Kindle v. Dejana

308 F. Supp. 3d 698
CourtDistrict Court, E.D. New York
DecidedApril 12, 2018
DocketNo. CV 14–6784 (SJF) (ARL)
StatusPublished
Cited by25 cases

This text of 308 F. Supp. 3d 698 (Kindle v. Dejana) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kindle v. Dejana, 308 F. Supp. 3d 698 (E.D.N.Y. 2018).

Opinion

FEUERSTEIN, District Judge

I. INTRODUCTION

Plaintiffs Linda J. Kindle and Michael Brewley brought this class action on behalf of themselves and other similarly situated participants in the Atrium Management Services, Inc. Employee Stock Ownership Plan (the "ESOP") who received an allegedly deficient cash distribution following the ESOP's termination on July 1, 2011.1 Plaintiff alleges that Defendants Peter Dejana ("Dejana"), William F. Wynperle, Jr., Atrium Management Services, Inc. ("Atrium"), Administrative Committee for the Atrium Management Services, Inc. Employee Stock Ownership Plan (the "ESOP Committee"), John Sipala, and Saddle Creek, LLC ("Saddle Creek") (John Sipala and Saddle Creek, collectively the "Sipala Defendants") breached their fiduciary duties to Plaintiffs and other ESOP participants in connection with the valuation and sale of ESOP assets, in violation of Section 404 of the Employee Retirement and Security Act of 1974 ("ERISA"), 29 U.S.C. §§ 1104, 1132. Plaintiffs also allege that all Defendants violated Section 406 of ERISA, 29 U.S.C. § 1106, which prohibits certain interested-party transactions, in connection with the same sale and purchase of ESOP assets. See generally Second Amended Class Action Complaint ("SAC") [DE 72]. Following the parties' cross-motions for summary judgment, both of *703which were denied, see DE 120, the case proceeded to a bench trial. On September 5, 2017, during the first day of testimony, the parties entered into a stipulation which was placed on the record. See also DE 150-5 (Trial Transcript). The terms of the stipulation, in part, provided for the appointment of a Special Master to provide a neutral valuation of the "fair market of a 100% ownership interest in Atrium as of December 30, 2011." DE 150-4 (Report of Special Master); see DE 150-5. Following the Special Master's valuation, see DE 149, the Plaintiff filed the instant motion seeking attorneys' fees and costs. DE 150. Defendant Dejana opposes the motion, in part. See DE 151. For the reasons that follow, Plaintiff's motion is GRANTED, in part, and DENIED, in part, in accordance with this Memorandum and Order.

II. PLAINTIFF'S MOTION FOR ATTORNEYS' FEES & COSTS 2

A. Applicable Law

1. Attorneys' Fees

Both the Second Circuit and the Supreme Court have held that "the lodestar method-the product of a reasonable hourly rate and the reasonable number of hours required by the case-creates a 'presumptively reasonable fee.' " Millea v. Metro-North R.R. Co. , 658 F.3d 154, 166 (2d Cir. 2011) (quoting Arbor Hill Concerned Citizens Neighborhood Ass'n v. Cty. of Albany , 522 F.3d 182, 183 (2d Cir. 2007) ). Generally, courts should determine the "presumptively reasonable fee" by looking to "what a reasonable paying client would be willing to pay." Arbor Hill , 522 F.3d at 183-84.

"[W]hether the calculation is referred to as the lodestar or the presumptively reasonable fee, courts will take into account case-specific factors to help determine the reasonableness of the hourly rates and the number of hours expended." Pinzon v. Paul Lent Mechanical Sys. , No. 11 Civ. 3384, 2012 WL 4174725, at *5 (E.D.N.Y. Aug. 21, 2012), adopted by 2012 WL 4174410 (E.D.N.Y. Sept. 19, 2012). These factors include:

[T]he complexity and difficulty of the case, the available expertise and capacity of the client's other counsel (if any), the resources required to prosecute the case effectively (taking account of the resources being marshaled on the other side but not endorsing scorched earth tactics), the timing demands of the case, whether an attorney might have an interest (independent of that of his client) in achieving the ends of the litigation or might initiate the representation himself, whether an attorney might have initially acted pro bono (such that a client might be aware that the attorney expected low or non-existent remuneration), and other returns (such as reputation, etc.) that an attorney might expect from the representation.

Arbor Hill , 522 F.3d at 184. "The party seeking reimbursement of attorneys' fees must demonstrate the reasonableness and necessity of hours spent and rates charged." Finkel v. Omega Comm'n Svcs., Inc. , 543 F.Supp.2d 156, 164 (E.D.N.Y. 2008) (citing New York State Ass'n for Retarded Children, Inc. v. Carey , 711 F.2d 1136 (2d Cir. 1983) ).

In determining what constitutes a reasonable hourly rate, courts in this Circuit generally adhere to the forum rule, which states that a district court should generally use the prevailing hourly rates in the district where it sits. See *704Restivo v. Hessemann , 846 F.3d 547, 590 (2d Cir. 2017), cert. denied , --- U.S. ----, 138 S.Ct. 644, 199 L.Ed. 2d 528 (2018) ; Simmons v. N.Y. City Transit Auth. , 575 F.3d 170, 175-76 (2d Cir. 2009) ; Polk v. N. Y. State Dep't of Corr. Servs.

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308 F. Supp. 3d 698, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kindle-v-dejana-nyed-2018.