Hanigan v. OpSec Security, Inc.

District Court, D. Idaho·Decided October 18, 2023·No. 1:22-cv-00064·Unknown

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF IDAHO EMILY HANIGAN, Case No. 1:22-cv-00064-DCN Plaintiff, MEMORANDUM DECISION AND v. ORDER

OPSEC SECURITY, INC.; and OPSEC ONLINE, LLC,

Defendants.

I. INTRODUCTION Before the Court is Plaintiff Emily Hanigan’s Motion for Attorney Fees. Dkt. 46. Hanigan requests $67,021.25 in attorneys’ fees and $3,395.60 in non-taxable costs.1 Dkt. 50, at 6. Because oral argument would not significantly aid its decision-making process, the Court will decide the motion on the briefing. Dist. Idaho Loc. Civ. R. 7.1(d)(1)(B). Upon consideration, and for the reasons below, the motion for an award of attorneys’ fees and non-taxable costs is GRANTED in PART and DENIED in PART.2 II. BACKGROUND Hanigan brought this case under the Fair Labor Standards Act (“FLSA”) “on behalf of herself, and all similarly situated individuals” (collectively “Plaintiffs”). Dkt. 1, at 2. After thirteen other individuals joined Hanigan’s case (see Dkts. 15–19, 22, 27, 31, 37),

1 Hanigan’s original request for attorneys’ fees amounted to $65,568.75 (Dkt. 46, at 1), but this increased to $67,021.25 due to time spent working on the fee petition itself (Dkt. 50, at 6).

2 Hanigan also filed a Bill of Costs. Dkt. 45. As explained below, the Court will award the amounts requested therein. OpSec Security, Inc. and OpSec Online, LLC (“OpSec”) made a Rule 68 Offer of Judgment (the “Offer”) (Dkt. 43-1), which Plaintiffs accepted (Dkt. 43-2), and the Court approved (Dkt. 44). Relevant here, part of the Offer stated: “Defendants will pay

Plaintiff . . . reasonable attorneys’ fees and costs incurred to date in full satisfaction of all of the claims . . . .” Dkt. 43-1, at 3. Hanigan now petitions the Court for attorneys’ fees and costs pursuant to the terms of the Offer. Dkt. 46. OpSec filed a response disputing four aspects of Hanigan’s petition.3 First, OpSec argues that 40.4 hours amounting to $10,017.50 in fees that Hanigan’s

counsel Nichols Kaster, LLP accumulated in preparing the fee petition are excessive and unreasonable. Hanigan requests an additional 4.1 hours amounting to $1,452.50 in fees incurred by drafting the reply to OpSec’s opposition. As that amount is part of the fee petition, the Court assumes that OpSec opposes and incorporates that amount into their overall response. Therefore, OpSec opposes 44.5 hours amounting to $11,470.00 in fees

and requests the Court reduce that amount by at least one-half. Second, OpSec contends the 7.7 hours amounting to $1,355.00 in fees Hanigan’s counsel requests for sending “welcome letters” and researching “potential client contact information” should be denied “due to their lack of specificity and clarity.” Dkt. 49, at 10– 11. OpSec alternatively characterizes these activities as advertising and solicitation, which

it addresses in its third argument.

3 In its response, OpSec first argued that the Court should stay a decision on this motion pending an order on OpSec’s Motion to Alter, Amend, or Vacate the Court’s approval of the Offer of Judgment. The request to stay Hanigan’s motion is moot as the Court has since denied OpSec’s Motion. Dkt. 54. Third, OpSec asserts that fees for researching, advertising, and communicating with potential clients are unrecoverable advertising and solicitation expenses.4 Fourth, OpSec similarly asserts that in addition to advertising fees, advertising costs

are also unrecoverable and opposes Hanigan’s request for $1,602.61 in nontaxable advertising costs. III. LEGAL STANDARD Federal Rule of Civil Procedure 68 permits “a party defending against a claim to serve an opposing party an offer to allow judgment on specified terms.” Fed. R. Civ. P.

68(a) (cleaned up). Where a Rule 68 offer provides for an award of reasonable attorneys’ fees, the district court’s job is to determine “the amount of fees to which the plaintiffs are entitled under the Rule 68 Offer.” Id. at 852 (cleaned up). The Ninth Circuit has “repeatedly emphasized that Rule 68 offers of judgment are analyzed in the same manner as any contract.” Miller v. City of Portland, 868 F.3d 846, 851 (9th Cir. 2017) (cleaned up). In

determining fees under a Rule 68 offer, the court must consider that plaintiffs are “entitled to rely on the plain language of the offer they accept, and any ambiguities are construed against the drafter.” Id. (cleaned up). Courts use the two-step “lodestar” method to calculate reasonable attorneys’ fee awards. See, e.g. Edmo v. Idaho Dep’t of Correction, 2022 WL 16860011, *2 (D. Idaho

Sept. 30, 2022). The lodestar amount is “calculated by multiplying the number of

4 Specifically, OpSec opposes 23.65 hours amounting to $4,491.25 in fees for drafting/ reviewing advertisements, sending ad letters, and drafting a press release; 7.7 hours amounting to $1,355.00 in fees for drafting, revising, and sending welcome letters; and 6.1 hours amounting to $1,067.50 in fees for researching potential client information. hours reasonably expended on the litigation by a reasonable hourly rate.” Vogel v. Harbor Plaza Ctr., LLC, 893 F.3d 1152, 1160 (9th Cir. 2018) (emphasis in original) (quoting Costa v. Comm'r of Soc. Sec. Admin., 690 F.3d 1132, 1135 (9th Cir. 2012)).

“Generally, when determining a reasonable hourly rate, the relevant community is the forum in which the district court sits.” Camacho v. Bridgeport Fin., Inc., 523 F.3d 973, 979 (9th Cir. 2008) (citing Barjon v. Dalton, 132 F.3d 496, 500 (9th Cir. 1997)). Within the relevant community, the court considers the “rate prevailing in the community for similar work performed by attorneys of comparable skill, experience, and

reputation.” Barjon, 132 F.3d at 502 (quoting Chalmers v. City of Los Angeles, 796 F.2d 1205, 1210-11 (9th Cir. 1986)). A court may exclude from the fee calculation hours that were not “reasonably expended,” such as hours which are “excessive, redundant, or otherwise unnecessary[.]” Hensley v. Eckerhart, 461 U.S. 424, 434 (1983). The “fee applicant bears the burden of

documenting the appropriate hours expended in the litigation and must submit evidence in support of those hours worked.” Gates v. Deukmejian, 987 F.2d 1392, 1397 (9th Cir. 1992) (citing Hensley, 461 U.S. at 437). “The party opposing the fee application has a burden of rebuttal that requires submission of evidence to the district court challenging the accuracy and reasonableness of the hours charged or the facts asserted by the prevailing

party in its submitted affidavits.” Gates, 987 F.2d at 1397-98 (citations omitted). Although “the calculation of the amount of a ‘reasonable attorney’s fee’ is not a precise science,” Green v. Baca, 225 F.R.D. 612, 614 (C.D. Cal. 2005), there is a “strong presumption” that the lodestar figure represents a reasonable fee. Jordan v. Multnomah Cnty., 815 F.2d 1258, 1262 (9th Cir. 1987). “Only in rare instances should the lodestar figure be adjusted on the basis of other considerations.” Harris v.

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Hanigan v. OpSec Security, Inc., (D. Idaho 2023).

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