Mogan v. Sacks, Ricketts & Case LLP

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

Opinion

1 2 UNITED STATES DISTRICT COURT 3 NORTHERN DISTRICT OF CALIFORNIA 4 5 MICHAEL MOGAN, Case No. 21-cv-08431-TSH

6 Plaintiff, ORDER RE: DEFENDANTS’ 7 v. MOTIONS FOR ATTORNEYS’ FEES AND COSTS 8 SACKS, RICKETTS & CASE LLP, et al., Re: Dkt. Nos. 60, 61, 81 9 Defendants.

10 11 I. INTRODUCTION 12 Plaintiff Michael Mogan, an attorney licensed in California, brought this case against 13 Airbnb Inc. and three of its employees (collectively, “Airbnb Defendants”) and counsel that 14 represented Airbnb Defendants, Sacks, Ricketts & Case, LLP and two of its attorneys 15 (collectively, “SRC Defendants”) for claims related to a sanction against Mogan in a previous 16 state court action. On January 10, 2022, the Court granted defendants’ Motions to Dismiss 17 (“MTD Order”). ECF No. 38. Because SRC Defendants brought their Motion to Dismiss under 18 California’s anti-SLAPP statute, which allows the Court to strike and dismiss certain lawsuits, the 19 Court directed SRC Defendants to file a separate Motion for Attorneys’ Fees. Id. at 23-24. On 20 January 12, 2022, the Court granted Airbnb Defendants’ Motion for Sanctions and held sanctions 21 of reasonable attorneys’ fees and costs were appropriate under Federal Rule of Civil Procedure 11. 22 ECF No. 50. 23 Pending before the Court are Airbnb Defendants’ Motion for Attorneys’ Fees and Costs 24 (ECF No. 60) and SRC Defendants’ Motion for Attorneys’ Fees (ECF No. 61). The Court finds 25 these matters suitable for disposition without oral argument. See Civ. L.R. 7-1(b). Having 26 considered the parties’ positions, relevant legal authority, and the record in this case, the Court 27 GRANTS Airbnb Defendants’ Motion for Attorneys’ Fees and Costs and GRANTS SRC 1 II. BACKGROUND 2 The facts of this case are well known to the parties, and the Court has previously 3 summarized this case’s background in its MTD Order. ECF No. 38; Mogan v. Sacks, Ricketts & 4 Case LLP, Case No. 21-cv-8431, 2022 WL 94927, at *2-4 (N.D. Cal. Jan. 10, 2022). The Court 5 incorporates by reference the factual background set forth therein. 6 III. AIRBNB DEFENDANTS’ MOTION 7 On January 12, 2022, the Court granted Airbnb Defendants’ Motion for Sanctions 8 (“Sanctions Order”). ECF No. 50. The Court held Mogan violated Federal Rule of Civil 9 Procedure 11 by filing a frivolous complaint, found sanctions in the form of reasonable attorneys’ 10 fees and costs appropriate, and ordered Airbnb Defendants to file a separate motion addressing the 11 amount of attorneys’ fees and costs. Id. at 3-9, 11. 12 On February 10, 2022, Airbnb Defendants filed a Motion for Attorneys’ Fees and Costs. 13 ECF No. 60. On March 10, 2022, Mogan filed an Opposition (ECF No. 78) and, on March 24, 14 2022, Airbnb Defendants filed a Reply (ECF No. 79). On March 27, 2022, Mogan filed 15 Objections to Airbnb Defendants’ Reply and Request for an Evidentiary Hearing. ECF No. 81. 16 A. Legal Standard 17 “[I]f imposed on motion and warranted for effective deterrence,” a sanction may include 18 “an order directing payment to the movant of part or all of the reasonable attorney's fees and other 19 expenses directly resulting from the violation.” Fed. R. Civ. P. 11(c)(4). “[W]here the original 20 complaint is the improper pleading, all attorney fees reasonably incurred in defending against the 21 claims asserted in the complaint form the proper basis for sanctions.” Gaskell v. Weir, 10 F.3d 22 626, 629 (9th Cir. 1993). 23 “Courts typically determine reasonableness by conducting a lodestar analysis of the hours 24 expended and the hourly rate charged.” Superior Consulting Servs., Inc. v. Steeves-Kiss, Case No. 25 17-cv-6059-EMC, 2018 WL 2183295, at *1 (N.D. Cal. May 11, 2018); see also Morales v. City of 26 San Rafael, 96 F.3d 359, 363 (9th Cir. 1996) (“The customary method of determining fees . . . is 27 known as the lodestar method.”). The lodestar analysis “requires the court to multiply the number 1 Stevedoring Servs. of Am., 557 F.3d 1049, 1053 n.4 (9th Cir. 2009) (internal citation omitted). 2 B. Discussion 3 Airbnb Defendants retained three O’Melveny & Myers LLP attorneys—Damli Taylor, 4 Jennifer Cardelús, and Kelly Kambourelis (collectively, “O’Melveny Attorneys”)—in connection 5 with this case. ECF No. 60-1, Taylor Decl., at ¶¶ 2, 6. Airbnb Defendants seek a total of 6 $185,092.4 in attorneys’ fees and costs. ECF Nos. 60 at 8 ($172,983.72 in fees and costs for work 7 performed prior to and including the instant motion); 79 at 9 ($12,108.68 in fees for work on reply 8 for instant motion). 9 Airbnb Defendants filed declarations and exhibits showing itemized billing records in 10 support of their requested $185,092.4 in attorneys’ fees and costs. ECF Nos. 60-1, Exhibit 1, 11 (seeking $172,983.72 in fees and costs for work performed prior to and including their instant 12 motion); 79-1, Exhibit 2 (seeking $12,108.68 in attorneys fee for work on reply for instant 13 motion). The Court considers the reasonableness of Airbnb Defendants’ requested fees and costs 14 with the lodestar analysis.1 15 a. Rates 16 Airbnb Defendants request the following rates for the O’Melveny Attorneys: 17 18 Attorney Title Billing Rate $935 (2021); 19 Damali Taylor Partner $1,015.75 (2022) 20

21 1 Although the Court addressed the imposition of sanctions in its Sanctions Order, Mogan continues to dispute sanctions. Mogan argues he did not have sufficient notice of sanctions, he did 22 not consent to magistrate judge jurisdiction, Airbnb Defendants’ request for attorneys’ fees and costs is late under Federal Rule of Civil Procedure 54, and sanctions was improperly issued sua 23 sponte. ECF No. 78 at 2, 4-5, 14-18. The Court, consistent with its Sanctions Order, finds attorneys’ fees and costs are 24 appropriate under Rule 11. The Court addressed Mogan’s argument regarding notice in the 25 Sanctions Order, ECF No. 50 at 7-8, and Mogan consented to magistrate judge jurisdiction. ECF Nos. 8 (Mogan’s consent to magistrate judge jurisdiction). Sanctions were imposed under Rule 26 11—not Rule 54—and upon Airbnb Defendants’ Motion for Sanctions. See Barber v. Miller, 146 F.3d 707, 711 (9th Cir. 1998) (“[T]he court did not initiate the sanction . . . [Rule 11] distinguishes 27 between sanctions imposed upon motion of a party and those imposed by show-cause order on the $845.75 (2021); 1 Jennifer Cardelús Counsel $884 (2022) 2 Kelly Kambourelis Associate $518.50 (2021); $629 (2022) 3 See ECF Nos. 60-2 (Exhibit 1); 79-2 (Exhibit 2). 4 To determine whether these hourly rates are reasonable, the Court considers “prevailing 5 rates in this district for personnel of comparable experience, skill, and reputation.” Dickey v. 6 Advanced Micro Devices, Inc., Case No. 15-cv-4922-HSG, 2020 WL 870928, at *8 (N.D. Cal. 7 Feb. 21, 2020). As the fee applicants, Airbnb Defendants have “the burden of producing 8 satisfactory evidence, in addition to the affidavits of its counsel, that the requested rates are in line 9 with those prevailing in the community for similar services of lawyers of reasonably comparable 10 skill and reputation.” Jordan v. Multnomah Cnty., 815 F.2d 1258, 1263 (9th Cir. 1987). 11 Damali Taylor is a partner with over six years of litigation experience and has led more 12 than twenty jury trials, conducted hundreds of court hearings, and defended against hundreds of 13 pretrial motions. ECF No. 60-1, Taylor Decl ¶ 6.

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