Stradtman v. Republic Services, Inc.

121 F. Supp. 3d 578, 2015 U.S. Dist. LEXIS 103602, 2015 WL 4668402
CourtDistrict Court, E.D. Virginia
DecidedAugust 5, 2015
DocketNo. 1:14cv1289 (JCC/JFA)
StatusPublished
Cited by9 cases

This text of 121 F. Supp. 3d 578 (Stradtman v. Republic Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stradtman v. Republic Services, Inc., 121 F. Supp. 3d 578, 2015 U.S. Dist. LEXIS 103602, 2015 WL 4668402 (E.D. Va. 2015).

Opinion

MEMORANDUM OPINION

JAMES C. CACHERIS, District Judge.

This matter is before the Court on Defendants Republic Services, Inc., Republic Services of Virginia, LLC, and Ronald Krall’s (collectively “Defendants”) Motion for Attorney Fees and Costs. [Dkt. 179.] For the following reasons, the Court will deny the motion.

I. Background

The facts of this case are well-known to the Court. (See 6/11/15 Mem. Op. [Dkt. 174] at 1-10.) As relevant here, Stephen Stradtman (“Stradtman” or “Plaintiff’) filed a three-count complaint against Defendants in the Circuit Court of Fairfax County, Virginia. (Am. Notice of Removal [Dkt. 8] at 2.) Stradtman alleged: (1) tortious interference with contractual relations and business expectancies against all Defendants (Compl. [Dkt. 8-3] ¶¶ 121-40); - (2) common law conspiracy against-all Defendants {id. ¶¶ 141^49); and (3) negligent retention of employees (Ronald Krall) against the two Republic Defendants {id. ¶¶ 150-70). Defendants removed the case to this Court and subsequently moved to dismiss the Complaint. (Am. Notice of Removal; Defs.’ Mot. to Dismiss [Dkt. 4].) The Court granted the Defendants’ motion in part, dismissing the conspiracy and negligent retention claims. (11/25/14 Mem. Op. [Dkt, 14] at 16.) Mindful that dismissal under Federal Rule of Civil Procedure 12(b)(6) is disfavored, the Court denied the motion as to the tortious interference claim so as to develop a record for the Court to consider the claim on its merits. {Id. at 13.)

Stradtman alleged Defendants tortiously interfered with contractual rights regarding his former employment as the Chief [580]*580Executive Officer (“CEO”) of Otto Industries North America, Inc. (“Otto”), a trash and recycling cart manufacturer. (Compl, ¶¶ 121-40.) According to, Stradtman, Defendants diverted their business away from Otto in an attempt to force his resignation. (Id. ¶¶ 127-28.) This pressure to resign, Stradtman claimed, was in retaliation for a discrimination lawsuit that Stradtman’s wife had filed against Defendants. (Id.) Stradtman believed he had no choice but to resign because of Defendants’ improper methods and interference with his employment at Otto. (Id. ¶ 133.)

After the close of a contentious discovery period, Defendants moved for summary judgment. (Defs.’ Mot. for Summ. J. [Dkt. 142].) The Court granted the motion from the bench and memorialized its reasoning in a written Memorandum Opinion.- (6/11/15 Mem. Op. [Dkt. 174].) The Court held Stradtman’s claim failed for three reasons. First, Stradtman failed-to prove that Defendants induced a third party, -Otto, to terminate his employment contract. (Id. at 12.) Second,- Stradtman’s voluntary resignation broke the causal chain between any supposed interference by Defendants and the termination of his employment with Otto. (Id.) Third, Stradtman was not constructively discharged or forced to resign. (Id.);

Defendants now move, for attorneys’ fees and costs pursuant to 28 U.S.C. § 1927, Federal Rule of Civil Procedure 54, and the Court’s inherent authority. (See generally Defs.’ Mot. for Attorney Fees and Costs ' [Dkt! 179].) Defendants believe they are entitled to fees and costs because Stradtman and his counsel “brought and continued to litigate this, case long after they must have known that there was no good faith basis to do so.” (Defs.’ Mem. in Supp. [Dkt. 180] at 1.) Stradtman and his counsel oppose the .motion, arguing there was no bad faith in prosecuting this case. (See generally. Pl.s Opp. [Dkt. 198].) Having been fully briefed and argued, this motion is ripe for disposition.

II. Legal Standard

A. 28 U.S.C. § 1927

Section 1927 of Title 28 of the U.S.Code states:

'Any attorney or other person admitted to conduct cases in any court of the United States or any Territory thereof who so multiplies the proceedings in any ease unreasonably and vexatiously may be required by the court to satisfy personally the excess costs, expenses, and attorneys’ fees reasonably incurred because of such conduct.

Section 1927 is concerned with remedying abuse of court process. If an attorney needlessly multiplies a proceeding, then he may be liable for the costs of such extraneous litigation. See Roadway Express, Inc. v. Piper, 447 U.S. 752, 756 n. 3, 100 S.Ct. 2455, 65 L.Ed.2d 488 (1980) (noting that. § 1927 provides only for excess costs incurred as a result of multiplication, not the entire cost of the litigation). The statute “ ‘does not distinguish between winners and losers, or between plaintiffs and defendants. The statute is indifferent to the equities of a dispute and to the values advanced by the substantive law.’ ” DeBauche v. Trani, 191 F.3d 499, 511 (4th Cir.1999) (citing Roadway Express, 447 U.S. at 762, 100 S.Ct. 2455). Thus, an attorney who files a meritless claim may not be sanctioned under § 1927 if he does not “multiply the proceedings.” DeBauche, 191 F.3d at 511. Likewise, an attorney who wins a substantial vei-dict on a meritorious claim may still face sanctions if he does engage in such conduct. Id. Bad faith on the part of the attorney is a precondition for fees and costs under [581]*581§ 1927.1 McKenzie v. Norfolk S. Ry. Co., 497 Fed.Appx. 305, 312 (4th Cir.2012); E.E.O.C. v. Great Steaks, Inc., 667 F.3d 510, 522 (4th Cir.2012). Awarding sanctions under § 1927 lies within the sound discretion of the district court. Collins v. Dollar Tree Stores, No. 2:09ev486, 2010 WL 9499078, at *4 (E.D.Va. May 28, 2010).

B. Court’s Inherent Authority

In addition to the authority granted under 28 U.S.C. § 1927, this court also possesses “the inherent authority in appropriate cases to assess attorneys’ fees and impose other sanctions agatost a litigant or a member of the bar who has ‘acted in bad faith, vexatiously, wantonly, and for oppressive reasons.’ ” Williams v. Family Dollar Servs., Inc., 327 F.Supp.2d 582, 585 (E.D.Va.2004) (quoting Chambers v. NASCO, Inc., 501 U.S. 32, 45-46, 111 S.Ct. 2123, 115 L.Ed.2d 27 (1991)). “The bad faith exception for the award of attorneys’ fees is not restricted to cases where the action is filed in bad faith. [B]ad faith may be found, not- only in the actions that led to the lawsuit,' but also in the conduct of the litigation.” Roadway Express, Inc., 447 U.S. at 766, 100 S.Ct. 2455 (citation and internal quotation marks omitted).

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121 F. Supp. 3d 578, 2015 U.S. Dist. LEXIS 103602, 2015 WL 4668402, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stradtman-v-republic-services-inc-vaed-2015.