Cole v. City of Wauwatosa

District Court, E.D. Wisconsin·Decided November 22, 2024·No. 2:23-cv-01321·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF WISCONSIN

TRACY COLE and TALEAVIA COLE,

Plaintiffs,

v. Case No. 23-CV-1321

CITY OF WAUWATOSA, et al.,

Defendants.

WILLIAM RIVERA, et al.,

Plaintiffs,

v. Case No. 23-CV-1330

CITY OF WAUWATOSA, et al.,

Defendants.

DECISION AND ORDER ON DEFENDANTS’ MOTIONS FOR ATTORNEYS’ FEES

On June 5, 2024, I granted the defendants’ motions for sanctions pursuant to Fed. R. Civ. P. 11 in the above-captioned cases. (Docket # 40 in Case No. 23-cv-1321; Docket # 35 in Case No. 23-cv-1330.) Defendants were awarded their reasonable attorneys’ fees and costs for litigating both actions. (Docket # 40 in Case No. 23-cv-1321; Docket # 35 in Case No. 23- cv-1330.) The parties were ordered to confer and attempt to reach an agreement on the sanctions amount. When no agreement could be reached, I ordered the parties to brief the issue. The issue is now fully briefed and ready for resolution. For the reasons explained below, Defendants are awarded $14,305.00 in sanctions to be paid by Attorney Kimberley Motley. LEGAL STANDARD Fed. R. Civ. P. 11 authorizes sanctions against a party who files frivolous pleadings, files pleadings for an improper purpose such as to harass or makes allegations that they know have no basis in law or fact. See Janky v. Batistatos, 259 F.R.D. 373, 377 (N.D. Ind. 2009). A

court may impose sanctions for a violation of Rule 11 either upon a party’s motion or on its own initiative. Id. Rule 11’s purpose is to deter frivolous filings. The district court has broad discretion in setting a sanction award that it believes will serve the deterrent purpose of Rule 11, including directing the offending party to pay the other party’s reasonable attorney’s fees. Divane v. Krull Elec. Co., 319 F.3d 307, 314 (7th Cir. 2003). Rule 11, however, is “‘not a fee- shifting statute in the sense that the loser pays . . .’ [i]nstead, ‘Rule 11 ensures that each side really does bear the expenses of its own case—that the proponent of a position incurs the costs of investigating the facts and the law.’” Id. (quoting Mars Steel Corp. v. Cont. Bank, 880 F.2d 928, 932 (7th Cir. 1989)).

If the court determines that an award of attorney’s fees will serve the deterrent purpose of Rule 11, it has an obligation to award only those fees which directly resulted from the sanctionable conduct. Id. “This ensures that the proponent of a sanctionable position ultimately pays the costs resulting from it, serving a dual purpose of deterrence and restitution, while avoiding blanket fee-shifting, which would have the tendency to overcompensate the opponent and penalize the proponent.” Id. Although this analysis is an “inexact science,” the court has stated that the analysis is “[e]ssentially . . . a matter of causation.” Id. at 315. In other words, defendants should only be compensated for fees resulting from the plaintiff’s sanctionable conduct. ANALYSIS Again, Fed. R. Civ. P. 11(c)(4) permits a sanction in the form of an order “directing payment to the movant of part or all of the reasonable attorney’s fees and other expenses directly resulting from the violation.” In assessing reasonable attorney’s fees under Rule 11,

“a court may use the lodestar method, meaning a computation of the number of reasonable hours expended multiplied by a reasonable hourly rate.” Super Pawn Jewelry & Loan, LLC v. Am. Env’t Energy, Inc., No. 11-CV-08894, 2015 WL 1777484, at *5 (N.D. Ill. Apr. 16, 2015) (internal quotation and citation omitted). There is a “strong presumption that the lodestar represents the reasonable fee.” City of Burlington v. Dague, 505 U.S. 557, 562 (1992) (internal quotation marks omitted). However, once the lodestar is determined, the court may adjust the fee upward or downward based on a variety of factors, the most important of which is the degree of success obtained. Hensley v. Eckerhart, 461 U.S. 424, 430 n.3, 436 (1983). Defendants seek attorneys’ fees totaling $21,905.00, broken down as follows:

Attorney Baynard 58.7 hours x $250 = $14,675.00 Attorney Wirth 6.5 hours x $250 = $1,625.00 Attorney Thobani 3.5 hours x $250 = $875.00 Paralegal Montgomery 30.7 hours x $150 = $4,605.00 TOTAL $21,780.00

(Docket # 42 at 6; Docket # 49 at 4.)1 As an initial matter, there appears to be a $125.00 discrepancy between the total fees sought and the chart provided. Thus, I will assume Defendants request $21,780.00, as stated in the chart. Defendants also request the additional fees and costs incurred briefing the fee petition amount. (Docket # 42 at 6.) I will begin by calculating the lodestar amount.

1 For ease of reference, I will cite to the documents filed in Cole, 23-cv-1321. 1. Reasonable Hours Expended Defendants assert that they expended 99.4 hours litigating the Cole and Rivera cases, utilizing the services of three attorneys and one paralegal. Plaintiffs argue that the hours billed are unreasonable for several reasons. (Docket # 46.) First, Plaintiffs argue that because the

Defendant City of Wauwatosa is insured, Defendants did not actually have to pay any of their attorneys’ fees as counsel were paid by the City’s insurer. (Id. at 5–6.) Second, Plaintiffs argue that Defendants failed to provide proper evidence to support their fee demand because the invoices are vague, redacted, and unofficial. (Id. at 8–12.) Finally, Plaintiffs argue that the requested fees are excessive, unspecific, and duplicative. (Id. at 12–21.) 1.1 Attorneys’ Fees Covered by Insurance Plaintiffs argue, without citation to legal authority, that because Defendants were insured and their insurance provides coverage for legal representation for covered losses, Defendants cannot now recover their attorneys’ fees. Plaintiffs argue that neither the City nor

the defendant officers paid “a single penny toward costs or attorney’s fees because monies were paid to Wirth and Baynard via Defendants’ insurer, a non-party.” (Id. at 5–6.) Plaintiffs argue that “[e]thically, it is [ ] unclear where a sanctioned award would go considering that defense counsel already received funds from a non-party for the work incurred.” (Id. at 8.) Plaintiffs’ argument is without merit. Rule 11 is punitive, not compensatory. Brandt v. Schal Assocs., Inc., 960 F.2d 640, 645 (7th Cir. 1992). Indeed, the “central purpose” of Rule 11 is to deter baseless filings, Cooter & Gell v. Hartmarx Corp., 496 U.S. 384, 393 (1990); a “Rule 11 sanction is not meant to reimburse opposing parties for their costs of defense,” Anderson v. Cnty. of Montgomery, 111 F.3d 494, 502 (7th Cir. 1997), overruled on other grounds by DeWalt v. Carter,

224 F.3d 607 (7th Cir. 2000) (emphasis in original). Rule 11 would lose its deterrent teeth if a party could escape punishment simply because it was fortunate enough to have filed a frivolous action against an insured party. Further, Plaintiffs’ “ethical” concerns are unfounded.

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Cole v. City of Wauwatosa, (E.D. Wis. 2024).

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