Ivanov v. Fitness Elite Training Center, Inc.

District Court, D. Idaho·Decided June 13, 2024·No. 1:20-cv-00380·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF IDAHO

IVAN DELCHEV IVANOV, Case No. 1:20-cv-00380-CWD Plaintiff, v. MEMORANDUM DECISION AND ORDER FITNESS ELITE TRAINING CENTER, INC., an Idaho corporation, DAN MAUGER, and BROOKE MAUGER

Defendants.

INTRODUCTION Before the Court are Plaintiff Ivan Delchev Ivanov’s Supplemental Motion for Attorney Fees and Motion to Correct the Amended Judgment. (Dkt. 158, 159.) Defendants filed an objection and Motion to Disallow Plaintiff’s Supplemental Motion for Attorney Fees, to which Plaintiff has replied. (Dkt. 163, 164.) Defendants have not filed a response to Plaintiff’s Motion to Correct the Amended Judgment and the time for doing so has passed. The motions are ripe for the Court’s review. Having reviewed the record herein, the Court finds the facts and legal arguments are adequately presented in the briefs. Accordingly, in the interest of avoiding delay, and because the Court conclusively finds that the decisional process would not be aided by oral argument, the motions will be decided on the record presently before the Court. Dist. Idaho L. Civ. R. 7.1(d). After careful consideration of the record, and the parties’ briefing and supporting materials, the Court finds as follows. BACKGROUND1

This case arises from Plaintiff’s claim that Defendant Fitness Elite breached the Head Coach Agreement (Agreement) by terminating his employment as the Head Wrestling Coach for Fitness Elite without cause. Plaintiff filed a complaint raising five causes of action: 1) breach of contract; 2) unpaid wages under the Idaho Wage Claim Act (“IWCA”), Idaho Code § 45-615; 3) breach of the implied covenant of good faith and fair

dealing; 4) corporate veil piercing; and 5) quasi-estoppel. (Dkt. 1.) A five-day jury trial was held, and after deliberations on July 28, 2023, the jury returned a verdict in favor of Plaintiff on his claims for breach of contract and breach of the implied covenant of good faith and fair dealing. (Dkt. 93.) The jury found Plaintiff’s employment was terminated without cause and awarded Plaintiff $660,000.00 on the

breach of contract claim, and $456.52 on the breach of the implied covenant claim. The equitable claims were submitted to the jury for an advisory verdict. (Dkt. 81, 93.) Post- trial motions were filed and, on October 6, 2023, the Court entered its Findings of Fact and Conclusions of Law, issued decisions on the post-trial motions, and entered a Judgment. (Dkt. 117, 118, 119, 120.)

The Judgment awarded Plaintiff a total amount of $2,279,108.55, comprised of trebled damages for unpaid wages pursuant to Idaho Code Section 45-615, damages

1 Because the factual and procedural history are well known to the parties, they are not recited in full here. awarded on the breach of the implied covenant claim, and prejudgment interest. (Dkt. 46, 117, 118, 119, 120.)2 On November 30, 2023, the Clerk taxed costs in the amount of

$6,100.94. (Dkt. 144.) On March 28, 2024, the Court awarded Plaintiff attorney fees in the amount of $911,643.42, and entered an Amended Judgment. (Dkt. 155, 156.) On April 11, 2024, Plaintiff filed the motions presently before the Court, which will be taken up in turn below. (Dkt. 158, 159.) DISCUSSION

1. Supplemental Motion for Attorney Fees Plaintiff’s Supplemental Motion for Attorney Fees requests an award of $32,062.50 in attorney fees for certain post-judgment matters at hourly rates as provided for in the fee Agreement between Plaintiff and his attorneys pursuant to Idaho Rule of Civil Procedure 54. (Dkt. 158.)3 Defendants oppose the motion, maintaining their objections to certain rulings that are the subject of their appeal and, further, arguing an

2 Defendants have appealed the Court’s application of the treble damages provision of Idaho Code Section 45-615, among other rulings. (Dkt. 122, 160.) Consequently, execution on the monetary judgment is stayed pursuant to Federal Rule of Civil Procedure 62(b), pending resolution of the appeal. (Dkt. 151.) While the pendency of the appeal divests a district court of jurisdiction over aspects of the case involved in the appeal, the Court retains the authority to award attorney fees after a notice of appeal has been filed. Masalosalo by Masalosalo v. Stonewall Ins. Co., 718 F.2d 955 (9th Cir. 1993); Irvine Unified Sch. Dist. v. Landers, 2023 WL 8888630, at *3 (9th Cir. Dec. 26, 2023). Further, the district court has discretion to defer a determination on attorney’s fees pending appeal. Fed. R. Civ. P. 58 advisory committee notes 1993 amendment. The Court finds it appropriate to decide the motion for supplemental attorney fees at this time, as the requested fees relate to post-judgment proceedings distinct from the issues on appeal and a ruling on the motion at this time promotes judicial economy. Fed. R. Civ. P. 1. 3 The prior award of attorney fees was pursuant to the contingency fee provision of the Agreement. (Dkt. 155.) Plaintiff did not request fees for post-judgment motions at that time, despite the language of the Agreement providing for the same. (Dkt. 155 at 4, n. 5.) On this Motion, Plaintiff now seeks to invoke that provision of the Agreement. award of supplemental attorney fees is unwarranted and the requested fees are unreasonable. (Dkt. 163.)

A. Legal Standard “State law establishes the required showing for attorney’s fees in an action in diversity.” Winterrowd v. American General Annuity Ins. Co., 556 F.3d 815, 827 (9th Cir. 2009). Idaho Rule of Civil Procedure 54(e)(1) provides that “[i]n any civil action the court may award reasonable attorney fees, including paralegal fees, to the prevailing party…, when provided for by any statute or contract.” If the court grants attorney fees, it

must consider the twelve factors set forth in Rule 54(e)(3) in determining the amount of attorney fees to award: (A) the time and labor required; (B) the novelty and difficulty of the questions; (C) the skill requisite to perform the legal service properly and the experience and ability of the attorney in the particular field of law; (D) the prevailing charges for like work; (E) whether the fee is fixed or contingent; (F) the time limitations imposed by the client or the circumstances of the case; (G) the amount involved and the results obtained; (H) the undesirability of the case; (I) the nature and length of the professional relationship with the client; (J) awards in similar cases; (K) the reasonable case of automated legal research (Computer Assisted Legal Research), if the court finds it was reasonably necessary in preparing a party’s case; (L) any other factor which the court deems appropriate in the particular case.

“‘Attorney fees are a discretionary matter for the trial court and are reviewed under an abuse of discretion standard.’” Bronco Elite Arts & Athletics, LLC v. 106 Garden City, LLC, 534 P.3d 558, 578 (Idaho 2023) (quoting Sun Valley Potato Growers, Inc. v. Texas Refinery Corp., 86 P.3d 475, 483 (Idaho 2004)). When awarding attorney fees, the Court is required to consider all of the factors listed in Rule 54(e)(3), but is not required to

make specific findings as to each one. Smith v.

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Ivanov v. Fitness Elite Training Center, Inc., (D. Idaho 2024).

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