Kiva Kitchen & Bath, Inc. v. Capital Distributing, Inc.

681 F. Supp. 2d 807, 2010 U.S. Dist. LEXIS 1355, 2010 WL 98850
CourtDistrict Court, S.D. Texas
DecidedJanuary 8, 2010
DocketCiv.A. H-06-2562
StatusPublished
Cited by2 cases

This text of 681 F. Supp. 2d 807 (Kiva Kitchen & Bath, Inc. v. Capital Distributing, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kiva Kitchen & Bath, Inc. v. Capital Distributing, Inc., 681 F. Supp. 2d 807, 2010 U.S. Dist. LEXIS 1355, 2010 WL 98850 (S.D. Tex. 2010).

Opinion

ORDER

DAVID HITTNER, District Judge.

Pending before the Court is Kiva’s Motion for Award of Attorneys’ Fees Incurred After February 25, 2008 (Document No. 208) and Plaintiffs Motion to Exclude the Testimony of Roger D. Townsend, or Alternatively to Strike Portions of the Declaration of Roger D. Townsend (Document No. 206). Having considered the motions, submissions, and applicable law, the Court determines the motion for attorneys’ fees should be granted and the motion to exclude testimony should be denied.

BACKGROUND

On August 8, 2006, Plaintiff Kiva Kitchens and Bath, Inc. (“Kiva”) filed this lawsuit against Defendants Capital Distributing, Inc. (“Capital”), John Michael Davis, also known as Michael Davis and also known as John Davis (“Davis”), and Jennifer Tyrell (“Tyrell”) (collectively, “Defendants”), alleging trademark infringement, tortious interference with existing and prospective business advantage, conspiracy, unfair competition, and violations of the Anticybersquatting Consumer Protection Act of 1999 (“ACPA”), 15 U.S.C. § 1125(d), provisions of the Lanham Act (“Lanham Act”), 15 U.S.C. § 1111 et seq., and the Texas Antidilution Act, Tex. Bus. & Com. Code Ann. § 16.29 (Vernon 2002).

On February 6, 2008, a jury returned its verdict in favor of Kiva. Specifically, the jury determined the case to be an “exceptional” case and that Defendants acted willfully, maliciously, fraudulently, or deliberately. On April 22, 2008, the Court entered final judgment on the jury’s verdict awarding statutory damages in the amount of $500,000, attorneys’ fees in the amount of $500,960.35, and costs in the amount of $16,543.49, at a post-judgment interest rate of 1.63%. Defendants appealed.

On April 2, 2009, the United States Court of Appeals for the Fifth Circuit affirmed the district court’s judgment. Kiva Kitchen & Bath, Inc. v. Capital Distrib., Inc., 319 Fed.Appx. 316, 321 (5th Cir.2009). Subsequently, on June 26, 2009, the Fifth Circuit denied Kiva’s motion for attorneys’ fees incurred on appeal but granted Kiva’s motion to remand to the district court for the purpose of determining whether Kiva is entitled to an award of attorneys’ fees incurred in defending the district court judgment on appeal. On July 7, 2009, Kiva filed the pending motion for attorneys’ fees incurred at the district court on post judgment matters as well as attorneys’ fees incurred on appeal. Thus, the Court must determine whether Kiva is entitled to attorneys’ fees incurred for post judgment matters and on appeal after February 25, 2008.

STANDARD OF REVIEW

Under the Lanham Act, a “court in exceptional eases may award reasonable attorney fees to the prevailing party.” 15 U.S.C. § 1117(a); Schlotzsky’s, Ltd. v. Sterling Purchasing & Nat’l Dist. Co., 520 F.3d 393, 401 (5th Cir.2008). It is the prevailing party’s burden to demonstrate the exceptional nature of the case. See CJC Holdings, Inc. v. Wright & Lato, Inc., *809 979 F.2d 60, 65 (5th Cir.1992). Once that showing is made, awarding attorneys’ fees is within the discretion of the district court. See Procter & Gamble Co. v. Amway Corp., 280 F.3d 519, 528 (5th Cir.2002) (citing Seatrax, Inc. v. Sonbeck Int'l, Inc., 200 F.3d 358, 373 (5th Cir.2000)) (“We review the award of attorneys’ fees under the Lanham Act for abuse of discretion, and the court’s finding as to whether the case is exceptional for clear error.”).

LAW & ANALYSIS

Kiva contends it is entitled to an award of its attorneys’ fees incurred in defending the district court judgment on appeal. 1 Kiva argues such an award is appropriate because the jury determined at trial the case was “exceptional” within the meaning of the Lanham Act because the Defendants “acted willfully, maliciously, fraudulently, or deliberately.” Defendants, on the other hand, contend Kiva is not entitled to attorneys’ fees incurred on appeal because the appeal itself was not “exceptional,” in that it was not oppressive or meant for delay. Alternatively, Defendants argue the fee award Kiva seeks is excessive and offers an affidavit from its expert on attorneys’ fees to support that conclusion. Kiva moves to strike the expert’s affidavit as untimely designated and because it is conclusory and speculative. The Court will address each argument in turn.

A. Motion for Attorney’s Fees

At the outset, the Court notes the text of the Lanham Act, in,expressly allowing for an award of attorneys’ fees in “exceptional cases,” does not distinguish between the trial and the appeal of such cases. See 15 U.S.C. § 1117. Moreover, it appears the Fifth Circuit has not addressed a party’s entitlement to attorneys’ fees on appeal in Lanham Act cases. However, other circuits have addressed this issue and their decisions lend the Court guidance in determining whether Kiva is entitled to such an award. See JCW Inv., Inc. v. Novelty, Inc., 509 F.3d 339, 341 (7th Cir.2007); Tamko Roofing Prods., Inc. v. Ideal Roofing Co., 294 F.3d 227, 230 (1st Cir.2002); Comm. for Idaho’s High Desert, Inc. v. Yost, 92 F.3d 814, 825 (9th Cir.1996). 2

*810 First, the United States Court of Appeals for the Seventh Circuit has determined that “the Lanham Act ... permit[s] an award of full costs and reasonable attorneys’ fees to the prevailing party, including fees and costs incurred on appeal.” Novelty, Inc., 509 F.3d at 341 (emphasis added). In so doing, that court stated, “When ‘a plaintiff wins a suit and is entitled by statute to a reasonable attorneys’ fee, the entitlement extends to the fee he reasonably incurs in defending the award of that fee.’ ” Novelty, Inc., 509 F.3d at 342 (quoting Gorenstein Enters., Inc. v. Quality Care-USA Inc., 874 F.2d 431, 438 (7th Cir.1989)). Thus, in Novelty, Inc.,

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681 F. Supp. 2d 807, 2010 U.S. Dist. LEXIS 1355, 2010 WL 98850, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kiva-kitchen-bath-inc-v-capital-distributing-inc-txsd-2010.