Viahart, LLC v. Creative Kids Online, LLC, et al.

CourtDistrict Court, S.D. New York
DecidedOctober 1, 2025
Docket1:20-cv-09943
StatusUnknown

This text of Viahart, LLC v. Creative Kids Online, LLC, et al. (Viahart, LLC v. Creative Kids Online, LLC, et al.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Viahart, LLC v. Creative Kids Online, LLC, et al., (S.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT ELECTRONICALLY FILED DOC #: _________________ SOUTHERN DISTRICT OF NEW YORK DATE FILED: 10/1/2025 ----------------------------------------------------------------- X : VIAHART, LLC, : : Plaintiff, : 1:20-cv-9943-GHW : -v- : MEMORANDUM : OPINION & ORDER CREATIVE KIDS ONLINE, LLC, et al., : : Defendants. : : ----------------------------------------------------------------- X GREGORY H. WOODS, United States District Judge:

Viahart, LLC (“Plaintiff”) is a designer and manufacturer of children’s toys. One of its products is sold under the name “Brain Flakes,” which Plaintiff has trademarked. The defendants, Creative Kids Online, LLC, Creative Kids Far East, Inc., Creative Kids Enterprises, LLC, and CK Online, LLC (collectively, the “Defendants”) are Plaintiff’s competitors. Plaintiff alleges, among other things, that Defendants have violated its trademark by selling a similar toy using the “Brain Flakes” trademark or confusingly similar marks. The parties engaged in an extended period of discovery. During discovery, Plaintiff moved to compel Defendants to produce several categories of documents. The Court granted that request and ordered Defendants to produce them. Ahead of trial, Plaintiff filed a motion in limine for sanctions pursuant to Rule 37(b)(2)(A) of the Federal Rules of Civil Procedure as a result of Defendants’ failure to comply with the Court’s order compelling the production of discovery. The Court granted Plaintiff’s motion and sanctioned Defendants for their unexplained failure to make the required productions for nearly two years. The Court ordered Defendants to pay Plaintiff’s reasonable attorney’s fees and costs attributable to Plaintiff’s briefing of the relevant motion in limine and its initial efforts to compel the production of those materials. Accordingly, Plaintiff’s counsel gathered billing records related to the sanctioned conduct and submitted a request for $24,730.88 in fees. However, because Plaintiff’s multiple changes of counsel and use of improper block billing made the request excessive, the Court reduces Plaintiff’s request by ten percent and awards $22,257.79 in fees. I. Background1 In this suit, Plaintiff asserts, among other things, that Defendants have violated its trademark by selling a similar toy using the “Brain Flakes” trademark or confusingly similar marks. Dkt.

No. 112 (second amended complaint). During discovery, Plaintiff complained that Defendants failed to provide complete answers to a number of discovery requests. On July 14, 2022, Plaintiff sought to compel a more complete response from Defendants to Plaintiff’s discovery requests. Dkt. No. 113. The Court held a conference to discuss the motion on July 18, 2022. During that conference, the Court overruled Defendants’ objections to Plaintiff’s discovery requests and ordered that Defendants produce several categories of documents. Dkt. No. 117. Ahead of trial, Plaintiff filed several motions in limine. One motion was for sanctions pursuant to Rule 37(b)(2)(A) of the Federal Rules of Civil Procedure as a result of Defendants’ failure to comply with the Court’s July 18, 2022 order compelling the production of discovery materials. Dkt. No. 213. After reviewing the parties’ written submissions, the Court granted Plaintiff’s motion and sanctioned Defendants. Dkt. No. 278 (“Tr.”). One of the sanctions that the Court imposed was an order that Defendants pay Plaintiff’s reasonable expenses incurred to litigate

the motion to compel. The Court concluded that Plaintiff was entitled to reasonable attorney’s fees and costs attributable to the briefing of the motion in limine required as a result of Defendant’s

1 A detailed description of the facts of this case are provided in the Court’s prior opinion, Viahart, LLC v. Creative Kids Online, LLC, 2025 WL 638606, at *2 (S.D.N.Y. Feb. 27, 2025). The Court therefore assumes familiarity with them and presents only a truncated version of the relevant events. failure to produce documents, as well as Plaintiff’s efforts to compel the production of those materials. Tr. at 51:6-52-16. Plaintiff initially filed a motion for attorney’s fees on June 24, 2024. Dkt. No. 269. On July 2, 2024, one of the Defendants notified the Court that it had filed for bankruptcy protection. Dkt. No. 275. As a result of the application of the automatic stay, the Court stayed the case in its entirety. Dkt. No. 277. Just over five months later, on December 6, 2024, the Court was notified

that the automatic stay had been lifted. Dkt. No. 280. On February 27, 2025, the Court ruled on Plaintiff’s June 24, 2024 motion for attorney’s fees. The Court concluded that Plaintiff’s application did not include sufficient information to evaluate the reasonableness of his request. See Dkt. No. 296; see also Viahart, LLC v. Creative Kids Online, LLC, 2025 WL 638606 (S.D.N.Y. Feb. 27, 2025). The Court found that Plaintiff “failed to provide any information relating to the credentials of the professionals who billed time to the case.” Viahart, LLC, 2025 WL 638606, at *5. Plaintiff had also requested reimbursement for legal fees that were “not directly related to the discovery abuses that led to the Court’s sanction.” Id. In addition, the Court wrote that it “[could] not ascertain how Plaintiff has calculated the requested fee award, in large part because of the pervasive use of block billing in the invoices presented in support of the motion.” Id. Accordingly, the Court denied the motion for attorney’s fees without prejudice. See id. at *1, *6.

On March 28, 2025, Plaintiff filed a renewed motion for attorney’s fees. See Dkt. No. 302 (“Mem.”). Plaintiff’s counsel, James H. Creedon, filed a declaration in support of the motion. Dkt. No. 302-1 (“Creedon Decl.”). This time, he submitted the credentials of each attorney who billed time in the matter. Creedon Decl. at 40–67. He also submitted billing records from lawyers from the four law firms involved with the motion to compel and the motion in limine.2 Id. ¶ 6; see also id. at 4–39. However, as with his first request, many of the time entries were block billed, with a single time entry describing several distinct tasks. Accordingly, before submitting his motion, Mr. Creedon reviewed the bills to determine what percentage of time in each entry related to work on the sanctioned conduct. Id. ¶ 5. For example, Mr. Creedon solicited feedback from the billing attorneys

employed at his law firms3 to determine how much work within each time entry fell within the scope of the Court’s order. Id. ¶ 6. Otherwise, Mr. Creedon reviewed “the relevant filings and docket entries,” and “the case files and attorney work product.” Based on that review and his knowledge of the case, he determined how much of each entry related to the relevant motions. Id. Based on this evaluation, Mr. Creedon determined how much time, if any, should be attributed to the sanctioned conduct and reduced each entry accordingly. Id. In most cases, Mr. Creedon requested either twenty-five percent or fifty-percent of the time billed. Mr. Creedon then certified that he reduced his request so that his fee only captured work related to the sanctioned conduct. Id. ¶¶ 5–6, 8. Plaintiff ultimately requested $24,730.88 in fees, a substantial reduction from the original request of $77,366.50. Id. ¶ 7; see Dkt. No. 269 at 1. Mr. Creedon confirmed that “all claimed invoices have been fully paid by Viahart LLC.” Creedon Decl. ¶ 4. On April 28, 2025, Defendants filed an opposition. Dkt. No. 308 (“Opp.”). Defendants

argued that the Court should deny the application because Plaintiff did not submit sufficient information concerning the credentials or experience of the billing lawyers. See Opp.

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Bluebook (online)
Viahart, LLC v. Creative Kids Online, LLC, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/viahart-llc-v-creative-kids-online-llc-et-al-nysd-2025.