O'Bannon v. National Collegiate Athletic Ass'n

114 F. Supp. 3d 819, 2015 U.S. Dist. LEXIS 91514, 2015 WL 4274370
CourtDistrict Court, N.D. California
DecidedJuly 13, 2015
DocketCase No. 09-cv-03329-CW (NC)
StatusPublished

This text of 114 F. Supp. 3d 819 (O'Bannon v. National Collegiate Athletic Ass'n) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O'Bannon v. National Collegiate Athletic Ass'n, 114 F. Supp. 3d 819, 2015 U.S. Dist. LEXIS 91514, 2015 WL 4274370 (N.D. Cal. 2015).

Opinion

ORDER GRANTING MOTION FOR ATTORNEYS’ FEES

NATHANAEL M. COUSINS, United . States Magistrate Judge

Plaintiffs, a group of current and former college student-athletes, move for an award of attorneys’ fees incurred in prosecuting this action. Defendant the National Collegiate Athletic Association opposes plaintiffs’ motion. The NCAA’s principal objection is that the request for fees includes work related to prosecuting ultimately unsuccessful claims. The Court, however, finds that these unsuccessful claims relate to the successful claims that plaintiffs won at trial; they involve a common core of facts. For this reason, and because the Court finds that the time spent pursuing these unsuccessful claims contributed to plaintiffs’ litigation of successful claims, ’ the . Court rejects the NCAA’s principal- objection.' And because the Court otherwise finds' plaintiffs’ fee request reasonable, the Court GRANTS plaintiffs’ request for attorneys’; fees. As to costs-and expenses, the Court GRANTS IN PART plaintiffs’ request. The Court does not have the discretion to award expert fees, -either as costs or expenses, because the Clayton Act does not provide explicit statutory Authority. Accordingly, the Court DENIES plaintiffs’ request for an expert feés award.

The Court summarizes its findings ás to the NCAA’s and plaintiffs’ proposed reductions ih table format in Exhibits 1 and' 2. See infra pp.' 841-42.

I. BACKGROUND

The factual and procedural background of fhis case is well documented in the Court’s prior orders and will only be summarized briefly here. Plaintiffs are former and current student-athletes who - played for NCAA men’s football or basketball teams at the Division I level. Plaintiffs initiated this antitrust action .in 2009. Dkt. No. 1. Since then, hundreds of attorneys have participated in various capacities to represent plaintiffs, defendant .NCAA,, the NCAA’s member schools and conferences, defendant Electronic Arts, Inc., defendant Collegiate Licensing Company, the television broadcasters, - and myriad other third parties featured in the litigation. Indeed, plaintiffs’ counsel grew to include over 30 law firms by the time the case went to trial. . ¡

In 2012, plaintiffs moved to certify a class of current and former Division I football and basketball players to pursue declaratory and injunctive relief. They also [826]*826moved to certify a subclass of current and former student-athletes to pursue monetary damages. - .

In November 2013, the district court granted plaintiffs’ request to certify the injunctive relief class, but denied their request to certify a damages subclass. No. 09-cv01967 CW, Dkt. No. 893 at 23-24.

Just- prior to this class certification order, in September 2013, the plaintiffs reached a settlement in principle with EA and CLC. Plaintiffs, EA, and CLC then finalized their agreement and the district court granted the their motion for preliminary approval in September 2014. No. 09-cv-01967 CW, Dkt. No. 1177. A fairness hearing is currently scheduled for July 16, 2015. No. 09-cv-01967 CW, Dkt. No. H87.

As to, plaintiffs’ antitrust claims against NCAA, the district court held a non-jury trial between June 9, 2014, and June 27, 2014, to resolve these issues. Dkt. No. 291 at 2. On August 8, 2014, the district court found NCAA liable to plaintiffs for violating § 1 of the Sherman Act. Specifically, the district court found that the NCAA’s rulés barfing student-athletes from receiving a share of revenue that the NCAA and its member schools earn from the sale of licenses to use the student-athletes’ names, images, and likenesses in videogames, live game telecasts, and other footage “unreasonably restrain trade in the market for certain educational and athletic opportunities offered by NCAA Division I-schools.” Id. at 2. As a remedy, the district court entered a preliminary injunction prohibiting the overly restrictive restraints. Id. at 95-98.

The NCAA subsequently filed notices- of appeal to the Ninth Circuit, where the case is pending. Dkt. Nos. 299, 316.

On November 19, 2014, plaintiffs filed an amended fee petition, seeking $45,573,985.45 in attorneys’ fees, and $5,295,062.20 in costs and expenses under the Clayton Act, 15 U.S.C. § 26. Dkt. No. 341.

On December 22, 2014, the district court referred this amended motion for attorneys’ fees, costs, and expenses to the undersigned magistrate judge. Dkt. No. 349.

II. LEGAL STANDARD

Section 16 of the Clayton Act provides that a plaintiff who substantially prevails in an antitrust action for injunctive relief may recover reasonable attorneys’ fees and costs. 15 U.S.C. § 26; Costco Wholesale Corp. v. Hoen, 538 F.3d 1128, 1136 (9th Cir.2008) (“[B]ecause fee shifting under § 26 is mandatory, equity cannot influence the determination of whether fees and costs should be awarded to substantially prevailing plaintiffs under that statute.”). .

In determining the reasonableness of attorneys’ fees, courts first determine the “lodestar” amount, of the number of hours reasonably expended on the litigation multiplied by a reasonable hourly rate. D’Emanuele v. Montgomery Ward & Co., 904 F.2d 1379, 1383 (9th Cir.1990).

As to hours, “[t]he fee applicant bears the burden of documenting the appropriate hours expended in the litigátion and must submit evidence in support of those hours worked.” Gates v. Deukmejian, 987 F.2d 1392, 1397 (9th Cir.1993) (citing Hensley v. Eckerhart, 461 U.S. 424, 433-34, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983)). Parties opposing the fee applica tion, in turn, carry the burden of rebuttal; they must present evidence challenging the accuracy and reasonableness of the hours charged. Id. at 1398. In evaluating the evidence presented by both sides, the court must exclude from the calculation hours not “reasonably expended” on litigation because they were “excessive, redundant, or otherwise unnecessary.” Van [827]*827Gerwen v. Guarantee Mut. Life Co., 214 F.3d 1041, 1045 (9th Cir.2000) (citing Hensley, 461 U.S. at 435-36, 103 S.Ct. 1933).

Having determined the number of hours reasonably expended, the court must then determine a reasonable hourly rate based on the fee-petition attorneys’ experience, skill, and reputation. D'Emanuele, 904 F.2d at 1384 (citing Chalmers v. City of Los Angeles, 796 F.2d 1205, 1210 (9th Cir.1986)). While the Court may con sider rates charged by attorneys for the prevailing party, the prevailing market rates in the community should drive the court’s analysis. Id. The prevailing party bears the burden of producing satisfactory evidence (e.g., attorney affidavits) that “the requested rates are in line with those prevailing in the community for similar services .by lawyers of reasonably comparable skill, experience and reputation.” Blum v. Stenson,

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114 F. Supp. 3d 819, 2015 U.S. Dist. LEXIS 91514, 2015 WL 4274370, Counsel Stack Legal Research, https://law.counselstack.com/opinion/obannon-v-national-collegiate-athletic-assn-cand-2015.