Universal Electronics, Inc. v. Universal Remote Control, Inc.

130 F. Supp. 3d 1331, 2015 U.S. Dist. LEXIS 122879, 2015 WL 5470164
CourtDistrict Court, C.D. California
DecidedSeptember 4, 2015
DocketCASE NO. SACV 12-00329 AG (JPRx)
StatusPublished
Cited by5 cases

This text of 130 F. Supp. 3d 1331 (Universal Electronics, Inc. v. Universal Remote Control, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Universal Electronics, Inc. v. Universal Remote Control, Inc., 130 F. Supp. 3d 1331, 2015 U.S. Dist. LEXIS 122879, 2015 WL 5470164 (C.D. Cal. 2015).

Opinion

ORDER SETTING AWARD OF FEES AND EXPENSES, INCLUDING TAXABLE COSTS TO DEFENDANT

Andrew J. Guilford, United States District Judge

The Court has held that‘Defendant Universal Remote Control, Inc. (“Defendant” or “URC”) is entitled to attorney fees under 35 U.S.C. section 285, as recently interpreted by the Supreme Court in Octane Fitness, LLC v. Icon Health & Fitness, Inc., — U.S. -, 134 S.Ct. 1749, 188 L.Ed.2d 816 (2014). In Octane, the Supreme Court eased the requirements to get such fees under section 285. Now the Court must calculate the amount of fees to be awarded. The Court’s Order also now calculates appropriate expenses, including whether, expert fees are recoverable here. Very voluminous documentation, including supplementation and objections, have been submitted by Defendant and Plaintiff Universal Electronics, Inc. (“Plaintiff’ or “UEI”).

The calculations and the issues thus presented underscore uncertainty about how to determine attorney fees under section 285. The Court begins with a global fee analysis that it concludes properly balances all interests, and then it engages in a more granular analysis that likely 'consumes time and resources unnecessarily.

GLOBAL FEE ANALYSIS

Some have become concerned about wasted effort focused on the recovery of fees under section 285. The calculation of actual fees awarded are a significant part of the time and energy dedicated to section 285 motions.

Authorities vary on how to establish attorney fees in the different areas where fees are recoverable. These include fees under a contract clause, see, e.g., Becker v. Wells Fargo Bank, N.A., 2014 WL 7409447 at *6, 2014 U.S. Dist. LEXIS 178462 at *20 (E.D.Cal. Dec. 29/2014) (“The starting point for determining reasonable attorneys’ fees under Section 1717 is the ‘lodestar.’ ”); the recovery of fees in some class action ■ settlements under a common fund theory, see, e.g., Staton v. Boeing Co., 327 F.3d 938, 967-68 (9th Cir.2003) .(“As in a statutory fee-shifting case, a district court in a common fund case can apply the lodestar method to determine the amount of attorneys’ fees_ Alternatively, in a common fund case, the district court can determine the amount of attorneys’ fees to be drawn from the fund by employing a ‘percentage’ method.”); Resnick v. Frank (In re Online DVD-Rental Antitrust Litig.), 779 F.3d 934, 949 (9th Cir.2015) (“The district court did not err in approving the fee award. Plaintiffs’ class counsel asked for attorneys’ fees in the amount of 25% of the overall settlement fund of $27,250,000 and the district court granted class counsels’ request.”); and the recovery of fees in a case under 28 U.S.C. section 1983, see, e.g., McCown v. City of Fontana, 711 F.Supp.2d 1067, 1072 (C.D.Cal.2010) (stating that “[ojverall, considering all that it observed in this case, this Court makes an equitable finding that the legal services provided that support recoverable fees should be reasonably valued at $150,000,” and then awarding $148,250 under the traditional mathematical lodestar analysis) (Guilford, J.), aff'd, 2011 WL 6778482, 2011 U.S.App. LEXIS 25841 (9th Cir. Dec. 27, 2011). Of course, different’factors are involved in the different areas where fees can be recovered, and they raise various issues. A victorious 1983 plaintiff may be enforcing important constitutional principles, while a fee award in 'a-class action common fund situation may be enforcing statutory regulations. One purpose of section 285 is to deter bad faith litigation by imposing the cost of a bad decision on the decision-maker.

[1335]*1335There is a growing trend that District Court judges should award fees based on an overall global understanding and review of a case, rather than on a tedious review of voluminous time entries and hourly-rates. Former Supreme Court Justice Sandra Day O’Connor, sitting by designation, has emphasized the overall equitable nature of fee analysis. She.has written that “[t]he pet result of fee-setting jurisprudence ... .is that the district .courts must engage in an equitable inquiry of varying methodology while making a pretense of mathematical precision.” Arbor Hill Concerned Citizens Neighborhood Ass’n v. Cty. of Albany, 522 F.3d 182,. 189 (2d Cir.2007).(O’Connor, J., sitting by designation, joining in the opinion) (citation omitted). Justice Elena Kagan has echoed these sentiments in Fox v. Vice.

[Tjrial courts need not, and indeed should not, become green-eyeshade accountants. The essential goal in shifting fees (to either party) is to do rough justice, not to achieve. auditing perfection. So trial courts may take into account their overall sense of a suit, and may use estimates in calculating and allocating an attorney’s time. And appellate courts must give substantial deference to these determinations, in light of “the district court’s superior understanding of the litigation.”

Fox v. Vice, 563 U.S. 826, 131 S.Ct. 2205, 2216, 180 L.Ed.2d 45 (2011).

The statements of Justices O’Connor and Kagan reflect what is happening in the legal profession as hourly billing has become increasingly unpopular and clients prefer' to look at’ aggregate, global humbers.

As noted, and reflecting the modern trend described by two' Supreme Court Justices, this Court will begin by generally reviewing this case to determine a reasonable aggregate global amount for fees. After all, this Court has dealt with this case and the attorneys involved for a Significant time, has an overall sense of the suit, and has the experience to determine a reasoriable fee in the context of this litigation.- !

Defendant requests approximately $4.6 million in feés, having already made an attempt to apportion the requested fees under the Court’s Order. And, in response to the' Court’s concern that this case has been over-litigated, Defendant has omitted certain items from its request. Yet, given the Court’s intimate familiarity with this case over its three-year course, the Court is left with the firm impression that the submitted fees, while reflecting adequate work that led to a favorable outcome for Defendant, also reflect the inefficiency of too many lawyers and not enough focus. Toó often, the proper goal of a litigator to bring order out of chaos was lost, with more chaos resulting.

So, from a global,. overall review, and taking into account the significant apportionment Defendant has already undertaken at the Court’s direction, the Court imposes a further discount on the fees sought of around 10%, for a total award of $4.1 million, rounded. In light of all the circumstances'and the Court’s superior understanding of the litigation, this is the proper amount. It certainly reflects the “rough justice” that Justice Kagan says should be sought. Fox, 131 S.Ct. at 2216. While this is a relatively large number for an award that only covers certain patents and issues in the case, it is appropriate given the amount at stake, the complexity of.

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130 F. Supp. 3d 1331, 2015 U.S. Dist. LEXIS 122879, 2015 WL 5470164, Counsel Stack Legal Research, https://law.counselstack.com/opinion/universal-electronics-inc-v-universal-remote-control-inc-cacd-2015.