Victory Processing v. Knudsen

CourtDistrict Court, D. Montana
DecidedFebruary 16, 2021
Docket6:17-cv-00027
StatusUnknown

This text of Victory Processing v. Knudsen (Victory Processing v. Knudsen) is published on Counsel Stack Legal Research, covering District Court, D. Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Victory Processing v. Knudsen, (D. Mont. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MONTANA HELENA DIVISION

VICTORY PROCESSING, LLC, and ? ° CV 17-27-H-CCL DAVE DISHAW, ry

Plaintiffs, ORDER VS. AUSTIN KNUDSEN’, in his official capacity as Attorney General for the State of Montana, Defendant.

Before the Court are Plaintiffs’ “Application for Attorneys’ Fees and

Expenses” (Doc. 61) and Plaintiffs’ “Supplemental Application for Attorneys’ Fees,” (Doc. 83). The Attorney General for the State of Montana, acting in his

official capacity, (hereinafter the State) objects to Plaintiffs’ calculation of

attorneys fees and asks the Court to substantially reduce the fees requested to a

reasonable amount.

| Attorney General Knudsen is hereby substituted for former Attorney General Fox, pursuant to Fed. R. Civ, P. 25(d).

BACKGROUND Plaintiffs Victory Processing, LLC, and Dave Dishaw (collectively Victory Processing) filed suit challenging the State of Montana’s “robocall” statute in

February of 2017. In February of 2018, the Court issued its order granting the

State’s motion for summary judgment and denying Victory Processing’s motion

for summary judgment. On September 10, 2019, the Ninth Circuit held as a matter

of law that section 45-8-216(1)(e) of the Montana Code violates the First

Amendment. The Ninth Circuit reversed and remanded this Court’s grant of summary judgment to Defendant for further proceedings consistent with its opinion. Victory Processing v. Fox, 937 F.3d 1218 (9" Cir. 2019), After the

Ninth Circuit issued its order, Plaintiffs filed an unopposed motion to transfer consideration of attorneys’ fees on appeal to this Court. (Doc. 47). The Court granted the unopposed motion once the mandate was issued. (See Docs. 48 and

49). On October 16, 2019, the Court set a status conference for October 25, 2019

and ordered the parties to file statements of their positions as to the form, necessity, and scope of further proceedings. (Doc. 50). After receiving status reports from both parties, the Court ordered the Clerk

to enter judgment in favor of Victory Processing, paving the way for Victory

Page 2 of 23

Processing to file the pending application for attorneys’ fees. (Doc. 61). In

October of last year, the Court set a hearing on Plaintiffs’ application for

attorneys’ fees for October 27, 2020. Plaintiffs were represented at the October 27, 2020, hearing by Blake E.

Johnson, with local counsel James Brown appearing by telephone. The State of

Montana was represented at the hearing by Patrick M. Risken. Each party called a

single witness, the expert retained to opine on the requested fee award. At the

conclusion of the hearing, Plaintiffs’ counsel requested leave to file a

supplemental application for fees, seeking fees expended in prosecuting the first

application. The Court issued an order setting a briefing schedule for the

supplemental application the day after the hearing. (Doc. 82). LEGAL STANDARD Federal law allows the Court to award the prevailing party “a reasonable

attorney’s fee as part of the costs” in any action taken under 42 U.S.C. § 1983 to

enforce rights guaranteed by the United States Constitution, 42 U.S.C. § 1988(b). Congress’s purpose in enacting § 1988 was “to ensure ‘effective access to the

* Plaintiffs initially sought attorneys’ fees in a motion filed on September 24, 2019. (Doc. 45}. The Court denied the motion with leave to refile, based on Plaintiffs’ citation to a non-existent local rule and failure to follow the actual local rules of this Court. (Doc. 46). Plaintiffs filed a second application on October 16, 2019, (Doc. 53), which was also denied with leave to refile. (Doc. 59). Page 3 of 23

judicial process’ for persons with civil rights grievances.” Hensley v. Eckerhart,

461 U.S. 423, 429 (1983) quoting H.R.Rep. No. 94-1558, p. 1 (1976)). In

Hensley, the Supreme Court reversed and remanded the district court’s award of

attorney’s fees because the district court failed to “properly consider the

relationship between the extent of success and the amount of the fee award” in a

case in which plaintiff did not prevail as to all their claims. /d, at 438 - 439,

The instant case does not present the same issue as that faced by the district

court in Hensley because Victory Processing brought a single claim and prevailed

as to the entire claim on appeal, The Supreme Court’s opinion in Hensley nevertheless provides the starting point for any discussion of reasonable attorney’s fees under 42 U.S.C. § 88 — the district court determines the amount of a

reasonable fee by multiplying the number of hours reasonably expended on the

litigation by a reasonable hourly rate.” Jd. at 432. This method has since become

known as the “lodestar method.” Purdue v. Kenny A. Ex rel. Winn, 559 U.S. 542,

551 (2010). In awarding attorney’s fees, “the district court must strike a balance between

granting sufficient fees to attract qualified counsel to civil rights cases, and

avoiding a windfall to counsel.” Moreno v. City of Sacramento, 534 F.3d 1104,

1111 (9" Cir. 2008) (internal citations omitted). Before Congress enacted 42

Page 4 of 23

U.S.C. § 1988, district courts in the Ninth Circuit charged with awarding attorney’s fees under other federal statutes adopted the following factors to

consider as part of the required balancing test: (1) the time and labor required, (2) the novelty and difficulty of the questions involved, (3) the skill requisite to perform the legal service properly, (4) the preclusion of other employment by the attorney due to acceptance of the case, (5) the customary fee, (6) whether the fee is fixed or contingent, (7) time limitations imposed by the client or the circumstances, (8) the amount involved and the results obtained, (9) the experience, reputation, and ability of the attorneys, (10) the “undesirability” of the case, (11) the nature and length of the professional relationship with the client, and (12) awards in similar cases. Kerr y. Screen Extras Guild, Inc., 526 F.2d 67, 70 (9" Cir. 1975). Some of these

factors are subsumed in the lodestar analysis, Gonzalez v. City of Maywood, 729

F.3d 1196, 1204, n. 3 (9" Cir. 2013), and proper application of the “lodestar

method produces an attorney’s fee that is presumptively reasonable.” /d, at 1209.

Victory Processing, as the party seeking attorney’s fees, “bears the burden

of submitting evidence of the hours worked and the rate paid.” Carson y, Billings Police Dep't, 470 F.3d 889, 891 (9" Cir. 2006). “In determining the appropriate number of hours to be included in a lodestar calculation, the district court should

exclude hours that are ‘excessive, redundant, or otherwise unnecessary.’” McCown

Page 5 of 23

vy. City of Fontana, 565 F.3d 1097 (9" Cit 2009) (quoting Hensley, 461 U.S. at

434). Victory Processing must also demonstrate that its attorneys’ rates are

consistent with prevailing market rates in the relevant community, Blum v.

Stensen, 466 U.S.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Prison Legal News v. Schwarzenegger
608 F.3d 446 (Ninth Circuit, 2010)
Martin Gonzalez, Sr. v. City of Maywood
729 F.3d 1196 (Ninth Circuit, 2013)
West Linn Corporate Park LLC v. City of West Linn
534 F.3d 1091 (Ninth Circuit, 2008)
McCown v. City of Fontana
565 F.3d 1097 (Ninth Circuit, 2009)
Christensen v. Stevedoring Services of America
557 F.3d 1049 (Ninth Circuit, 2009)
Robert Cahaly v. Paul LaRosa, III
796 F.3d 399 (Fourth Circuit, 2015)
Gresham v. Rutledge
198 F. Supp. 3d 965 (E.D. Arkansas, 2016)
Kerr v. Screen Extras Guild, Inc.
526 F.2d 67 (Ninth Circuit, 1975)
Gates v. Deukmejian
987 F.2d 1392 (Ninth Circuit, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
Victory Processing v. Knudsen, Counsel Stack Legal Research, https://law.counselstack.com/opinion/victory-processing-v-knudsen-mtd-2021.