Feld v. Fireman's Fund Insurance

292 F.R.D. 129, 2013 WL 3340372, 2013 U.S. Dist. LEXIS 93455
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 3, 2013
DocketCivil Action No. 12-1789 (JDB)
StatusPublished
Cited by11 cases

This text of 292 F.R.D. 129 (Feld v. Fireman's Fund Insurance) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Feld v. Fireman's Fund Insurance, 292 F.R.D. 129, 2013 WL 3340372, 2013 U.S. Dist. LEXIS 93455 (D.C. Cir. 2013).

Opinion

MEMORANDUM OPINION

JOHN D. BATES, District Judge.

This action arises out of defendant Fireman’s Fund Insurance Company’s (“FFIC”) refusal to fully reimburse plaintiff Kenneth Feld for more than $4.5 million in legal fees and expenses that Feld claims to have incurred in a prior, protracted legal battle in this district. Currently before the Court is FFIC’s motion to compel discovery. For the reasons set forth below, the motion will be granted in part and denied in part.

BACKGROUND

In September 2008, Karen Feld filed a lawsuit (the “Underlying Action”) against Kenneth Feld,1 Karen’s brother and the plaintiff here, based on events that allegedly took place in September 2007. Compl. [ECF 1] ¶ 9. Karen asserted claims of assault, battery, intentional infliction of emotional distress, negligent infliction of emotional distress, and false imprisonment; she sought damages of more than $110 million. Id2 Feld filed a counterclaim for trespass. Id. ¶11.

At the time of the events alleged in Karen’s complaint, Feld had personal liability insurance coverage under a “Prestige Home Premier” policy (the “Policy”) issued by FFIC. Id. ¶ 22. The Policy provided that FFIC would defend Feld against covered claims or suits against him. It had two components, a primary homeowner’s policy and an excess liability policy. Id. ¶ 23 Under the primary policy, FFIC had a duty to “[pjrovide a defense at [its] expense by counsel of [its] choice”; under the excess policy, FFIC had a duty to “provide a defense at [its] expense by counsel of [Feld’s] choice, from [FFIC’s] list of approved vendors.” Id. ¶¶ 28-30. The Policy did not specify hourly rates at which defense counsel would be paid.

On June 12, 2009, Feld notified FFIC of the Underlying Action and of his claim for coverage under the Policy. See Def.’s Mot. to Compel [ECF 14], Ex. 1, Letter from Charles Kirk to Kenneth Feld 1, 4 (Aug. 11, 2009) (“8/11/09 Kirk Letter”). FFIC agreed to defend Feld in the Underlying Action “subject to a full and complete reservation of rights.” See id. at 9. Specifically, FFIC stated that the claims in the Underlying Action alleged intentional conduct and hence were “not covered by the Policy.” Id. FFIC nevertheless agreed to provide a defense because Feld had denied the allegations and said that he acted in self-defense. Id. at 10. FFIC told Feld:

Subject to [FFIC’s] reservation of rights, you may elect to choose your own counsel to defend you in this matter; otherwise we can appoint counsel for you. FFIC agrees to pay, at an agreed hourly rate, the rea[133]*133sonable and necessary legal fees and Court costs incurred by counsel to defend you subsequent to the date this matter was tendered to FFIC under a full reservation of rights, and in accordance with the terms and conditions of the subject Policy and those contained herein. Payment by FFIC for any legal expenses incurred on your behalf will not act as a waiver of any rights FFIC may have to adjust, allocate or assert that there is no coverage for any payment made.

Id.

Feld retained counsel from the law firm of Fulbright & Jaworski L.L.P. to represent him in the Underlying Action. Feld asserts that between August and October of 2009 FFIC Technical Director Charles Kirk and Fulbright attorney Caroline Mew had “a limited number of brief telephone conversations related to FFIC’s stated coverage position.” Compl. ¶ 61. Feld further asserts that, in one of these conversations, Kirk “unilaterally stated the rates that FFIC might be willing to pay,” but that “[a]t no point were any such rates ever agreed to by Fulbright or Kenneth Feld.” Id. In October 2009, Kirk sent an email to Mew attempting to “confirm [their] recent conversations.” Def.’s Mot. to Compel, Ex. 2, Email from Charles Kirk to Caroline Mew (Oct. 4, 2009). Kirk stated: “As insured selected counsel, we will agree to pay a rate not to exceed $250/hour for partners; $225/hour for associates; and $100/hour for paralegals. Any amount in excess of those rates would continue to be the insured’s responsibility.” Id. FFIC requested a budget from Fulbright, and in response, Mew sent Kirk a proposed budget which reflected the billing rates proposed by Kirk: $250/hour for partners, $225/hour for senior counsel and senior associates (a rate that, though not stated in Kirk’s prior email, was consistent with the other rates stated therein), $200/ hour for associates, and $100/hour for paralegals. See Def.’s Mot. to Compel, Ex. 4, Letter from Caroline Mew to Charles Kirk (Oct. 28, 2009) (“10/28/09 Mew Letter”). Mew provided the proposed budget as “a good faith estimate of the amount of time and expenses [Fulbright] anticipate^] expending in [the Underlying Action],” but noted, “We do not consider this to be a binding representation of the fees and expenses that actually will be incurred in this matter.” Id.

In a December 2009 letter to FFIC’s outside counsel, Fulbright stated that it had “complied in good faith with FFIC’s request for a case budget” and that the firm believed that the proposed budget—of about $1.7 million—was reasonable. See Pl.’s Opp’n to Def.’s Mot. to Compel [ECF 15] (“Pl.’s Opp’n”), Ex. 1, Letter from Lisa Joiner to Erik Lindemann 2-3 (Dee. 8, 2009) (“12/8/09 Joiner Letter”); see also 10/28/09 Mew Letter (proposed budget of about $1.4 million in fees and about $278,000 in expenses). Fulbright urged against further attempts by FFIC “to restrict the type of work done or to reduce the hours worked,” stressing that FFIC was “currently paying only a fraction of the Firm’s hourly rates with the remaining amounts being charged to Mr. Feld notwithstanding the insurance he ha[d] purchased from FFIC.” 12/8/09 Joiner Letter 2-3. Fulbright agreed to submit periodic invoices to FFIC but refused to accept FFIC’s proposed condition that Fulbright have only 30 days to appeal any “deductions or declinations” by FFIC. Id. at 2. Accordingly, Fulbright stated: “To simplify matters, FFIC may presume that [Fulbright] and Mr. Feld contest any and all amounts unpaid by FFIC on any bills presented by [Fulbright] to FFIC for payment unless FFIC is notified otherwise.” Id.

Beginning in August 2010, Fulbright submitted a series of invoices to FFIC. The hourly rates in the invoices exceeded the rates set forth in Kirk’s October 2009 email and Fulbright’s proposed budget. See Def.’s Mot. to Compel, Ex. 5, Letter from Charles Kirk to Matthew Kirtland (Oct. 11, 2010). FFIC adjusted the rates and sent checks to Fulbright based on the rates FFIC had agreed to pay. See id. In addition to its refusal to pay the full hourly rates charged by Fulbright, FFIC refused to pay certain other fees and expenses for various reasons. Compl. ¶ 50.

Feld successfully defended the Underlying Action. The district court dismissed the negligent infliction of emotional distress claim on Feld’s motion for partial summary judgment, [134]*134and, following a two-week jury trial, the jury reached a verdict in Feld’s favor on the remaining claims against him, though it did not find liability on his counterclaim for trespass. See Compl. ¶¶ 12, 17. The D.C. Circuit affirmed the judgment on appeal. See Feld v. Feld, 688 F.3d 779 (D.C.Cir.2012).

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292 F.R.D. 129, 2013 WL 3340372, 2013 U.S. Dist. LEXIS 93455, Counsel Stack Legal Research, https://law.counselstack.com/opinion/feld-v-firemans-fund-insurance-cadc-2013.