-1994.