Brian Lyngaas, D.D.S. v. Curaden AG

CourtDistrict Court, E.D. Michigan
DecidedAugust 31, 2022
Docket2:17-cv-10910
StatusUnknown

This text of Brian Lyngaas, D.D.S. v. Curaden AG (Brian Lyngaas, D.D.S. v. Curaden AG) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brian Lyngaas, D.D.S. v. Curaden AG, (E.D. Mich. 2022).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

BRIAN LYNGAAS, D.D.S., individually and as the representative of a class of similarly situated persons,

Plaintiff, Case No. 17-cv-10910 v. HON. MARK A. GOLDSMITH CURADEN AG, et al.,

Defendants. ___________________________________/

OPINION & ORDER GRANTING IN PART PLAINTIFF’S MOTION FOR LITIGATION EXPENSES, ATTORNEY FEES, AND NAMED PLAINTIFF INCENTIVE AWARD (Dkt. 174)

This Court entered judgment in favor of Plaintiff Brian Lyngaas, D.D.S.—who brought this action both individually and as the representative of a class of similarly situated persons— against Defendant Curaden USA, Inc. (Dkt. 146). Lyngaas now moves for litigation expenses, attorney fees, and a named plaintiff incentive award out of the total recovery of $907,500 (Dkt. 174). For the reasons that follow, the Court grants Lyngaas’s motion in part, modifying his requested relief to award (i) $96,490.78 in litigation expenses; (ii) $3,000 to Lyngaas in his role as class representative, to be paid from the total amount recovered; and (iii) $202,002.31 in attorney fees, equal to 25% of the total recovery after the subtraction of attorney fees and the class representative award.1

1 Because oral argument will not aid the Court’s decisional process, the motion will be decided based on the briefing. See E.D. Mich. LR 7.1(f)(2); Fed. R. Civ. P. 78(b). Lyngaas’s unopposed motion includes a memorandum in support of his motion. After reviewing Lyngaas’s motion, the Court ordered Lyngaas to file a supplemental memorandum and an affidavit or declaration in support of certain of his claims, see 6/3/22 Order (Dkt. 175), which Lyngaas did on June 13, 2022 (Dkts. 176, 176-1). I. BACKGROUND Lyngaas brought this class action based on unsolicited faxes advertising dental products that Curaden and its parent, Curaden AG, allegedly sent to dental offices in violation of the Telephone Consumer Protection Act, 47 U.S.C. § 227 (TCPA) (Dkt. 1). Following a bench trial, the Court found that Curaden (but not its parent) was liable for violating the TCPA and ordered

that a claims administration process be established so that an award amount could be fixed and distributed to eligible class members. 11/21/19 Order at 35–39 (Dkt. 129). The Court subsequently entered a final judgment in favor of the class against Curaden in an amount to be determined through the claims administration process. See Final Judgment at 1–3.2 The United States Court of Appeals for the Sixth Circuit affirmed this judgment. Lyngaas v. Ag, 992 F.3d 412, 438 (6th Cir. 2021). Lyngaas filed a declaration from the administrator of the claims process stating that 919 class members had claimed receipt of 1,815 total violative fax transmissions. See Decl. of Dorothy Sue Merryman ¶ 17 (Dkt. 159). Because Curaden was liable for $500 per violative transmission

under the TCPA, the Court found that Curaden was liable to the class for a total of $907,500. See 12/21/21 Op. & Order at 7 (Dkt. 173) (citing 47 U.S.C. § 227(b)(3)(B)). The Court also allowed Lyngaas to file a renewed motion for attorney fees, an incentive award, and/or litigation costs. Id. at 8. The motion presently before the Court followed.

2 The judgment also allowed Lyngaas to file any motion seeking an award of attorney fees and costs to class counsel. Id. at 3. Lyngaas filed a motion for litigation expenses, attorney fees, and an incentive award (Dkt. 147). The Court issued an order finding that class counsel was entitled to a fee payment, but that “due to the uncertain nature of the case’s result, it would be premature to determine how that payment will be calculated.” 9/3/20 Op. & Order at 4 (Dkt. 157). II. ANALYSIS Lyngaas requests that the Court (i) award class counsel $96,490.78 in litigation expenses; (ii) award class counsel one-third of the total recovery of $907,500—that is, $302,500; and (iii) authorize class counsel to pay an incentive award of $15,000 to Lyngaas for serving as the class representative, taken from monies that would otherwise be attorney fees. Pl. Mem. in Supp. Mot.

at 15. The Court addresses each request in turn. I. Litigation Expenses “In common fund type cases, as here, generally class counsel is entitled to reimbursement of all reasonable out-of-pocket litigation expenses and costs.” Allan v. Realcomp II, Ltd., No. 10- cv-14046, 2014 WL 12656718, at *2 (E.D. Mich. Sept. 4, 2014) (punctuation modified, citations omitted). Lyngaas supports his request with an itemization of all litigation expenses, which include service and filing fees, travel costs, court reporter expenses, legal research charges, expert witness compensation, and costs associated with the claims administration process. See Expense Itemization (Dkt. 174-1). Lyngaas provides further documentation supporting the claims administration costs (Dkts. 174-2–174-5).3

3 The Court ordered Lyngaas to provide further explanation and a declaration or affidavit in support of two asserted claims administration costs: (i) a July 24, 2019 Class-Settlement.com invoice for $9,932 (Dkt. 174-2), also identified as a “Class Notice” charge in Lyngaas’s itemization of his expenses, see Expense Itemization at PageID.25866; and (ii) a February 14, 2020 Class- Settlement.com quote that includes $11,580 for “Settlement Distribution” (Dkt. 174-4), also identified as a charge “[t]o be paid to Class-Settlement.com if money is recovered and distributed,” see Expense Itemization at PageID.25866. See 6/3/22 Order at 1.

Lyngaas’s supplemental memorandum explains that the $9,932 charge relates to sending “the notice of pendency in the class action” and includes the costs of (i) faxing 30,074 notices and (ii) printing and mailing 4,752 postcards. 6/13/22 Pl. Suppl. Mem. at 2; 6/13/22 Merryman Dec. ¶ 5 (Dkt. 176-1). The $11,580 charge relates to work not yet performed by the administrator in connection with the processing and mailing of payments to the class member claimants once money is recovered, and it thus represents an estimate of future costs. 6/13/22 Pl. Suppl. Mem. at 2; 6/13/22 Merryman Dec. ¶ 6. Courts may award expected future expenses, setting that amount Lyngaas has adequately demonstrated that these “expenses were reasonable and necessary to the representation of the Class,” In re Prandin Direct Purchaser Antitrust Litig., No. 2:10-cv- 12141-AC-DAS, 2015 WL 1396473, at *5 (E.D. Mich. Jan. 20, 2015), and that they “reflect reasonable and appropriate expenditures associated with preparing for trial,” Cason-Merenda v. VHS of Michigan, Inc., No. 2:06-cv-15601, 2016 WL 944901, at *2 (E.D. Mich. Jan. 29, 2016).

Accordingly, the Court grants Lyngaas’s request for litigation expenses. If actual future expenses are less than the expected future expenses proposed by Lyngaas, then the lower figure must be used to calculate distributions to class members. If the actual figure for future expenses is higher, the claims administrator will remain responsible for completing the claims process, and no additional amount may be paid to it from the recovered funds. See Bobbitt, 2009 WL 3336085, at *3. II. Attorney Fees When granting an award of attorney fees, a district court is “entitled to ‘substantial deference because the rationale for the award is predominantly fact-driven.’” Gascho v. Glob.

Fitness Holdings, LLC, 822 F.3d 269, 279 (6th Cir. 2016) (quoting Imwalle v. Reliance Med.

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