King v. Whitmer

District Court, E.D. Michigan·Decided December 2, 2021·No. 2:20-cv-13134·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

TIMOTHY KING, et al.,

Plaintiffs,

v.

GRETCHEN WHITMER, et al., Civil Case No. 20-13134 Honorable Linda V. Parker Defendants.,

and

CITY OF DETROIT, DEMOCRATIC NATIONAL COMMITTEE, MICHIGAN DEMOCRATIC PARTY, and ROBERT DAVIS,

Intervenor-Defendants. _____________________________________/

OPINION AND ORDER

On August 25, 2021, this Court issued a decision granting motions for sanctions filed by Michigan Governor Gretchen Whitmer, Michigan Secretary of State Jocelyn Benson, and the City of Detroit. (ECF No. 172.) In that decision, the Court found sanctions warranted under Federal Rule of Civil Procedure 11(b)(1), (2), and (3), 28 U.S.C. § 1927, and the Court’s own inherent authority. (See, e.g., id. at Pg ID 6893-94.) The sanctions imposed included an award of the attorneys’ fees and costs Governor Whitmer, Secretary of State Benson, and the City of Detroit “incurred to defend this action.”1 (See, e.g., ECF No. 172 at Pg ID 6996.) The Court ordered counsel for Governor Whitmer and Secretary of State

Benson (hereafter “State Defendants”) and counsel for the City of Detroit (“City”) to submit time and expense records within fourteen days of the decision. (Id. at Pg ID 6998.) The Court permitted Plaintiffs’ counsel to submit objections to the

requested amounts within fourteen days of those filings. (Id.) On September 8, 2021, the State Defendants filed documentation requesting a fee award of $21,964.75. (ECF No. 173 at Pg ID 7002.) This amount reflects the work of two attorneys: Heather Meingast and Erik Grill, both employed by the

Michigan Attorney General’s Office. Ms. Meingast worked a total of 38.55 hours on this matter and seeks to be compensated at an hourly rate of $395. (ECF No. 173-2.) Mr. Grill worked a total of 19.25 hours on this matter and seeks to be

compensated at an hourly rate of $350. (ECF No. 173-3.) On the same date, the City filed documentation asking the Court to award it fees totaling $182,192. (ECF No. 174-1 at Pg ID 7025.) This amount is comprised

1 Additionally, the Court referred counsel to the Michigan Attorney Grievance Commission and the appropriate disciplinary authority for the jurisdiction(s) where each attorney is admitted for investigation and possible suspension or disbarment and ordered Plaintiffs’ counsel to complete at least twelve (12) hours of continuing legal education in the subjects of pleading standards (at least six hours total) and election law (at least six hours total) within six months of the decision.

2 of $39,999 for work “defending [this action] at the trial court level”; $26,077 in charges related to appellate work; and $116,116 for work related to the motions for

sanctions. (Id.) The amount expended reflects work performed by three partners at the law firm of Fink Bressack (David Fink, the late Darryl G. Bressack, and Nathan Fink), three associate attorneys (Dave Bergh, John Mack, and Glenn

Gayer), and a law clerk (Patrick J. Masterson). (Id. at Pg ID 7023.) Fink Bressack charged the City the following reduced blended hourly rates for these individuals: $325 for partners, $225 for associates, and $75 for law clerks and legal assistants. (Id.) According to David Fink, the firm agreed to discount its fees by an additional

ten percent (10%) “because of the unexpectedly large volume of work involved in the election litigation[.]” (Id.) Counsel for Plaintiffs filed objections on September 22, 2021, in which they

indicate that they take no issue with the State Defendants’ requested award but challenge the City’s request on several grounds. (ECF Nos. 175-177.) The Court will address each challenge below.2

2 Three separate Objections were filed, by: (i) Plaintiffs’ attorneys Scott Hagerstrom, Julia Haller, Brandon Johnson, Howard Kleinhendler, Sidney Powell, and Gregory Rohl (ECF No. 175); (ii) Plaintiffs’ attorney Emily Newman (ECF No. 176); and (iii) Plaintiffs’ attorney L. Lin Wood (ECF No. 177). Many of counsel’s arguments overlap, although not all. The Court finds it generally unnecessary to identify which arguments are asserted by which attorney(s) but will do so in limited circumstances. 3 Standards Applied “The principal goal of Rule 11 sanctions is deterrence with compensation

being a secondary goal.” Orlett v. Cincinnati Microwave, Inc., 954 F.2d 414, 419 (6th Cir. 1992) (citing omitted); see also Fed. R. Civ. P. 11(c)(4) (providing that a sanction “must be limited to what suffices to deter repetition of the conduct or

comparable conduct by others similarly situated.”). The Sixth Circuit has advised: [i]n determining an appropriate sanction under amended Rule 11, the court should consider the nature of the violation committed, the circumstances in which it was committed, the circumstances (including the financial state) of the individual to be sanctioned, and those sanctioning measures that would suffice to deter that individual from similar violations in the future. The court should also consider the circumstances of the party or parties who may have been adversely affected by the violation.

Id. at 420 (citation omitted). “Like the purpose of Rule 11, the goal of 28 U.S.C. § 1927 [is] not to make a party whole, but to deter and punish.” Tildon-Jones v. Boladian, 581 F. App’x 493, 498 (6th Cir. 2014) (citing Red Carpet Studios Div. of Source Advantage, Ltd. v. Sater, 465 F.3d 642, 647 (2006)). In comparison, a sanction imposed under the court’s inherent authority must be compensatory rather than punitive. Goodyear Tire & Rubber Co. v. Haeger, 137 S. Ct. 1178, 1186 (2017). Sanctions are “limited to the fees the innocent party incurred solely because of the misconduct . . ..” Id. at 1184. “In other words, ‘the complaining party may recover only the portion of his fees that he would not have 4 paid but for the misconduct.’” In re Bavelis, 743 F. App’x 670, 676 (6th Cir. 2018) (ellipsis, brackets, and additional quotation marks removed) (quoting

Haeger, 137 S. Ct. at 1187). The Court awarded the State Defendants and the City their reasonable attorneys’ fees. (ECF No. 172 at Pg ID 6996.) The reasonableness of the fees

requested is assessed using the “lodestar method,” whereby the court multiplies “the number of hours reasonably expended on the case by a reasonable hourly rate.” See Barnes v. City of Cincinnati, 401 F.3d 729, 745 (6th Cir. 2005); see also Hensley v. Eckerhart, 461 U.S. 424, 433 (1983). The lodestar amount is presumed

to be reasonable. City of Riverside v. Rivera, 477 U.S. 561, 568 (1986). The court may reduce the award “[w]here the documentation of hours is inadequate[.]” Hensley, 461 U.S. at 433. The Supreme Court has instructed district courts to also

exclude fees not “reasonably expended,” such as “hours that are excessive, redundant, or otherwise unnecessary.” Id. at 434. A court also has the discretion to adjust that amount based on “relevant considerations peculiar to the subject litigation.” Adcock-Ladd v.

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