Garden State Auto Park Pontiac GMC Truck, Inc. v. Electronic Data Systems Corp.

31 F. Supp. 2d 378, 1998 U.S. Dist. LEXIS 21496, 1998 WL 921271
CourtDistrict Court, D. New Jersey
DecidedDecember 15, 1998
DocketCIV. A. 94-3145(MLC)
StatusPublished
Cited by2 cases

This text of 31 F. Supp. 2d 378 (Garden State Auto Park Pontiac GMC Truck, Inc. v. Electronic Data Systems Corp.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Garden State Auto Park Pontiac GMC Truck, Inc. v. Electronic Data Systems Corp., 31 F. Supp. 2d 378, 1998 U.S. Dist. LEXIS 21496, 1998 WL 921271 (D.N.J. 1998).

Opinion

COOPER, District Judge.

This matter comes before the Court on defendant’s renewed motion for attorney’s fees and costs pursuant to the contract entered between plaintiff Garden State Auto Park (“GSAP”) and defendant Electronic Data Systems, Inc. (“EDS”). For the reasons expressed herein, the motion for attorney’s fees and costs is granted, and the Court hereby finds that the amount of $57,-918.67 represents reasonable fees and costs under the circumstances of this case.

BACKGROUND

The relevant factual background has been set forth in this Court’s May 31, 1996 and March 25, 1998 Memoranda and Orders and will not be repeated herein. Briefly, plaintiff GSAP initiated this lawsuit in the Superior Court of New Jersey, Law Division, Monmouth County on May 24, 1994. The Complaint alleged a breach of warranty claim against defendant EDS. EDS removed the ease to this Court on June 30, 1994 and filed a counterclaim against GSAP for breach of contract and unjust enrichment.

EDS filed a motion for summary judgment, arguing that plaintiffs breach of warranty claim alleged in the Complaint was barred by the applicable statute of limitations as set forth in the parties’ agreement. We granted the motion by Memorandum and Order dated May 31, 1996, finding that the claim against EDS was barred by the one-year statute of limitations provision in the parties’ contract dated March 28,1991.

GSAP filed an appeal of our May 31, 1996 Memorandum and Oi'der to the Court of Appeals on June 24, 1996. On July 1, 1996, EDS filed its first motion for attorney’s fees and costs. We denied that motion without prejudice because of the pending appeal before the Third Circuit. (Order dated 3-27-97.) On June 9, 1997, the Court of Appeals dismissed the appeal for want of jurisdiction because of EDS’s pending counterclaim before this Court.

EDS filed a second motion for attorney’s fees on July 14, 1997, seeking fees and costs incurred prior to May 31,1996 as well as fees and costs incurred in litigating the appeal of our May 31, 1996 Memorandum and Order. Shortly thereafter, GSAP moved for summary judgment on EDS’s counterclaim. Our March 25,1998 Memorandum and Order: (1) denied GSAP’s motion for summary judgment, and (2) granted in part and denied in part EDS’s motion for attorney’s fees and costs. With respect to EDS’s motion for attorney’s fees and costs, we held as a matter of law that EDS was a prevailing party un *381 der the relevant provision of the contract. 1 We further stated, however, that the evidence EDS presented on the issue of reasonableness was insufficient at that juncture. We thus denied EDS’s motion in part without prejudice.

EDS filed the instant motion for attorney’s fees and costs along with supportive materials on April 14, 1998. The supportive materials include certifications of local and lead counsel stating that the amount of attorney’s fees requested is, in their opinion, reasonable under the circumstances. (See Certif. of Jonathan M. Preziosi, Esq. (“Preziosi Cer-tif.”); Certif. of Franklin S. Blackstone, Esq. (“Blaekstone Certif.”).)

EDS requests $153,118.21 in attorney’s fees and costs, which reflects $121,530.86 charged by Goodwin and Carlton, P.C. (“G & C”) as lead counsel, and $31,587.35 charged by the law firm of Jamieson, Moore, Peskin & Spicer (“JMP & S”) as local counsel. Plaintiff argues that the amount of fees and costs sought by EDS is unreasonable under the circumstances.

GSAP does not appear to dispute the reasonableness of the billing rates charged by the attorneys from both firms or the accuracy of the records submitted; rather, it challenges the number of hours billed by the attorneys. 2 Plaintiff argues that both law firms spent an inordinate number of hours on discovery matters prior to filing the motion for summary judgment in light of the fact that EDS prevailed on the basis of a relatively straightforward application of the one-year statute of limitations in the agreement. Plaintiff claims in that connection that attorneys for EDS began researching the possibility of asserting a limitations defense as early as November 1994. (See Preziosi Certif., Ex. A, entry dated 11-28-94.) Plaintiff further maintains that it is unfair for EDS to seek reimbursement of costs for travel time for members of G & C to travel to this Court and the Third Circuit when EDS had retained local counsel here in New Jersey. GSAP also contends that any fees relating to work performed by local -counsel should be excluded because EDS had lead counsel in Texas. Finally, plaintiff points out that GSAP has included amounts in their fee application which are unrelated to the successful summary judgment motion. (See generally Certif. of Michael D. Schottland, Esq. ¶ 4; Ltr. From Michael D. Schottland, Esq. to Hon. Mary L. Cooper, U.S.D.J. dated 4-30-98; Ltr. from Bettina Munson, Esq. to Hon. Mary L. Cooper, U.S.D.J. dated 11-22-98.)

DISCUSSION

Relying upon the plain language of the 1991 agreement and the meaning of the phrase “prevailing party” under Texas law, this Court held that EDS qualifies as a prevailing party with respect to our dismissal of plaintiffs breach of warranty claim against EDS. Accordingly, our inquiry here is limited *382 to the reasonableness of the amount of fees and costs requested by EDS.

The Court must ascertain the meaning of the term “reasonableness” as it is used in the 1991 agreement. The determination of the meaning of the term “reasonableness” as it is used in the contract is governed by the law of the contract, which is Texas law in this case. We thus find it appropriate to look to Texas law for guidance in determining the reasonableness of the fee request. See Texas Comm. Bank Nat’l Ass’n v. Capital Banc-shares, Inc., 907 F.2d 1571, 1575 (5th Cir. 1990) (finding that in diversity cases, state law governs the issue of attorney’s fees).

The amount of attorney’s fees awarded by the Court must be reasonable under the circumstances of the case and must have some reasonable relationship to the amount in controversy or to the complexity of the issue to be determined. Id.; Jerry Parks Equip. Co. v. Southeast Equip. Co., 817 F.2d 340, 344 (5th Cir.1987). In determining the reasonableness of the attorney’s fees and costs requested, we must review the entire record, consider the evidence, amount in controversy and nature of the case, and use common knowledge' and experience as lawyers and judges. See Argonaut Inc. Co. v. ABC Steel Products Co., 582 S.W.2d 883, 889 (Tex.App. Texarkana 1979, writ ret'd n.r.e.) (noting the relevant factors for consideration in the context of appellate review of the trial .court’s determination); see also Thomas v. Thomas, 917 S.W.2d 425

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31 F. Supp. 2d 378, 1998 U.S. Dist. LEXIS 21496, 1998 WL 921271, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garden-state-auto-park-pontiac-gmc-truck-inc-v-electronic-data-systems-njd-1998.