Software Pricing Partners, LLC v. Geisman

CourtDistrict Court, W.D. North Carolina
DecidedMay 15, 2023
Docket3:19-cv-00195
StatusUnknown

This text of Software Pricing Partners, LLC v. Geisman (Software Pricing Partners, LLC v. Geisman) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Software Pricing Partners, LLC v. Geisman, (W.D.N.C. 2023).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF NORTH CAROLINA CHARLOTTE DIVISION 3:19-cv-00195-RJC-DCK

SOFTWARE PRICING PARTNERS, LLC, )

) Plaintiff, )

) v. )

) ORDER JAMES H. GEISMAN, )

) Defendant. ) ) )

THIS MATTER is before the Court on Plaintiff’s Motion for Attorneys’ Fees and Expenses (Doc. No. 92). I. BACKGROUND Plaintiff Software Pricing Partners, LLC (“SPP”) originally filed this action on April 19, 2019, alleging that Defendant James Geisman (“Geisman”), a former SPP partner, misappropriated trade secrets, breached his contracts with SPP, and engaged in unfair and deceptive trade practices. (Doc. No. 1). After an order from this Court dismissing some of SPP’s claims and streamlining others, (Doc. No. 40), SPP filed an Amended Complaint on May 5, 2021, adding claims for copyright infringement to its existing claims for trade secret misappropriation, breach of contract, and unfair and deceptive trade practices. (Doc. No. 57). During discovery, Geisman filed a Chapter 13 bankruptcy case in the United States Bankruptcy Court for the District of Massachusetts, and that case stayed this action until SPP received relief from the automatic stay to continue litigating this case. Thereafter, the Court held a status conference at which Geisman indicated he is “unable to continue to defend against the allegations in this lawsuit” and would agree to an entry of default “to be proactive . . . in lieu of becoming an unresponsive party.” (Doc. No. 81). The Clerk of Court entered a default on April 18, 2022, after which SPP filed its Motion for Default Judgment requesting a permanent injunction, damages, and attorneys’ fees. (Doc. Nos. 83, 85). This Court granted SPP’s Motion for Default Judgment, permanently enjoining Geisman from using SPP’s intellectual property, disclosing confidential information, or using or disclosing certain files that Geisman took from SPP. (Doc.

No. 90). The Court also awarded SPP “$779,114.60, which includes a $253,038.20 reasonable royalty, treble damages, and $20,000 statutory damages for two violations of the Digital Millennium Copyright Act, plus reasonable attorneys’ fees and costs.” (Id.). In light of the attorneys’ fees award, the Court directed SPP to “submit an accounting of reasonable attorneys’ fees and costs within fourteen (14) days of this Order,” (id.), and SPP timely submitted such an accounting. (Doc. No. 92-1). II. ANALYSIS Under the DTSA, a defendant who willfully and maliciously misappropriated trade secrets can be liable for attorneys’ fees. Herrmann Int’l, Inc. v. Herrmann Int’l Eur., No. 1:17-cv-00073-

MR, 2021 WL 861712, at *24 (W.D.N.C. Mar. 8, 2021). “Willful means intentionally . . . [m]alicious means an action taken in a manner which evidences a reckless and wonton disregard of the plaintiff’s rights.” Bridgetree, Inc. v. Red F Mktg. LLC, No. 3:10-cv-00228-FDW-DSC, 2013 WL 443698, at *19 (W.D.N.C. Feb. 5, 2013) (internal quotation marks and citations omitted). In granting default judgment, this Court previously found that Geisman “willfully and maliciously misappropriated SPP’s trade secrets.” (Doc. No. 90). Additionally, under the DMCA, the Court, in its discretion, may award reasonable attorneys’ fees to the prevailing party. 17 U.S.C. § 1203(b)(5). “In deciding whether to award fees under the DMCA, the Court may consider the motive, reasonableness of the fee, deterrence and compensation, and the ability of the nonmoving party to pay.” Dahn World Co., Ltd. v. Chung, No. CIV. A. RWT06-2170, 2009 WL 277603, at *2 (D. Md. Feb. 5, 2009) (citing Rosciszewski v. Arete Assocs., Inc., 1 F.3d 225, 234 (4th Cir. 1993)). 1. Reasonable Attorneys’ Fees “The proper calculation of an attorney’s fee award involves a three-step process. First, the

court must ‘determine the lodestar figure by multiplying the number of reasonable hours expended times a reasonable rate.’” McAfee v. Boczar, 738 F.3d 81, 88 (4th Cir. 2013), as amended (Jan. 23, 2014) (quoting Robinson v. Equifax Info. Servs., LLC, 560 F.3d 235, 243 (4th Cir. 2009)). “Next, the court must ‘subtract fees for hours spent on unsuccessful claims unrelated to successful ones,’” (id.) (quoting Robinson, 560 F.3d at 244), and finally “the court should award ‘some percentage of the remaining amount, depending on the degree of success enjoyed by the plaintiff.’” To determine a reasonable rate and number of hours expended (the “lodestar figure”), this Court is bound to apply the factors originally set forth in Johnson v. Georgia Highway Express Inc., 488 F.2d 714, 717–19 (5th Cir. 1974) and later adopted by the Fourth Circuit:

(1) The time and labor expended; (2) the novelty and difficulty of the questions raised; (3) the skill required to properly perform the legal services rendered; (4) the attorney's opportunity costs in pressing the instant litigation; (5) the customary fee for like work; (6) the attorney’s expectations at the outset of the litigation; (7) the time limitations imposed by the client or circumstances; (8) the amount in controversy and the results obtained; (9) the experience, reputation, and ability of the attorney; (10) the undesirability of the case within the legal community in which the suit arose; (11) the nature and length of the professional relationship between attorney and client; and (12) attorneys’ fees awards in similar cases.

See Barber v. Kimbrell’s Inc., 577 F.2d 216, 226 n. 28 (4th Cir. 1978); see also McAfee, 738 F.3d at 88 n.5. Once calculated, “[t]he Supreme Court has indulged a ‘strong presumption’ that the lodestar number represents a reasonable attorney’s fee.” McAfee, 738 F.3d at 88–89 (quoting Perdue v. Kenny A. ex rel. Winn, 559 U.S. 542, 554 (2010)). SPP seeks $950,402.91 in total fees and expenses: $807,351.50 in attorneys’ fees for litigation leading up to the Court’s grant of default judgment, $31,563.50 for attorneys’ fees related to the Motion for Attorneys’ Fees and Expenses itself, $108,036.91 for expert witness fees, and $3,451 for deposition-related expenses. (Doc. No. 92-1). Though the Johnson factors and the Fourth Circuit’s three-step process guide this Court,

the process is not scientific—the “essential goal in shifting fees is to do rough justice, not to achieve auditing perfection.” Fox v. Vice, 563 U.S. 826, 838 (2011). “Trial courts,” therefore, “may take into account their overall sense of a suit, and may use estimates in calculating and allocating an attorney’s time.” Id.; see also Silicon Knights, Inc. v. Epic Games, Inc., 917 F. Supp. 2d 503, 521 (E.D.N.C. 2012), aff’d, 551 F. App’x 646 (4th Cir. 2014) (citing Fox, 563 U.S. at 838). The first step of an attorneys’ fees award requires analysis of each Johnson factor. (1) Time and labor expended Counsel expended more than 2,000 hours in this action over years of litigation. According to SPP – and as confirmed by counsel’s billing records, (Doc. No. 94-1) – various tasks included:

(1) preparing and drafting of the complaint and its amendments, (2) preparing briefing and evidence for Plaintiff’s Motion for Preliminary Injunction and related hearing [Doc. Nos. 4-5], (3) briefings associated with Defendant’s Motion to Dismiss [Doc. Nos.

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Software Pricing Partners, LLC v. Geisman, Counsel Stack Legal Research, https://law.counselstack.com/opinion/software-pricing-partners-llc-v-geisman-ncwd-2023.