Tri-Star Pictures, Inc. v. Unger

42 F. Supp. 2d 296, 1999 U.S. Dist. LEXIS 3268, 1999 WL 160054
District Court, S.D. New York·Decided March 22, 1999·No. 88 CIV. 9129 (DNE)·Published·Cited by 20 cases

Opinion

OPINION & ORDER

EDELSTEIN, District Judge.

Background

The history of this case is found in TriStar Pictures, Inc. v. Unger, 14 F.Supp.2d 339 (S.D.N.Y.1998). Only those facts needed to resolve the present dispute are set forth herein.

Plaintiffs, Columbia Pictures Industries, Inc. (“Columbia”) and Academy Pictures A.G. (“Academy”) (collectively, “Plaintiffs”) brought an action for trademark infringement, unfair competition, and dilution and injury to business reputation pursuant to 15 U.S.C. § 1125, § 360-1 of the New York General Business Law, New York Law, and the common law against Defendants Leisure Time Productions, B.V. (“Leisure Time”) and Kurt Unger (“Un-ger”) (collectively, “Defendants”), to permanently enjoin Leisure Time and Unger from releasing, distributing, or advertising in the United States, their produced, but unreleased, motion picture entitled “Return from the River Kwai”, using that title or any other title containing the words “River Kwai” or any other confusingly *298 similar titles. The case was tried as a bench trial from July 14-16,1997.

In a July IS, 1998 opinion, this Court held that Plaintiffs’ mark, “River Kwai”, was entitled to trademark protection and granted the injunctive relief that Plaintiffs sought. See Unger, 14 F.Supp.2d at 359. Having found that Defendants engaged in willful infringement, this Court also held that this was an “exceptional case” that was ripe for an award of attorneys’ fees and costs pursuant to § 35 of the Lanham Act. See id. at 364; see also 15 U.S.C. § 1117(a). Columbia requests $735,785.73 and Academy seeks $494,403.28. See Affidavit of Ira S. Sacks in Supp. of Columbia’s Application for Attorney’s Fees and Costs (“Sacks Aff.”) at ¶ 15; Memorandum in Supp. of Application by Plaintiff Academy Pictures, A.G. for Attorney Fees and Costs (“Academy Mem.”) at 25. Plaintiffs and Defendants provided this Court with memoranda and affidavits in support of and in opposition to an award of attorneys’ fees and costs to Plaintiffs.

In addition to a straight application for attorneys’ fees and costs against Defendants, Academy made a motion requesting that this Court also hold Defendants’ former attorneys, “Rivkin, Radler & Kremer” (“RRK”), 1 jointly and severally liable for Academy’s attorneys’ fees. See Academy Mem. Academy asserts that not only Defendants, but also their counsel, “acted in bad faith in numerous instances throughout the duration of this litigation, [by] repeatedly burdening [PJlaintiffs with baseless claims and motions, with irrelevant and dilatory discovery and procedural tactics, and by advancing arguments and positions wholly without merit.” Academy Mem. at 18.

Discussion

Before turning to a determination of the amount of attorneys’ fees and costs owed to Plaintiffs, this Court will first determine whether Defendants’ attorneys, RRK, must also reimburse Plaintiffs. In assessing whether an attorney must also pay for an opposing party’s attorney fees, a court must study the attorney’s conduct in the litigation. As a preliminary matter, it is important to note that three separate law firms represented Defendants at different times through the course of this litigation. See Memorandum of Law of Defendants Leisure Time Productions, B.V. and Kurt Unger in Opp’n to the Application of Columbia and Academy for an Award of Attorneys Fees and Costs (“Defendants Mem.”) at 6.

This case commenced in December, 1988. It was not until April, 1995, that RRK began its representation of Defendants. See Defendants Mem. at 2, 3. Academy fails to distinguish between the conduct of the three firms that represented Defendants, but rather merely condemns the strategy of “Defendants’ attorneys”. While this Court can certainly expect RRK’s attorneys to have familiarized themselves with all prior proceedings in this case, this Court will not hold RRK responsible for the actions of prior counsel. Thus, the propriety of Defendants’ attorneys’ conduct before April, 1995 is not an issue before this Court. See Motown Productions, Inc. v. Cacomm, Inc., 849 F.2d 781, 783 (2d Cir.1988). Consequently, any of Academy’s allegations of bad faith attorney conduct that occurred prior to April, 1995 will not be imputed to RRK.

I. RRK’s Liability for Fees and Costs:

The Second Circuit has afforded district courts broad discretion in considering sanction claims but has also cautioned courts to be circumspect in their analysis of such claims. See Oliveri v. Thompson, 803 F.2d 1265, 1280 (2d Cir.1986). Specifically, the Second Circuit stated:

*299 [T]o deal effectively, fairly, and efficiently with sanction claims, district courts have a difficult task, but wide discretion. In exercising that discretion, however, it is essential that the questions be closely analyzed and that proper sanctioning principles be applied_Courts should be sensitive to the impact of sanctions on attorneys. They can be economically punishing, as well as professionally harmful ....

Id.

In heeding this warning, courts have recognized several bases upon which to hold counsel liable for another party’s attorney’s fees and costs. See, e.g., Motown, 849 F.2d 781 (analyzing Rule 11 of the Federal Rules of Civil Procedure, providing for sanctions against attorneys who sign a meritless pleading or untenable motion, and § 35(a) of the Lanham Act, 15 U.S.C. § 1117(a)); Viola Sportswear, Inc. v. Mimun, 574 F.Supp. 619 (E.D.N.Y.1983) (stating that a court may assess attorney fees against counsel based on Rule 11, 15 U.S.C. § 1117(a), 28 U.S.C. § 1927, which permits a court to require attorneys who multiply the costs of litigation unreasonably and wantonly to pay for those excess costs, or the inherent authority of a court over members of its bar). This Court will examine RRK’s conduct with respect to the standards developed in conjunction with § 35(a) of the Lanham Act, the inherent power of a court to control the attorneys appearing before it, and 28 U.S.C. § 1927.

A. § 35(a) of the Lanham Act, 15 U.S.C. § 1117(a):

Free access — add to your briefcase to read the full text and ask questions with AI

Tri-Star Pictures, Inc. v. Unger, 42 F. Supp. 2d 296, 1999 U.S. Dist. LEXIS 3268, 1999 WL 160054 (S.D.N.Y. 1999).

42 F. Supp. 2d 296 (Tri-Star Pictures, Inc. v. Unger) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Coty Inc. v. Excell Brands, LLC
277 F. Supp. 3d 425 (S.D. New York, 2017)
Malletier v. Apex Creative International Corp.
687 F. Supp. 2d 347 (S.D. New York, 2010)
Crown Awards, Inc. v. Discount Trophy & Co.
564 F. Supp. 2d 290 (S.D. New York, 2008)
World Triathalon Corp. v. Dunbar
539 F. Supp. 2d 1270 (D. Hawaii, 2008)
Wood v. Panton & Co. Realty, Inc.
950 So. 2d 534 (District Court of Appeal of Florida, 2007)
Ross v. Congregation B'Nai Abraham Mordechai
12 Misc. 3d 559 (New York Supreme Court, 2006)
Menashe v. v. Secret Catalogue, Inc.
409 F. Supp. 2d 412 (S.D. New York, 2006)
Sea Spray Holdings, Ltd. v. Pali Financial Group, Inc.
277 F. Supp. 2d 323 (S.D. New York, 2003)
General Motors Corp. v. Villa Marin Chevrolet, Inc.
240 F. Supp. 2d 182 (E.D. New York, 2002)
BD v. DeBuono
177 F. Supp. 2d 201 (S.D. New York, 2001)
Gidatex, S.R.L. v. Campaniello Imports, Ltd.
82 F. Supp. 2d 136 (S.D. New York, 2000)
Greenidge v. Mundo Shipping Corp.
60 F. Supp. 2d 10 (E.D. New York, 1999)