Cesari S.R.L. v. Peju Province Winery L.P.

CourtDistrict Court, S.D. New York
DecidedJuly 11, 2024
Docket1:17-cv-00873
StatusUnknown

This text of Cesari S.R.L. v. Peju Province Winery L.P. (Cesari S.R.L. v. Peju Province Winery L.P.) 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
Cesari S.R.L. v. Peju Province Winery L.P., (S.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ---------------------------------------X

CESARI S.R.L.,

Plaintiff, MEMORANDUM AND ORDER - against - 17 Civ. 873 (NRB) PEJU PROVINCE WINERY L.P., PEJU FAMILY OPERATING PARTNERSHIP L.P., and PEJU PROVINCE CORPORATION, Defendants.

---------------------------------------X NAOMI REICE BUCHWALD UNITED STATES DISTRICT JUDGE

After a four-day bench trial in July 2023, the Court awarded plaintiff Cesari S.r.l., an Italian winemaker, (“plaintiff” or “Cesari”) $666,214 in disgorged profits from defendants Peju Province Winery L.P. (“PPW”) and Peju Family Operating Partnership L.P., Napa Valley vintners, (“PFOP”, and together with PPW “defendants” or “Peju”). Plaintiff now seeks, pursuant to Section 35(a) of the Lanham Act, over $1.7 million in attorney’s fees, nearly $300,000 in costs, and pre- and post-judgment interest. For the reasons stated below, plaintiff’s motion is granted in part and denied in part.1

1 Plaintiff filed the instant motion on October 30, 2023. ECF No. 478 (“Mot.”). In support of its motion, plaintiff filed a number of declarations and exhibits including: (1) the declaration of plaintiff’s counsel, Valeria Calafiore Healy, submitting exhibits, ECF No. 479; (2) the second declaration of plaintiff’s counsel detailing costs for plaintiff’s damages expert which included biographies of the expert witness team and detailed invoices, ECF No. 480 (“Expert Decl.”); (3) the third declaration of plaintiff’s counsel detailing other costs and charges plaintiff incurred with invoices, ECF No. 481 (“Other Costs Decl.”); (4) the The pre-litigation history between the parties and the history of this trademark infringement litigation, including the Court’s evaluation of the substantive positions asserted by the parties, as

well as their strategic approaches, have been the subject of two lengthy opinions by this Court: the first on the parties’ cross- motions for summary judgment, Cesari S.r.L. v. Peju Province Winery L.P., No. 17 Civ. 873 (NRB), 2022 WL 3082960, (S.D.N.Y. Aug. 3, 2022) (“August 2022 Summary Judgment Opinion”), and the second resolving the remaining issue of damages post-trial, Cesari S.r.l. v. Peju Province Winery L.P., 693 F. Supp. 3d 375, 400 (S.D.N.Y. 2023) (“September 2023 Post-Trial Opinion”).2 The Court assumes familiarity with these opinions and will not repeat their content,

fourth declaration of plaintiff’s counsel describing the attorney’s fees incurred by plaintiff and summarizing the time keepers, invoices, and nature of the work completed for the hours reflected in the invoices, ECF No. 482 (“First Attorney’s Fees Decl.”); (5) the declaration of plaintiff’s expert, Beth Rubin, CPA, in support of plaintiff’s request for pre-judgment interest, ECF No. 483; and (6) a further attorney’s fees declaration with the total attorney’s fees sought, invoices, and various charts noting the hours expended by counsel and the nature of the work completed and the stage of the litigation, ECF No. 486 (“Second Attorney’s Fees Decl.”). On December 6, 2023, defendants submitted their opposition memorandum, ECF No. 489 (“Opp.”), and two supporting declarations: (1) a declaration by Mr. Joel MacMull, defendants’ counsel, ECF No. 490 (“MacMull Decl.”) and (2) the declaration of defendants’ expert David Duski regarding pre- judgment interest, ECF No. 491. 2 In addition to these two decisions, the Court filed decisions on December 11, 2017, November 7, 2018, October 4, 2019, February 24, 2020, December 10, 2020, and February 6, 2023, see, e.g., Cesari S.r.L. v. Peju Province Winery L.P., No. 17 Civ. 873 (NRB), 2017 WL 6509004 (S.D.N.Y. Dec. 11, 2017); Cesari S.r.L. v. Peju Province Winery L.P., No. 17 Civ. 873 (NRB), 2018 WL 5831315 (S.D.N.Y. Nov. 7, 2018); Cesari S.r.l. v. Peju Province Winery L.P., No. 17 Civ.873 (NRB), 2019 WL 5460379 (S.D.N.Y. Oct. 4, 2019); Cesari S.r.L. v. Peju Province Winery L.P., No. 17 Civ. 873 (NRB), 2020 WL 1126833 (S.D.N.Y. Feb. 24, 2020); Cesari S.r.L. v. Peju Province Winery L.P., No. 17 Civ. 873 (NRB), 2020 WL 7261105 (S.D.N.Y. Dec. 10, 2020); Cesari S.R.L. v. Peju Province Winery L.P., No. 17 Civ. 873 (NRB), 2023 WL 1779543 (S.D.N.Y. Feb. 6, 2023), resolved numerous disputes by letters, see, e.g., ECF Nos. 79, 104, 227, 297, 310, 315, and 391, and held 19 conferences and in-court hearings resulting in 1,242 pages of transcript, see ECF Nos. 43, 150, 210, 231, 289, 308, 333, 369, 375, 461, 463, 465, and 467. except as necessary to address the issues presented by the current motion. I. Attorney’s Fees: The Legal Context

Generally, “[t]he United States follows the ‘American Rule’ regarding attorney’s fees: ‘the prevailing party may not recover attorney’s fees as costs or otherwise.’” Castillo Grand, LLC v. Sheraton Operating Corp., 719 F.3d 120, 123 (2d Cir. 2013) (quoting Alyeska Pipeline Serv. Co. v. Wilderness Soc’y, 421 U.S. 240, 245 (1975)). However, the American Rule “can, of course, be overcome by statute.” Travelers Cas. and Sur. Co. of Am. v. Pacific Gas and Elec. Co., 549 U.S. 443, 448 (2007). Section 35(a) of the Lanham Act is one of those statutes. Section 35(a) provides that once a violation is established, a plaintiff is entitled, “subject to the principles of equity, to recover (1) defendant’s profits, (2) any damages sustained by the plaintiff, and (3) the costs of the

action.” 15 U.S.C. § 1117(a). Moreover, “[t]he court in exceptional cases may award reasonable attorney fees to the prevailing party.”3 Id. That section of the Lanham Act also states that profits or damages “shall constitute compensation and not a penalty.” Id. Thus, read as a whole, the statute instructs that

3 To satisfy the “prevailing party” prerequisite to a fee award, “a litigant must have ‘achieved a judicially sanctioned change in the legal relationship of the parties.’” Manhattan Review LLC v. Yun, No. 16 Civ. 0102 (LAK) (JCF), 2017 WL 11455317, at *4 (S.D.N.Y. Sept. 21, 2017), aff’d, 919 F.3d 149 (2d Cir. 2019), and subsequently aff’d, 765 F. App’x 574 (2d Cir. 2019) (quoting Mr. L. v. Sloan, 449 F.3d 405, 406 (2d Cir. 2006)). The parties do not dispute that Cesari was the prevailing party in this action. awards pursuant to this section should be approached with restraint. An “‘exceptional’ case is simply one that stands out from others with respect to the substantive strength of a party’s litigating

position (considering both the governing law and the facts of the case) or the unreasonable manner in which the case was litigated.” Sleepy’s LLC v. Select Comfort Wholesale Corp., 909 F.3d 519, 530 (2d Cir. 2018) (citing Octane Fitness, LLC v. ICON Health & Fitness, Inc., 572 U.S. 545, 554 (2014)). This standard “demands a simple discretionary inquiry; it imposes no specific evidentiary burden.” Octane Fitness, 572 U.S. at 557. District courts have “wide latitude” to “engage in a ‘case- by-case exercise of their discretion, considering the totality of the circumstances.’” 4 Pillar Dynasty LLC v. New York & Co., Inc., 933 F.3d 202, 215 (2d Cir. 2019) (quoting Octane Fitness, 572 U.S. at 554).

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