Prime Insurance Syndicate, Inc. v. Jefferson

547 F. Supp. 2d 568, 2008 U.S. Dist. LEXIS 13974, 2008 WL 544210
CourtDistrict Court, E.D. Louisiana
DecidedFebruary 22, 2008
DocketCivil Action 04-02680
StatusPublished
Cited by1 cases

This text of 547 F. Supp. 2d 568 (Prime Insurance Syndicate, Inc. v. Jefferson) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Prime Insurance Syndicate, Inc. v. Jefferson, 547 F. Supp. 2d 568, 2008 U.S. Dist. LEXIS 13974, 2008 WL 544210 (E.D. La. 2008).

Opinion

ORDER

MARTIN L.C. FELDMAN, District Judge.

The Court, having considered, the record, the applicable law, the Report and Recommendation of the United States Magistrate Judge, and finding, as of this date, no objection to the Magistrate Judge’s Report and Recommendation, hereby approves the Magistrate Judge’s Report and Recommendation and adopts it as its opinion.

IT IS THEREFORE ORDERED that the Plaintiffs Motion to Fix Amount of Attorney Fees (R. Doc. 135) is GRANTED. The Plaintiff is hereby awarded attorney’s fees in the amount $52,010.62.

REPORT AND RECOMMENDATION

KAREN WELLS ROBY, United States Magistrate Judge.

Before the Court is a Motion to Fix Attorney Fees (R. Doc. 135), filed by the *571 Plaintiff, Prime Insurance Syndicate, Inc. (“Prime”), seeking an order from the Court fixing attorney’s fees in the amount of $69,523.82. The Defendants, Bennie Jefferson and his company, Maximal Insurance, Inc., filed an opposition memorandum (R. Doc. 136). The parties did not address the issue of costs, and therefore, the determination of costs is not before this Court.

This matter was referred to the undersigned United States Magistrate Judge for a determination of the appropriate amount of attorney’s fees and to submit Proposed Findings and Recommendations pursuant to Title 28 U.S.C. § 636(b)(1)(B). The subject motion was heard on August 15, 2007. (R. Doc. 137.)

I. Background

On December 16, 1999 and July 1, 2002, Prime entered into two Surplus Lines Broker Agreements (“agreements”) with the Defendants, surplus lines insurance brokers. Under the terms of the agreements, the Defendants were responsible for collecting and remitting premiums and applicable state taxes to Prime, less commissions on the insurance contracts submitted by the Defendants for coverage. Prime subsequently terminated the agreements and brought suit against the Defendants, alleging that the Defendants owed a total of $113,554.42 under the agreements. (R. Doc. 1, p. 4.)

After a two-day bench trial, on June 6, 2007, United States District Judge Martin L.C. Feldman (“Judge Feldman”) entered judgment against the Defendants in the amount of $87,087.81 plus interests and costs. (R. Doc. 116.) Additionally, Judge Feldman awarded Prime attorney’s fees incurred in prosecuting the action, and referred the matter to the undersigned magistrate judge for the determination of the fees. (R. Doc. 117.) Consequently, Prime filed the subject motion, seeking an Order from the Court fixing attorney’s fees in the amount of $69,523.82.

Both parties agree that Utah law governs the award of attorney’s fees, however, they dispute the amount of attorney’s fees that Prime is to be awarded.

II. Standard of Review

Under Utah law, a trial court possesses the sound discretion to determine an award of attorney’s fees, however, the court’s exercise of discretion must be based on an evaluation of the evidence in the record. Cottonwood Mall Co. v. Sine, 830 P.2d 266, 268 (Utah 1992); Dixie State Bank v. Bracken, 764 P.2d 985, 988-89 (Utah 1988). The court need not award the entire amount requested, but must evaluate the requested fee to determine whether a lesser amount is reasonable under the circumstances. Hoth v. White, 799 P.2d 213, 220 (Utah App.1990). The Utah Supreme Court has held that “Reasonable attorneys fees are not measured by what an attorney actually bills, nor is the number of hours spent on a case determinative in computing fees.” Cabrera v. Cottrell, 694 P.2d 622, 624 (Utah 1985).

The Utah Supreme Court has specifically enumerated four questions that a trial court must answer in determining the amount of attorney’s fees to be awarded: (1) What legal work was actually performed? (2) How much of the work performed was reasonably necessary to adequately prosecute the matter? (3) Is the attorney’s billing rate consistent with the rates customarily charged in the locality for similar services? and (4) Are there circumstances which require consideration of additional factors, including those listed in the Utah Code of Professional Con *572 duct 1 ? Dixie State Bank, 764 P.2d at 990. In addition, in determining the reasonableness of the attorney’s fees, the court should consider factors such as (1) the difficulty of the litigation, (2) the efficiency of the attorneys in presenting the case, (3) the reasonableness of the number of hours spent on the case, (4) the fee customarily charged in the locality for similar services, (5) the amount involved in the case and the result attained, and (6) the expertise and experience of the attorneys involved. Cottonwood Mall Co., 830 P.2d at 269. Trial courts should make findings which explain the factors which they consider in awarding attorney’s fees, especially if the ultimate award is less than the amount requested. Hoth, 799 P.2d at 220.

The party who requests an award of attorney’s fees bears the burden to present sufficient evidence in support of an award. Cottonwood Mall Co., 830 P.2d at 268. Such evidence may be produced by affidavit and should include evidence of (1) the hours spent on the case, (2) the hourly rates charged, (3) and the usual and customary rates for such work. Id. The party opposing the award of fees must be provided access to examine supporting documents and an opportunity to contest the accuracy of factual assertions either by counter-affidavit or cross-examination of opposing counsel before the court. Id. at 268-69. The trial court must deduct from the total award time spent by counsel on unsuccessful issues, and thus, must determine what costs were attributable to the successful vindication of rights. Flying J, Inc. v. Comdata Network, Inc., No. 96-066BSJ, 2007 WL 3550342, at * 11, n. 16 (D.Utah Nov.15, 2007).

If the evidence supporting the reasonableness of the requested attorney’s fees is (1) adequate and (2) entirely undisputed, the court abuses its discretion in awarding less than the amount requested, unless the reduction is warranted by the four questions. Hoth, 799 P.2d at 220. Utah courts have been critical of judges who make an ad hoc fee reduction without expounding upon the factors they considered in arriving at the award. Brown v. David K Richards & Co., 978 P.2d 470, 474 (Utah App.1999).

III. Analysis

In support of its motion, Prime’s attorneys submit invoices itemizing the professional services that they rendered in the case. (R. Doc. 135-3, Ex. A.) Additionally, Randall A.

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547 F. Supp. 2d 568, 2008 U.S. Dist. LEXIS 13974, 2008 WL 544210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prime-insurance-syndicate-inc-v-jefferson-laed-2008.