Chestnut Hill Gulf, Inc. v. Cumberland Farms, Inc.

749 F. Supp. 331, 18 Fed. R. Serv. 3d 1106, 1990 U.S. Dist. LEXIS 14384, 1990 WL 165214
CourtDistrict Court, D. Massachusetts
DecidedOctober 24, 1990
DocketCiv. A. 86-3519
StatusPublished
Cited by4 cases

This text of 749 F. Supp. 331 (Chestnut Hill Gulf, Inc. v. Cumberland Farms, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chestnut Hill Gulf, Inc. v. Cumberland Farms, Inc., 749 F. Supp. 331, 18 Fed. R. Serv. 3d 1106, 1990 U.S. Dist. LEXIS 14384, 1990 WL 165214 (D. Mass. 1990).

Opinion

MEMORANDUM AND ORDER GRANTING PLAINTIFFS’ MOTION FOR ATTORNEYS’ FEES

McNAUGHT, District Judge.

This matter is before the Court on plaintiffs’ motion for attorneys’ fees, expert witness fees, and costs pursuant to the Petroleum Marketing Practices Act, 15 U.S.C. § 2805(d)(1). In support of the motion, plaintiffs have submitted computerized records itemizing the time spent and services rendered by their attorneys and legal assistants. Defendants have opposed plaintiffs’ motion, and supporting memo-randa have been filed by both parties.

Plaintiffs were sixteen service station dealers who charged Chevron and Cumberland Farms with having terminated or non-renewed their franchises in bad faith. On February 21, 1989, after a nineteen-day trial, the jury returned a verdict for plaintiffs as against Cumberland Farms. Plaintiffs did not prevail against Chevron where its decision to withdraw from the market was found to be in the normal course of business and in good faith.

Damages were awarded in the amount of $653,682.00. One dollar was awarded to A1 *333 Stander’s Gulf Service, J.M. McMullen, Russell Killion, Nicholas Prizio, James La-hey, Richard Silva, and Bolton Chevron. Five plaintiffs received zero damages. They are Steve Spinelli, Francis A. Roberts, Jr., Mystic Gulf Service, and O.F. Welker, Inc. Chestnut Hill Gulf, Inc. received the largest sum — $490,000. Fifty-three thousand dollars was awarded to Thomas Gil-braith; $98,000 was awarded to David Hills; Yassin Gulf received $6,375.00, and Bob’s Gulf Service received $6,300.00.

Plaintiffs also received significant equitable relief in the nature of injunctive relief and a rent freeze order mandated by this Court. More importantly, plaintiffs were allowed to remain in their respective franchises during the pendency of the action and thereafter were to be offered nondiscriminatory franchise agreements for a three-year period.

Defendants' initial objection to the motion is that those plaintiffs who received zero damages, or nominal damages of one dollar, are not prevailing parties and are not entitled to attorneys’ fees. To prevail as a party, plaintiffs must establish that they were successful on a significant issue that achieved some of the benefits sought. Texas State Teachers Assoc. v. Garland Independent School Dist., 489 U.S. 782, 109 S.Ct. 1486, 103 L.Ed.2d 866 (1989). Defendants analogize the definition of prevailing party in PMPA cases to that of civil rights cases. We agree. Employing that analysis, notwithstanding the paucity of damages awarded to some of the plaintiffs, the equitable relief granted (coupled with the actual damages awarded certain plaintiffs) compels the conclusion that all plaintiffs are prevailing parties. See Ketterle v. B.P. Oil, Inc., 909 F.2d 425 (11th Cir.1990) (plaintiffs held to be prevailing parties where injunctive relief removed threat of termination allowing them to remain in franchise until defendant withdrew its termination). See also Lippo v. Mobil Oil Corp., 776 F.2d 706 (7th Cir.1985); Lyons v. Mobil Oil Corp., 554 F.Supp. 199 (D.Conn.1982).

As an additional preliminary issue, defendants argue that because they tendered an offer of $700,000.00 to plaintiffs before trial, most of the plaintiffs are not entitled to attorneys’ fees incurred after the November 30, 1988 offer. Defendants predicate this argument on Rule 68 of the Federal Rules of Civil Procedure which provides that if a party rejects a pretrial settlement offer, and “the judgment finally obtained ... is not more favorable than the offer, the offeree must pay the costs incurred after the making of the offer.” Defendants insist that their $700,000.00 pretrial offer equalled more than the $653,-682.00 in total damages received by plaintiffs, and argue therefore, that any fees awarded must be reduced accordingly.

There is no doubt that Rule 68 was promulgated to encourage settlements and to avoid litigation. Marek v. Chesny, 473 U.S. 1, 105 S.Ct. 3012, 87 L.Ed.2d 1 (1985); Crossman v. Marcoccio, 806 F.2d 329 (1st Cir.1986), cert. denied, 481 U.S. 1029, 107 S.Ct. 1955, 95 L.Ed.2d 527 (1987). Financial compensation, however, is not the “be all and end all”. Plaintiffs here received very real benefits in the form of being allowed to retain their franchises for at least a three-year period. Their belief that Cumberland Farms had acted improperly was vindicated by the jury’s finding of bad faith on Cumberland Farms’s part when it terminated or failed to renew the franchises in question. Two of the contractual provisions were changed as a result of the litigation. Those successes suffice to demonstrate that plaintiffs received more than just the actual damages awarded. Rule 68 was not intended to preclude parties from having their day in court where more could be gained from litigating a matter than from accepting a settlement. The fact that an offer of $700,000.00 was made before trial, therefore, does not bar this motion for attorneys’ fees and costs where I conclude that plaintiffs received more as a result of the litigation than that which was offered by way of a pretrial settlement.

Plaintiffs initially sought $880,102.00 in attorneys’ fees, $56,684.03 in expenses, and $38,356.46 in expert witness fees. Also sought was an upward adjustment of the lodestar of a 1.5 multiplier, or *334 the use of current hourly rates (rather than historical rates), due to what plaintiffs characterize as the “exceptional success” of the action. Were this Court to grant the request to use current hourly rates, plaintiffs would receive $973,191.00 in attorneys fees. If this Court were to award additionally the requested upward adjustment of the lodestar, plaintiffs would be granted the sum of $1,269,000.00.

The breakdown of the requested fees for attorneys and legal assistants is as follows:

Attorney Hours Rates Total

Stephen M. Honig 344.5 205-250 $ 78,405.00

Carl K. King 891.2 205-230 $199,638.00

Martin S. Allen 12.5 255 $ 3,187.50

Robert D. Cultice 1488.2 155-200 $256,698.00

Gayle M. Merling 32 155 $ 4,960.00

Warren I. Green 65.4 140 $ 9,156.00

Brooks S. Thayer 166.5 100 $ 16,650.00

David Wisen 107.9 100 $ 10,790.00

Thomas P. LaFrance 862.1 100-110 $ 87,228.00

Steven D. Fisher 4.5 90 $ 405.00

Caroline M. O’Brien 233.7 70 $ 16,359.00

Alana Shephard 582.7 55-60 $ 32,515.00

Dan W.

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749 F. Supp. 331, 18 Fed. R. Serv. 3d 1106, 1990 U.S. Dist. LEXIS 14384, 1990 WL 165214, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chestnut-hill-gulf-inc-v-cumberland-farms-inc-mad-1990.