Davita Inc. v. Marietta Memorial Hospital Employee Health Benefit Plan

District Court, S.D. Ohio·Decided November 14, 2024·No. 2:18-cv-01739·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF OHIO EASTERN DIVISION

DAVITA INC., et al.,

Plaintiffs,

v. Civil Action 2:18-cv-1739 Chief District Judge Sarah D. Morrison Magistrate Judge Kimberly A. Jolson MARIETTA MEMORIAL HOSPITAL EMPLOYEE HEALTH BENEFIT PLAN, et al.,

Defendants.

OPINION AND ORDER This matter is before the Court on Plaintiffs’ Memorandum for Attorneys’ Fees and Costs (Doc. 145). Plaintiffs’ request for fees is GRANTED in part. The Court lowers the requested fees from $114,065.16 to a total award of $59,629.38. Defendants Marietta and the Plan are ORDERED to pay the award within thirty (30) days of the date of this Order. I. BACKGROUND The Court previously summarized the parties’ lengthy discovery dispute. (Doc. 144 at 1– 6). Briefly, on February 9, 2024, Plaintiffs filed a motion to compel discovery responses from Defendants Marietta Memorial Hospital Employee Health Benefit Plan (“the Plan”), Marietta Memorial Hospital (“Marietta”), and Medical Benefits Mutual Life Insurance Co. (“MedBen”). (Doc. 114). On March 6, 2024, after the parties failed to resolve their differences extrajudicially, the Court granted Plaintiff’s motion only in part. (Doc. 120). The Court further ordered the parties to confer on Defendants’ search efforts for electronically stored information (ESI). (Id. at 11–12). On May 8, 2024, the parties reported their disputes were resolved. (Doc. 133). Then, Plaintiff moved for attorneys’ fees under Federal Rule of Civil Procedure 37, arguing that Defendants produced everything Plaintiffs moved to compel. (Doc. 138 at 3–4). In the end, the Court concluded that only Defendants Marietta and the Plan should pay Plaintiffs’ fees. (Doc. 144 at 11). Specifically, the Court awarded fees under Federal Rule of Civil Procedure 37(b)(2)(C) because Defendants Marietta and the Plan failed to comply with the March 6 order to confer. (Doc. 144 at 13–15). As a result, the Court ordered Defendants Marietta and the Plan to pay Plaintiffs’ reasonable expenses and fees incurred between March 6 and May 8. (Id. at 15). The Court directed Plaintiffs to quantify their fee request, and the Court set a briefing schedule. (Id.). But four days after Plaintiffs filed their Memorandum for Attorneys’ Fees and Costs, (Doc. 145), Defendants Marietta and the Plan objected to the Undersigned’s order granting fees. (Doc. 146). On October 3, 2024, the District Judge overruled the objections. (Doc. 168). Since then, Defendants responded to Plaintiffs’ Memorandum, and the matter is ripe for review. (Docs. 145, 169, 170). II. STANDARD Federal Rule of Civil Procedure 37(b)(2)(C), the rule from which this Order stems, provides for “reasonable expenses, including attorney’s fees, caused by the failure [to comply with a court order regarding discovery].” Fed. R. Civ. P. 37(b)(2)(C). To determine what is a reasonable fee, courts typically employ the “lodestar method,” which involves multiplying “the number of hours reasonably expended on the litigation . . . by a reasonable hourly rate.” Martinez v. Blue Star Farms, Inc., 325 F.R.D. 212, 220–221 (W.D. Mich. 2018) (collecting cases). “While there is a strong presumption that this lodestar figure represents a reasonable fee . . . the movant bears the burden of providing that the number of hours expended and the rates claimed were reasonable.” Asamoah v. Amazon.com Servs., Inc., No. 2:20-cv-3305, 2021 WL 2934711, at *1 (S.D. Ohio July 13, 2021) (internal quotations and quotation marks omitted). Ultimately, the reasonableness of an award of fees under Rule 37 is soundly within the Court’s discretion. See PepsiCo v. Cent. Inv. Corp., Inc., 216 F.R.D. 418 (S.D. Ohio 2002) (noting that awards of fees 2 under Rule 37 are reviewed for abuse of discretion); Spizizen v. Nat’l City Corp., 516 F. App’x 426, 431 (6th Cir. 2013) (holding that courts have discretion under Rule 37 in awarding sanctions and determining the appropriate amount). III. DISCUSSION Plaintiffs request $79,522.04 in attorneys’ fees and costs for their discovery efforts from March 6, 2024, until May 8, 2024. (Doc. 145 at 1). Plus, Plaintiffs ask for an award of $34,543.12, which they say represents the fees and costs they incurred in moving for fees. (Id. at 1–2). Defendants lob four challenges to these figures. First, they say Plaintiffs’ billing rates are unreasonable. (Doc. 169 at 2–3). Second, they highlight certain times where, they believe, Plaintiffs engaged in “duplicative and unnecessary billing.” (Id. at 3–5). Third, they assert the Court’s previous order does not allow Plaintiffs to recover the additional $34,543.12. (Id. at 5 (arguing Plaintiffs should receive fees and expenses incurred between March 6 and May 8 only)). Finally, Defendants say that Plaintiffs request a “punitive” amount, rather than reasonable fees and expenses. (Id. at 5). The Undersigned addresses each argument in turn. A. Reasonable Rate Determination The Court begins with Defendants’ challenges to Plaintiffs’ rates. In determining a reasonable hourly rate, courts “should initially assess the prevailing market rate in the relevant community.” Smith v. Serv. Master Corp., 592 F. App’x 363, 369 (6th Cir. 2014) (internal

quotation omitted) (emphasis in original removed); Martinez, 325 F.R.D. at 221 (noting a presumption in favor of the community market rule). To establish market rates, courts may look to “proof of rates charged in the community,” “opinion evidence of reasonable rates,” and the “attorney’s actual billing rate and fee awards.” Martinez, 325 F.R.D. at 221; see also Ne. Ohio Coal. for the Homeless v. Husted, 831 F.3d 686, 715–19 (6th Cir. 2016) (considering rates charged by other attorneys in comparable cases, counsel’s actual billing rates, and a bar association report). 3 Additionally, courts may rely on their “own knowledge and experience in handling similar fee requests.” Cernelle v. Graminex, LLC, 539 F.Supp.3d 778, 739 (E.D. Mich. 2021). Notably, courts do not always adhere strictly to market rates. Paschal v. Flagstar Bank, 297 F.3d 431, 435 (6th Cir. 2002) (discussing when courts may enhance awards of attorney fees). Instead, they

consider a variety of factors, including: “the time and labor required”; “the skill needed to perform the legal service properly”; “the experience, reputation, and ability of the attorneys”; and “the nature and length of the professional relationship with the client.” Id. at 435 (internal quotation omitted). Here, four attorneys and one paralegal worked on behalf of Plaintiffs during the discovery dispute. (See Docs. 145-1, 145-2). They request the following hourly rates: Attorney Name and Title Firm Hourly Rate Charged James W. Boswell, Partner King & Spalding, LLP $1,372.80 per hour Darren A. Shuler, Partner King & Spalding, LLP $1,328.80 per hour Edward A. Benoit, Associate King & Spalding, LLP $968 per hour Jason Seufert, Paralegal King & Spalding, LLP $420.75 per hour Traci L. Martinez, Partner Squire Patton Boggs (US) LLP $880 per hour Kristine Wolliver, Partner Squire Patton Boggs (US) LLP $570 per hour

(See Doc. 145-1 at 4–5; Doc. 145-2 at 5–6).

Defendants contend that these rates are unreasonable and out-of-line with the market. (Doc. 169 at 2–3). In support, Defendants offer the declaration of Stephen E.

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