Valenti v. Allstate Insurance Co.

243 F. Supp. 2d 200, 2002 U.S. Dist. LEXIS 25472, 2002 WL 31971585
CourtDistrict Court, M.D. Pennsylvania
DecidedJanuary 27, 2003
DocketCIV.A. 3:99-1234
StatusPublished
Cited by12 cases

This text of 243 F. Supp. 2d 200 (Valenti v. Allstate Insurance Co.) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Valenti v. Allstate Insurance Co., 243 F. Supp. 2d 200, 2002 U.S. Dist. LEXIS 25472, 2002 WL 31971585 (M.D. Pa. 2003).

Opinion

MEMORANDUM AND ORDER

MANNION, United States Magistrate Judge.

This case was initiated by a complaint filed in the Court of Common Pleas of Luzerne County on May 25, 1999. The defendant filed a petition for removal of the action from state court to federal court based upon diversity of citizenship. (Doc. No. 1) After an agreed to dismissal of certain counts, the defendant filed an answer on September 17, 1999. (Doc. No. 11) The matter, by consent of the parties, was assigned to United States Magistrate Judge Raymond J. Durkin on September 21,1999. (Doc. No. 12)

This action arose out of a fire that occurred on January 20, 1999 at 25-26 Pugh Street, Edwardsville, Pennsylvania. The plaintiffs, Anthony and Henrietta Valenti, were the owners of a rental property located at the above-mentioned address. They were insured by the Allstate Insurance Company for fire damage under Insurance Policy No. 098095949. The policy was in effect on the date of the fire which destroyed the building. Following the fire, the plaintiffs submitted a claim for property damage to the Allstate Insurance Company. Allstate denied the claim.

The fire was an arson, a fact not disputed by any of the parties. The defendant, however, claimed that Anthony Valenti was responsible for an intentional act of arson on the property. Therefore, pursuant to an exclusion in the policy, Allstate claimed that plaintiffs were not entitled to any compensation under its policy. Further, the defendant alleged that the plaintiffs made false and fraudulent representations in the presentation of their claim to Allstate.

Before the court at the time of trial was the plaintiffs’ claim for breach of contract and Allstate’s counter-claim for insurance fraud. 1 The jury found in favor of Allstate on both claims. (Doc. No. 38) Allstate’s insurance fraud claim was brought pursuant to 18 Pa.C.S.A. § 4117(a)(2) alleging that the plaintiffs knowingly and with intent to defraud, presented or caused to present a claim that was false concerning the material matters therein. Since the jury found in favor of Allstate (Doc. No. *204 38), Allstate has requested compensatory damages to include reasonable investigation expenses,, costs of suit and attorney’s fees pursuant to the provisions of 18 Pa. C.S.A. § 4117(g). All parties agreed and stipulated that treble damages, which may be imposed if the defendant has engaged in a “pattern of violating this section” does not apply. The formal Judgment in this matter has been held in abeyance, pending the court’s decision on the plaintiffs’ post-trial motions and defendant’s request for expenses, costs and fees. (Doc. Nos. 62 and 63)

On January 14, 2002, the defendant Allstate Insurance Company submitted an itemized bill of costs totaling $83,900.85. (Doc. No. 64) The plaintiffs filed a one paragraph response on January 17, 2002 in which they opposed and disputed Allstate’s claim of itemization of costs. (Doc. No. 65) As a result, the court scheduled a hearing for April 1, 2002.

Prior to that time, the court had held a telephone conference with counsel for the parties 'concerning the evidence that would be presented at the hearing. This followed an unsuccessful settlement conference between counsel. The court directed Allstate to supply a more comprehensive and particularized statement of the expenses, costs and fees demanded. In this regard, on March 27, 2002, the defendant submitted a more complete itemization of the expenses, cost and fees, together with a privilege log identifying the portions of the billing documents that were not turned over to the plaintiffs and were alleged by the defendant to be privileged material. (Doc. No.77)

On April 1, 2002, this court held a lengthy hearing. Attending were counsel for the plaintiffs, counsel for Allstate, and the adjustor in charge of this case. Testimony by the adjustor and argument by counsel were made as the court reviewed, line by line, all objections made by the plaintiffs’ counsel, together with responding arguments by defendant’s counsel. The court also received, for the first time, an unredacted copy of the billing statements. 2

In its motion, Allstate requests fees for a total of ten (10) attorneys, five (5) legal assistants, and one (1) investigator. The Curtin & Heefner, LLP law firm of Mor-risville, Pennsylvania (hereinafter “Cur-tin”) claims fees for partners Bonnie S. Stein, Allan D. Goulding, and Steven M. Harrington; associates, Joel Steinman, Robert G. Labar, Joseph W. Cunningham and Yolanda K. DeSipio; and, legal assistants, Mary E. Andujar, Joanne T. Board-man, and Mary Alice Heuman. The law firm of Dugan, Brinkmann, Maginnis & Pace of Philadelphia, Pennsylvania (hereinafter “Brinkmann”) claim fees for partner John D. Brinkmann; associates Susan M. Danielski and Emily I. Remphrey; legal assistants Steven J. Payne and Nicole Chaykin. Finally, the investigative firms of Willox, Kerins & Associates of Hors-ham, Pennsylvania, as well as the investigative firm of Cloud, Feehry and Richter of West Chester, Pennsylvania (hereinafter “Cloud”) claim fees for Thomas A. Cloud, the investigator used by Allstate and the law firms in this action 3 .

*205 The billing entries in this case are voluminous and span a period from February 2, 1999 through December 31, 2001. The privilege log alone contains over 100 purportedly privileged entries.

The plaintiffs raise numerous objections to the defendant’s request for expenses, costs and fees. Those objections can be broken down into the following categories: (1) the reasonableness of the rates charged by the Curtin and Brinkmann firms for partner time considering they are from the Philadelphia area and therefore, bill at a higher rate than comparable counsel in the Scranton/Wilkes-Barre area; 4 (2) the reasonableness of the hours expended by Cur-tin and Brinkmann in performing tasks related to representation of the defendant; (3) the travel time and expenses associated with counsel and an investigator from the southeast portion of the state, when the action was in the northeast section of the state; and (4) a general objection to all redacted information from the billing statements, as plaintiffs’ counsel states he is unable to make appropriate arguments to the court concerning its reasonableness, as he has not been supplied with the itemized entries.

I. ATTORNEY’S FEES

Generally speaking, in a case involving claimed attorney’s fees, the courts have relied upon the “lodestar” formula. In order to calculate the lodestar, one multiplies the number of hours reasonably expended by a reasonable hourly rate. Maldonado v. Houstoun, 256 F.3d 181, 184 (3d Cir.2001)(citing Hensley v. Eckerhart, 461 U.S. 424, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983)).

The party seeking attorney’s fees must establish the reasonableness of its fee request by submitting evidence of the hours worked and the hourly rate charged. Rode v. Dellarciprete,

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Bluebook (online)
243 F. Supp. 2d 200, 2002 U.S. Dist. LEXIS 25472, 2002 WL 31971585, Counsel Stack Legal Research, https://law.counselstack.com/opinion/valenti-v-allstate-insurance-co-pamd-2003.