RMK Merrill Stevens, LLC v. M/Y Ocean Drive

CourtDistrict Court, S.D. Florida
DecidedApril 30, 2025
Docket1:24-cv-21441
StatusUnknown

This text of RMK Merrill Stevens, LLC v. M/Y Ocean Drive (RMK Merrill Stevens, LLC v. M/Y Ocean Drive) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
RMK Merrill Stevens, LLC v. M/Y Ocean Drive, (S.D. Fla. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA MIAMI DIVISION CASE NO: 1:24-cv-21441-WILLIAMS/GOODMAN

“IN ADMIRALTY”

RMK MERRILL STEVENS, LLC, a Florida Limited Liability Company,

Plaintiff,

vs.

M/Y OCEAN DRIVE – a 1998 124’ Broward bearing Official No. 945782 and Hull ID No. BWD00505K888, its engines, tackle, equipment, gear, appurtenances, etc., in rem, and JUST FUNKY, LLC, a Florida Limited Liability Company, in personam,

Defendants. ___________________________________/

GRASSHOPPER BANK, N.A.,

Intervening Plaintiff,

M/Y OCEAN DRIVE – a 1998 124’ Broward bearing Official No. 945782 and Hull ID No. BWD00505K888, its engines, tackle, equipment, gear, appurtenances, etc., in rem, and OCEAN DRIVE MARINE VENTURES, in personam,

Defendants. ___________________________________/ REPORT AND RECOMMENDATIONS ON MOTION FOR ATTORNEYS’ FEES

On January 31, 2025, the Court entered a final judgment in favor of Intervening Plaintiff Grasshopper Bank, N.A. (“Grasshopper”) and against M/Y Ocean Drive, in rem, by and through its owner, Ocean Drive Marine Ventures, LLC (collectively, “Defendants”). [ECF No. 106]. Grasshopper seeks to recover attorneys’ fees and, in

support of its request, has filed a verified motion (“Motion”), declarations from its attorneys, and itemized billing records. [ECF Nos. 114; 114-1]. Defendants did not file a response in opposition to the fees motion and the time to do so has expired.

United States District Judge Kathleen M. Williams referred this motion to the Undersigned for a report and recommendations. [ECF No. 115]. For the reasons given below, the Undersigned respectfully recommends that the District Court grant in part and deny in part Grasshopper’s Motion and award it $52,484.80 in reasonable attorneys’

fees ($13,121.20 less than the amount requested). I. Analysis a. Entitlement The party seeking attorney’s fees bears the burden of establishing entitlement.

Hensley v. Eckerhart, 461 U.S. 424, 437 (1983); see also A.C.L.U. v. Barnes, 168 F.3d 423, 427 (11th Cir. 1999) (“[F]ee applicant bears the burden of establishing entitlement and documenting the appropriate hours and hourly rates.” (quoting Norman v. Hous. Auth. of

Montgomery, 836 F.2d 1292, 1303 (11th Cir. 1988)). “Attorneys’ fees generally are not recoverable in admiralty unless[:] (1) they are provided by the statute governing the claim, (2) the nonprevailing party acted in bad faith in the course of the litigation, or (3)

there is a contract providing for the indemnification of attorneys’ fees.” Natco Ltd. P’ship v. Moran Towing of Fla., Inc., 267 F.3d 1190, 1193 (11th Cir. 2001) (emphasis added). Here, Grasshopper relies on the following provision in the First Preferred Ship

Mortgage (“Mortgage”): (j) require Mortgagor to pay all collection, enforcement and court costs, including, but not limited to, all costs of preservation or protection of the rights and interests of the Mortgagee, and of foreclosure, enforcement and collection of any amount due and payable under this Mortgage and/or the Note, including all costs and expenses of retaking, maintaining, repairing, rehabilitating, advertising, cleaning, storing or selling the Vessel, to the extent permitted by law, and all attorneys’ fees incurred by Mortgagee, all of which are secured by the Mortgage. All such costs and fees shall constitute an additional part of the Obligations and shall accrue interest at the Default Rate provided in the Note. In the case of a judgment, interest on the unpaid balance of the judgment will be payable at the Default Rate or at any lesser rate required by applicable law. [ECF No. 28-1, p. 28 (¶ 30(j) (emphasis added))].1 Grasshopper also cites the Final Judgment, which states in relevant part that: Damages are awarded in favor of Grasshopper Bank, N.A., and against Defendants in the principal amount, as of November 22, 2024, of $1,609,134.77, with per diem interest thereafter through the date of judgment in the amount of $229.1574945, plus post-judgment interest thereafter at the statutory rate, plus costs and attorneys’ fees to be taxed at a later date pursuant to Southern District of Florida Local Rule 7.3.

1 Grasshopper’s Motion incorrectly cites this provision as paragraph 30(h) of the Mortgage, but the language quoted in its Motion [ECF No. 114, p. 2] is from paragraph 30(j). [ECF No. 106 (emphasis added)]. The Undersigned finds that Grasshopper is entitled to recover its reasonable

attorneys’ fees as provided for in the Mortgage. See, e.g., GEMB Lending, Inc. v. 2000 Sea Ray Sundancer, No. 209-CV-627-FTM-SPC, 2010 WL 1268022, at *2 (M.D. Fla. Mar. 29, 2010) (“GEMB is obligated to pay its attorneys a reasonable fee for their services and [the]

[d]efendants are liable for attorneys’ fees in accordance with the [f]irst [p]referred [s]hip [m]ortgage as executed and delivered.”); GEMB Lending, Inc. v. Arnaboldi, No. 06-61086- CIV, 2007 WL 9700967, at *1 (S.D. Fla. June 29, 2007), report and recommendation adopted,

No. 06-61086-CIV, 2007 WL 9700968 (S.D. Fla. Aug. 22, 2007) (“[T]he ‘[c]osts of [c]ollection and [a]ttorney’s Fees’ section of the [s]imple [i]nterest [n]ote, [d]isclosure and [s]ecurity [a]greement, the ‘[a]rticle II-[d]efault’ section of the [f]irst [p]referred [s]hip’s [m]ortgage’ and paragraph 11 of the [g]eneral [c]ontinuing [g]uaranty . . . provide for recovery of

reasonable attorney’s fees, costs, and expenses upon [the] [d]efendants’ breach and default.”). b. Amount Having determined entitlement, the Undersigned will now address the requested

amount. Grasshopper seeks to recover $65,606.00 in attorneys’ fees, which consists of: 1) $29,360.00 in legal fees for Adam Cooke, Esq. determined at 73.4 hours billed at $400 per hour; 2) $35,370.00 in legal fees for Robert D. McIntosh, Esq. determined at 78.6 hours billed at $450[.00] per hour and 3) $876[.00] in legal fees for Robert H. Friedhoff, Esq. determined at 2.4 hours at $365.00 per hour. [ECF No. 114, p. 3 (footnote omitted; emphasis added)]. In support of its fee request, Grasshopper submitted billing records [ECF No. 114-

1, pp. 11–44] and declarations [ECF No. 114-1, pp. 2–10] from each attorney. Although Defendants failed to respond to the fees motion, the Court must still ensure that the fees it awards are reasonable. See Valley v. Ocean Sky Limo, 82 F. Supp. 3d

1321, 1325 (S.D. Fla. 2015) (“[T]he Court has an independent obligation to review fee motions and bills of costs to independently determine whether the hourly rates sought are reasonable, the number of attorney hours sought are reasonable, and that the costs

sought to be taxed are properly taxable pursuant to the cost statute.”); see also Kelly v. Lee Cnty. R.V. Sales Co., No. 8:18-CV-424-T-27JSS, 2021 WL 3111553, at *2 (M.D. Fla. July 22, 2021) (reducing hourly rates of two timekeepers despite no challenge to the hourly rates by the opposing party).

As noted above, the Court must determine whether the requested fee amount is reasonable. Under the lodestar method, reasonable attorney’s fees are calculated by multiplying the number of hours reasonably expended on the litigation by a reasonable

hourly rate. Loranger v. Stierheim, 10 F.3d 776, 781 (11th Cir. 1994) (citing Hensley, 461 U.S. at 43). The resulting fee carries a presumption that it is reasonable. Blum v.

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