Water Technologies Corp. v. Calco Ltd.

709 F. Supp. 821, 11 U.S.P.Q. 2d (BNA) 1217, 1989 U.S. Dist. LEXIS 2605, 1989 WL 27707
District Court, N.D. Illinois·Decided March 14, 1989·No. 82 C 4330·Published·Cited by 4 cases

Opinion

*822 MEMORANDUM OPINION AND ORDER

ASPEN, District Judge:

In this opinion, we consider the request for attorneys’ fees by the plaintiffs Water Technologies Corp., Water Pollution Control Systems, Inc. and Kansas State University Research Foundation (collectively “WTC”). For the reasons set forth below, we award attorneys’ fees in the amount of $184,537 and prejudgment and post-judgment interest of $66,751, for a total of $251,288.

I. Background

This case has a rather involved procedural history, which we will only summarize here. (A more detailed summary may be found in our earlier opinion in this case. See Jan. 24, 1989 Op. at 2-7.) Two of the present plaintiffs, Water Technologies and Water Pollution Control, brought this suit in July 1982 against the two present defendants Calco, Ltd. and William J. Gartner (collectively “Calco”) and another defendant, since dismissed. The suit also named Aqua-Chem, Inc. (“Aqua-Chem”) as an involuntary plaintiff and cross-defendant. After discovery and various settlement agreements, the case became realigned in the way it now stands. At trial, former Chief Judge Frank J. McGarr found that Calco was liable for the willful infringement of WTC’s four patents and for unfair competition and that WTC merited attorneys’ fees under 35 U.S.C. § 285 (1982). See 658 F.Supp. 961 (N.D.Ill.1986); 658 F.Supp. 980 (N.D.Ill.1987). However, Judge McGarr reduced WTC’s request for fees from approximately $245,000 to $150,-000, in part because WTC’s law firm had lost certain billing records and in part be *823 cause of his “equitable instinct” about the case.

On appeal, the Federal Circuit affirmed the finding of willful infringement but reversed on the question of unfair competition and held that Judge McGarr had used the incorrect method for determining damages. 850 F.2d 660 (Fed.Cir.), cert. denied, — U.S. -, 109 S.Ct. 498, 102 L.Ed.2d 534 (1988). In addition, the Federal Circuit held that although attorneys’ fees were proper, Judge McGarr’s equitable instinct was an inadequate basis for setting the award. Accordingly, the court remanded the case to us for the redetermination of damages, prejudgment interest and attorneys’ fees. Calco petitioned the United States Supreme Court for a writ of certiorari, which was denied on November 28, 1988. — U.S. -, 109 S.Ct. 498, 102 L.Ed.2d 534 (1988).

In a previous opinion, dated January 24, 1989, we awarded $417,976 in damages and $115,141 in prejudgment interest, for a total of $533,117. In addition, we concluded that WTC was entitled to prejudgment and postjudgment interest on any attorneys’ fee award but not entitled to fees for legal work done on appeal or on remand. Jan. 14, 1989 Op. at 20-23. We did not make a final determination of damages, however, because WTC had presented its lodestar document in a rather unwieldy form. Accordingly, we directed WTC to provide a summary of its request. WTC has done so, Calco has responded, and we are now ready to rule. 1

II. Availability of Fees on Appeal and on Remand

WTC has first asked us to reconsider our decision that it is not entitled to fees for appeal or for remand. We based our earlier decision on Rohm & Haas Co. v. Crystal Chemical Co., 736 F.2d 688 (1984), which held that 35 U.S.C. § 285 (1982) allows attorneys’ fees for appeals only if the appeal is itself “exceptional.” WTC disagrees with our interpretation of Rohm & Haas but seems to have ignored the plain language of the court: “We construe the language of § 285 as applicable to cases in which the appeal itself is exceptional.” Id. at 692. The other cases relied on by WTC are inapposite; they either involve fees statutes other than section 285 or predate Rohm & Haas. Upon reconsideration, therefore, we conclude our previous holding is still correct.

III. The Adequacy of Documentation

Calco complains that WTC has inadequately documented its request for fees, inasmuch as it failed “to detail the time spent on each particular task by an attorney on a given day, the task undertaken by that attorney, and the date on which that task was done.” Defendant’s Feb. 10,1989 Reply at 2. Because of these shortcomings, Calco claims, we must give little weight to WTC’s fee request and reduce the fee award substantially.

As support for this proposition, Cal-co cites to Judge William T. Hart’s decision in Procter & Gamble Co. v. Weyerhaeuser Co., No. 81 C 1221, 1989 WL 4198, 1989 U.S.Dist. Lexis 430 (N.D.Ill. Jan. 12, 1989). In Procter & Gamble, Judge Hart substantially reduced a request for attorneys’ fees, in large part because of what he perceived as inadequate documentation. The material presented, Judge Hart complained, “does not show exactly what any attorney did on any date.” Id. at 3. Relying on this language, Calco contends that without such a day-to-day accounting, we should follow Judge Hart’s lead and materially reduce WTC’s fee request.

We decline the invitation. In our view, controlling case law does not require Judge Hart’s rather rigorous standard, and prudence counsels against it. Clearly, “there must be some evidence to support the reasonableness of, inter alia, the billing rate charged and the number of hours expended,” Lam, Inc. v. Johns-Manville Corp., 718 F.2d 1056, 1068 (Fed.Cir.1983), but as the Federal Circuit explained in remanding this case, “the ‘issue of reasonable fees *824 should be settled in the most expeditious manner possible.’ ” 850 F.2d at 674 (quoting Monolith Portland Midwest Co. v. Kaiser Aluminum & Chemical Corp., 407 F.2d 288, 298 (9th Cir.1969)). Requiring a day-by-day accounting would only slow the process and entail a time consuming review of many documents, with no appreciable improvement in result. We think the monthly billing summaries, along with the yearly summaries that we requested, adequately categorize the billing materials.

Yet even if a day-to-day accounting were necessary, WTC has provided it in the form of its billing records. 2 One of these records (No. 76), taken at random, tells us that R.A. Dunn worked on a “Letter to Leland L. Davis re Revised Second Set of Interrogatories” for one-half hour on January 3, 1984, and on a response to the interrogatories for 7% hours on January 18 and 19. Of course, these billing records are rather voluminous, and we do not intend to work our way through them.

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Water Technologies Corp. v. Calco Ltd., 709 F. Supp. 821, 11 U.S.P.Q. 2d (BNA) 1217, 1989 U.S. Dist. LEXIS 2605, 1989 WL 27707 (N.D. Ill. 1989).

709 F. Supp. 821 (Water Technologies Corp. v. Calco Ltd.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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