Career Agents Network, Inc. v. Careeragentsnetwork.biz

722 F. Supp. 2d 814, 2010 U.S. Dist. LEXIS 64102, 2010 WL 2632298
CourtDistrict Court, E.D. Michigan
DecidedJune 29, 2010
DocketCase 09-CV-12269
StatusPublished
Cited by1 cases

This text of 722 F. Supp. 2d 814 (Career Agents Network, Inc. v. Careeragentsnetwork.biz) 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
Career Agents Network, Inc. v. Careeragentsnetwork.biz, 722 F. Supp. 2d 814, 2010 U.S. Dist. LEXIS 64102, 2010 WL 2632298 (E.D. Mich. 2010).

Opinion

OPINION AND ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION FOR ATTORNEY FEES

ROBERT H. CLELAND, District Judge.

Pending before this court is Defendants’ March 25, 2010 motion for attorney fees. The matter has been fully briefed and the court concludes that a hearing on the motion is unnecessary. See E.D. Mich. LR 7.1(e)(2). For the reasons stated below, the court will grant the motion in part and deny it in part.

I. BACKGROUND

Plaintiff Career Agents Network, Inc. (“CAN”) sells recruiting industry business opportunities. (Pl.’s Mot. for Summ. J. Resp. at 3.) CAN provides training, software, and other support services to the recruiting entrepreneurs who purchase a *817 membership in its network. (Defs. Mot. Summ. J. Br. at 2-3). In return, members pay CAN a portion of their recruiting fee when they place a candidate. Lawrence White paid $49,000 to Health Career Agents, Inc. (“HCA”) for a similar business opportunity. (Defs.’ Mot. for Summ. J. Br. at 3.) CAN later purchased HCA’s assets. (Pl.’s Mot. for Summ. J. Resp. at 3.) White avers that he “soon discovered that the ‘business opportunity’ was not as lucrative as represented.” (White Aff. at ¶ 6, Dec. 22, 2009.) White registered the domain names careeragentsnetwork.biz and eareeragentnetwork.biz as an agent of AeroMedia Marketing, Inc. (Id. at ¶ 3.) White uploaded a single page of text to the websites. (Id. at ¶ 15; Defs. Br. Summ. J. Ex. E). The text amounted to a warning that CAN’S business opportunities were a bad investment. (Id.)

On June 12, 2009 Plaintiff filed its complaint against Defendants eareeragentsnetwork.biz and eareeragentnetwork.biz (“Domains”). The complaint alleged that the owner of the websites, who was at that time unknown to the court and to Plaintiff, registered the Domains with a “bad faith intent to profit” and therefore violated the Anti-cybersquatting Consumer Protection Act, 15 U.S.C. 1125(d). (PL’s Compl. ¶¶ 13, 19-22.) Plaintiff then filed a motion for a temporary restraining order and permanent injunction, which the court granted in part by requiring the registrar of the Domains to reveal who owned them. On June 16, 2009 Plaintiff amended its complaint to join as Defendants Lawrence White and Aeromedia Marketing, Inc., the owners of the Domains, and to add a trademark infringement claim under 15 U.S.C. § 1125(a). Plaintiff maintained that Defendants were using the domains to confuse consumers and to siphon business from CAN to Defendants. Defendants responded that the Domains were merely “gripe” websites that White created to voice his dissatisfaction with CAN as a consumer of its services.

Defendants filed their motion for summary judgment on December 22, 2009, and the court granted the motion on February 26, 2010, 2010 WL 743053. Defendants now seek attorney fees and expenses pursuant to 15 U.S.C. § 1117(a) in the amount of $36,424.82 based on hours billed for both litigating the suit through summary judgment and litigating the issue of attorney fees. (Defs.’ Mot. for Atty’s Fees.) Plaintiff contends that attorney fees are not warranted under the Lanham Act and that the fees requested are excessive.

II. STANDARD

Under the general American rule, unless Congress provides otherwise, parties to litigation are to bear their own attorney fees. Fogerty v. Fantasy, Inc., 510 U.S. 517, 533, 114 S.Ct. 1023, 127 L.Ed.2d 455 (1994) (“Unlike Britain where counsel fees are regularly awarded to the prevailing party, it is the general rule in this country that unless Congress provides otherwise, parties are to bear their own attorney fees”). Pursuant to 15 U.S.C § 1117(a), the court may grant attorney fees to the prevailing party in a Lanham Act action in “exceptional cases.” 15 U.S.C § 1117(a); Hindu Incense v. Meadows, 692 F.2d 1048, 1052 (6th Cir.1982). Either a prevailing plaintiff or a prevailing defendant may be awarded fees under § 1117(a). Eagles, Ltd. v. Am. Eagle Found., 356 F.3d 724, 728 (6th Cir.2004). In applying 15 U.S.C. § 1117(a) to a prevailing defendant, a case is exceptional where a plaintiff brings an “oppressive” suit. Id. (citing Balance Dynamics Corp. v. Schmitt Indus., Inc., No. 98-1143, 2000 WL 226959, at *2 (6th Cir. Feb. 25, 2000)). The test for whether a Lanham Act suit is oppressive “requires an objective inquiry into whether the suit was unfounded when *818 it was brought and a subjective inquiry into the plaintiffs conduct during litigation.” Id. “No one factor is determinative, and an infringement suit could be ‘exceptional’ for a prevailing defendant because of (1) its lack of any foundation, (2) the plaintiffs bad faith in bringing the suit, (3) the unusually vexatious and oppressive manner in which it is prosecuted, or (4) perhaps for other reasons as well.” Id. at 729 (citing National Ass’n of Prof'l Baseball Leagues, Inc. v. Very Minor Leagues, Inc., 223 F.3d 1143, 1146-47 (10th Cir.2000)).

If the court determines that fees are appropriate because the case is “exceptional” under 15 U.S.C § 1117(a), the court must then arrive at a reasonable amount of fees to award. See Bldg. Serv. Local 47 Cleaning Contractors Pension Plan v. Grandview Raceway, 46 F.3d 1392, 1400 (6th Cir.1995). The “lodestar” approach is the proper method for determining the amount of reasonable attorney fees. Id. at 1401 (citing Pennsylvania v. Delaware Valley Citizens’ Council for Clean Air, 478 U.S. 546, 563, 106 S.Ct. 3088, 92 L.Ed.2d 439 (1986)). In making the “lodestar” calculation, “[t]he most useful starting point ... is the number of hours reasonably expended on the litigation multiplied by a reasonable hourly rate.” Id. (alterations in original and citation omitted.) “The party seeking attorney fees bears the burden of proof on the number of hours expended and rates claimed.” Granzeier v. Middleton,

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722 F. Supp. 2d 814, 2010 U.S. Dist. LEXIS 64102, 2010 WL 2632298, Counsel Stack Legal Research, https://law.counselstack.com/opinion/career-agents-network-inc-v-careeragentsnetworkbiz-mied-2010.