Harman v. Webb

CourtDistrict Court, S.D. West Virginia
DecidedMarch 31, 2023
Docket2:20-cv-00336
StatusUnknown

This text of Harman v. Webb (Harman v. Webb) is published on Counsel Stack Legal Research, covering District Court, S.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harman v. Webb, (S.D.W. Va. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF WEST VIRGINIA

CHARLESTON DIVISION

JOSHUA MONROE HARMAN, et al.,

Plaintiffs,

v. CIVIL ACTION NO. 2:20-cv-00336

DANNY E. WEBB,

Defendant.

MEMORANDUM OPINION AND ORDER

Pending before the court is Plaintiffs’ Motion for Attorney Fees. [ECF No. 114]. Defendant has responded [ECF No. 117], and Plaintiffs have replied [ECF No. 121]. For the reasons stated herein, the Motion is GRANTED in part and DENIED in part. The court ORDERS that Plaintiffs be awarded attorney’s fees in the amount of $64,560.00, plus $2,750.44 in costs. I. Background

On May 12, 2020, Plaintiffs Joshua and Jesse Harman commenced this litigation to recover damages stemming from alleged misrepresentations under the parties’ Stock Purchase and Sale Agreement (the “Agreement”). [ECF No. 1]. Under the Agreement, Defendant Danny Webb sold to Plaintiffs the Danny Webb Construction Company, Inc. (the “Company”), along with an injection well, four semi- tractor trucks, two tandems, and five tankers. ¶¶ 6, 8, 19. In their Complaint, Plaintiffs asserted claims for Breach of Contract (Count

I); Fraud (Count II); and Express Indemnification and Hold Harmless (Count III). Plaintiffs alleged that Defendant misrepresented the condition of three discrete component parts of the Company: the vehicles, the injection well, and the containment area. On May 17, 2021, Defendant moved for partial summary judgment. [ECF No. 56]. After filing responsive briefing, Plaintiffs conceded both issues raised in the

motion. [ECF No. 59 (voluntarily dismissing Fraud claim); ECF No. 60 (stipulating that prior oral representations could not form basis for Breach of Contract claim)]. A jury trial took place on August 9th and 10th, 2022. At the close of Plaintiffs’ case, the court granted Defendant judgment as a matter of law with respect to the alleged misrepresentations regarding the containment area. [ECF No. 107]. The jury was presented with the claim for Breach of Contract based on alleged

misrepresentations, contained in the Agreement, as to the condition of the vehicles and the injection well. [ECF No. 117, at 3]. The jury returned a verdict in favor of Plaintiffs as to the injection well, but found for Defendant with respect to the vehicles. Plaintiffs were awarded $70,725.31 in compensatory damages and $10,608.79 in interest.

2 On the morning of August 9th, just before trial began, the court ruled that the Agreement “clearly and unambiguously provides for attorney fees arising out of either

parties’ breech [sic] or failure to perform under the contract.” Transcript of Record at 4:5–11, , No. 2:20-cv-00336 (S.D. W. Va. Aug. 9, 2022). Consequently, on August 25, 2022, Plaintiffs moved for attorney fees in the amount of $109,745.50, plus $2,816.65 in costs, for a total of $112,562.15. [ECF No. 114, ¶ 13]. According to their Motion, Plaintiffs arrived at this figure by determining the total amount incurred to litigate this case ($150,270.00) and subtracting charges related to the

issues on which Plaintiffs did not prevail ($40,524.50). ¶¶ 7, 12. In response, Defendant did not contest that Plaintiffs are entitled to recover fees associated with their successful claims. But given that “Plaintiffs only enjoyed limited success,” Defendant questioned Plaintiffs’ calculations, emphasizing their “refus[al] to produce their attorneys’ billing records.” [ECF No. 117, at 5]. Shortly after responding to Plaintiffs’ Motion, Defendant appealed. [ECF No. 118]. In reply, Plaintiffs supplied the relevant billing records but moved to file them

under seal. [ECF Nos. 121, 122]. In arguing that the billing records should not be disclosed, Plaintiffs relied largely on the pending appeal and consequent potential for a new trial. [ECF No. 121, at 4; ECF No. 122, at 1]. On January 10, 2023, the Fourth Circuit dismissed the appeal pursuant to the parties’ stipulated motion to

3 voluntarily dismiss. [ECF No. 135]. Shortly thereafter, the parties notified this court that they intend to resume an appeal once the Motion for Attorney Fees is resolved. On March 10, 2023, I denied Plaintiffs’ Motion to Seal and directed them to file

redacted billing records and a memorandum justifying the redactions. [ECF No. 137]. Pursuant to that Order, Plaintiffs submitted the billing records, unredacted, explaining that “Defendant disclosed that the scope of his appeal to the Fourth Circuit was limited to this Court’s pretrial ruling that the contract permitted the recovery of attorney fees if Plaintiffs proved that Defendant breached the contract by misrepresenting the condition of the Company’s injection well. Because Defendant is

not appealing the jury’s decision and not seeking a new trial, the details in the billing records no longer present a risk of prejudice to the Plaintiffs.” [ECF No. 138, at 1]. In my March 10th Order [ECF No. 137], I also permitted Defendant to submit additional briefing on the fee issue, which he timely filed on March 24, 2023 [ECF No. 141]. II. Legal Standard Courts evaluate attorney’s fees under a reasonableness standard. , 605 F.3d 238, 243 (4th Cir. 2010). “The proper calculation of an

attorney’s fee award involves a three-step process.” , 738 F.3d 81, 88 (4th Cir. 2013). The court must first determine the “lodestar figure” by multiplying the number of reasonable hours expended by a reasonable hourly rate. (quoting , 560 F.3d 235, 243 (4th Cir. 2009)). At this step,

4 the court is guided by the so-called factors.1 After determining the lodestar figure, the court “must subtract fees for hours spent on unsuccessful claims unrelated to successful ones.” (quoting , 560 F.3d at 244 (quotation marks

omitted)). Finally, “the court should award some percentage of the remaining amount, depending on the degree of success enjoyed by the party.” , 565 F. App’x 232, 237 (4th Cir. 2014) (internal markings omitted) (quoting , 738 F.3d at 88). III. Discussion I have already ruled that the parties’ Agreement provides for attorney fees to

the prevailing party in the event of breach, and a jury found that Defendant breached the Agreement. Accordingly, Plaintiffs’ Motion is GRANTED insofar as they are

1 The twelve factors set forth in , 488 F.2d 714, 717–19 (5th Cir. 1974), , 489 U.S. 87, 92–96 (1989), have been characterized by the Fourth Circuit as follows:

(1) The time and labor expended; (2) the novelty and difficulty of the questions raised; (3) the skill required to properly perform the legal services rendered; (4) the attorney’s opportunity costs in pressing the instant litigation; (5) the customary fee for like work; (6) the attorney’s expectations at the outset of the litigation; (7) the time limitations imposed by the client or circumstances; (8) the amount in controversy and the results obtained; (9) the experience, reputation, and ability of the attorney; (10) the undesirability of the case within the legal community in which the suit arose; (11) the nature and length of the professional relationship between attorney and client; and (12) attorneys’ fees awards in similar cases. , 738 F.3d at 88 n.5 (citing , 577 F.2d 216, 226 n.28 (4th Cir. 1978)). The United States Supreme Court has criticized the factors as providing “very little actual guidance to district courts.” , 478 U.S. 546, 563 (1986). But the Fourth Circuit continues to require their consideration in conjunction with the lodestar approach. , , 505 F.

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