GPH Louisville Hillcreek, LLC v. Redwood Holdings, LLC

CourtDistrict Court, W.D. Kentucky
DecidedMay 1, 2024
Docket3:21-cv-00063
StatusUnknown

This text of GPH Louisville Hillcreek, LLC v. Redwood Holdings, LLC (GPH Louisville Hillcreek, LLC v. Redwood Holdings, LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
GPH Louisville Hillcreek, LLC v. Redwood Holdings, LLC, (W.D. Ky. 2024).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF KENTUCKY LOUISVILLE DIVISION

GPH LOUISVILLE HILLCREEK LLC, et al. Plaintiffs

v. Civil Action No. 3:21-cv-63-RGJ

REDWOOD HOLDINGS, LLC, et al. Defendants

* * * * *

MEMORANDUM OPINION AND ORDER

Plaintiffs/Counterclaim Defendants GPH Louisville Hillcreek LLC; GPH Louisville Camelot LLC; GPH Louisville Mt. Holly LLC; GPH Louisville St. Matthews LLC; GPH Frankfort LLC; GPH Kirtland LLC; GPH Vanceburg LLC; GPH Stanford LLC; and GPH Greensburg LLC (collectively, “Plaintiffs”) move for attorneys’ fees and costs. [DE 171]. Defendants/Counterclaim Plaintiffs Redwood Holdings, LLC; Hillcreek Leasing, LLC; Camelot Leasing, LLC; Mt. Holly Leasing, LLC; St. Matthews Leasing, LLC; Frankfort Leasing, LLC; Kirtland Leasing, LLC; Vanceburg Leasing, LLC; Stanford Leasing, LLC; Green Hill Leasing, LLC; and Eli M. Gunzburg (“Gunzburg”) (collectively, “Defendants”) did not respond, and the time to do so has passed. LR 7.1(c) (“[A] party opposing a motion must file a response within 21 days of service of the motion. Failure to timely respond to a motion may be grounds for granting the motion.”). Having considered the motion and accompanying documentation, Plaintiffs’ motion for attorneys’ fees and costs is GRANTED in part. I. Background The Court previously issued its findings of fact and conclusions of law following a bench trial. [DE 170]. The Court held that Plaintiffs were entitled to recover from Defendants for (1) breach of the Master Lease’s maintenance and repair obligations in the amount of $447,157.58;1 (2) reimbursement for property condition reports in the amount of $22,500.00; and (3) the remaining principal for unspent capital expenditures in the amount of $43,782.82.2 [DE 170 at 3852]. In total, this amounts to $513,440.40 in damages. Plaintiffs now move for attorneys’ fees and costs, attaching the relevant portions of the lease and guaranty, an affidavit from a lead partner

on the case (Matthew C. Williams), an affidavit from Plaintiffs’ vice president (Holly Rasmussen- Jones), invoices, time reports, a summary table, interrogatories, emails, documentation from a comparable request for attorneys’ fees before this Court, and a proposed order. [DE 171; DE 171- 1; DE 171-2; DE 171-3; DE 171-4; DE 171-5; DE 171-6]. Plaintiffs seek $524,941.50 in attorneys’ fees and $67,070.24 in costs for a total of $592,011.74. [DE 171 at 3854]. II. Standard “Under the Erie doctrine, in diversity cases [courts] apply the substantive law of the forum state and federal procedural law.” Hoven v. Walgreen Co., 751 F.3d 778, 783 (6th Cir. 2014) (citing Erie R.R. Co. v. Tompkins, 304 U.S. 64, 58 (1938)). On a motion for attorneys’ fees and

costs, that means courts “typically apply the forum state’s laws regarding attorneys’ fees” and “federal law regarding costs[.]” Miller v. Brightstar Int’l Corp., No. 3:20-CV-00313, 2022 WL 17070541, at *3 (M.D. Tenn. Nov. 17, 2022), report and recommendation adopted, No. 3:20-CV- 00313, 2022 WL 17420371 (M.D. Tenn. Dec. 5, 2022); see also Hometown Folks, LLC v. S & B Wilson, Inc., 643 F.3d 520, 533 (6th Cir. 2011) (“In diversity cases, attorneys’ fees are governed by state law.”); Huntsville Golf Dev., Inc. v. Brindley Const. Co., No. 1-08-00006, 2011 WL

1 This is the sum of $121,759.58 for the Clifton Oaks facility water supply, $322,398.00 for the Vanceburg facility settling issues, and $3,000 for the Green Hill facility cooler. [DE 170 at 3852]. 2 The Court also denied Defendants’ counterclaim regarding de-licensure of beds at the Kirtland Facility. [DE 170 at 3847–49]. 4960421, at *2 (M.D. Tenn. Oct. 18, 2011) (“In this diversity action, the granting of an award of costs is governed by Rule 54(d)(1) of the Federal Rules of Civil Procedure and 28 U.S.C. § 1920.”). A. Attorneys’ Fees Delaware adheres to the American rule for attorneys’ fees, under which “litigants normally are responsible for paying their own attorneys’ fees.” Marina View Condo. Ass’n of Unit Owners

v. Rehoboth Marina Ventures, LLC, No. CV 2017-0217-PWG, 2019 WL 6770045, at *2 (Del. Ch. Dec. 2, 2019) (citation omitted), aff’d, 244 A.3d 1007 (Del. 2020); see also Mahani v. Edix Media Grp., Inc., 935 A.2d 242, 245 (Del. 2007); Grupo Condumex, S.A. de C.V. v. SPX Corp., 331 F. Supp. 2d 623, 628 (N.D. Ohio 2004), aff’d, 195 F. App’x 491 (6th Cir. 2006). Under Delaware Law, “a court may not order the payment of attorney’s fees as part of costs to be paid by the losing party unless the payment of such fees is authorized by some provision of statute or contract.” Casson v. Nationwide Ins. Co., 455 A.2d 361, 370 (Del. Super. Ct. 1982). But “an exception to this rule is found in contract litigation that involves a fee shifting provision,” in which case “a trial judge may award the prevailing party all of the costs incurred during litigation” and must

“determine whether the fees requested are reasonable.” Mahani, 935 A.2d at 245. To determine reasonableness, a judge considers the following factors: (1) the time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly; (2) the likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer; (3) the fee customarily charged in the locality for similar legal services; (4) the amount involved and the results obtained; (5) the time limitations imposed by the client or by the circumstances; (6) the nature and length of the professional relationship with the client; (7) the experience, reputation, and ability of the lawyer or lawyers performing the services; and (8) whether the fee is fixed or contingent. Id. at 246 (setting forth factors from Delaware Lawyers’ Rules of Professional Conduct). The lease fee-shifting provision “governs an award of costs, and the court looks solely to that document in determining which approach to utilize,” Comrie v. Enterasys Networks, Inc., No. CIV.A.19254, 2004 WL 936505, at *2 (Del. Ch. Apr. 27, 2004), by “interpreting clear and unambiguous contract terms according to their plain meaning.” Marina View, 2019 WL 6770045, at *2.

B. Costs Federal Rule of Civil Procedure 54(d)(1) authorizes a prevailing party to recover costs other than attorneys’ fees. White & White, Inc. v. Am. Hosp. Supply Corp., 786 F.2d 728, 730 (6th Cir. 1986) (Rule 54(d) “creates a presumption in favor of awarding costs, but allows denial of costs at the discretion of the trial court.”). Recoverable costs are limited to those specified by 28 U.S.C. § 1920. In re Cardizem CD Antitrust Litig., 481 F.3d 355, 359 (6th Cir. 2007) (citing Crawford Fitting Co. v. J.T.

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GPH Louisville Hillcreek, LLC v. Redwood Holdings, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gph-louisville-hillcreek-llc-v-redwood-holdings-llc-kywd-2024.