FITZMARK, LLC v. ROGERS

CourtDistrict Court, S.D. Indiana
DecidedFebruary 23, 2024
Docket1:23-cv-00895
StatusUnknown

This text of FITZMARK, LLC v. ROGERS (FITZMARK, LLC v. ROGERS) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
FITZMARK, LLC v. ROGERS, (S.D. Ind. 2024).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF INDIANA INDIANAPOLIS DIVISION

FITZMARK, LLC, ) ) Plaintiff, ) ) v. ) Case No. 1:23-cv-00895-TWP-TAB ) ROBERT ROGERS, ) TRAFFIC TECH INC., ) ) Defendants. )

ENTRY ON PLAINTIFF'S MOTION FOR ATTORNEYS' FEES This matter is before the Court on Plaintiff FitzMark, LLC's ("FitzMark") Motion for Attorneys' Fees pursuant to 28 U.S.C. § 1447(c) (Filing No. 32). FitzMark seeks an award of $54,303.00 in attorneys' fees (Filing No. 41 at 10). For the following reasons, FitzMark's Motion for Attorneys' Fees is granted in part, for a lesser amount than requested. I. BACKGROUND The motions filed in this case all stem from a missing comma. FitzMark initiated this action in Marion Superior Court's Indiana Commercial Court under Cause No. 49D01-2304-PL- 017290 against Robert Rogers ("Rogers") and a company called "Traffic Tech Inc." ("Traffic Tech") (Filing No. 1-3 at 4). FitzMark meant to sue "Traffic Tech, Inc."—with a comma—which is a California corporation based in Illinois ("Traffic Tech US") (Filing No. 16-6 at 12–14).1 However, the complaint actually named "Traffic Tech Inc."— without a comma—which is the

1 The Court may take judicial notice of public records and government documents, including public documents available through the California Secretary of State's website. Fed. R. Evid. 201(b)(2); see Knowles, Trustee of Bricklayers of Ind. Ret. Fund v. Rosa Mosaic & Tile Co., No. 19-cv-03877, 2023 WL 2612446, at *2 (S.D. Ind. Mar. 23, 2023); Wells Fargo Bank, N.A. v. Langa Air, Inc., 2010 WL 4272586, at *1 n.1 (S.D. Ill. Oct. 25, 2010) (taking judicial notice of Missouri Secretary of State records because a court may “judicially notice public records and government documents”). Canadian parent corporation ("Traffic Tech Canada"). When it initiated this action, FitzMark did not realize that a comma distinguished the two entities. Between May 16 and May 23, 2023, counsel for FitzMark and counsel for the Defendants (Rogers and Traffic Tech) exchanged emails about the possibility of removal and the parties'

respective states of citizenship. The emails from FitzMark's counsel, in addition to the original Complaint, made clear that FitzMark was suing Traffic Tech US. In her first email to FitzMark, Defendants' counsel identified her client simply as "Traffic Tech". She did not mention either "Traffic Tech Inc." or "Traffic Tech, Inc." until May 22, 2023, when she stated only that "Traffic Tech Inc. does not have a principal place of business in Illinois" (Filing No. 16-6 at 1 (emphasis in original)). When FitzMark asked for clarification about "Traffic Tech's" citizenship, Defendants' counsel did not respond. It is apparent that Defendants' emails to FitzMark were designed to ensure that FitzMark did not realize or correct its mistake until after Defendants removed this action. It is also apparent that Defendants knew, or should have known, that this action should not have been removed to begin with. See Filing No. 30 at 10.

On May 23, 2023, counsel for Rogers and Traffic Tech Canada filed Appearances and a Notice of Removal, asserting that complete diversity existed between FitzMark (an Illinois citizen), Rogers (a Florida citizen), and Traffic Tech Canada (a Canadian citizen) (Filing No. 1). A footnote in the Notice of Removal identified FitzMark's mistake. The footnote stated: "Fitzmark attempted service on Traffic Tech [Canada] on May 1, 2023, but it served a different entity (Traffic Tech, Inc.) from the named Defendant (Traffic Tech Inc.)." Id. at 2 n.1 (emphasis in original). On June 1, 2023, FitzMark filed an Amended Complaint adding the comma in "Traffic Tech, Inc." (Filing No. 11) and a Motion for Remand (Filing No. 16). On June 15, 2023, Defendants filed a Motion to Strike the Amended Complaint (Filing No. 22) and a Motion to Stay (Filing No. 23). On July 20, 2023, the Court granted FitzMark's Motion for Remand, denied Defendants' Motion to Strike, and denied as moot Defendants' Motion to Stay (Filing No. 30). FitzMark also requested reasonable attorneys' fees incurred because of Defendants' removal, which the Court awarded, finding that Defendants' removal was unreasonable and "entirely improper."

Id. The parties were unable to agree on an amount of fees to which FitzMark is entitled, so on August 15, 2023, FitzMark filed a Motion for Attorneys' Fees in the amount of $43,124.00. (Filing No. 32). II. LEGAL STANDARD When a case is remanded due to improper removal, the court may "require payment of just costs and any actual expenses, including attorney fees, incurred as a result of the removal." 28 U.S.C. § 1447(c). A district court may award fees under § 1447(c) where "the removing party lacked an 'objectively reasonable basis'" for seeking removal. Wolf v. Kennelly, 574 F.3d 406, 411 (7th Cir. 2009) (quoting Martin v. Franklin Cap. Corp., 546 U.S. 132, 141 (2005)). Sanctions may be awarded when removal is clearly improper, id., but not necessarily frivolous, Martin, 546

U.S. at 138–40 (explaining rationale for fee-shifting). III. DISCUSSION FitzMark seeks attorneys' fees it incurred because of Traffic Tech, Inc.'s improper removal. Defendant argues the Court should decline to award fees, or limit the amount awarded, for multiple reasons. The Court will discuss each in turn. A. Reasonableness of Removal Defendants argue their removal of the case was not objectively unreasonable and asks the Court to revisit its decision to award fees (Filing No. 38 at 4). It is well-established that "pursuant to Local Rule 7-1(a), the Court will not consider a motion that is contained within a response brief." Slabaugh v. State Farm Fire & Cas. Co., No. 1:12-cv-01020-RLY-MJD, 2014 WL 1767088, at *6 (S.D. Ind. May 1, 2014). Defendants' argument is, in essence, a motion to reconsider, which the Court denies. As the Court thoroughly described in its Order, removal was "entirely improper" and "wasted this Court's resources." (Filing No. 30 at 10.) Defendants had

several opportunities to alert FitzMark of their punctuation mistake; instead, Defendants communicated in a way designed to ensure that FitzMark did not realize or correct its mistake until after Defendants removed this action. A simple telephone call or email response to the request for an explanation could have promptly clarified the confusion. Defendants knew, or should have known, Traffic Tech, Inc. was the proper, and indeed intended, defendant. Defendants lacked an objectively reasonable basis for removing this case so the Court's Order granting reasonable attorneys' fees will stand. B. Meet-and-Confer Requirement Defendants argue that FitzMark's Motion should be denied because FitzMark failed to make reasonable efforts through the meet-and-confer process (Filing No. 38 at 8). Under Local

Rule 7-1(g)(1), the Court may not grant a motion for attorney's fees (other than post-judgment fees) unless movant's counsel has demonstrated they made reasonable efforts to confer with opposing counsel to resolve the issues raised in the motion. S.D. Ind. Local R. 7-1(g)(1). The Seventh Circuit has previously held that a conference in addition to email exchanges and telephone calls are enough to fulfill the meet-and-confer obligation. See Houston v. C.G. Sec.

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Related

Hensley v. Eckerhart
461 U.S. 424 (Supreme Court, 1983)
Martin v. Franklin Capital Corp.
546 U.S. 132 (Supreme Court, 2005)
Wolf v. Kennelly
574 F.3d 406 (Seventh Circuit, 2009)
Cintas Corporation v. Perry
517 F.3d 459 (Seventh Circuit, 2008)
Andy Montanez v. Joseph Simon
755 F.3d 547 (Seventh Circuit, 2014)
Houston v. C.G. Security Services, Inc.
820 F.3d 855 (Seventh Circuit, 2016)

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Bluebook (online)
FITZMARK, LLC v. ROGERS, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fitzmark-llc-v-rogers-insd-2024.