Tallman v. CPS Security (USA), Inc.

23 F. Supp. 3d 1249, 2014 U.S. Dist. LEXIS 76060, 2014 WL 2485820
CourtDistrict Court, D. Nevada
DecidedJune 3, 2014
DocketNo. 2:09-CV-00944-PMP-PAL
StatusPublished
Cited by9 cases

This text of 23 F. Supp. 3d 1249 (Tallman v. CPS Security (USA), Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tallman v. CPS Security (USA), Inc., 23 F. Supp. 3d 1249, 2014 U.S. Dist. LEXIS 76060, 2014 WL 2485820 (D. Nev. 2014).

Opinion

PHILIP M. PRO, District Judge.

Presently before the Court is Plaintiffs Motion for an Award of Attorney’s Fees and Costs (Doc. # 256), filed on December 4, 2013. Defendants filed an Opposition (Doc. # 260) on January 22, 2014. Plaintiffs filed a Reply (Doc. # 267) on March 3, 2014.

Also before the Court is Defendants’ Renewed Motion for Sanctions Against Plaintiffs’ Counsel (Doc. #259), filed on January 6, 2014. Plaintiffs filed an Opposition (Doc. #263) on January 30, 2014. Defendants filed a Reply (Doc. #265) on February 18, 2014.

Also before the Court is Plaintiffs’ Motion to Strike Declaration of Jim D. Newman (Doc. #264), filed on February 11, 2014. Defendants filed an Opposition (Doc. # 266) on February 28, 2014. Plaintiffs filed a Reply (Doc. # 268) on March 5, 2014.

[1252]*1252I. BACKGROUND

The parties are familiar with the facts of this case, and the Court will not repeat them here except where necessary. Defendants CPS Security (USA), Inc. and CPS Construction Security Plus, Inc. move for sanctions under 28 U.S.C. § 1927 because Plaintiffs’ counsel presented an exhibit and elicited testimony about settlements in unrelated cases on the first day of trial even though the Court previously had ruled this type of evidence was inadmissible. Plaintiffs’ counsel’s conduct resulted in the Court declaring a mistrial.

Defendants contend that to support a sanctions award under § 1927, they need not show Plaintiffs’ counsel acted in bad faith, they need to show only recklessness. Defendants contend Plaintiffs’ counsel was indifferent to the risk that his questioning of witness Christopher Coffey (“Coffey”), Defendant CPS Security (USA), Inc.’s president and chief executive officer, would cause a mistrial because the Court had excluded evidence of prior litigation and settlements in multiple pretrial orders. Defendants thus argue Plaintiffs’ counsel’s conduct was at least reckless, if not intentional. Defendants request sanctions in the form of Defendants’ costs for trial preparation, costs related to trial, and post-mistrial costs associated with preparing for a second trial. Defendants argue the Court could sanction Plaintiffs by denying or reducing their request for attorney’s fees. Defendants contend sanctions are particularly appropriate because Plaintiffs previously unreasonably multiplied the proceedings by filing summary judgment motions after the dispositive motion deadline.

Plaintiffs respond that the standard for awarding sanctions under § 1927 requires a finding of subjective bad faith, and there is no evidence that Plaintiffs counsel acted in bad faith. Rather, Plaintiffs contend counsel reacted in the heat of trial to testimony which he believed opened the door to the improper questioning, even though the Court previously ruled it inadmissible. Plaintiffs also contend Defendants have not incurred any additional reasonable expenses, and Defendants are the ones who needlessly have protracted this litigation. As to the untimely motions for summary judgment, Plaintiffs argue the Court should not revisit that issue as it is unrelated to the mistrial.

Plaintiffs separately move for an award of attorney’s fees under the Fair Labor Standards Act (“FLSA”). Plaintiffs contend they are the prevailing party entitled to a fee award, and that the hours expended are reasonable. Plaintiffs state they already have reduced the hours requested by excluding work on unsuccessful motions and certain work on non-FLSA claims, and by further discounting the time spent by the lawyers and paralegals by varying percentages. Plaintiffs argue Defendants’ litigation conduct increased the hours Plaintiffs reasonably needed to expend to pursue their case. Plaintiffs also contend the requested hourly rates are reasonable, as demonstrated by counsel’s affidavit and by the Court’s approval of similar rates in prior cases. Plaintiffs request a total attorney’s fee award of $379,828. Plaintiffs also request costs in the amount of $16,522.75.

Defendants respond that Plaintiffs are entitled only to a reasonable fee, and Plaintiffs have engaged in litigation tactics which have prolonged the case unnecessarily, such as refusing to negotiate settlement on an individual basis as opposed to a class-wide settlement. Defendants also argue Plaintiffs recovered far less than what they sought, and Plaintiffs achieved no other benefits or change in company policy. Defendants identify seven categories in Plaintiffs’ billing entries for which they [1253]*1253contend Plaintiffs request unreasonable hours. Additionally, Defendahts argue the rates charged are unreasonable, and Defendants present an expert opinion on what rates would be reasonable. Defendants contend the lodestar amount should be further reduced based on the limited success Plaintiffs achieved, work performed on non-FLSA claims, and Plaintiffs’ counsel’s conduct of the litigation, including the conduct which resulted in the mistrial.

Plaintiffs move to strike the declaration of Jim D. Newman (“Newman”) offered in support of Defendants’ Opposition to Plaintiffs’ Motion for Attorney’s Fees. Plaintiffs argue the Newman declaration improperly discloses settlement negotiations and incorrectly characterizes Plaintiffs’ settlement positions, yet Defendants have declined to allow Plaintiffs to disclose what happened. during a mediation and other settlement talks to rebut Defendants’ characterizations. Defendants respond that while Federal Rule of Evidence 408 prohibits the use of settlement evidence to prove liability or the amount of a claim, there is no bar to admitting this type of evidence in a postjudgment fee dispute. Defendants also argue the Newman Declaration does not reveal any confidential communications made during the mediation.

II. DEFENDANTS’ RENEWED MOTION FOR SANCTIONS (Doc. #259)

At a pretrial hearing, this Court ruled that evidence that Defendants entered into settlement agreements in other wage and hour lawsuits would be inadmissible at trial in this case. (Renewed Mot. Sanctions (Doc. #259), Ex. 1 at 35.) In response to Plaintiffs’ counsel’s request for clarification, the Court indicated that “reference to ... the filing of any litigation and the settlement of the litigation” was excluded. (Id. at 35-36.) The Court reiterated this ruling at a later hearing. (Renewed Mot. Sanctions, Ex. 3 at 21-23.)

On the first day of the jury trial, Plaintiffs’ counsel again raised the issue of whether Plaintiffs could admit evidence of prior litigation against Defendants on their wage and hour policies as evidence of willfulness. (Renewed Mot. Sanctions, Ex. 4 at 5-9.) The Court indicated it would not change its ruling. (Id. at 9.)

Later that same day, Plaintiffs’ counsel, Leon Greenberg (“Greenberg”), asked Coffey on direct examination whether he was aware of any other lawsuits brought against CPS Security (USA), Inc., or any other company Coffey owned, claiming a failure to pay overtime or minimum wage. (Tr. (Doc.# 208) at 15.) Defendants objected on the basis that the Court already had ruled evidence of other lawsuits was inadmissible. (Id.) The Court sustained the objection. (Id. at 15-16.) Greenberg then asked for a sidebar, but the Court denied the request, indicating that any issue could be raised at a later opportunity outside the presence of the jury. (Id.

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Bluebook (online)
23 F. Supp. 3d 1249, 2014 U.S. Dist. LEXIS 76060, 2014 WL 2485820, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tallman-v-cps-security-usa-inc-nvd-2014.