Flowrider Surf, Ltd. v. Pacific Surf Designs, Inc.

District Court, S.D. California·Decided September 22, 2020·No. 3:15-cv-01879·Unknown

Opinion

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g UNITED STATES DISTRICT COURT FLOWRIDER SURF, LTD., a Canadian Case No.: 3: 15-cv-01 879-BEN-BLM corporation; and SURF WAVES, LTD., a company incorporated in the United | ORDER SETTING AWARD OF Kingdom, FEES AND COSTS Plaintiffs, [Doc. 309] || PACIFIC SURF DESIGNS, INC.,a : Delaware corporation, Defendant. . The Court has held that Defendant Pacific Surf Designs, Inc. (“PSD” or “Defendant”) is entitled to attorney fees under 35 U.S.C. section § 285, as interpreted by the Supreme Court in Octane Fitness, LLC v. Icon Health & Fitness, Inc., 134 8. Ct. ||1749, 1756 (2014). In Octane, the Supreme Court eased the requirements to get such | fees under section § 285. Having found this matter suitable for decision without oral argument pursuant to Civil Local Rule 7.1(d)(1), the Court now calculates the amount of fees to be awarded, the appropriate costs, and determines whether expert fees are recoverable in this case. Supplemental briefing, objections, and voluminous - documentation was submitted by the Defendant and Plaintiffs Flowrider Surf, Ltd. and

Surf Waves, Ltd. (collectively “Plaintiffs”). The calculations and issues presented underscore uncertainty about how to determine attorney fees under section § 285. The Court begins with a global fee analysis that properly balances all interests, and then engages in a more granular analysis, A. GLOBAL FEE ANALYSIS Some have become concerned about wasted effort focused on the recovery of fees

. 8 |i under section § 285. The calculation of actual fees awarded are a significant part of the itime and energy dedicated to section § 285 motions. Authorities vary on how to establish attorney fees in the different areas where fees 11. are recoverable. These include fees under a contract clause, see, e.g., Becker v. Wells Fargo Bank, N.A.,2014 WL 7409447 at *6, 2014 U.S. Dist. LEXIS 178462 at □□□ □□□□□ /Cal. Dec. 29, 2014) (“The starting point for determining reasonable attorneys’ fees under Section § 1717 is the ‘lodestar.’”); the recovery of fees in some class action settlements lunder a common fund theory, see, e.g. Staton v. Boeing Co., 327 F.3d 938, 967-68 (9th 2003) (“As in a statutory fee-shifting case, a district court in a common fund case can apply the lodestar method to determine the amount of attorneys’ fees to be drawn from the fund by employing a ‘percentage’ method.”); Resnick v. Frank (In re Online DVD— ! Rental Antitrust Litig.), 779 F.3d 934, 949 (9th Cir. 2015) (“The district court did not err in approving the fee award. Plaintiffs’ class counsel asked for attorneys’ fees in the amount of 25% of the overall settlement fund of $27,250,000 and the district court granted class counsels’ request.”); and the recovery of fees in a case under 28 U.S.C. ! section § 1983, see, e.g., McCown v. City of Fontana, 711 F. Supp. 2d 1067, 1072 (CD. 2010) (stating that “[o]verall, considering all that it observed in this case, this Court makes an equitable finding that the legal services provided that support recoverable fees should be reasonably valued at $150,000,” and then awarding $148,250 under the traditional mathematical lodestar analysis) (Guilford, J.), aff'd, 2011 WL 6778482, 2011 App. LEXIS 25841 (9th Cir. Dec. 27, 2011). Of course, different factors are

] || involved in the different areas where fees can be recovered, and they raise various issues. A victorious 1983 plaintiff may be enforcing important constitutional principles, while a fee award in a class action common fund situation may be enforcing statutory regulations, purpose of section § 285 is to deter bad faith litigation by imposing the cost of a bad decision on the decision-maker. □ There is a growing trend that District Court judges should award fees based on an overall global understanding and review of a case, rather than on a tedious review of voluminous time entries and hourly rates. Former Supreme Court Justice Sandra Day O’Connor, sitting by designation, has emphasized the overall equitable nature of fee analysis. She has written that “[t]he net result of fee-setting jurisprudence ... is that the district courts must engage in an equitable inquiry of varying methodology while making a pretense of mathematical precision.” Arbor Hill Concerned Citizens Neighborhood Ass’n v. Cty. Of Albany, 522 F.3d 182, 189 (2d Cir. 2007) (O’Connor, J., sitting by designation, joining in the opinion) (citation omitted), Justice Elena Kagan has echoed these sentiments in Fox v. Vice. [T]rial courts need not, and indeed should not, become green-eyeshade accountants. ~The essential goal in shifting fees (to either party) is to do rough justice, not to achieve auditing perfection. So, trial courts may take into account their overall sense of a suit and may use estimates in calculating and allocating an attorney’s time. And appellate courts must give substantial deference to these determinations, in light of “the district court’s superior □ understanding of the litigation.” Fox Vice, 563 U.S. 826, 838 (2011). The statements of Justices O’Connor and Kagan reflect what is happening in the legal profession as hourly billing has become increasingly unpopular and clients prefer to look at aggregate, global numbers. As noted, and reflecting the modern trend described by two Supreme Court’ 2° Justices, this Court will begin by generally reviewing this case to determine a reasonable aggregate global amount for fees. ‘After all, this Court has dealt with this case andthe □ . . 3 , .

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