California Expanded Metal Products Company v. James Klein

District Court, W.D. Washington·Decided January 8, 2024·No. 2:18-cv-00659·Unknown

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON AT SEATTLE

CALIFORNIA EXPANDED CASE NO. C18-0659JLR METAL PRODUCTS COMPANY, et al., ORDER Plaintiffs, v.

JAMES A. KLEIN, et al., Defendants.

Before the court are supplemental motions for attorneys’ fees filed by Plaintiffs California Expanded Metal Products Company (“CEMCO”) and Clarkwestern Dietrich Building Systems LLC (“ClarkDietrich”) (together, “Plaintiffs”) pursuant to the court’s November 21, 2023 order granting in part Plaintiffs’ motions for attorneys’ fees and costs. (CEMCO Supp. Mot. (Dkt. # 380); CEMCO Supp. Reply (Dkt. # 384); ClarkDietrich Supp. Mot. (Dkt. # 378); ClarkDietrich Supp. Reply (Dkt. # 383); see 11/21/23 Order (Dkt. # 377) at 18-19.) Defendants James A. Klein, BlazeFrame Industries, Ltd., and Safti-Seal, Inc. (collectively, “Defendants”) oppose the motions.

(Supp. Resp. (Dkt. # 382).) The court has considered Plaintiffs’ motions, the parties’ submissions, the relevant portions of the record, and the governing law. Being fully advised, the court GRANTS CEMCO and ClarkDietrich’s supplemental motions for attorneys’ fees. In its November 21, 2023 order, the court awarded CEMCO $594,511.15 in

attorneys’ fees and $135,661.93 in costs accrued through July 31, 2023. (11/21/23 Order at 8-14, 19-22.) It awarded ClarkDietrich $766,645.03 in attorneys’ fees and $48,567.31 in costs accrued through that same date. (Id. at 14-18, 19-22.) The court also granted Plaintiffs leave to file motions for attorneys’ fees associated with preparing their original motions for attorneys’ fees and costs. (Id. at 18-19.) CEMCO now seeks an additional

award of $31,973.78 in attorneys’ fees associated with its original motion for attorneys’ fees and costs and ClarkDietrich seeks an additional award of $29,190.00. (CEMCO Supp. Mot. at 1; ClarkDietrich Supp. Mot. at 1.) Neither Plaintiff seeks costs associated with the original motions. (CEMCO Supp. Mot. at 1; ClarkDietrich Supp. Mot. at 1.)

Below, the court (1) reviews the legal standards that govern the court’s consideration of Plaintiffs’ supplemental motions for attorneys’ fees, (2) addresses Defendants’ arguments in opposition to the motions, and (3) determines the reasonable attorneys’ fees to award each Plaintiff. A. Legal Standards To determine whether counsel’s requested fees are reasonable, the court applies

the “lodestar” method. See Camacho v. Bridgeport Fin., Inc., 523 F.3d 973, 978 (9th Cir. 2008). The court calculates the lodestar by multiplying “the number of hours . . . reasonably expended on the litigation by a reasonable hourly rate.” Id. (quoting Ferland v. Conrad Credit Corp., 244 F.3d 1145, 1149 n.4 (9th Cir. 2001)). Although the resulting figure is presumptively reasonable, the court may adjust the lodestar figure up or down based on additional factors that were not already subsumed in the initial lodestar

calculation. Id. at 982. These factors, known as the “Kerr factors,” are: (1) the time and labor required, (2) the novelty and difficulty of the questions involved, (3) the skill requisite to perform the legal service properly, (4) the preclusion of other employment by the attorney due to acceptance of the case, (5) the customary fee, (6) whether the fee is fixed or contingent, (7) time limitations imposed by the client or the circumstances, (8) the amount involved and the results obtained, (9) the experience, reputation, and ability of the attorneys, (10) the ‘undesirability’ of the case, (11) the nature and length of the professional relationship with the client, and (12) awards in similar cases.

Kerr v. Screen Extras Guild, Inc., 526 F.2d 67, 70 (9th Cir. 1975); see also Cairns v. Franklin Mint Co., 292 F.3d 1139, 1158 (9th Cir. 2002) (noting that the court need not consider the Kerr factors unless necessary to support the reasonableness of the award). The reasonable hourly rate in the lodestar “is the ‘rate prevailing in the community for similar work performed by attorneys of comparable skill, experience, and reputation.’” Camacho, 523 F.3d at 979 (quoting Barjon v. Dalton, 132 F.3d 496, 502 (9th Cir. 1997)). The relevant community for determining whether the rates are reasonable “is the forum in which the district court sits.” Id. (citing Barjon, 132 F.3d at 500).

To determine a reasonable number of hours, the court must consider “whether, in light of the circumstances, the time could reasonably have been billed to a private client.” Moreno v. City of Sacramento, 534 F.3d 1106, 1111 (9th Cir. 2008). The hours claimed may be reduced by the court if the “documentation of the hours is inadequate”; “the case was overstaffed and hours are duplicated”; or “the hours expended are deemed excessive or otherwise unnecessary.” Chalmers v. City of Los Angeles, 796 F.2d 1205, 1210 (9th

Cir. 1986). The court has the “authority to make across-the-board percentage cuts either in the number of hours claimed or in the final lodestar figure ‘as a practical means of trimming the fat from a fee application.’” Gates v. Deukmejian, 987 F.2d 1392, 1399 (9th Cir. 1992) (quoting N.Y. State Ass’n for Retarded Children v. Carey, 711 F.2d 1136, 1146 (2d Cir. 1983)).

B. Defendants’ Arguments The court begins by addressing Defendants’ opposition to Plaintiffs’ supplemental motions. Rather than challenge the rates, hours, or time entries claimed by Plaintiffs, Defendants raise two general arguments, neither of which the court finds persuasive. (See generally Supp. Resp.)

First, Defendants argue, as they did in their opposition to Plaintiffs’ original motions, that the court should cap the total fees and costs awarded at $607,770.65, the amount of profits that the court ordered Defendants to disgorge to Plaintiffs. (Supp. Resp. at 1; see 1/26/23 Order (Dkt. # 332) at 37-38.) The court rejected this argument in its November 21, 2023 order and will not reconsider that decision now. (See 11/21/23 Order at 9-10.)

Second, Defendants argue that the court should reduce Plaintiffs’ supplemental fee awards by the same percentages by which it reduced Plaintiffs’ original fee awards to reflect Plaintiffs’ partial success in their original fee motions. (Supp. Resp. at 1-2 (arguing that the court should reduce CEMCO’s supplemental fees by 31% and ClarkDietrich’s supplemental fees by 19%).) Both Plaintiffs, however, have already accounted for unsuccessful efforts in their original motions by deducting fees related to

purported expert Benjamin J. Byer’s declaration from their supplemental fee requests. (11/21/23 Order at 7-8 (excluding Mr. Byer’s declaration), 18-19 (ordering Plaintiffs not to seek reimbursement for fees or costs associated with Mr. Byer’s declaration); CEMCO Supp. Mot. at 2-3 (stating that CEMCO reduced its bills by $55,208.35 by excluding fees relating to Mr. Byer and applying discounted hourly rates); ClarkDietrich Supp. Mot. at 2

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