Girod LoanCo, LLC v. Heisler

CourtDistrict Court, E.D. Louisiana
DecidedJuly 2, 2020
Docket2:19-cv-13150
StatusUnknown

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

Bluebook
Girod LoanCo, LLC v. Heisler, (E.D. La. 2020).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA GIROD LOANCO, LLC CIVIL ACTION VERSUS CASE NO. 19-13150

REGINA B. HEISLER SECTION: “G”(2) ORDER AND REASONS Before the Court is Plaintiff Girod LoanCo, LLC’s (“Plaintiff”) “Motion to Fix Attorneys’ Fees.”1 In the motion, Plaintiff requests the Court award it attorneys’ fees and expenses jointly and severally against Defendant Regina B. Heisler (“Defendant” or “Heisler”) and her counsel Henry L. Klein (“Klein”) in connection with this Court’s prior Order and Reasons granting Plaintiff’s Motion to Remand.2 Defendant filed an untimely opposition to the motion to fix attorneys’ fees.3 Having considered the motion, the memorandum in support and opposition, the record, and the

applicable law, the Court grants the motion in part and denies it in part. I.Background On March 12, 2019, Plaintiff filed a “Verified Petition for Foreclosure by Executory Process” against Defendant in the 24th Judicial District Court for the Parish of Jefferson, State of Louisiana.4 In this litigation, Plaintiff seeks to have certain property seized and sold in satisfaction

1 Rec. Doc. 19. 2 Id. at 1. 3 Local Rule 7.5 of the Eastern District of Louisiana requires that memoranda in opposition to a motion be filed eight days prior to the noticed submission date. The submission date for Plaintiff’s “Motion to Fix Attorneys’ Fees” was January 29, 2020, and accordingly Defendant’s response was due on or before January 21, 2020. Defendant filed an opposition on January 22, 2020. See Rec. Doc. 20. 4 Rec. Doc. 13-2. 1 of multiple promissory notes given by Defendant in her individual capacity and her capacity as Succession Representative of the Succession of Frederick P. Heisler.5 Defendant removed this civil action to this Court for the first time on March 14, 2019, on the alleged basis of diversity jurisdiction. 6 Plaintiff filed a Motion to Remand, which was granted by this Court on June 5, 2019.7 On October 16, 2019, Defendant filed a second “Notice of

Removal” arguing that “[t]he State-Court action became removable pursuant to 28 U.S.C. 1446(b)(3) . . . when Judge Schlegel issued an ex parte Order requiring Heisler’s attorney, Henry L. Klein (“Klein”), to show cause on October 29, 2019, why he should not be held in Contempt of Court for allegedly communicating with his Law Clerk, Marla Hamilton (“Hamilton”), regarding the foreclosure he authorized under extraordinary circumstances.”8 Defendant further states that the action became removable when Judge Schlegel caused Klein to be served with a contempt citation, which Defendant contends caused a chilling effect on Klein’s ability to represent Heisler.9 Lastly, Defendant argues that “the level of disregard for the facts and law has reached unconstitutional levels violating due process, equal protection and petitioning clause principles

under the 1st, 5th and 14th Amendments to the United States Constitution.”10 On November 11, 2019, Plaintiff filed a “Motion to Remand,” arguing that Defendant

5 Rec. Doc. 13-2. 6 Case No. 19-2363, Rec. Doc. 1. 7 Case No. 19-2363, Rec. Doc. 16. 8 Rec. Doc. 1 at 1. 9 Id. 10 Id. at 2. 2 removed this civil action to federal court without a good-faith basis to do so.11 On December 23, 2019, the Court granted Plaintiff’s “Motion to Remand.”12 The Court determined that Defendant failed to assert a proper basis for this Court to exercise subject matter jurisdiction over this case.13 Specifically, the state court petition filed by Plaintiff did not provide a basis for this Court to exercise federal question jurisdiction over this case because it raises foreclosure claims that arise

purely under Louisiana law and involve no federal cause of action.14 Moreover, the Notice of Removal did not assert a basis for this Court to exercise diversity jurisdiction over this case.15 Lastly, when this case was previously removed, this Court determined that Plaintiff and Defendant are both citizens of the State of Louisiana and therefore remanded that case for lack of subject matter jurisdiction.16 Accordingly, the Court determined that Defendant did not have an “objectively reasonable basis” for seeking removal, and sought to remove only to delay a state court show cause hearing regarding contempt.17 Therefore, the Court determined that Plaintiff is entitled to attorneys’ fees and costs and instructed Plaintiff to file supplemental briefing on the amount of attorneys’ fees and costs incurred as a result of the removal.18

11 Rec. Doc. 13 at 1. 12 Rec. Doc. 17. 13 Id. at 7. 14 Id. at 9. 15 Id. 16 Id. 17 Id. at 10. 18 Id. at 11. 3 On January 3, 2019, Plaintiff filed the instant “Motion to Fix Attorneys’ Fees.”19 Local Rule 7.5 of the Eastern District of Louisiana requires that memoranda in opposition to a motion be filed eight days prior to the noticed submission date. The submission date for Plaintiff’s “Motion to Fix Attorneys’ Fees” was January 29, 2020, and accordingly Defendant’s response was due on or before January 21, 2020. Defendant filed an opposition on January 22, 2020.20 The Court, in its

discretion, will consider Defendant’s opposition, despite it being filed untimely. II. Parties’ Arguments A. Plaintiff’s Arguments in Support of the Motion to Fix Attorneys’ Fees In support of the instant motion, Plaintiff requests that the Court fix the amount of attorneys’ fees and expenses that this Court previously awarded.21 Plaintiff seeks attorneys’ fees in the amount of $18,290.75, and requests that the award be made jointly and severally against Heisler and her counsel Klein.22 Plaintiff argues that this amount is reasonable and appropriate based on the facts of this case and the applicable law.23 Additionally, Plaintiff contends that these fees and expenses would not have been incurred but for Defendant’s legally baseless removal.24

Plaintiff argues that Klein’s request for leniency due to his personal problems does not justify his practice of asserting arguments that have no legal basis.25

19 Rec. Doc. 19. 20 Rec. Doc. 20. 21 Rec. Doc. 19-1 at 1. 22 Id. 23 Id. 24 Id. 25 Id. at 4. 4 Plaintiff contends that attorneys’ fees are appropriate when the removing party “lacked an objectively reasonable basis for removal.”26 Here, Plaintiff argues that Defendant lacked an objectively reasonable basis for removal.27 Plaintiff contends that an award of attorneys’ fees and expenses must be reasonable, and is generally limited to fees and expenses incurred in federal court “that would not have been incurred had the case remained in state court.”28 Plaintiff argues

that the Fifth Circuit has instructed that state law controls both the award of and the reasonableness of the fees awarded.29 Plaintiff contends that under Louisiana law, courts consider ten factors to determine whether an award of attorneys’ fees is reasonable.30 Plaintiff argues that because Klein seemingly made the decision to remove the case and because Heisler continues to allow Klein to file baseless documents on her behalf in order to delay the resolution of this case, the Court should enter judgment on its fees and expenses against both Heisler and Klein, jointly and severally.31 In support of the motion, Plaintiff submits (1) the Declaration of J. Eric Lockridge, a partner at the law firm Kean Miller LLP, and the lead attorney for Defendant in this civil action, (2) Kean Miller’s November and December 2019 invoices that show the work performed and costs incurred

from the date of removal, October 16, 2019 through November 30, 2019, and (3) a “proforma

26 Id. at 5 (citing Martin v. Franklin Capital Corp., 546 U.S. 132, 141 (2005)). 27 Id. 28 Id. (citing Avitts v.

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Girod LoanCo, LLC v. Heisler, Counsel Stack Legal Research, https://law.counselstack.com/opinion/girod-loanco-llc-v-heisler-laed-2020.