United States v. BEEGHLY TREE, LLC

CourtDistrict Court, W.D. Pennsylvania
DecidedSeptember 26, 2025
Docket3:21-cv-00160
StatusUnknown

This text of United States v. BEEGHLY TREE, LLC (United States v. BEEGHLY TREE, LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. BEEGHLY TREE, LLC, (W.D. Pa. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF PENNSYLVANIA

UNITED STATES OF AMERICA, EX REL., MIKE KANE, 3:21-CV-00160-CCW Plaintiffs,

v.

BEEGHLY TREE, LLC, HILLVALE ENTERPRISES, LLC, PROGRO ENVIRONMENTAL LLC, HILLVALE FARMS, RYAN BEEGHLY, MATT BEEGHLY, and HEATH YOUNKIN,

Defendants.

OPINION Before the Court is Plaintiff-Relator Mike Kane’s Motion for an Award of Attorneys’ Fees and Expenses, ECF No. 36. For the reasons set forth below, the Motion will be GRANTED IN PART. I. Background

This case was initially assigned to the Honorable Kim R. Gibson before it was reassigned to the undersigned on July 1, 2025. ECF No. 54. The relevant factual and procedural background is as follows. On September 13, 2021, Mr. Kane filed a sealed qui tam Complaint in this Court alleging that Defendants Beeghly Tree, LLC, Hillvale Enterprises, LLC, ProGro Environmental, LLC, Hillvale Farms, Ryan Beeghly, Matt Beeghly, and Heath Younkin violated various provisions of the federal False Claims Act, 31 U.S.C. §§ 3729, et seq. ECF No. 2. Mr. Kane had previously served as the Controller of Defendants Beeghly Tree and Hillvale Enterprises until he was laid off in July 2020. Id. ¶¶ 11–13. In sum, Mr. Kane alleged that the Defendants violated the False Claims Act by making false certifications in applications for Paycheck Protection Program (“PPP”) loans, using PPP loans for improper purposes, and falsifying records to decrease their obligations to repay PPP loans. See generally ECF No. 2. He also alleged that Defendants Beeghly Tree, Hillvale Enterprises, and Ryan Beeghly violated the False Claims Act by retaliating against

him for his “efforts to correct Defendants’ actions to comply with relevant statutes and guidance related to applications for and use of PPP loan funds.” Id. ¶ 150. After investigating Mr. Kane’s claims, the United States filed a Notice of Intervention on May 28, 2024, informing that Court of its decision to intervene in this case for the purpose of effectuating a settlement with Defendants. ECF No. 20. Specifically, the United States intervened on Counts I through IV of Mr. Kane’s Complaint. Id. On August 27, 2024, the United States filed a Motion for Voluntary Dismissal of Counts I through IV after finalizing a settlement agreement with Defendants that resolved those Counts. ECF No. 32. The United States’ settlement agreement did not, however, resolve the issue of Mr. Kane’s entitlement to attorneys’ fees and costs under 31 U.S.C. § 3730(d)(1), or Mr. Kane’s retaliation claim alleged in Count V of the

Complaint. Id. On August 28, 2024, the Court granted the United States’ Motion and dismissed Counts I through IV with prejudice. ECF No. 33. And on February 26, 2025, the Court dismissed Count V after Mr. Kane and the Defendants separately settled his retaliation claim. ECF Nos. 52, 53. Meanwhile, Mr. Kane filed the instant Motion for an Award of Attorneys’ Fees and Expenses, seeking an award of attorneys’ fees and costs in connection with the Defendants’ settlement with the United States. ECF No. 36. The Motion was fully briefed while this case was pending before Judge Gibson. ECF Nos. 37, 42, 44, 49. After the case was reassigned to the undersigned, the Court reviewed the briefing and other materials submitted regarding the instant Motion and ordered the parties to provide supplemental evidence of the prevailing market rate in Pittsburgh for legal services similar to those provided by Mr. Kane’s counsel in this case. ECF No. 55. The parties timely did so on September 11, 2025. ECF Nos. 56, 57. The Motion is thus ripe for resolution.

II. Legal Standard

Mr. Kane’s request for attorneys’ fees and costs arises from 31 U.S.C. § 3730(d)(1). ECF No. 37. That statute applies when the government intervenes in a False Claims Act suit “result[ing] in a settlement in which the defendant agrees to pay money.” Simring v. Rutgers, 634 F. App’x 853, 857 (3d Cir. 2015). When it applies, § 3730(d)(1) entitles a relator to “reasonable attorneys’ fees and costs.” 31 U.S.C. § 3730(d)(1). Where, as here, the moving party seeks an award of attorneys’ fees under a fee-shifting statute, the calculation of the appropriate fee is determined using the lodestar method.1 Clemens v. New York Cent. Mut. Fire Ins. Co., 903 F.3d 396, 399 (3d Cir. 2018); Wintjen v. Denny’s, Inc., No. 2:19-CV-00069-CCW, 2025 WL 1009003, at *2 (W.D. Pa. Apr. 4, 2025) (Wiegand, J.); Simring, 634 F. App’x at 857 (applying the lodestar method to a fee application under § 3730(d)(1)). Under that method, first, the district court must calculate the fee applicant’s lodestar—“the number of hours worked multiplied by the prevailing hourly rate”—before applying the twelve factors in Johnson v. Georgia Highway Express, Inc., 488 F.2d 714 (5th Cir. 1974). Souryavong v. Lackawanna Cnty., 872 F.3d 122, 128 (3d Cir. 2017). III. Analysis

Mr. Kane seeks an award of attorneys’ fees for work performed by two law firms: Stone Law Firm, LLC, and The Employment Law Group, PC (collectively, “Relator’s Counsel”).

1 The parties agree that the lodestar method applies here. See ECF No. 37 at 6; ECF No. 42 at 13. Relator’s Counsel’s combined lodestar is $116,487.50. ECF No. 36-1. Additionally, Relator’s Counsel incurred costs of $1,866.75 in litigating this case. ECF No. 36-2. Accordingly, Mr. Kane seeks an award of fees and costs covering these amounts pursuant to 31 U.S.C. § 3730(d)(1). ECF No. 37. The Defendants object to Mr. Kane’s request on several grounds. Specifically, they argue

that the results obtained by Mr. Kane in this case do not justify the size of the fee award he seeks, the time billed by Relator’s Counsel on this matter was excessive and unreasonable, and the hourly rates requested by Relator’s Counsel are unreasonable for the Pittsburgh market. ECF No. 42. The Court will first address Defendants’ objection to Relator’s Counsel’s requested rates and then turn to the Relator’s Counsel’s billing entries before addressing the whether the requested fee is justified considering the results obtained. A. Hourly Rates Relator’s Counsel has requested to be paid the following hourly rates: Professional Organization Requested Hourly Rate Scott Oswald The Employment Law Group $850

Andrew Stone Stone Law Firm $825 Nick Woodfield The Employment Law Group $750 Janel Quinn The Employment Law Group $650 Lydia Pappas The Employment Law Group $450 Rosamond Kopzynski The Employment Law Group $250 Anthony Primelo The Employment Law Group $250 Cole Wilson The Employment Law Group $250 Phil Becnel2 Dinolt, Becnel & Wells $250

2 Mr. Becnel “is an investigator directly retained by The Employment Law Group, P.C.” ECF No. 36-3 ¶ 16. Ellenor Whitfield The Employment Law Group $250

To determine an attorney’s reasonable hourly rate, a court must assess “the experience and skill of the . . . attorney[] and compare their rates to the rates prevailing in the community for similar services by lawyers of reasonably comparable skill, experience, and reputation.” White v. Beaver Cnty., No. 2:17-cv-00998, 2020 WL 3866896, at *3 (W.D. Pa.

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Bluebook (online)
United States v. BEEGHLY TREE, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-beeghly-tree-llc-pawd-2025.