Mogan v. Sacks, Ricketts & Case LLP

District Court, N.D. California·Decided May 9, 2022·No. 3:21-cv-08431·Unknown

Opinion

MICHAEL MOGAN, Case No. 21-cv-08431-TSH

Plaintiff, ORDER RE: DEFENDANTS’ v. MOTIONS FOR ATTORNEYS’ FEES AND COSTS SACKS, RICKETTS & CASE LLP, et al., Re: Dkt. Nos. 60, 61, 81 Defendants.

Plaintiff Michael Mogan, an attorney licensed in California, brought this case against Airbnb Inc. and three of its employees (collectively, “Airbnb Defendants”) and counsel that represented Airbnb Defendants, Sacks, Ricketts & Case, LLP and two of its attorneys (collectively, “SRC Defendants”) for claims related to a sanction against Mogan in a previous state court action. On January 10, 2022, the Court granted defendants’ Motions to Dismiss (“MTD Order”). ECF No. 38. Because SRC Defendants brought their Motion to Dismiss under California’s anti-SLAPP statute, which allows the Court to strike and dismiss certain lawsuits, the Court directed SRC Defendants to file a separate Motion for Attorneys’ Fees. Id. at 23-24. On January 12, 2022, the Court granted Airbnb Defendants’ Motion for Sanctions and held sanctions of reasonable attorneys’ fees and costs were appropriate under Federal Rule of Civil Procedure 11. ECF No. 50. Pending before the Court are Airbnb Defendants’ Motion for Attorneys’ Fees and Costs (ECF No. 60) and SRC Defendants’ Motion for Attorneys’ Fees (ECF No. 61). The Court finds these matters suitable for disposition without oral argument. See Civ. L.R. 7-1(b). Having considered the parties’ positions, relevant legal authority, and the record in this case, the Court GRANTS Airbnb Defendants’ Motion for Attorneys’ Fees and Costs and GRANTS SRC The facts of this case are well known to the parties, and the Court has previously summarized this case’s background in its MTD Order. ECF No. 38; Mogan v. Sacks, Ricketts & Case LLP, Case No. 21-cv-8431, 2022 WL 94927, at *2-4 (N.D. Cal. Jan. 10, 2022). The Court incorporates by reference the factual background set forth therein. On January 12, 2022, the Court granted Airbnb Defendants’ Motion for Sanctions (“Sanctions Order”). ECF No. 50. The Court held Mogan violated Federal Rule of Civil Procedure 11 by filing a frivolous complaint, found sanctions in the form of reasonable attorneys’ fees and costs appropriate, and ordered Airbnb Defendants to file a separate motion addressing the amount of attorneys’ fees and costs. Id. at 3-9, 11. On February 10, 2022, Airbnb Defendants filed a Motion for Attorneys’ Fees and Costs. ECF No. 60. On March 10, 2022, Mogan filed an Opposition (ECF No. 78) and, on March 24, 2022, Airbnb Defendants filed a Reply (ECF No. 79). On March 27, 2022, Mogan filed Objections to Airbnb Defendants’ Reply and Request for an Evidentiary Hearing. ECF No. 81. A. Legal Standard “[I]f imposed on motion and warranted for effective deterrence,” a sanction may include “an order directing payment to the movant of part or all of the reasonable attorney's fees and other expenses directly resulting from the violation.” Fed. R. Civ. P. 11(c)(4). “[W]here the original complaint is the improper pleading, all attorney fees reasonably incurred in defending against the claims asserted in the complaint form the proper basis for sanctions.” Gaskell v. Weir, 10 F.3d 626, 629 (9th Cir. 1993). “Courts typically determine reasonableness by conducting a lodestar analysis of the hours expended and the hourly rate charged.” Superior Consulting Servs., Inc. v. Steeves-Kiss, Case No. 17-cv-6059-EMC, 2018 WL 2183295, at *1 (N.D. Cal. May 11, 2018); see also Morales v. City of San Rafael, 96 F.3d 359, 363 (9th Cir. 1996) (“The customary method of determining fees . . . is known as the lodestar method.”). The lodestar analysis “requires the court to multiply the number Stevedoring Servs. of Am., 557 F.3d 1049, 1053 n.4 (9th Cir. 2009) (internal citation omitted). B. Discussion Airbnb Defendants retained three O’Melveny & Myers LLP attorneys—Damli Taylor, Jennifer Cardelús, and Kelly Kambourelis (collectively, “O’Melveny Attorneys”)—in connection with this case. ECF No. 60-1, Taylor Decl., at ¶¶ 2, 6. Airbnb Defendants seek a total of $185,092.4 in attorneys’ fees and costs. ECF Nos. 60 at 8 ($172,983.72 in fees and costs for work performed prior to and including the instant motion); 79 at 9 ($12,108.68 in fees for work on reply for instant motion). Airbnb Defendants filed declarations and exhibits showing itemized billing records in support of their requested $185,092.4 in attorneys’ fees and costs. ECF Nos. 60-1, Exhibit 1, (seeking $172,983.72 in fees and costs for work performed prior to and including their instant motion); 79-1, Exhibit 2 (seeking $12,108.68 in attorneys fee for work on reply for instant motion). The Court considers the reasonableness of Airbnb Defendants’ requested fees and costs with the lodestar analysis.1 a. Rates Airbnb Defendants request the following rates for the O’Melveny Attorneys: Attorney Title Billing Rate $935 (2021); Damali Taylor Partner $1,015.75 (2022)

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