Scanlon v. Kessler

23 F. Supp. 2d 413, 48 U.S.P.Q. 2d (BNA) 1794, 1998 WL 726047, 1998 U.S. Dist. LEXIS 16104
District Court, S.D. New York·Decided October 13, 1998·No. 97 CIV. 1140(CBM)·Published·Cited by 9 cases

Opinion

MEMORANDUM OPINION

MOTLEY, District Judge.

BACKGROUND

Plaintiff, Christopher Scanlon (“Scanlon”), commenced this action on February 19,1997, *415 against defendants, Gil Kessler (“Kessler”), Bruce Marcus (“Marcus”), John Weis (“Weis”), and Gay Male S/M Activists (“GMSMA”), alleging, inter alia, copyright infringement under 17 U.S.C. §§ 101, et seq. Scanlon is a former board member of GMSMA, a non-profit organization that advocates for the rights of gay men with a sadomasochistic lifestyle. He alleged that defendants violated his copyrights of certain photographs by using them without his permission. On July 9, 1998, the court held defendant GMSMA liable, under 17 U.S.C. § 504(c)(1), for infringing Scanlon’s copyrights as to two photographs, “Suspension” and “Pinned,” by placing them on the Internet without authorization. The other individual defendants were found not liable under state law. Finding the infringements not to be wilful, the court ordered minimal statutory damages of $1000. In addition, the court found that plaintiff was entitled to a moderate award of attorney’s fees and costs.

On September 17, 1998, the court held a hearing on the parties’ cross-applications for attorney’s fees and costs. Plaintiff claims that he is entitled to $78,475.00 in attorney’s fees and $5,877.34 in costs. Defendants oppose any award of attorney’s fees or costs to plaintiff and move the court to award defendants $32,344.80 in attorney’s fees and costs.

FINDINGS OF FACT AND CONCLUSIONS OF LAW

I. Plaintiff Is the Prevailing Party under Section 505 of the Copyright Act

Under § 505 of the Copyright Act (“the Act”), the prevailing party in a copyright infringement case may recover attorney’s fees. 1 In Fogerty v. Fantasy, Inc., 510 U.S. 517, 114 S.Ct. 1023, 127 L.Ed.2d 455 (1994), the Supreme Court held that prevailing plaintiffs and prevailing defendants must be treated alike when courts consider awarding attorney’s fees. To be deemed a “prevailing party,” the party must “succeed on a significant issue in the litigation that achieves some of the benefits the party sought in bringing suit” Hensley v. Eckerhart, 461 U.S. 424, 433, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983); see also, Ruggiero v. Krzeminski, 928 F.2d 558, 564 (2d Cir.1991). “[S]uccess on a “purely technical or de minimis ” claim does not qualify a litigant as a prevailing party” Screenlife Establishment v. Tower Video, Inc., 868 F.Supp. 47, 50 (S.D.N.Y.1994).

In the present case, the plaintiff is clearly the prevailing party. Scanlon alleged that defendants infringed on his copyrights as to two photographs, “Suspension” and “Pinned.” 2 In the court’s memorandum opinion dated July 9, 1998 (“July 9th Opinion”), the court held that plaintiff successfully proved copyright infringement as to those two photographs. See, Scanlon v. Kessler, et al., 11 F.Supp.2d 444, 447 (S.D.N.Y.1998). However, defendants argue that plaintiff is not the prevailing party because his success was de minimis. Defendants claim to have prevailed in the action because the individual defendants were found not liable as to the copyright infringement claims, and defendant GMSMA was not found to have wilfully infringed on Scanlon’s copyrights.

The court finds that defendants’ argument is misplaced. First, as previously stated above, Scanlon was successful in proving the merits of his copyright infringement claims. The' fact that he secured a modest statutory damage award does not mitigate *416 against his success. He was victorious as to the significant issue at bar, namely proving copyright infringement of his work. Defendants seem to confuse the law disqualifying the litigant who triumphs on a “technical or de minimis ” claim from one who prevails on a central claim but does not receive his anticipated prayer for relief. Thus, the fact that Scanlon received only minimal statutory damages does not preclude him from being deemed the prevailing party. See, Branch v. Ogilvy & Mather, Inc., 772 F.Supp. 1359 (S.D.N.Y.1991) (holding that copyright owner of cookbook who received $1 in nominal damages was prevailing party under the Act).

Second, the court’s conclusion that the three individual defendants were not liable rested on New York state law. In its July 9th Opinion, the court held that although Kessler, Marcus, and Weis violated Scanlon’s copyrights by posting his photographs on the Internet site, they were spared from liability under Section 720-a of New York’s Not-for-Profit Corporation Law, which provides that an individual director of a not-for-profit corporation (in this case, GMSMA) can only be liable if his actions were grossly negligent. See, 11 F.Supp.2d at 448. Thus, the individual defendants cannot be termed prevailing parties, as they were merely shielded from liability under state law, despite their violation of the Act.

Third, the court’s finding of lack of wilfulness on the part of GMSMA does not prevent plaintiff from being awarded attorney’s fees and costs. Wilfulness goes to the issue of damages and not to the ultimate issue of determining whether defendants violated the Act by infringing on Scanlon’s copyrights. The court finds that Scanlon achieved some of the benefits he was seeking in bringing suit, namely protection of his copyrights and some statutory damages. Therefore, the court finds and concludes that plaintiff, and not defendants, is the prevailing party entitled to moderate attorney’s fees and costs.

II. Calculation of Attorney’s Fees and Costs under Section 505 of the Copyright Act

Although recovery of attorney’s fees lies in the sound discretion of the trial court, the Second Circuit has developed a method for calculating such awards. Under the “lodestar” approach to determining attorney’s fees, fees are determined by “multiplying the number of hours expended by each attorney involved in each type of work on the case by the hourly rate normally charged for similar work by attorneys of like skill in the area.” The lodestar figure may be adjusted upward or downward “to take account of such subjective factors as the risk and complexity of the litigation and the quality of the representation.” Cohen v. W. Haven Bd. of Police Comm’rs, 638 F.2d 496 (2d Cir.1980).

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Scanlon v. Kessler, 23 F. Supp. 2d 413, 48 U.S.P.Q. 2d (BNA) 1794, 1998 WL 726047, 1998 U.S. Dist. LEXIS 16104 (S.D.N.Y. 1998).

23 F. Supp. 2d 413 (Scanlon v. Kessler) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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