G&G Closed Circuit Events, LLC v. Zarazua

District Court, S.D. California·Decided July 29, 2022·No. 3:20-cv-00816·Unknown

Opinion

G&G CLOSED CIRCUIT EVENTS, Case No. 20cv00816–LAB–MSB LLC, ORDER GRANTING IN PART Plaintiff, AND DENYING IN PART PLAINTIFF’S MOTION FOR v. ATTORNEYS’ FEES AND COSTS [Dkt. 12] AMERICA ZAMORA ZARAZUA, individually and doing business as El Comal, Defendant.

On January 7, 2021, Plaintiff G & G Closed Circuit Events, LLC (“Plaintiff”) sought default judgment against Defendant America Zamora Zarazua (“Defendant”), d/b/a El Comal Antojitos Mexicanos Restaurant (“El Comal”). (Dkt. 6). Plaintiff claims that Defendant unlawfully “intercepted, received and published” a boxing fight that was displayed on Defendant’s televisions in El Comal without first obtaining the sublicensing rights for it. The Court granted default judgment on September 30, 2021, (Dkt. 10), and awarded a total judgment of $2,625.00, representing $1,750.00 in statutory damages and $875.00 in conversion fees. Plaintiff now seeks attorneys’ fees and costs incurred in connection with this action. For the reasons stated below, Plaintiff’s motion is GRANTED IN PART. A. Legal Standard Reasonable attorneys’ fees are recoverable under both 47 U.S.C. § 553(c)(2)(C) and § 605(e)(3)(B)(iii) for an “aggrieved party who prevails,” including any person with proprietary rights in an intercepted communication by wire, radio, or cable operator, including wholesale or retail distributors of satellite cable programming. 47 U.S.C. § 553(a)(1) and 605(d)(6). This would include “a program distributor with exclusive distribution rights.” J&J Sports Prods., Inc. v. Nguyen, No. 13–CV–02008–LHK, 2014 WL 60014, at *5 (N.D. Cal. Jan. 7, 2014). “Once a party is found eligible for fees, the district court must then determine what fees are reasonable.” Roberts v. City of Honolulu, 938 F.3d 1020, 1023 (9th Cir. 2019) (quoting Klein v. City of Laguna Beach, 810 F.3d 693, 698 (9th Cir. 2016)). The presumptive method to calculate this is the “lodestar method,” which “provides an objective basis on which to make an initial estimate of the value of a lawyer’s services.” Hensley v. Eckerhart, 461 U.S. 424, 433 (1983). Using this method, courts calculate “the number of hours reasonably expended on the litigation and then multiply that number by a reasonable hourly rate.” Id.; Vargas v. Howell, 949 F.3d 1188, 1194 (9th Cir. 2020) (quoting Blum v. Stenson, 465 U.S. 886, 888 (1984)). The party seeking attorneys’ fees “bears the burden of establishing entitlement to an award and documenting the appropriate hours expended and hourly rate.” Hensley, 461 U.S. at 437. This includes “submitting evidence of the hours worked, the rate charged, and that the rate charged is in line with the prevailing market rate of the relevant community.” G&G Closed Circuit Events, LLC v. Parker, No. 3:20–cv–00801–BEN–RBB, 2018 WL 164998, at *2 (S.D. Cal. Jan. 19, 2021) (quoting Carson v. Billings Police Dep’t, 470 F.3d 889, 891 (9th Cir. 2006)). The relevant community is “the forum in which the district court sits.” Gonzalez v. City of Maywood, 729 F.3d 1196, 1205–06 (9th Cir. 2013) (quoting Prison Legal News v. Schwarzenegger, 608 F.3d 446, 454 (9th Cir. 2010)); see also Jordan v. Multnomah Cnty., 815 F.2d 1258, 1261–63 (9th Cir. 1987) (“The fee applicant has the burden of producing satisfactory evidence, in addition to the affidavits of its counsel, that the requested rates are in line with those prevailing in the community for similar services of lawyers of reasonably comparable skill and reputation.”). If the moving party in a fee motion “satisfies its burden of showing that the claimed rate and number of hours are reasonable, the resulting product is presumed to be the reasonable fee.” Intel Corp. v. Terabyte Int’l, Inc., 6 F.3d 614, 622–23 (9th Cir. 1993). Furthermore, the Court has discretion to exclude those hours for which it would be unreasonable to compensate the prevailing party because, for example, they are “excessive, redundant, or otherwise unnecessary.” G&G Closed Circuit Events, LLC v. Pacheco, No. 18–cv–00462–BTM–AGS, 2019 WL 3388362, at *2 (S.D. Cal. Jul. 25, 2019) (quoting Gonzalez, 729 F.3d at 1203). B. Discussion i. Thomas Riley Counsel for Plaintiff, Thomas Riley (“Mr. Riley” or “Plaintiff’s Counsel”), demonstrates that his hourly rate of $550 is reasonable. Mr. Riley is a licensed attorney and member in good standing in three states: Pennsylvania, New Jersey, and California. (Dkt. 12-1, Declaration of Thomas Riley (“Riley Decl.”), ¶ 3). He has been practicing law for approximately twenty-eight years, and his firm has specialized in the civil prosecution of commercial signal piracy claims since December 1994. (Id. at ¶¶ 3–4). This District has held a range of rates from $450–750 per hour to be reasonable for a senior partner. See Gallagher v. Philipps, No. 20cv00993–LL– BLM, 2022 WL 848329, at *3 (S.D. Cal. Mar. 22, 2022); Youngevity Int’l Corp. v. Smith, No. 16–cv–0070–BTM–JLB, 2018 WL 2113238, at *5 (S.D. Cal. May 7, 2018) (“Courts in this district have held a range of rates from $450-750 per hour reasonable for a senior partner in a variety of litigation contexts and specialties.”). Mr. Riley’s hourly rate of $550 falls within this range and is reasonable. Having determined the hourly rate is reasonable, the Court must next determine whether the number of hours billed by Mr. Riley on this case—2.61 hours—is reasonable. Mr. Riley provides a billing statement with block-billed time entries, reflecting the time he expended on various tasks. (Riley Decl., Ex. 1). Mr. Riley worked a total of 2.61 hours, (id.), and in his supporting declaration, he explains that “[b]illable hours for legal services rendered are reconstructed by way of a thorough review of the files themselves.” (Id. ¶ 7). But as with what appears to be Mr. Riley’s usual practice, these “reconstructed” records are not contemporaneous and therefore less reliable and more likely to be inaccurate. See G & G Closed Cir. Events, LLC v. Hernandez, No. 20-CV-2112-MMA (RBB), 2021 WL 3290422, at *2 (S.D. Cal. Aug. 2, 2021) (“Thus, the ‘reconstructed’ billing records are not contemporaneous. This appears to be Mr. Riley’s standard practice.”). Moreover, many of his time entries appear duplicative of tasks completed by either his research attorney or administrative assistant. (See Riley Decl., Ex. 1). But because his time entries are in block-billed format, it’s difficult for the Court to ascertain exactly how much time he billed on these duplicative tasks. Courts may reduce an award of attorneys’ fees where the documentation of the hours is inadequate, the hours are duplicated, or the hours expended are excessive or otherwise unnecessary. See Hensley, 461 U.S. at 438 n.13; Chalmers v. City of Los Angeles, 796 F.2d 1205, 1210 (9th Cir. 1986) (citation omitted). The Court therefore finds that a one-third reduction of Mr. Riley’s total hours is appropriate to mitigate against the risks associated with his duplic

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