Marcum LLP v. United States

112 Fed. Cl. 167, 2013 U.S. Claims LEXIS 1014, 2013 WL 4010216
CourtUnited States Court of Federal Claims
DecidedAugust 2, 2013
DocketNo. 13-189C
StatusPublished
Cited by2 cases

This text of 112 Fed. Cl. 167 (Marcum LLP v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marcum LLP v. United States, 112 Fed. Cl. 167, 2013 U.S. Claims LEXIS 1014, 2013 WL 4010216 (uscfc 2013).

Opinion

Motion to Dismiss; Lack of Subject Matter Jurisdiction; Criminal Justice Act, 18 U.S.C. § 3006A; Fifth Amendment Takings Claim.

OPINION

HORN, J.

Plaintiff, Marcum LLP, is a professional services firm with offices in New York, New Jersey, Connecticut, Pennsylvania, Florida, Massachusetts, California, Grand Cayman, and China. Among the services plaintiff offers, plaintiff provides forensic accounting and litigation support services, including expert witness services, for both civil and criminal trials. Plaintiff filed its original complaint in the United States Court of Federal Claims on March 13, 2013, and an amended complaint on May 30, 2013, alleging that the Chief Judge of the United States Court of Appeals for the Fifth Circuit, Edith H. Jones, caused an uncompensated taking of plaintiffs property in violation of the Fifth' Amendment to the United States Constitution when she issued a Service Provider Con[170]*170tinuity and Payment Order (Continuity and Payment Order), coupled with a notice of a contempt hearing, resulting in “an enforced requisitioning of Marcum’s business for the duration of Mr. Stanford’s criminal trial.”1 Plaintiff claims a property interest in what it describes generally as “professional services” and “ ‘business assets’ [that] include, but are not limited to, contract rights, the right to exclusive use of its property, and the right to dispose of its property.”

Plaintiffs claim arises out of services it rendered to assist in the criminal defense of Mr. Stanford, who was indicted by the United States in the United States District Court for the Southern District of Texas on June 18, 2009. In the indictment, the government alleged that Mr. Stanford had defrauded investors through a multi-billion dollar “Ponzi”-type scheme. Plaintiff states that on June 19, 2009, the government made public its indictment of Mr. Stanford and arrested him. According to plaintiffs amended complaint, on the same day, the Securities and Exchange Commission instituted fraud proceedings against Mr. Stanford and his company, the Stanford Financial Group, and the government “seized 33 offices of the Stanford Financial Group” along with Mr. Stanford’s personal assets.

Plaintiff alleges that Judge David Hittner of the United States District Court for the Southern District of Texas, who presided over Mr. Stanford’s trial court, criminal proceedings, declared Mr. Stanford indigent on October 27, 2010, after finding that the government’s seizure of Mr. Stanford’s assets left him without sufficient financial resources to retain defense counsel. Pursuant to the Criminal Justice Act (CJA), Judge Hittner appointed defense counsel to Mr. Stanford. See 18 U.S.C. § 3006A (Supp. IV 2010). Plaintiff asserts that, in June 2011, because the government’s case against Mr. Stanford was broad in scope and implicated highly technical financial transactions, Mr. Stanford’s appointed defense attorneys sought assistance from plaintiff in preparation for trial, including forensic accounting and expert witness services. Plaintiff was appointed to assist in Mr. Stanford’s defense under a provision of the CJA that provides for “[s]er-viees other than counsel.” See 18 U.S.C. § 3006A(e)(l). The applicable provision states:

Counsel for a person who is financially unable to obtain investigative, expert, or other services necessary for adequate representation may request them in an ex parte application. Upon finding, after appropriate inquiry in an ex parte proceeding, that the services are necessary and that the person is financially unable to obtain them, the court, or the United States magistrate judge if the services are required in connection with a matter over which he has jurisdiction, shall authorize counsel to obtain the services.

Id.

Plaintiffs compensation was governed by the following provision of the CJA, which also addresses the process for the approval of requests for compensation that exceed the statutory maximum:

Compensation to be paid to a person for services rendered by him to a person under this subsection, or to be paid to an organization for services rendered by an employee thereof, shall not exceed $2,400, exclusive of reimbursement for expenses reasonably incurred, unless payment in excess of that limit is certified by the court, or by the United States magistrate judge if the services were rendered in connection with a case disposed of entirely before him, as necessary to provide fair compensation for services of an unusual character or duration, and the amount of the excess payment is approved by the chief judge of the circuit. The chief judge of the circuit [171]*171may delegate such approval authority to an active or senior circuit judge.

18 U.S.C. § 3006A(e)(3).

Plaintiff maintains that, pursuant to the CJA provisions quoted above, it was required to obtain court certification as the cost of the services it rendered for Mr. Stanford’s defense substantially would exceed $2,400.00. Before beginning its work, plaintiff asserts that it submitted to presiding District Court Judge Hittner a preliminary budget which estimated the projected cost of its services at approximately $4.5 million. Plaintiff alleges that Judge Hittner approved plaintiffs preliminary budget and authorized plaintiff to commence its work.2 Plaintiffs amended complaint does not allege, however, that the Chief Judge of the Circuit or her delegee approved plaintiffs preliminary budget or the revised budget that plaintiff alleges to have subsequently submitted.

Plaintiff states that, in accordance with the Southern District of Texas’ CJA plan, it submitted monthly vouchers for services rendered in June, July, and August 2011 to the District Court for the Southern District of Texas. In September 2011, plaintiff claims that it became aware that Judge Hittner had certified its June, July, and August 2011 vouchers and submitted them for approval to the United States Court of Appeals for the Fifth Circuit. Plaintiff further states that it was paid pursuant to its June, July, and August 2011 vouchers in October 2011. In addition, plaintiff alleges that, in September 2011, it submitted a revised budget at the request of defense counsel and the District Court. Plaintiffs revised budget reduced its estimated costs to $3.2 million, based on its anticipated expenses of $428,250.00 per month for September, October, November, and December 2011.

Plaintiff also alleges that it submitted monthly vouchers to Judge Hittner, totaling $845,588.48, for services rendered in September, October, and November 2011. Before Judge Hittner certified either of plaintiffs September or October 2011 vouchers, plaintiff alleges that, at the request of the Court of Appeals for the Fifth Circuit, Judge Hitt-ner appointed attorney Mario P. Cadeddu to act as a discovery expert and to review plaintiffs budget and expenses. Plaintiff states that, in a memorandum to the Chief Judge of the Court of Appeals for the Fifth Circuit, dated December 20, 2011, which plaintiff characterizes as “highly favorable,” Ms. Ca-deddu recommended that Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
112 Fed. Cl. 167, 2013 U.S. Claims LEXIS 1014, 2013 WL 4010216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marcum-llp-v-united-states-uscfc-2013.