Lan Global, Inc. v. Alchemy Telco Solutions US, LLC

CourtDistrict Court, D. Massachusetts
DecidedApril 30, 2025
Docket1:22-cv-11732
StatusUnknown

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Bluebook
Lan Global, Inc. v. Alchemy Telco Solutions US, LLC, (D. Mass. 2025).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS

LAN GLOBAL, INC.,

Plaintiff,

v. No. 22-cv-11732-AK

ALCHEMY TELCO SOLUTIONS US, LLC,

Defendant.

Plaintiff, Related Action: v. No. 22-cv-11763-AK

REPORT AND RECOMMENDATION: ATTORNEYS’ FEES AND COSTS LEVENSON, U.S.M.J. INTRODUCTION Judge Kelley has ruled that Alchemy Telco Solutions US, LLC (“Alchemy”) is entitled to recover from Lan Global, Inc. (“Lan Global”) Alchemy’s “attorneys’ fees expended in defense of claims brought by Lan Global.” See 22-cv-11763-AK, Docket No. 82, at 19. This entitlement is contractual, arising from an indemnification clause in an agreement between the parties. See 22-cv-11732-AK, Docket No. 140, at 15–17.1 The Court has referred to me—for report and recommendation—a final computation of the attorneys’ fees and costs2 to be awarded. See Docket No. 158. In making this recommendation, I have considered the parties’ extensive briefing on the

subject, including the following submissions: • Docket No. 148: Alchemy’s motion seeking final judgment including attorneys’ fees and costs. • Docket No. 150: Alchemy’s memorandum of law in support of its motion, and attachments. • Docket No. 151: Declaration of Alchemy’s counsel, Adam Cashman. • Docket No. 154: Lan Global’s first opposition to the motion. • Docket No. 155: Affidavit of Lan Global’s counsel, Jason W. Morgan, in opposition to the motion. • Docket No. 156: Affidavit of Lan Global’s counsel, Andrew B. Goodman, in opposition to the motion. • Docket No. 157: Lan Global’s evidentiary objections in opposition to the motion. • Docket No. 162: Alchemy’s reply in support of the motion, and attachments. • Docket No. 163: Declaration of Alchemy’s counsel, Adam Cashman. • Docket No. 168: Declaration of Alchemy’s counsel, Adam Cashman, regarding billing records, and attachments (including redacted billing records). • Docket No. 169: Lan Global’s supplemental opposition to the motion. • Unredacted billing records submitted to me ex parte by Alchemy for in-camera review.

1 Judge Kelley has ordered that “all filings related to the motion for attorneys fees shall be filed in 22-cv-11732.” See 22-cv-11732-AK, Docket No. 147. In this report, unless otherwise noted, all citations to the docket are citations to 22-cv-11732-AK. 2 Judge Kelley’s order does not expressly reference costs. Both parties appear to accept, quite reasonably, that an order for attorneys’ fees includes associated costs. I convened a status conference with the parties on February 25, 2025. See Docket No. 165. Prior to the conference, in briefing opposing Alchemy’s motion for fees, Lan Global had objected that Alchemy had not given adequate detail to justify its fees and costs. See Docket No. 154, at 2. During the conference, I noted that Lan Global’s request for detailed billing records

would likely entail some additional work for Alchemy’s counsel. See generally Docket Nos. 165, 166. I noted that if Lan Global wished to press its request, I would likely treat the attorneys’ fees expended responding to the request as fees associated with the defense of the case. I also noted, however, that Alchemy’s attorney time spent compiling billing records in connection with a fee petition may be compensated at a reduced billing rate, as such work does not typically entail the same degree of skill as the primary efforts of a party’s lawyers. As this report reflects, I have applied both principles here. I. Controlling Principles A. Division Between Defensive and Affirmative Efforts Judge Kelley has found that Alchemy is entitled to indemnification for the expenses incurred in defending itself but not for the expenses incurred prosecuting its own claims against

Lan Global. See Docket No. 140, at 17. Accordingly, I consider whether the fees and costs Alchemy reported relate to its defensive or affirmative efforts, and I exclude fees and costs for the latter. B. Lodestar Analysis3 To determine a reasonable fee award, courts typically use the “lodestar method,” whereby a court calculates “the number of hours reasonably expended on the litigation multiplied by a

3 Where “the court’s jurisdiction is based on diversity of the parties, a district court’s award of attorneys’ fees is governed by relevant state law.” IOM Corp. v. Brown Forman Corp., 627 F.3d Footnote continues on following page. reasonable hourly rate.” Hensley v. Eckerhart, 461 U.S. 424, 433 (1983). More specifically, the court takes “the time counsel spent on the case, subtracts duplicative, unproductive, or excessive hours, and then applies prevailing rates in the community (taking into account the qualifications, experience, and specialized competence of the attorneys involved).” Gay Officers Action League

v. Puerto Rico, 247 F.3d 288, 295 (1st Cir. 2001). In cases involving fee-shifting statutes, after the initial computation of the lodestar amount, the court typically considers whether it should exercise its discretion to “adjust the lodestar itself, upwards or downwards, based on any of several different factors, including the results obtained and the time and labor actually required for the efficacious handling of the matter.” Torres-Rivera v. O’Neill-Cancel, 524 F.3d 331, 336 (1st Cir. 2008) (citing Hensley, 461 U.S. at 430 n.3). In a case where the attorneys’ fees are being awarded based on a contractual right of indemnification, such as the matter at bar, it is difficult to discern a basis for making any such adjustment rather than requiring indemnification for the actual fees and costs incurred.4

440, 451 (1st Cir. 2010). Throughout this litigation, the parties have treated this matter as governed by Massachusetts law, and the contract at the center of this case indicates that Massachusetts law applies. See Docket No. 31, at 9; cf. In re Newport Plaza Assocs., L.P., 985 F.2d 640, 644 (1st Cir. 1993) (“When opposing parties agree to the source of the substantive law that controls their rights and obligations, and no jurisdictional concerns are present, a court is at liberty to accept such an agreement without independent inquiry.”). 4 Where a party is contractually entitled to have its attorneys’ fees indemnified, and the contractual provision does not require that the fees be “reasonable,” it is not clear that the indemnitor has any grounds to object on the basis of reasonableness. Alchemy has not argued, however, that it is contractually entitled to all defensive fees that it incurred; it has, in its own briefing, engaged in the lodestar analysis and argued the reasonableness of the fees incurred. See Docket No. 150, at 8–13. Given that the parties have assumed that Alchemy is entitled only to reasonable fees, I have done the same. Nevertheless, the parties have engaged in a reasonableness analysis and argued on that basis, so my recommendation follows that framework. As to any potential for upward adjustment, although the result obtained here can only be described as fully successful—in that Alchemy successfully defended against all of Lan Global’s

claims—there is nothing in the contract that would entitle Alchemy to compensation in excess of its actual costs and attorneys’ fees. II. Lan Global’s Objections The Supreme Court long ago cautioned that “[a] request for attorney’s fees should not result in a second major litigation.” Hensley, 461 U.S. at 437. With this in mind, I note that the guiding principles here are fairness and practicality. A.

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