United States v. Attaluri

34 F. Supp. 2d 1280, 1999 U.S. Dist. LEXIS 5045, 1999 WL 52387
CourtDistrict Court, N.D. Oklahoma
DecidedFebruary 2, 1999
Docket4:98-cv-00161
StatusPublished

This text of 34 F. Supp. 2d 1280 (United States v. Attaluri) is published on Counsel Stack Legal Research, covering District Court, N.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Attaluri, 34 F. Supp. 2d 1280, 1999 U.S. Dist. LEXIS 5045, 1999 WL 52387 (N.D. Okla. 1999).

Opinion

ORDER

H. DALE COOK, Senior District Judge.

Before the Court is defendants Attaluri and Allied Environmental Services’ submission of time and charges of their counsel in relation to defendants’ prosecution of civil contempt against the United States Attorney. The material facts follow:

On November 4, 1998, the government filed an Indictment naming Attaluri and Allied Environmental Services, Inc., among others, as defendants. On November 5, a press release was issued by United States Attorney, Stephen Lewis, which contained comments made by Louis Sehiffer, Assistant Attorney General for Environmental and Natural Resources at the Department of Justice in Washington, D.C. The comments, published after the Indictment was filed, suggested that defendants were, in fact, guilty of the charges against them, in violation of the Court’s Local Criminal Rule 57.1(C)(6). Defendants’ attorney, Thomas Seymour, received a copy of the press release by facsimile from the Tulsa World. On November 6, Seymour sent a letter to Lewis demanding a retraction, advising Lewis that the press release violated Local Rule 57.1(C)(6) and the Rules of Professional Conduct. Seymour also warned that defendants would file and *1282 prosecute a contempt motion if Lewis failed to immediately remedy the violation on Seymour’s terms. Later on November 6, Seymour, dissatisfied with the government’s response, filed the show cause motion, seeking to hold Lewis in contempt.

The government responded to the motion on November 20, and defendants filed a reply on November 23. The Court entered a minute order on November 24, setting the motion for hearing and directing the parties to submit all authorities which they would like the Court to consider when making its ruling. Pursuant to the minute order, defendants submitted additional materials on November 30.

An evidentiary hearing was held on December 3. The Court first determined that the issue before the Court involved civil, rather than criminal contempt. After listening to the testimony elicited by defense counsel, heating the respective arguments of the parties, and considering the evidence presented, the Court found at the conclusion of the hearing that the press release clearly violated the Court’s rules. After finding that defendants had demonstrated the various elements of civil contempt, the Court held Lewis in contempt. The Court then proceeded to fashion an appropriate remedy. The Court denied defendants’ request for dismissal of the Indictment with prejudice. The Court further found that any additional press releases, as requested by Seymour, would serve no purpose, in light of the fact that Seymour, through his statements made to the press, counterbalanced the government’s offending comments. Having rejected both remedies suggested by defendants as being inappropriate, the Court determined that “the government should pay whatever reasonable attorneys fees [that] have been accumulated by reason of this motion and by reason of the issuance of [the] press release.” The Court concluded, however, that no further remedy is necessary. The Court then requested defense counsel to submit whatever billing deemed appropriate, and the Court requested comment from the government. The Court closed the hearing by stating that it will make such final determination on the issue of fees as it deems just.

On December 7, defendants, Attaluri and Allied, filed their submission of time and charges for counsel. In that submission, defendants sought $25,765.00 in fees and $102.30 in costs, for a total of $25,867.30. Seymour attached an affidavit detailing the hourly rates charged by himself and two associates with respect to the prosecution of the motion for contempt: Seymour, $300; Robert Burton, $160; and Randolph Lynn, $110. Seymour further represented that these are the regular hourly rates charged by the respective attorneys and are the same rates being charged to defendants, Attaluri and Allied, for prosecuting the contempt motion. ■ While defendants represented that the charges do not include time spent by Lynn in attending the hearing, they did not provide the Court with the total number of hours claimed for each attorney. 1

The government filed its response to the fee issue on December 21, arguing that the fees sought by defendants for work performed with respect to the motion for contempt are excessive. The government contends that Seymour’s hourly rate of $300 is out of line with the prevailing market rate in the Tulsa area, and the government further contends that the number of hours claimed is unreasonable. The government additionally complains that defense counsel failed to exercise billing judgment and utilized block billing.

In their reply, defendants argue that this is not a fee-shifting matter, but, rather, they contend that the remedy which the Court ordered was purely compensatory in nature. That is, defendants argue that the remedy ordered by the Court is essentially a fine designed to compensate defendants for their loss in prosecuting the motion, and that, therefore, defendants need not meet the burden of establishing either that the number of hours claimed was reasonable or that the hourly rate was reasonable. Defendants further argue that, under Oklahoma law, the fee *1283 agreed to by lawyer and client is presumed reasonable. Hence, viewing the Court’s ruling from a strictly compensatory point of view, in the nature of a fine, defendants contend that the fees sought are reasonable and proper. Defendants also request all fees incurred as a result of submitting the fee request and contesting the government’s position. The total now sought is $31,867.30. Lastly, defendants argue that if the Court intended a reasonableness showing under fee shifting jurisprudence, a hearing is requested at which witnesses will be presented, and defendants further seek permission to conduct discovery.

Defendants have misconstrued the Court’s ruling. As stated above, the Court held that “the government should pay whatever reasonable attorneys fees have been accumulated by reason of [defendants’] motion and by reason of the issuance of [the] press release.” The Court went on to state that, once defendants submit their materials regarding fees, the Court will “make such final determination as it deems just.” Hence, notwithstanding defendants’ argument to the contrary, the Court certainly did not intend to provide defendants with a blank check, to be filled in with whatever amount defendants desired, payable by the government. Rather, the Court’s statements make clear that the Court will only award “reasonable” fees which it “deems just.” Further, the Court did not intend its award of attorney fees to be considered a fine, but, rather, intended for the government to pay defendants the reasonable fees incurred as a result of prosecuting the motion, in light of the fact that no other remedy was appropriate. The Court views defendants’ request for $31,867.30 to prosecute the relatively simple contempt motion grossly excessive, and, therefore, the Court does not deem such amount “just.” The fact that defendants may have agreed to pay counsel this exorbitant amount is not disposi-tive. 2 The Court will therefore proceed to determine a reasonable fee for prosecuting the motion, which the Court deems just.

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Bluebook (online)
34 F. Supp. 2d 1280, 1999 U.S. Dist. LEXIS 5045, 1999 WL 52387, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-attaluri-oknd-1999.