Scelsi v. Habberstad Motorsport, Inc.

District Court, E.D. New York·Decided December 22, 2021·No. 2:19-cv-04315·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK --------------------------------------------------------------x MELISSA SCELSI, Plaintiff, MEMORANDUM AND ORDER

-against- 19-CV-4315 (FB)

HABBERSTAD MOTORSPORT INC., et al.,

Defendants. --------------------------------------------------------------x

ROANNE L. MANN, UNITED STATES MAGISTRATE JUDGE: By Memorandum and Order dated June 24, 2021, this Court granted a motion filed by plaintiff Melissa Scelsi (“plaintiff”) for sanctions against defendants Habberstad Motorsport, Inc. and Erik Habberstad (collectively, “defendants”), awarding plaintiff reasonable attorneys’ fees and expenses, in an amount to be determined. See Memorandum and Order (June 24, 2021) (“6/24/21 M&O”), Electronic Case Filing (“ECF”) Docket Entry (“DE”) #65. Currently pending before the Court is an application filed by plaintiff to set the amount of attorneys’ fees and costs awarded. See Motion for Attorney Fees (July 28, 2021) (“Pl. Fee Motion”), DE #67. For the reasons that follow, this Court grants attorneys’ fees in the amount of $35,194.25, along with $933.20 in costs. BACKGROUND On November 30, 2020, plaintiff moved for discovery sanctions against defendants for “obstructing fact discovery by willfully withholding documents responsive to [p]laintiff’s discovery requests.” See Plaintiff’s Motion for Sanctions (Nov. 30, 2020) (“Pl. Sanctions Motion”) at 1, DE #50. Plaintiff requested “an order requiring [d]efendants to pay [p]laintiff’s attorneys’ fees and costs associated with: (1) preparing the three [motions to compel] and participating in the two related motion hearings; (2) preparing for and participating in the related meet-and-confers . . . ; and (3) preparing for and conducting [the] second deposition

session [of defendants’ General Manager, James McCarthy,] on November 20, 2020.” Id. The Court concluded that sanctions were warranted, on account of defendants’ failure to timely produce responsive documents, which caused plaintiff to incur fees and costs litigating a series of discovery disputes and to expend additional time conducting discovery. Accordingly, the Court awarded plaintiff “reasonable fees and costs associated with preparing and arguing the motion[s] and participating in meetings with opposing counsel related to [the] motion[s].” 6/24/21 M&O at 9; see id. at 10-11. The Court also directed defendants to pay plaintiff’s fees

and costs in connection with taking a second deposition of Mr. McCarthy, since the continuation of his deposition was due to defendants’ discovery violations. See id. at 10-11. The parties were unable to reach an agreement on the amount of fees and costs to which plaintiff was entitled. By the instant application, plaintiff seeks $54,557.50 in attorneys’ fees and $933.20 in costs. See Pl. Fee Motion at 1. Characterizing the amount sought as unreasonable, defendants oppose plaintiff’s application in its entirety, and, in the alternative,

propose an award in an amount no greater than $7,500. See Response in Opposition (Aug. 3, 2021) (“Def. Fee Opp.”), DE #68. The Court rejects each side’s proposal and awards an amount that it finds to be reasonable, for the reasons explained below. DISCUSSION I. Legal Standards

Rule 37(a)(5)(A) of the Federal Rules of Civil Procedure authorizes the Court, in the circumstances presented here, to require the party that failed to make timely disclosures to pay the movant its “reasonable expenses incurred in making the motion, including attorney's fees." Fed. R. Civ. P. 37(a)(5)(A). In determining whether plaintiff’s requested fee is a “reasonable” sanction under the circumstances, the Court employs the “lodestar” method, multiplying the number of hours reasonably spent by counsel on the matter by a reasonable hourly rate. See Hunter v. City of New York, 12-CV-6139 (MKB), 2021 WL 4942769, at *4 (E.D.N.Y. Oct. 22, 2021) (applying lodestar method to determine fees on sanctions motion);

Toussie v. Allstate Ins. Co., 15 CV 5235 (ARR), 2019 WL 2435852, at *25 (E.D.N.Y. Feb. 6, 2019) (same), adopted, 2019 WL 2082462 (E.D.N.Y. May 13, 2019). This presumptively reasonable fee is essentially “what a reasonable, paying client would be willing to pay, given that such a party wishes to spend the minimum necessary to litigate the case effectively.” Simmons v. New York City Transit Auth., 575 F.3d 170, 174 (2d Cir. 2009) (internal quotation marks and citations omitted); see Safeco Ins. Co. of Am. v. M.E.S., Inc., 790

F.App’x 289, 292 (2d Cir. 2019). Plaintiff bears the burden of proving the reasonableness of the rate charged and the necessity of the hours spent. See Hensley v. Eckerhart, 461 U.S. 424, 437 (1983); Savoie v. Merchs. Bank, 166 F.3d 456, 463 (2d Cir. 1999). Courts can and should exercise broad discretion in determining a reasonable fee award. See Hensley, 461 U.S. at 437 (“The court necessarily has discretion in making this equitable judgment.”); Arbor Hill Concerned Citizens Neighborhood Ass’n v. Cnty. of Albany & Albany Cnty. Bd. of Elections, 522 F.3d 182, 190 (2d Cir. 2008) (referencing the court’s “considerable discretion”). The method for determining reasonable attorneys’ fees in this Circuit is based on a number of factors, such as the labor and skill required, the difficulty of

the issues, the attorney’s customary hourly rate, the experience, reputation and ability of the attorney, and awards in similar cases. See Arbor Hill, 522 F.3d at 184, 186 n.3, 190. In particular, when assessing an attorney’s requested hourly rate, courts typically consider other rates awarded in the district in which the reviewing court sits. This is known as the “forum rule.” See Simmons, 575 F.3d at 174-75 (recounting history of the forum rule); see also Arbor Hill, 522 F.3d at 191 (“We presume, however, that a reasonable, paying client would in most cases hire counsel from within his district, or at least counsel whose rates are consistent

with those charged locally.”). Once the Court determines the reasonable hourly rate, it must multiply that rate by the number of hours reasonably expended, in order to determine the presumptively reasonable fee. See Arbor Hill, 522 F.3d at 190. In reviewing a fee application, the court should exclude “excessive, redundant or otherwise unnecessary hours.” Bliven v. Hunt, 579 F.3d 204, 213 (2d Cir. 2009) (quoting Hensley v. Eckerhart, 461 U.S. 424, 433-35, 440 (1983)). If the

court finds “that some of the time was not reasonably necessary . . . , it should reduce the time for which compensation is awarded accordingly.” Louis Vuitton Malletier S.A. v. LY USA, Inc., 676 F.3d 83, 111 (2d Cir. 2012); see Quaratino v. Tiffany & Co., 166 F.3d 422, 425 (2d Cir. 1999). “[A] fee award should be based on scrutiny of the unique circumstances of each case . . . .” McDaniel v. Cty. of Schenectady, 595 F.3d 411, 426 (2d Cir. 2010) (citations and quotations omitted).

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