Lea-Max Corporation v. Phillips North America LLC and Gould Electronics, Inc.

CourtDistrict Court, N.D. Indiana
DecidedJuly 1, 2025
Docket1:23-cv-00164
StatusUnknown

This text of Lea-Max Corporation v. Phillips North America LLC and Gould Electronics, Inc. (Lea-Max Corporation v. Phillips North America LLC and Gould Electronics, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lea-Max Corporation v. Phillips North America LLC and Gould Electronics, Inc., (N.D. Ind. 2025).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF INDIANA FORT WAYNE DIVISION

LEA-MAX CORPORATION, )

) Plaintiff, )

v. ) Case No. 1:23-cv-00164-GSL-SLC ) GOULD ELECTRONICS, INC., et al., ) ) Defendants. ) ) OPINION AND ORDER On October 30, 2024, after hearing oral argument, this Court granted a motion to compel production of documents (ECF 149) filed by Defendant Gould Electronics, Inc. (“Gould”), and ordered Plaintiff to produce the requested discovery documents, consisting of nine agent files and a privilege log, on or before November 14, 2024. (ECF 162). In doing so, the Court directed Gould to file a fee petition in support of its request for attorney fees and expenses incurred in litigating the motion to compel pursuant to Federal Rule of Civil Procedure 37(a)(5)(A). (Id.). Now before the Court is Gould’s fee petition in the form of a Declaration of Attorney Nicholas J. Secco (the “Declaration”) (ECF 165), together with supporting materials and a memorandum (ECF 165-1 to ECF 165-3), filed on December 20, 2024, seeking recovery of $123,650.50 in attorney fees and expenses that Gould incurred in litigating the motion to compel. (ECF 165 ¶ 28; ECF 165-2).1 The supporting materials include partially-redacted billing invoices for August through November 2024 from Benesch, Friedlander, Coplan & Aronoff LLP (“Benesch” and the “Benesch Invoices”), whose attorneys litigated the motion to compel on

1 Of this amount, $12,678.95 relates to the time Gould spent preparing the Declaration and supporting memorandum. (ECF 165 ¶ 28). Gould’s behalf (ECF 165-1), and a spreadsheet tabulating their recoverable fees (ECF 165-2). Gould states that the fees visible on the Benesch Invoices “relate exclusively to work [Gould] performed relating to Plaintiff’s failure to comply with the [d]iscovery [a]greement, which failure necessitated the Motion to Compel.” (ECF 165-3 at 4). Plaintiff filed a response in opposition to the fee petition on January 21, 2025, together

with supporting exhibits, asking that the Court deny Gould the requested fees, or alternatively, reduce the rates charged and the time billed as excessive. (ECF 169; ECF 169-1 to 169-6). Gould timely filed a reply brief on February 6, 2025 (ECF 170), together with a Supplemental Declaration of Attorney Secco, an annotated version of the Benesch Invoices, and one other exhibit (ECF 170-1 to 170-3). The issue is ripe for ruling. For the following reasons, the Court will grant Gould’s fee petition in part, reducing the time spent in litigating the motion to compel to result in a fee award of $92,923.20. I. LEGAL STANDARD Federal Rule of Civil Procedure 37(a) governs the imposition of expenses and sanctions

related to a motion to compel. It provides, in pertinent part: (a) Motion for an Order Compelling Disclosure or Discovery. (1) In General. On notice to other parties and all affected persons, a party may move for an order compelling disclosure or discovery. The motion must include a certification that the movant has in good faith conferred or attempted to confer with the person or party failing to make disclosure or discovery in an effort to obtain it without court action. . . . . (5) Payment of Expenses; Protective Orders. (A) . . . If the motion is granted–or if the disclosure or requested discovery is provided after the motion was filed–the court must, after giving an opportunity to be heard, require the party . . . whose conduct necessitated the motion, the party or attorney advising that conduct, or both to pay the movant’s reasonable expenses incurred in making the motion, including attorney’s fees. But the court must not order this payment if: (i) the movant filed the motion before attempting in good faith to obtain the disclosure or discovery without court action;

(ii) the opposing party’s nondisclosure, response, or objection was substantially justified; or

(iii) other circumstances make an award of expenses unjust.

Fed. R. Civ. P. 37(a). This Rule “presumptively requires every loser to make good the victor’s costs . . . .” Rickels v. City of S. Bend, 33 F.3d 785, 786 (7th Cir. 1994) (citation omitted). Such fee-shifting “encourages . . . voluntary resolution” of discovery disputes and “curtails the ability of litigants to use legal processes to heap detriments on adversaries (or third parties) without regard to the merits of the claims.” Id. at 787. Accordingly, “the loser pays” unless he establishes “that his position was substantially justified.” Id. at 786-87. “Reasonable attorney fees under Rule 37 are calculated using the ‘lodestar’ method, which is a reasonable hourly rate multiplied by the hours reasonably expended.” L.H.H. ex rel. Hernandez v. Horton, No. 2:13-CV-452-PRC, 2015 WL 1057466, at *1 (N.D. Ind. Mar. 10, 2015) (citing Johnson v. GDR, Inc., 668 F.3d 927, 929 (7th Cir. 2012); Gautreaux v. Chi. Hous. Auth., 491 F.3d 649, 659 (7th Cir. 2007)). “A reasonable rate is one ‘derived from the market rate for the services rendered.’” Id. (quoting Pickett v. Sheridan Health Care Ctr., 664 F.3d 632, 640 (7th Cir. 2011)). “The Court must also determine whether an attorney’s requested award is for hours reasonably spent.” Zimmer, Inc. v. Beamalloy Reconstructive Med. Prods., LLC, No. 1:16-cv-00355-HAB-SLC, 2019 WL 2635944, at *4 (N.D. Ind. June 27, 2019) (citing Spegon v. Catholic Bishop of Chi., 175 F.3d 544, 554 (7th Cir. 1999)). “Ultimately, the party seeking an award of attorneys’ fees bears the burden of proving the reasonableness of the hours worked and the hourly rates claimed.” Bratton v. Thomas L. Firm, PC, 943 F. Supp. 2d 897, 902 (N.D. Ind. 2013) (citing Spegon, 175 F.3d at 550). III. ANALYSIS A. Gould Will Be Awarded Its Reasonable Fees and Expenses As explained above, the Court granted Gould’s motion to compel, and thus under Rule

37(a), Plaintiff must pay Gould’s reasonable fees and expenses unless Plaintiff can show its position was “substantially justified or other circumstances make an award of expenses unjust.” Fed. R. Civ. P. 37(a)(5)(B). Plaintiff contends that Gould’s fee petition should be denied in its entirety because Plaintiff’s position was substantially justified. (ECF 169 at 7-12). Under Rule 37(a)(5)(A)(ii), a party’s resistance to discovery is “substantially justified” when there is “a genuine dispute.” Rackemann v. LISNR, Inc., No. 1:17-cv-00624-MJD-TWP, 2018 WL 3328140, at *3 (S.D. Ind. July 6, 2018) (citations omitted). Put another way, resistance is substantially justified “if reasonable people could differ as to the appropriateness of the contested action.” Pierce v. Underwood, 487 U.S. 552, 565 (1988) (citations and brackets omitted).

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Hensley v. Eckerhart
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Robert Johnson v. G.D.F., Incorpora
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Bratton v. Thomas Law Firm, PC
943 F. Supp. 2d 897 (N.D. Indiana, 2013)

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Lea-Max Corporation v. Phillips North America LLC and Gould Electronics, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/lea-max-corporation-v-phillips-north-america-llc-and-gould-electronics-innd-2025.