Concord Boat Corp. v. Brunswick Corp.

34 F. Supp. 2d 1125, 1998 U.S. Dist. LEXIS 20848, 1998 WL 896532
District Court, E.D. Arkansas·Decided December 14, 1998·No. LR-C-95-781·Published·Cited by 2 cases

Opinion

ORDER

MOODY, District Judge.

Presently before the Court are Plaintiffs’ motion and supplemental motion for attorneys’ fees and costs and Brunswick’s motion and supplemental motion for attorneys’ fees and costs.

I. Plaintiffs Claims

Plaintiffs filed this lawsuit on December 7, 1995, alleging a number of antitrust and state law claims against Defendant Brunswick Corporation. In particular, Plaintiffs alleged antitrust violations of Sections 1 and 2 of the Sherman Act and Section 7 of the Clayton Act with respect to four separate product markets: stern drive engines, outboard engines, stern drive boats and outboard boats. Plaintiffs also alleged three common law claims for fraud, breach of contract, and breach of the covenant of good faith and fair dealing.

The rulings on pre-trial motions limited the issues that were ultimately tried to the jury. First, the Court granted summary judgment with respect to Plaintiffs’ claim for attempted monopolization of the outboard boat market. The Court also granted in part Brunswick’s motion for summary judgment on Plaintiffs’ damage claim with respect to the outboard engine market. Finally, the Court granted Brunswick’s motion for summary judgment on Plaintiffs’ common law claims. Thus, the only claims Plaintiffs presented to the jury were the three antitrust claims involving the stern drive and inboard marine engine product market.

The trial commenced on April 13, 1998. On June 19,1998, the jury returned a verdict in favor of Plaintiffs on all three of their antitrust claims with respect to the market for stern drive and inboard marine engines and awarded Plaintiffs a total of $44,371,761 in damages. On September 14, 1998, the Court trebled the jury’s damage award to $133,115,283. Plaintiffs’ post-trial requests for equitable relief were denied in their entirety. Following the trial, Plaintiffs voluntarily dismissed their remaining claims for equitable relief with respect to the outboard engine and stern drive boat markets.

Plaintiffs’ motion for attorney’s fees and costs seeks an award of $14,036,342.60.

II. Discussion

A. Reasonable Fee Award

Plaintiffs bear the burden of demonstrating a reasonable fee award, which is most often accomplished by calculating a “lodestar.” See Hensley v. Eckerhart, 461 U.S. 424, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983). To calculate the lodestar, the Court must determine the reasonable amount of hours expended on the litigation and the reasonable hourly rates of the attorneys participating in the litigation. Id These figures are then multiplied together to produce a fee amount which may be adjusted upward or downward at the discretion of the Court. Id

Plaintiffs have offered detailed affidavits in support of their motion. These affidavits set forth the applicable billing rate for each attorney and paralegal participating in the litigation and the total hours expended by those individuals. Plaintiffs have also submitted their detailed billing records in camera. Plaintiffs seek $9,197,282.90 in fees for attorneys and other support personnel from Winthrop & Weinstine and $1,854,507.75 in fees *1128 for attorneys and other support personnel from the Rose Law Firm.

Plaintiffs are entitled to a substantial fee. They are prevailing parties in a case which by anyone’s standards was extremely complex and immensely time consuming. Magistrate Judge Jerry W. Cavaneau presided over what was arguably the most extensive pre-trial phase in the history of litigation in the Eastern District of Arkansas. 1 Brunswick produced over two million pages of material to Plaintiffs. Plaintiffs deposed 101 individuals and also defended 93 depositions noticed by Brunswick. The trial of this matter spanned ten weeks. The docket in this matter currently reflects 1,350 individual entries, an amount unprecedented in single-defendant litigation and a testament to the relative complexity of this case.

In the end, Plaintiffs achieved results which can only be described as exceptional. Plaintiffs now have a judgment in their favor for $133,115,283. In addition, Brunswick has voluntarily ceased a substantial portion of the conduct which constituted the core of Plaintiffs’ allegations in this case. But regardless of how deserving Plaintiffs are of a generous fee award, the Court must scrutinize Plaintiffs’ fee application to determine an award that is reasonable and just under the circumstances and that does not compensate Plaintiffs in a manner inconsistent with the goals of the fee-shifting statute. Brunswick has identified many aspects of Plaintiffs’ fee petition which Brunswick claims are overreaching. Brunswick asks the Court to “trim” Plaintiffs’ fee award by $6,683,920.36 to the sum of $4,279,700.29.

The Court will address each of Brunswick’s arguments for reduction below.

1. Reasonable Hourly Rate

The Poley Affidavit and the Jones Affidavit reflect two key issues regarding the hourly rates requested by Plaintiffs. First, Plaintiffs seek to have their Minneapolis counsel compensated at Minneapolis rates. While such a request seems contrary to the general proposition that hourly rates are determined from the community in which the lawsuit was tried, Brunswick notes that the normal billing rates of Winthrop & Weinstine in Minneapolis roughly correspond to the normal billing rates of the Rose Law Finn in Little Rock. Thus, Brunswick concedes that an acceptable hourly rate for the lodestar can be calculated from the normal billing rates of Plaintiffs’ attorneys, regardless of their locale.

Perhaps the more significant issue is that Plaintiffs seek to recover an hourly rate that reflects an “enhancement” to their normal billing rates. The amount of the rate enhancement varies among Plaintiffs’ attorney’s in a range from $20 to $140 over the normal billing rates. Plaintiffs argue that the increased hourly rates are not properly viewed as enhancements because they are prima facie reasonable. In support of their argument, Plaintiffs point out that their requested rates are equal to or less than the rates paid by Brunswick to its own lawyers in this litigation. Plaintiffs argue that “the quality of their representation in this case at least meets that of their adversaries.” Plaintiffs’ Mem. at 24. Plaintiffs also cite Hensley v. Eckerhart, 461 U.S. 424, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983), where the Court stated that “in some cases of exceptional success an enhanced award may be justified.” Id. at 435, 103 S.Ct. 1933.

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Concord Boat Corp. v. Brunswick Corp., 34 F. Supp. 2d 1125, 1998 U.S. Dist. LEXIS 20848, 1998 WL 896532 (E.D. Ark. 1998).

34 F. Supp. 2d 1125 (Concord Boat Corp. v. Brunswick Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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