Seven Gables Corp. v. Sterling Recreation Organization Co.

686 F. Supp. 1418, 1988 U.S. Dist. LEXIS 4951, 1988 WL 49577
District Court, W.D. Washington·Decided May 16, 1988·No. C-84-1057R·Published·Cited by 4 cases

Opinion

ORDER RE MOTIONS FOR: ATTORNEY’S FEES/COSTS/OFFSETS TO JURY AWARD/PREJUDGMENT INTEREST/AND INJUNCTION

CONTI, District Judge.

On November 3, 1987, after a lengthy trial on the merits, the jury returned a verdict in this matter holding defendants Sterling Recreation Organization Co. (“SRO”), Frederic A. Danz (“Danz”) and Robert M. Hazard (“Hazard”) (collectively referred to as the “defendants”) liable. The jury awarded plaintiff damages on plaintiff’s claims under Sections 1 and 2 of the Sherman Act and Section .020 of the Washington Unfair Business Practices-Consumer Protection Act.

The matter is currently before the court on plaintiff’s motions for an award of attorneys fees and costs, for an offset to the damages award, for prejudgment interest and for an injunction. On April 18, 1988, the court held a hearing on these motions. Plaintiff was represented by Thomas L. Boeder, Esq. and Richard L. Baum, Esq. of the law firm of Perkins Coie. Defendants were represented by Thomas J. Greenan, Esq. and James E. Hurt, Esq. of the law firm of Ferguson & Burdell. The court has reviewed the evidence submitted by the parties and the authorities cited in the memoranda, and has considered the oral arguments of counsel presented at the hearing. The court now issues its decision on the motions.

I. MOTION FOR AN AWARD OF ATTORNEY’S FEES

Plaintiff moves this court for an award of attorney’s fees in this action pursuant to Section 4 of the Clayton Act, 15 U.S.C. § 15(a), and RCW 19.86.090. Plaintiff requests an award of $3,180,076.97 as attorney’s fees, and also seeks a fee enhancement. Plaintiff argues that the number of hours claimed by its attorneys is reasonable, and that the hourly rates charged by its attorneys are reasonable. Plaintiff also argues that the court should enhance an award of attorney’s fees with a multiplier.

*1420 Defendants oppose plaintiffs motion. Defendants argue that portions of plaintiffs requested fees are not recoverable. Defendants also argue that plaintiffs claimed hours are excessive and the rates are too high.

Section 4 of the Clayton Act provides, in relevant part, that:

any person who shall be injured in his business or property by reason of anything forbidden in the antitrust laws may sue therefor in any district court of the United States ... and shall recover threefold the damages by him sustained and the cost of suit, including a reasonable attorney’s fee.

15 U.S.C. § 15(a). In order to determine what constitutes a reasonable attorney’s fee, the court will engage in a two part inquiry. First, the court will determine the “lodestar” amount, that is, the number of hours reasonably expended on the litigation multiplied by a reasonable hourly rate. Second, the court will determine whether there should be an upward adjustment of the lodestar, known as a “multiplier.” See Pennsylvania v. Delaware Valley Citizens’ Council, — U.S.-,---, 107 S.Ct. 3078, 3080-3082, 97 L.Ed.2d 585, 590-592 (1987); Lindy Bros. Builders, Inc. v. American Radiator and Standard Sanitary Corp., 540 F.2d 102 (3d Cir.1976); Lindy Bros. Builders, Inc. v. American Radiator & Standard Sanitary Corp., 487 F.2d 161 (3d Cir.1973).

The court’s inquiry will be guided by the considerations enumerated in the Ninth Circuit's decision in Kerr v. Screen Extras Guild, Inc., 526 F.2d 67 (9th Cir.1975). In Kerr, in the Ninth Circuit held that the following twelve factors should be considered in awarding attorney’s fees: (1) the time and labor required, (2) the novelty and difficulty of the questions involved, (3) the skill necessary to perform the legal services properly, (4) the preclusion of other employment by the attorney due to acceptance of the case, (5) the customary fee, (6) whether the fee is fixed or contingent, (7) time limitations imposed by the client or circumstances, (8) the amount involved and the results obtained, (9) the experience, reputation and ability of the attorneys, (10) the “undesirability” of the case, (11) the nature and length of the professional relations with the client, and (12) awards in similar cases. 526 F.2d at 69-70. The court will consider these factors in determining the lodestar and multiplier amounts.

The court first addresses one of defendants’ preliminary objections to plaintiff’s motion. Defendants argue that before the reasonableness of the plaintiff's fee request can be analyzed, the court should review the contingency fee contract between plaintiff and its attorneys. Defendants maintain this will prevent a windfall to a plaintiff who could keep a large fee award for itself if it is only contractually obligated to pay some lesser amount to its attorneys. Plaintiff has provided a copy of its fee contract for this court. The court has reviewed this contract and finds that there is no danger that plaintiff will receive a windfall in the event of a fee award.

A. The Lodestar

In its fee request, plaintiff seeks reimbursement for out-of-pocket expenses involved in the litigation and fees paid to expert witnesses. Defendants maintain that these requests are inappropriate. The court will first address the issue of whether these expenses and fees may properly be compensable as “attorney’s fees.” The court discusses plaintiff’s request for statutory costs later in this order. At present the court is concerned with the amounts and expenses claimed by plaintiff that should not be covered under a request for statutory costs.

The court is persuaded by the reasoning expressed in Reazin v. Blue Cross & Blue Shield of Kansas, Inc., 663 F.Supp. 1360, 1457 (D.Kan.1987), that “[ejxpenses not normally itemized and billed in addition to the hourly rate should be included in a fee allowance if reasonable in amount.” Plaintiff has properly documented its out-of-pocket expenses, and has, at the court’s request, separated those expenses it requested in the alternative as statutory costs from those that it seeks as attorney’s fees. The court awards plaintiff $95,398.74 in out-of-pocket expenses as set forth in Exhibit A to the Declaration of Richard L. *1421 Baum Re: Seven Gables Attorney Fee Request.

The court, however, does not accept the argument that expert witness fees are compensable as attorney’s fees. This issue is controlled by the United States Supreme Court’s decision in Crawford Fitting Co. v. J.T. Gibbons, Inc., — U.S.-, 107 S.Ct. 2494, 96 L.Ed 2d 385 (1987). In Crawford the Supreme Court held that “absent explicit statutory or contractual authorization for the taxation of the expenses of a litigant’s witness as costs, federal courts are bound by the limitations set out in 28 U.S. C.

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Seven Gables Corp. v. Sterling Recreation Organization Co., 686 F. Supp. 1418, 1988 U.S. Dist. LEXIS 4951, 1988 WL 49577 (W.D. Wash. 1988).

686 F. Supp. 1418 (Seven Gables Corp. v. Sterling Recreation Organization Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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