GS Holistic, LLC v. Brother Pastor LLC

District Court, M.D. Florida·Decided September 5, 2023·No. 8:22-cv-02179·Unknown

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION

GS HOLISTIC, LLC,

Plaintiff,

v. Case No. 8:22-cv-2179-VMC-TGW

BROTHER PASTOR LLC d/b/a LARGO SMOKE SHOP, MATTHEW S. MOSES, and EARL BURDETTE,

Defendants. _____________________________/

ORDER

This matter comes before the Court pursuant to Defendants Brother Pastor LLC, Matthew S. Moses, and Earl Burdette’s Motion for Determination of Attorney Fees, Costs, and Sanctions (Doc. # 36), filed on August 7, 2023. Plaintiff GS Holistic, LLC responded on August 21, 2023. (Doc. # 38). As set forth herein, the Motion is granted in part and denied in part. I. Background The Court and the parties are familiar with the facts and procedural history of this case. Thus, the Court will not review that history in detail. Suffice it to say, on September 20, 2022, GS Holistic filed its complaint alleging trademark infringement and unfair competition in violation of 15 U.S.C. §§ 1114 and 1125(a). (Doc. # 1). Despite months of discussion between the parties concerning the lack of factual basis to assert trademark claims against Defendants, GS Holistic continued to pursue the case. On February 27, 2023, Defendants sent GS Holistic’s counsel, Ms. Gabrielle Alexa Penalta, a Rule 11 letter with a copy of their motion for sanctions, placing her on notice

that they would file the motion in twenty-one days unless GS Holistic amended or withdrew the complaint. (Doc. # 30-2 at 32). In response, GS Holistic filed its amended motion to dismiss the case voluntarily without prejudice on March 22, 2023. (Doc. # 28). Defendants filed their motion for sanctions the next day, seeking the imposition of sanctions against both GS Holistic and Ms. Penalta. (Doc. # 29). In the motion for sanctions, Defendants requested attorney’s fees and costs “incurred in 1) answering [GS Holistic’s] Complaint []; 2) preparing the Uniform Case Management Report []; 3) preparing and submitting Defendants’ Rule 26(a) disclosures; 4)

responding to [GS Holistic’s] [m]otion to [s]trike []; 5) selecting a mediator; 6) engaging in discovery and 7) bringing th[e] [m]otion for [s]anctions.” (Id. at 15-16). On June 20, 2023, the Court granted GS Holistic’s amended motion to dismiss case voluntarily without prejudice and granted Defendant’s motion for sanctions. (Doc. # 34). The Court found that the imposition of sanctions in the form of attorney’s fees and costs against GS Holistic and its counsel, Ms. Penalta, was warranted under both Federal Rule of Civil Procedure 11 and 28 U.S.C. § 1927. (Id. at 11-15). The Court wrote: “Put simply, Ms. Penalta has wasted both Defendants’ and the Court’s time, and made misrepresentations to the Court

which were objectively frivolous and which she knew to be false.” (Id. at 14). Now, Defendants seek a determination of the amount of reasonable attorney’s fees and costs to be imposed as a sanction. (Doc. # 36). The Motion is fully briefed (Doc. ## 38, 39) and ripe for review. II. Discussion Defendants ask for $40,070.00 in attorney’s fees, $13,800.00 in expert fees for the attorney’s fees expert as costs, $2,052.00 in other costs related to Defendant Moses’s taking out of loans to pay defense counsel’s fees, and

prejudgment interest. (Doc. # 36). The Court will address these categories in turn. As a preliminary matter, the Court notes that the sanctions imposed on Ms. Penalta are also imposed against her firm, The Ticktin Law Group, PA, jointly. See Fed. R. Civ. P. 11(c)(1) (“Absent exceptional circumstances, a law firm must be held jointly responsible for a violation committed by its partner, associate, or employee.”). A. Attorney’s Fees “When a statute or rule of law permits an award of reasonable attorneys’ fees . . . , a court should utilize the lodestar method in computing the appropriate fees.” Baker v.

Fid. Mortg. Direct Corp., No. 8:10-cv-2596-SCB-TBM, 2011 WL 1560665, at *3 (M.D. Fla. Apr. 25, 2011) (citing Norman v. Hous. Auth. of City of Montgomery, 836 F.2d 1292, 1299 (11th Cir. 1988)). “Under the lodestar method, a court determines the objective value of a lawyer’s services by multiplying the hours reasonably expended by a reasonable hourly rate.” Id. “A reasonable hourly rate is the prevailing market rate in the relevant legal community for similar services by lawyers of reasonably comparable skills, experience, and reputation.” Norman, 836 F.2d at 1299. “The applicant bears the burden of producing satisfactory evidence that the

requested rate is in line with prevailing market rates.” Id. “Furthermore, fee applicants are required to exercise ‘billing judgment.’” Omnipol, A.S. v. Worrell, No. 8:19-cv- 794-VMC-TGW, 2021 WL 1842212, at *2 (M.D. Fla. Mar. 23, 2021) (citation omitted), report and recommendation adopted, No. 8:19-cv-794-VMC-TGW, 2021 WL 1840513 (M.D. Fla. May 7, 2021). “If they do not exclude ‘excessive, redundant, or otherwise unnecessary hours,’ the court must exercise billing judgment for the applicant.” Id. (citation omitted). “The fee opponent ‘has the burden of pointing out with specificity which hours should be deducted.’” Id. (citation omitted). “There is a strong presumption that the lodestar yields a reasonable fee

for this purpose.” In re Home Depot Inc., 931 F.3d 1065, 1082 (11th Cir. 2019). As mentioned above, Defendants request $40,070.00 for the work of three attorneys and a paralegal. (Doc. # 36 at 9). Defendants support their claim for attorney’s fees with the declarations of counsel Crystal Broughan, Defendant Moses, and an attorney’s fees expert, Dineen Wasylik. (Doc. # 36-1; Doc. # 36-2; Doc. # 36-3). Ms. Broughan’s declaration reveals that the “total time expended by the Defense team through July 31, 2023” was 100.4 hours. (Doc. # 36-2 at 6- 7). Broughan explains that Defendants’ counsel “exercised

billing judgment to remove any hours [they] deemed duplicative or excessive for the tasks performed.” (Id. at 6). According to the Motion, “[p]rior to the case rising to the level of Defendants seeking Rule 11 sanctions, the total time spent on the case by all of Defendants’ timekeepers was 39.2 hours.” (Doc. # 36 at 5). Defendants’ counsel spent 13.2 hours preparing the motion for sanctions and 20.7 hours responding to GS Holistic’s motion to voluntarily dismiss the case without prejudice. (Id. at 5-6). Finally, Defendants’ counsel spent 26.7 hours researching and preparing the instant Motion, including obtaining the attached declarations. (Id. at 6). However, upon review of the hours

billed by Defendants’ counsel, Ms. Wasylik opined that only 99.6 hours were reasonably expended, for a total of $40,070 in reasonable attorney’s fees. (Doc. # 36-3 at 16). Ms. Wasylik reached the 99.6 hours after reducing the 100.4 total hours by 0.7 hours of Ms. Broughan’s time on administrative or clerical tasks between July 17 and 19, 2023. (Id. at 11). Ms. Broughan, a partner with twenty-three years’ experience, billed at a reasonable hourly rate of $500. (Doc. # 36 at 9). Mitchell Ghaneie, a partner and patent attorney with eight years’ experience, initially billed at an hourly rate of $500 but later voluntarily reduced his rate to $250

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