Tru Mobility, Inc. v. Briggs Auto Group, Inc.

District Court, D. Kansas·Decided August 2, 2023·No. 5:21-cv-04071·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS

TRU MOBILITY, INC.,

Plaintiff,

v. Case No. 5:21-CV-04071-JAR-TJJ

BRIGGS AUTO GROUP, INC.,

Defendant.

MEMORANDUM AND ORDER This matter is before the Court on Defendant Briggs Auto Group, Inc.’s Motion for Attorneys Fees (Doc. 84). The motion is fully briefed, and the Court is prepared to rule. For the reasons explained below, the Court grants Defendant’s motion and awards it $137,401.52. I. Background In 2017, Defendant executed three contracts with Plaintiff for various telecommunication products and services.1 Each of these three contracts incorporated by reference an Addendum to Contracts2 as well as a separate Standard Terms and Conditions document.3 All of these contracts are governed by Florida law. In 2021, Plaintiff brought this diversity action against Defendant for breach of the three contracts, alleging that Defendant failed to pay the early termination fees that it owed Plaintiff for terminating the contracts prior to the end of the agreed- upon term. Each of the three contracts at issue here were governed by a separate Standard Terms and Conditions document, which provides in relevant part: Attorneys’ Fees and Costs. The prevailing party in any litigation and/or arbitration arising from or related to this Agreement shall be

1 Docs. 73-6, 73-7, 73-8. 2 Doc. 73-9. 3 Doc. 73-10. entitled to recover from the non-prevailing party all reasonable attorneys’ fees and costs incurred in the litigation and/or arbitration.4 On April 17, 2023, the Court granted summary judgment in favor of Defendant.5 Defendant filed the present motion on May 1, 2023, seeking to recover $137,964.02 in contractual attorney fees, costs, and expenses.6 On June 8, 2023, the Court issued an Order directing the parties to meet and confer on Defendant’s motion and either file an appropriate stipulation indicating that they have reached an agreement, or file a statement of consultation in accordance with D. Kan. Rule 54.2(d) and fully brief the motion.7 In accordance with the Court’s Order, Defendant filed a Statement regarding the Order on Motion for Attorney Fees, explaining that the parties had met and conferred in good faith but had failed to reach an agreement on Defendant’s motion.8 Plaintiff confirmed in its Response that

the consultation had taken place in good faith and that no agreement had been reached.9 Plaintiff also explained that it “disputes” Defendant’s motion “for the reasons that the time and costs in the request are improperly documented,” and because “much of the time and effort expended by the defendant was for the prosecution of its counterclaim which ultimately was dismissed.”10 Defendant thereafter filed a Reply in Support of its Motion for Attorney Fees and Costs, reiterating its requests, and addressing the response.11

4 Doc. 73-10 § 17.6(C). 5 Docs. 82, 83. 6 Doc. 84. 7 Doc. 91. 8 Doc. 92. 9 Doc. 93. 10 Id. 11 Doc. 94. II. Discussion A. Entitlement The general rule in American litigation is that each party in a lawsuit will bear its own attorneys’ fees.12 However, there is a contractual exception to this rule. Under Florida law, which governs this dispute,13 “attorneys’ fees may be awarded to the prevailing party pursuant to

a contractual agreement authorizing their recovery.”14 The burden is on the party seeking attorneys’ fees to establish entitlement to them.15 “The Court does not have discretion to decline to enforce a contractual provision awarding attorneys’ fees.”16 Thus, a “contractual attorney’s fee provision must be strictly construed.”17 “Florida courts have explained that ‘if an agreement for one party to pay another party’s attorney’s fees is to be enforced it must unambiguously state that intention and clearly identify the matter in which the attorney’s fees are recoverable.’”18 Defendant argues that it is entitled to attorney’s fees, paralegal fees, costs, and expenses pursuant to the Attorneys’ Fees and Costs provision in the Standard Terms and Conditions.

12 See Buckhannon Bd. & Care Home, Inc. v. W. Va. Dep’t of Health & Hum. Res., 532 U.S. 598, 602 (2001) (citing Alyeska Pipeline Serv. Co. v. Wilderness Soc’y, 421 U.S. 240, 247 (1975)). 13 Indeed, the Tenth Circuit has found that “the matter of attorney’s fees in a diversity suit is substantive and is controlled by state law,” and has instructed district courts sitting in diversity to “apply the substantive law of the state in which it sits, including the forum state’s choice-of-law rules.” Boyd Rosene & Assocs. V. Kan. Mun. Gas Agency, 123 F.3d 1351, 1352 (10th Cir. 1997). Kansas’s choice-of-law rules provide that “[w]hen a contract incorporates a choice of law provision, Kansas courts effectuate the law chosen by the parties to control the agreement.” Servi-Tech, Inc. v. Olson, No. 17-01148-EFM-JPO, 2017 WL 3839418, at *3 (D. Kan. Sept. 1, 2017) (citing Brenner v. Oppenheimer & Co., 44 P.3d 364 (2002)). Because the contracts at issue here call for the application of Florida law, Florida law governs the attorney’s fees dispute just as it governed the breach of contract dispute. 14 Provident Bank v. Miller, No. 22-CV-81665, 2023 WL 3079700, at *1 (S.D. Fla. Apr. 4, 2023) (citing Price v. Tyler, 890 So. 2d 246, 250 (Fla. 2004)). 15 Id. (citing Celera Telecom Ltd. v. LDI Networks, Inc., No. 21-20324-CIV, 2022 WL 2341156, at *2 (S.D. Fla. May 2, 2022)). 16 Id. (citing Brickell Bay Club Condo. Ass’n, Inc. v. Forte, 397 So. 2d 959, 960 (Fla. Dist. Ct. App. 1981)). 17 B&H Constr. & Supply Co. v. Dist. Bd. of Trustees of Tallahassee Cmty. Coll., 542 So. 2d 382, 387 (Fla. Dist. Ct. App. 1989) (citation omitted). 18 Int’l Fidelity Ins. Co. v. Americaribe-Moriarty JV, 906 F.3d 1329, 1336 (11th Cir. 2018) (quoting Sholkoff v. Boca Raton Cmty. Hosp., Inc., 693 So. 2d 1114, 1118 (Fla. Dist. Ct. App. 1997)). Plaintiff makes no objection to Defendant’s entitlement arguments. Strictly construing the attorney fees provision, the Court finds that it applies to the matter at hand. Indeed, “Florida law explicitly provides that ‘claims arise out of a contract if they are inextricably intertwined with the contract.’”19 Clearly, Plaintiff’s breach of contract claim is inextricably intertwined with the Standard Terms and Conditions contract which was incorporated by reference into each of the

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Tru Mobility, Inc. v. Briggs Auto Group, Inc., (D. Kan. 2023).

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