Inova Health Care Services, for Inova Fairfax Hospital and Its Department, Life With Cancer v. Omni Shoreham Corporation

District Court, District of Columbia·Decided June 15, 2025·No. Civil Action No. 2020-0784·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

INOVA HEALTH CARE SERVICES, FOR INOVA FAIRFAX HOSPITAL AND ITS DEPARTMENT, LIFE WITH CANCER, et al.,

Plaintiffs,

v. Civil Action No. 20-784 (JDB)

OMNI SHOREHAM CORP.,

Defendant.

MEMORANDUM OPINION

Months ago, this Court “surmise[d] that the total for five years of legal fees” the plaintiffs to this case had shouldered “exceeds the $203,102.10 [they] will recover from” defendant Omni Shoreham Corporation. Inova Health Care Servs. for Inova Fairfax Hosp. & Its Dep’t, Life with Cancer v. Omni Shoreham Corp. (“Inova VIII”), Civ. A. No. 20-784 (JDB), 2024 WL 5158796, at *19 n.14 (D.D.C. Dec. 18, 2024). It turns out that supposition was an understatement. Plaintiffs now ask to recover from Omni $1,302,200.80 in legal fees. For a host of reasons explained below, that amount of fees is unreasonable, and the Court instead awards Plaintiffs $743,184.54. The large amount that Omni will have to pay and the remainder of the hefty fees that Plaintiffs will have to bear are—like the rest of this case—“a reminder that a client’s best interest is not always served by uncompromising litigation.” Id.

BACKGROUND

“The labyrinthine docket record of this litigation need not detain us.” Altman v. Cent. of Ga. Ry. Co., 580 F.2d 659, 660 (D.C. Cir. 1978). Here’s the short of it. Inova Fairfax Hospital and its Department, Life with Cancer and Smith Center for Healing and the Arts (together,

“Plaintiffs”) contracted with1 Omni to host the September 2019 “Joan Hisaoka ‘Make a Difference’ Gala” (the “Gala”), an annual fundraiser for cancer organizations including Plaintiffs. Inova VIII, 2024 WL 5158796, at *1. The contract (the “Agreement”) identified specific ballrooms in which the Gala was to be held. Id. Nonetheless, Omni informed Plaintiffs just over a month before the Gala that it was moving the event from the contracted-for ballrooms to other, less ideal ballrooms. Id. Omni, it turned out, had disregarded the preexisting Agreement and entered into an event contract with the Embassy of Lebanon for Plaintiffs’ chosen ballrooms on the same date. Inova Health Care Servs. for Inova Fairfax Hosp. & Its Dep’t, Life with Cancer v. Omni Shoreham Corp. (“Inova VI”), Civ. A. No. 20-784 (JDB), 2023 WL 5206142, at *2 (D.D.C. Aug. 14, 2023). Plaintiffs ultimately held the Gala at a different hotel as a result. Id.

So Plaintiffs sued, igniting what would become five years of litigation. See id. There have been four motions to dismiss, a motion to compel, dueling motions for summary judgment, a motion for reconsideration, two motions in limine, and more. Eventually, the Court granted Plaintiffs summary judgment on their claims for breach of contract and breach of the duty of good faith and fair dealing and denied Omni’s counterclaim for breach of contract. Id. at *19. Then—after the parties yet again failed to settle—the issue of damages was put to a jury in a multi-day trial. See Inova VIII, 2024 WL 5158796, at *3. The jury awarded Plaintiffs $225,000.27 in damages, consisting of both additional costs and lost distributions. Id. Post-trial, the Court denied Omni’s motions to dismiss and for a new trial, reduced Plaintiffs’ damages by $21,898.17, and awarded Plaintiffs some costs. Id. at *19.

1 Inova and Smith Center were parties to or beneficiaries of the relevant contract. See Inova VIII, 2024 WL 5158796, at *5 & n.4.

That leaves attorneys’ fees and expenses, which Plaintiffs moved for on February 7, 2025. Their motion—which carries with it 339 pages of exhibits, including a supposed expert report—seeks $1,286,515.17. Mot. Att’ys Fees & Expenses [ECF No. 141 at 3-30] (“Mot.”) at 27. After Omni filed a detailed opposition, see Def.’s Opp’n Fee Mot. [ECF No. 145] (“Opp’n”), Plaintiffs not only replied, but supplemented their motion with (1) another expert report and (2) a request for more than $85,000 in “fees on fees”—i.e., fees incurred in preparation of their attorneys’ fees motion. See Pls.’ Reply Fees Opp’n [ECF No. 147] (“Reply”). Omni responded by moving to strike those supplements. Def.’s Mot. Strike Suppl. Expert Rep. & Suppl. Request Att’y Fees & Expenses [ECF No. 149] (“Strike Mot.”).

ANALYSIS

Litigants in this country are generally “responsible for paying the costs and fees that their own attorneys incur during the course of litigation, a practice known as the ‘American rule.’” Yeh v. Hnath, 294 A.3d 1081, 1087 (D.C. 2023).2 But parties can contract around that default rule. James G. Davis Constr. Corp. v. HRGM Corp., 147 A.3d 332, 337 (D.C. 2016). The parties did so here. The Agreement provides that each party will “indemnify, defend and hold the other harmless from any loss, liability, cost or damages (including reasonable attorneys’ fees and disbursements) arising from . . . [a]ny breach of this agreement by [a party] in the performance of its obligations under this agreement.” Gala Agreement [ECF No. 141-1] at 8. Both parties recognize that this language requires Omni to pay Plaintiffs reasonable attorneys’ fees and disbursements arising out of Omni’s breach of contract. See Mot. at 13; Opp’n at 30;

2 D.C. law controls the interpretation of, and thus the attorneys’ fees award under, the Agreement. See Nepera Chem., Inc. v. Sea-Land Serv., Inc., 794 F.2d 688, 694–95 (D.C. Cir. 1986). Rightly, neither party contends that the “reasonable fee” standard under D.C. law is materially different than the standard federal courts frequently employ in determining reasonable fees under contracts and fee-shifting statutes alike. So the Court uses both federal and D.C. caselaw for the relevant standards. See Klayman v. Jud. Watch, Inc., Civ. A. No. 06-670 (GMH), 2022 WL 22263805 (D.D.C. Oct. 25, 2022), recommendation adopted by, Civ. A. No. 06-670 (CKK), 2023 WL 9209434 (D.D.C. May 3, 2023) (taking same approach).

see also James G. Davis Constr. Corp., 147 A.3d at 340 (holding that contract with similar language entitled non-breaching party to reasonable attorneys’ fees).

As a result, it becomes the Court’s job to determine “a reasonable fee award . . . in light of the relevant circumstances.” Ideal Elec. Sec. Co. v. Int’l Fid. Ins. Co., 129 F.3d 143, 150 (D.C. Cir. 1997); Ginberg v. Tauber, 678 A.2d 543, 551 (D.C. 1996) (D.C. law provides that where, as here, “there is no agreement concerning how the amount of [attorneys’] fees is to be calculated,” the trial court “determines the amount of the fee”). Notably, “[t]he party seeking fees bears the burden of establishing entitlement to [the requested] award.” See Klayman v. Jud. Watch, Inc., Civ. A. No. 06-670 (GMH), 2022 WL 22263805, at *7 (D.D.C. Oct. 25, 2022), recommendation adopted by, Civ. A. No. 06-670 (CKK), 2023 WL 9209434 (D.D.C. May 3, 2023) (internal quotation marks omitted).

The question is thus whether Plaintiffs have met their burden of establishing they are entitled to more than $1.3 million in fees and expenses. Omni says no, raising an armada of red flags that it argues reveal that the “Court should only award Plaintiffs a fraction of their requested fees.” Opp’n at 2. The Court in large part agrees. The documentation and attendant rationales that Plaintiffs put forward not only fail to satisfy their burden of establishing reasonableness but show that a large majority of their “fee request is not only . . . excessive,” but “plagued with deficiencies.” Louise Trauma Ctr. LLC v. Wolf, Civ. A. No. 20-2348 (DLF), 2024 WL 4227617, at *3 (D.D.C. Sept. 18, 2024). The Court will thus award Plaintiffs only one half of the sum they request for the time of their counsel (“Counsel”). The Court will, however, award Plaintiffs most of the expenses they request.

Before beginning, the Court notes that just last April it reminded the parties that “[a]

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