In Re InPhonic, Inc.

674 F. Supp. 2d 273, 2009 U.S. Dist. LEXIS 118345, 2009 WL 4895664
CourtDistrict Court, District of Columbia
DecidedDecember 18, 2009
DocketMisc. Action No. 06-0507 (ESH). MDL No. 1792
StatusPublished
Cited by18 cases

This text of 674 F. Supp. 2d 273 (In Re InPhonic, Inc.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re InPhonic, Inc., 674 F. Supp. 2d 273, 2009 U.S. Dist. LEXIS 118345, 2009 WL 4895664 (D.D.C. 2009).

Opinion

MEMORANDUM OPINION AND ORDER

ELLEN SEGAL HUVELLE, District Judge.

Before the Court is the Motion for Payment of Attorneys’ Fees and Expenses by plaintiffs Edwin Davis, Walter Cover, Jonathan Feldman, Stanley J. Heller, Barbara McGivney, Luis Morales, Joshua Pevnick, Paul Rock, Melinda Roquemore, Shelly Salzman, Ryan Sutherland, Iona Workman, and Hongyi Yu. Having considered plaintiffs’ motion and the opposition filed by defendants Helgeson Enterprises (“Helgeson”), David A. Steinberg, and Brian T. Westrick, the Court will grant the motion in part.

BACKGROUND

In 2006, several of the instant plaintiffs filed putative class actions in this District alleging that InPhonic, Inc. (“InPhonic”), a provider of wireless communication services based in the District, had violated, inter alia, the District of Columbia Consumer Protection and Procedures Act (“DCCPPA”), D.C.Code §§ 28-3901 to - 3913, and the Racketeer Influenced and Corrupt Organizations (“RICO”) Act, 18 U.S.C. §§ 1961-1968, through InPhonic’s allegedly fraudulent consumer rebate practices. Some of these complaints also named as a defendant Continental Promotion Group, Inc. (“CPG”), which served as one of InPhonic’s rebate processors. Other plaintiffs filed lawsuits in federal court in Arizona, Illinois, New Jersey, alleging similar causes of action, including claims under their respective states’ consumer protection laws, against InPhonic, CPG, and Helgeson, another rebate processor.

On June 8, 2006, the D.C. Attorney General’s Office (“DCAGO”) sued InPhonic in D.C. Superior Court over its rebate practices. Several weeks later on June 26, InPhonic moved the Judicial Panel on Multidistrict Litigation (“JPML”), pursuant to 28 U.S.C. § 1407, for an order centralizing the multidistrict (“MDL”) rebate litigation against it in this District. On October 25, the JPML issued an order consolidating and transferring the MDL litigation to this Court. See In re InPhonic, Inc., Wireless Phone Rebate Litigation (“In re InPhon ic”), 460 F.Supp.2d 1380, 1381 (J.P.M.L. 2006).

On January 26, 2007, this Court appointed Steven A. Hart of Segal McCambridge Singer & Mahoney, Ltd. (“the Segal Firm”), Kevin P. Roddy of Wilentz, Goldman & Spitzer, P.A. (“the Wilentz Firm”), and John R. Climaco of Climaco, Lefkowitz, Peca, Wilcox & Garofoli Co., L.P.A. (“the Climaco Firm”) as interim co-lead and liaison counsel for plaintiffs pending a decision on class certification. On Febru *277 ary 15, the DCAGO announced that it had settled its lawsuit against InPhonic. On February 26, plaintiffs filed their first consolidated amended class action complaint (“FAC”), naming InPhonic, CPG, and Helgeson as defendants. During a March 14 status conference, the Court suggested that the parties engage in mediation, which the parties commenced in April with a private mediator. On April 27, the Federal Trade Commission (“FTC”) announced that it had also been investigating InPhonic’s rebate practices, and that InPhonic had entered into a consent agreement with the agency. See FTC Agreement Containing Consent Order, In the Matter of InPhonic, Inc., a corporation (“InPhonic ”), File No. 062-3066, 2007 WL 1406416 (F.T.C. Apr. 27, 2007) (unpaginated). On June 4, the FTC gave final approval to that consent agreement. See FTC Decision and Order, InPhonic, Dkt. No. C-4192, File No. 62-3066, 2007 WL 1740924 (F.T.C. June 4, 2007) (unpaginated).

On November 26, 2007, InPhonic notified the Court that it had filed for federal bankruptcy protection earlier that month. Thereafter, on March 21, 2008, plaintiffs filed their second consolidated amended class action complaint (“SAC”), naming as defendants Helgeson, CPG, and five former InPhonic corporate officers: Brian J. Curran, George Z. Moratis, David A. Steinberg, Brian T. Westrick, and Andrew B. Zeinfeld. On April 24, Helgeson and CPG moved to dismiss the complaint, and plaintiffs filed their opposition on May 21. On August 15, individual defendants Moratis, Steinberg, Westrick, and Zeinfeld also filed a motion to dismiss, which was opposed by plaintiffs.

On November 14, 2008, CPG filed for bankruptcy and notified the Court of this fact on January 29, 2009, and on February 23, the Clerk of the Court entered a default against defendant Curran, who had failed to respond to the summons and complaint On April 6, after hearing argument on the motions to dismiss, the Court issued an order denying CPG’s motion because of the automatic bankruptcy stay; dismissing all claims against Moratis and Zeinfeld; and granting Steinberg and Westrick’s motion to dismiss with respect to plaintiffs’ claims for breach of contract, unjust enrichment and disgorgement of profits, and equitable relief, but denying their motion with respect to plaintiffs’ statutory claims under the DCCPPA, other states’ consumer protection laws, and RICO, as well as plaintiffs’ common law claims of civil conspiracy and negligent misrepresentation.

On August 6, 2009, the thirteen instant plaintiffs (“the MDL plaintiffs”) and five other individual plaintiffs who were not parties to the MDL litigation (“the non-MDL plaintiffs”) entered into a settlement agreement with defendants. Under the agreement, the MDL plaintiffs will receive $39,000 (“the Settlement Amount”) “in full satisfaction of all claims” against defendants, InPhonic, CPG, Curran, Moratis, Zeinfeld, or any other person or entity who could have been named as a defendant in the rebate litigation. {See Pis.’ Mot. for Payment of Attorneys’ Fees and Expenses [“Mot.”], Ex. A (“Settlement”) at 2 ¶ 1.) The agreement also permits plaintiffs to file a petition seeking up to $950,000 in attorney’s fees and costs incurred the MDL litigation (“the Fee Award”), 1 and defendants are permitted to oppose that petition. {Id. at 2 ¶ 2.) On September 29, plaintiffs Heller, McGivney, Rock, Salzman, Workman, and Yu filed a stipulation of dismissal with prejudice of all claims *278 against defendants. 2 [See Dkt. 86-89, 91.] On September 30, plaintiffs filed a motion seeking payment of $950,000 in fees and costs accompanied by three declarations and billing invoices. (See Mot., Ex. B (Deck of Kevin P. Roddy) (“Roddy Deck”) & Attachment (“Wilentz Invoices”); id., Ex. C (Deck of Steven A. Hart) (“Hart Deck”) & Attachment (“Segal Invoices”); id., Ex. D (Deck of James R. Climaco) (“Climaco Deck”) & Attachment (“Climaco Invoices”).)

On October 30, 2009, defendants filed an opposition in which they contend that plaintiffs are not entitled to attorney’s fees.

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Bluebook (online)
674 F. Supp. 2d 273, 2009 U.S. Dist. LEXIS 118345, 2009 WL 4895664, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-inphonic-inc-dcd-2009.