Cajun Services Unlimited LLC v. Benton Energy Service Company

CourtDistrict Court, E.D. Louisiana
DecidedDecember 9, 2021
Docket2:17-cv-00491
StatusUnknown

This text of Cajun Services Unlimited LLC v. Benton Energy Service Company (Cajun Services Unlimited LLC v. Benton Energy Service Company) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cajun Services Unlimited LLC v. Benton Energy Service Company, (E.D. La. 2021).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

CAJUN SERVICES UNLIMITED, CCIIVVIILL AACCTTIIOONN LLC, et al. NNOO.. 1 7-491 VERSUS c/w 18-5630 and 18-5932 S ECTION M (_) BENTON ENERGY SERVICE SECTION M (2) COMPANY dba BESCO TUBULAR, Pertains to all cases et al.

ORDER & REASONS Before the Court is an application for appellate attorney’s fees filed by appellees/plaintiffs Cajun Services Unlimited, LLC d/b/a Spoked Manufacturing, T2 Tools & Design, LLC, Shane Triche, and Heath Triche (collectively, “Cajun”).1 Appellant/defendant Benton Energy Service Company d/b/a Besco Tubular (“Besco”) responds in opposition.2 Cajun’s fee application and the opposition were filed in the United States Court of Appeals for the Federal Circuit following its determination of the appeal of this case. The Federal Circuit then remanded the application to this Court “to determine in the first instance whether Cajun is entitled to attorneys’ fees incurred in successfully defending th[e] appeal brought by B[esco] and, if so, the proper amount of those fees.”3 Having considered the parties’ submissions, the record, and the applicable law, the Court issues this Order & Reasons awarding Cajun the bulk of the appellate attorney’s fees it requests.

1 C.A. 20-1997 (Fed. Cir.), R. Doc. 59-1. 2 C.A. 20-1997 (Fed. Cir.), R. Doc. 62. 3 C.A. 20-1997 (Fed. Cir.), R. Doc. 63. I. BACKGROUND This consolidated action addressed the contested rights to an elevator roller insert system (“ERIS”), a technology used in drilling for oil.4 Cajun and Besco disputed the contractual arrangement between them while the ERIS was being developed and while Besco was renting the ERIS from Cajun; the validity of the patent obtained by Cajun for the ERIS (U.S. Patent No.

9,988,862, “the ’862 Patent”); the propriety of Besco’s having had the ERIS reverse-engineered and copied; Besco’s use of what it alleged were its own versions of the ERIS; and the ownership rights related to the ERIS.5 Cajun sought injunctive relief to stop Besco from using its alternative designs of the ERIS; a declaratory judgment that it owns the ERIS and that Besco assign to it all right, title, and interest to all improvements and modifications made to the ERIS; a declaratory judgment that Besco infringed the ’862 Patent; and damages for (1) willful infringement of the ’862 Patent; (2) violation of the Defend Trade Secrets Act, 18 U.S.C. §§ 1831-1839 (“DTSA”); (3) violation of the Louisiana Uniform Trade Secrets Act, La. R.S. 51:1431-1439 (“LUTSA”); (4) violation of the Louisiana Unfair Trade Practices Act, La. R.S. 51:1401-1430 (“LUTPA”); (5) bad

faith breach of contract; and (6) fraud. A four-day jury trial was held,6 which resulted in a jury verdict in favor of Cajun and against Besco on all claims.7 The jury determined that there was a written agreement between Cajun and Besco for rental of the ERIS tool (the “Rental Agreement”) and that Besco breached the agreement in bad faith. It awarded Cajun $866,103.10 in damages for breach of contract and $552,000.00 for Besco’s bad faith breach. The jury also found that Cajun was the owner of all

4 For a more complete discussion of the ERIS technology, see R. Docs. 210 at 1-3 & 241 at 3-5 and the documents cited therein. 5 For a more complete discussion of the business relationship between Cajun and Besco, see R. Doc. 241 at 5-11 and the documents cited therein. 6 R. Doc. 257. 7 R. Doc. 267. right, title, and interest to all improvements and modifications made to the ERIS to the exclusion of all others. In addition, the jury found that Besco’s conduct amounted to fraud, violated the LUTPA, violated the DTSA and LUTSA willfully and maliciously, and infringed the ’862 Patent. As a result, it awarded $1.5 million in damages for these violations and infringement and $2 million in exemplary damages for willful and malicious violation of the DTSA.

After trial, the Court resolved the parties’ post-trial motions, including most notably for purposes of the present application, Cajun’s motion for attorney’s fees and costs incurred in prosecuting the case in the district court.8 As part of its ruling, the Court awarded Cajun $954,526.05 in attorney’s fees under the provisions of the LUTPA, LUTSA, and DTSA.9 The Court entered final judgment in Cajun’s favor, and Besco appealed. The Federal Circuit affirmed. Cajun Services Unlimited, LLC v. Benton Energy Service Co., 855 F. App’x 771 (Fed. Cir. 2021). II. PENDING APPLICATION Cajun now argues that it is entitled to an award of the attorney’s fees it incurred in successfully defending the final judgment on appeal, which it says totals $134,814.50.10 In doing so, Cajun invokes the same bases it cited to support the award of fees at the trial court level.11 It

argues that its requested billing rates and hours are reasonable under the lodestar method of fee calculation, especially given the complexity of the case.12 Cajun does not seek a fee enhancement.13 In opposition, Besco argues that Cajun’s application for appellate fees should be denied in its entirety because it “mischaracterizes the record” by claiming that this Court awarded fees on

8 R. Doc. 281. 9 R. Doc. 309. 10 C.A. 20-1997 (Fed. Cir.), R. Doc. 59-1 at 15, 19. 11 Id. at 12-13. 12 Id. at 13-19. 13 Id. at 19. the basis of the Rental Agreement, a contract, when it did not.14 In addition, as it did in opposing Cajun’s original motion for attorney’s fees, Besco argues that the Court should reduce the hourly billing rates proposed by Cajun.15 Besco also reprises its argument that the total fee amount Cajun requests is unreasonable, again asking the Court to reduce the amount of the overall billed hours for time spent on unproductive, excessive, or administrative work, and for vague or redundant

entries.16 Finally, Besco argues that an additional downward adjustment is warranted under the Johnson factors because most of the issues raised on appeal were briefed in the district court and involved no novelty.17 III. LAW & ANALYSIS A. Cajun’s Entitlement to Appellate Attorney’s Fees Under the American Rule, a prevailing litigant may not ordinarily recover attorney’s fees from a loser absent a contractual or statutory fee-shifting provision. See Alyeska Pipeline Serv. Co. v. Wilderness Soc’y, 421 U.S. 240, 247, 257, 260 (1975). In its application, Cajun maintains that an award of appellate attorney’s fees is warranted under the Rental Agreement, LUTPA, DTSA, and LUTSA.18 Besco does not dispute that fees are awardable under the LUTPA, DTSA,

or LUTSA, but denies vehemently that Cajun has a contractual basis to recover attorney’s fees, pointing to the Federal Circuit’s observation that “the district court rejected [Cajun’s] proposed contractual basis for fees.”19 To be sure, Besco argues that Cajun’s “material misrepresentation of the underlying proceedings,” and its wrongful invocation of a contractual basis for an award of

14 C.A. 20-1997 (Fed. Cir.), R. Doc. 62 at 6, 8. 15 Id. at 8-9. 16 Id. at 11-19. 17 Id. at 19-21. 18 C.A. 20-1997 (Fed. Cir.), R. Doc. 59-1 at 12-13. 19 C.A. 20-1997 (Fed. Cir.), R. Doc. 62 at 8 (quoting C.A. 20-1367 (Fed. Cir.), R. Doc. 62 at 4); see also C.A. 20-1997 (Fed. Cir.), R. Doc. 63 at 3 n.3; R. Doc. 309 at 5 n.27. appellate fees, should cause this Court, in its discretion, to reject Cajun’s application in toto.20 This the Court will not do. Cajun’s reference to a contractual basis for its request is more a mistake, borne of sloppiness, than an effort to mislead the Court.

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

Related

Louisiana Power & Light Co. v. Kellstrom
50 F.3d 319 (Fifth Circuit, 1995)
Saizan v. Delta Concrete Products Co.
448 F.3d 795 (Fifth Circuit, 2006)
Alyeska Pipeline Service Co. v. Wilderness Society
421 U.S. 240 (Supreme Court, 1975)
Hensley v. Eckerhart
461 U.S. 424 (Supreme Court, 1983)
Blum v. Stenson
465 U.S. 886 (Supreme Court, 1984)
City of Riverside v. Rivera
477 U.S. 561 (Supreme Court, 1986)
McClain v. Lufkin Industries, Inc.
649 F.3d 374 (Fifth Circuit, 2011)
Moses Leroy v. City of Houston
831 F.2d 576 (Fifth Circuit, 1987)
Rode v. Dellarciprete
892 F.2d 1177 (Third Circuit, 1990)
Betty Black v. SettlePou, P.C.
732 F.3d 492 (Fifth Circuit, 2013)
Campbell v. Green
112 F.2d 143 (Fifth Circuit, 1940)
Laurents v. Louisiana Mobile Homes, Inc.
689 So. 2d 536 (Louisiana Court of Appeal, 1997)
Johnson v. Big Lots Stores, Inc.
639 F. Supp. 2d 696 (E.D. Louisiana, 2009)
Heffernan v. City of Paterson
578 U.S. 266 (Supreme Court, 2016)
Deadra Combs v. City of Huntington, Texas
829 F.3d 388 (Fifth Circuit, 2016)
Tech Pharmacy Servs., LLC v. Alixa RX LLC
298 F. Supp. 3d 892 (E.D. Texas, 2017)
Who Dat Yat Chat, LLC v. Who Dat, Inc.
838 F. Supp. 2d 516 (E.D. Louisiana, 2012)
Johnson v. Georgia Highway Express, Inc.
488 F.2d 714 (Fifth Circuit, 1974)

Cite This Page — Counsel Stack

Bluebook (online)
Cajun Services Unlimited LLC v. Benton Energy Service Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cajun-services-unlimited-llc-v-benton-energy-service-company-laed-2021.