Spectrum Scientifics, LLC v. Celestron Acquisition, LLC

District Court, N.D. California·Decided August 2, 2023·No. 5:20-cv-03642·Unknown

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 SAN JOSE DIVISION 7 8 IN RE TELESCOPES ANTITRUST Case No.20-cv-03642-EJD (VKD) LITIGATION 9 ORDER GRANTING IN PART AND 10 DENYING IN PART DPPS’ APPLICATION FOR ATTORNEYS' 11 FEES AND COSTS 12 Re: Dkt. No. 422

13 14 On June 12, 2023, the Court issued an order finding that defendants did not fully comply 15 with the Court’s discovery orders regarding the production of transactional data, and concluding 16 that monetary sanctions are appropriate. Dkt. No. 418. DPPs ask for an award of sanctions in the 17 amount of $167,489. Dkt. No. 422. Defendants object that this amount is unreasonable and 18 inconsistent with the Court’s June 12, 2023 order. Dkt. No. 428. The Court finds this matter 19 suitable for decision without oral argument. Civil L.R. 7-1(b). 20 For the reasons explained below, the Court awards DPPs attorneys’ fees and expert fees in 21 the amount of $71,652.50, pursuant to Rule 37(b)(2)(C). 22 I. BACKGROUND 23 In its prior order, the Court concluded that defendants failed to timely complete production 24 of their transactional data, as required by the Court’s prior discovery orders, and that they had 25 been “careless in their representations to the Court about the available sources of transactional data 26 and the completeness of their productions.” Dkt. No. 418 at 6. Observing that “DPPs should not 27 have had to file a motion to compel in order to obtain meaningful information about defendants’ 1 Court found that “DPPs are entitled to recover their reasonable attorneys’ fees and expenses 2 associated with the filing of the motion and supporting materials, the preparation of the reply (with 3 the exception of [expert Christopher] Groves’s reply declaration), and preparation for and 4 participation in the April 4, 2023 hearing on the motion,” under Rule 37(b)(2)(C). Id. at 7; see id. 5 at 5. 6 At the Court’s direction, DPPs filed an application for an award of attorneys’ fees and 7 expert fees for time spent preparing DPPs’ motion to compel, opposing defendants’ request to 8 have the motion taken off calendar, preparing DPPs’ reply in support of the motion to compel, and 9 preparing for and participating in the hearing on DPPs’ motion. Dkt. No. 422 at 3-5; see also Dkt. 10 Nos. 422-2, 422-3. In their application, DPPs also ask for an award of fees for time “associated 11 with meet and confer efforts” over the course of nine months preceding the filing of their motion 12 to compel. Dkt. No. 422 at 6; see also Dkt. Nos. 422-4, 422-5. DPPs do not seek fees for time 13 their expert spent preparing his reply declaration or for time associated with conferences of 14 counsel after the April 4, 2023 motion hearing. Dkt. No. 422 at 6. 15 Defendants do not object to the rates DPPs use to calculate the attorneys’ fees at issue, nor 16 do they object that the time spent for any particular task was unreasonable or excessive. However, 17 defendants strongly object to DPPs’ request for attorneys’ fees associated with “meet and confer 18 efforts” as outside the scope of the Court’s June 12, 2023 order and not reasonably compensable in 19 any event. Dkt. No. 428 at 3-5. In addition, defendants contend that DPPs’ counsels’ time entries 20 are “impermissibly vague” and include block billing, making them difficult to evaluate. Id. at 6-7. 21 As a remedy, defendants suggest a “minimum 20% reduction” of DPPs’ claimed hours for work 22 performed in connection with briefing and argument on the motion to compel. Id. at 7. 23 II. LEGAL STANDARD 24 For fees awarded pursuant to Rule 37(b)(2)(C), there must be a causal connection between 25 a litigant’s misconduct and the fees incurred by the opposing party. Goodyear Tire & Rubber Co. 26 v. Haeger, 581 U.S. 101, 108 n.5 (2017). That kind of causal connection is “appropriately framed 27 as a but-for test”—the complaining party may recover only the portion of fees that it would not 1 discretion and judgment” and “take into account [their] overall sense of a suit.” Id. at 109-10 2 (cleaned up). Because “the essential goal in shifting fees is to do rough justice,” courts “need not, 3 and indeed should not, become green-eyeshade accountants.” Id. at 110 (cleaned up); see also In 4 re Personalweb Technologies, LLC Patent Litig., 18-md-02834-BLF, 5:18-cv-00767-BLF, 18-cv- 5 05619-BLF, 2021 WL 796356, at *5 (N.D. Cal. Mar. 2, 2021) (“In examining the reasonableness 6 of fees and in applying the ‘but for’ standard, the mechanics of determination does not require a 7 tedious, line-by-line investigation of the hours . . . expended.”) (cleaned up). 8 In evaluating DPPs’ request for an award of attorneys’ fees, the Court uses the lodestar 9 method. See Hensley v. Eckerhart, 461 U.S. 424, 433 (1983). Under this method, “the number of 10 hours reasonably expended” is multiplied by “a reasonable hourly rate” to yield a lodestar figure. 11 Id. In determining reasonable hourly rates, the Court must consider the prevailing rates in the 12 community for similar work performed by attorneys of comparable skill, experience and 13 reputation during the relevant time period. Camacho v. Bridgeport Fin., Inc., 523 F.3d 973, 980- 14 81 (9th Cir. 2008). In determining a reasonable number of hours, the Court must consider whether 15 the hours claimed by the applicant are adequately documented and whether any of the hours were 16 unnecessary, duplicative, or excessive. Chalmers v. City of Los Angeles, 796 F.2d 1205, 1210 (9th 17 Cir. 1986). 18 III. DISCUSSION 19 A. Scope of Attorneys’ Fee Award 20 The Court agrees with defendants that DPPs are not entitled to recover fees for time spent 21 engaged in “meet and confer efforts” with defendants before DPPs filed their motion to compel. 22 Those efforts are an ordinary part of discovery, and parties are required by the Federal Rules of 23 Civil Procedure, as well as this District’s local rules, to engage in such efforts before burdening 24 the Court with a discovery dispute. Fed. R. Civ. P 37(a)(1); Civil L.R. 37-1(a). While DPPs fault 25 defendants for the unproductive nature of these efforts, see Dkt. No. 422 at 5-6, the Court did not 26 (and does not) conclude that the parties’ “meet and confer efforts” failed because defendants did 27 not participate in them in good faith. See, e.g., Dkt. No. 418 at 6 (commenting on both sides’ 1 spent on briefing and argument associated with their motion to compel. 2 B. Reasonable Attorneys’ Fees 3 Having carefully reviewed the time records submitted by DPPs and the supporting 4 declaration of counsel,1 the Court finds that the claimed rates are consistent with the prevailing 5 rates in this District for similar legal services. The Court also finds that the number of hours 6 claimed by DPPs for this work is reasonable, and the time spent does not appear to be 7 unnecessary, duplicative, or excessive. 8 1. Hourly rate 9 DPPs seek fees for work performed by six attorneys, with hourly rates ranging from 10 $1,050/hour for Matthew Borden, a senior partner, to $550/hour for Gayne Kalustian-Carrier, a 11 junior associate. Dkt. No 422-1 ¶¶ 6-11. DPPs also seek fees for performed by two paralegals at a 12 rate of $225/hour. Id. ¶ 12. 13 Defendants do not dispute that DPPs’ counsel’s hourly rates are reasonable. See Dkt. No. 14 428. And the record before the Court indicates that rates between $1,050/hour and $550/hour are 15 in line with what other courts in this District have approved for “private plaintiffs’ attorneys 16 litigating complex civil cases in the San Francisco Bay Area.” Franchek v.

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