Summary: Court denies motions for costs under Federal Rule of Civil Procedure 54(d) and awards attorneys' fees and other expenses pursuant to 29 U.S.C. § 216(b).
Case Name: Wisnewski, et al. v. Champion
Case Number: A3-96-72
Docket Number: 481
Date Filed: 1/16/01
Nature of Suit:710
Sister Juliana Wisnewski, on behalf of herself and others
similarly situated,
Champion Healthcare Corporation, a Delaware corporation, d/b/a "DHHS" and "Dakota Heartland Health System"; Champion Healthcare Corporation of North Dakota, Inc., a North Dakota corporation, individually and as a partner in Dakota/Champion Partnership, a North Dakota general partnership; Dakota Medical Foundation, a North Dakota non-profit corporation, individually and as a partner in Dakota/Champion Partnership, a North Dakota general partnership; and Dakota/Champion Partnership, a North Dakota general partnership,
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) ) ) ) ) ) Civil No. A3-96-72 ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) |
Before the Court for review are plaintiffs' motions for
taxation of disputed costs, (doc. #461), motion for attorneys' fees
and related non-taxable expenses, (doc. #462), supplemental fee and
cost request, (doc. #479), and defendant's, Champion Healthcare
Corporation (Champion), motion for taxation of disputed costs,
(doc. #465). These motions are taken up below. As a preliminary matter the Court GRANTS Champion's motion for
leave to exceed page limitation, (doc. #472), and DENIES Champion's
motion for oral argument, (doc. #465(2)), and motion for hearing,
(doc. #474). The Court further declares that Champion's motion to
strike, (doc. #444) is MOOT. The parties are well versed with the procedural and
substantive history of this case; therefore, recitation by the
Court is unnecessary. Both Champion and plaintiffs request costs as a prevailing
party. (1) Federal Rule of Civil Procedure 54(d) provides: Except when express provision therefor is made either in
a statute of the United States or in these rules, costs
shall be allowed as of course to the prevailing party
unless the court otherwise directs . . . . This rule codifies the presumption that the prevailing party is
entitled to costs. Greaser v. State of Missouri, Dep't of Corr.,
145 F.3d 979, 985 (8th Cir. 1998). It remains, however, only a
presumption, as the district court retains the discretion to refuse
to tax costs in favor of a prevailing party. Computrol, Inc. v.
Newtrend, L.P., 203 F.3d 1064, 1072 (8th Cir. 2000) (citing Crawford
Fitting Co. v. J.T. Gibbons, Inc., 482 U.S. 4637, 441-42 (1987)).
Since the district court has the discretion to refuse costs, it
goes without saying that the court also has substantial discretion
in awarding the prevailing party an appropriate amount of costs.
See id. A prevailing party entitled to costs is the litigant in whose
favor judgment is rendered regardless of whether the party is the
plaintiff or defendant and regardless of the amount of damages
awarded. Firefighters' Inst. For Racial Equality v. City of St.
Louis, 220 F.3d 898, 905 (8th Cir. 2000). See also 10 Wright,
Miller & Kane, Federal Practice and Procedure § 2667 (3rd ed. 1998).
Additionally, the voluntary dismissal of an action is sufficient to
confer prevailing party status to a defendant on those claims.
Zenith Ins. Co. v. Breslaw, 108 F.3d 205, 207 (9th Cir. 1997). Reviewing this case, it is noted that on November 10, 1999,
after over three years of litigation, eight of plaintiffs' claims
were dismissed with prejudice (FLSA meal break claim, FLSA off-the-clock claim, FLSA exempt status claim, FLSA retaliation claim, FLSA
willfulness claim, state law on-call claim, state law overtime
claim, and state law retaliation claim) and three others were
dismissed without prejudice (state law claims relating to meal
break, Earned Time, and "Earned Time Plus"). The claims that were
dismissed with prejudice were so dismissed upon the acquiescence
and, in fact, insistence of the plaintiffs that they no longer
pursued those claims. After the dismissal, the plaintiffs had two
remaining claims in this action: an FLSA on-call claim; and an FLSA
overtime claim. As correctly pointed out by Champion, plaintiffs
prevailed on only one portion of their FLSA overtime claim relating
to the failure to include on-call pay in the computation of
overtime. Upon summary judgment consideration, the FLSA on-call
claim and the FLSA overtime computation claim were resolved, in all
other respects, in favor of Champion. In fact, at the time of
summary judgment, the issue of including on-call pay in the
overtime computation was moot since Champion had corrected its
error in computation and paid all affected employees.
Notwithstanding the correction, it was determined that plaintiffs
were prevailing parties on this limited issue pursuant to the
catalyst theory. (2) Upon consideration of these facts, it can only
be concluded that, overall, Champion was predominantly the
prevailing party in this action. See Head v. Medford, 62 F.3d 351,
355 (11th Cir. 1995) (determining that defendants were the
prevailing party where district court granted their motion for
summary judgment on federal claims and declined to exercise
supplemental jurisdiction on remaining state law claims). In such a situation, Champion argues, the Court has three
options: (1) award Champion all of its costs and refuse to award
plaintiffs any costs based on their obstructive and haphazard
manner of conducting this litigation; (2) apportion costs among the
parties resulting in Champion receiving at least 13/14ths (93%) of
its costs and plaintiffs receiving 1/14th of their costs; or (3)
reduce the size of Champion's cost award to reflect its partial
success, resulting in Champion receiving 93% of its costs. While
any of these options would be appropriate in this case, the Court
envisions a fourth approach: deny costs to both parties. See
Computrol, 203 F.3d at 1072 (district court has discretion to
refuse to tax costs); Johnson v. Nordstrom-Larpenteur Agency, Inc.,
623 F.2d 1279, 1282 (8th Cir. 1980) (concluding that where each of
the parties has prevailed on one or more of its claims, defenses,
or counterclaims, it is not an abuse of discretion to order each
party to bear its own costs). In the Court's view this is an appropriate case in which to
make the parties bear their own costs. Several considerations have
led to this conclusion. First, although plaintiffs, as a partial
prevailing party, may be entitled to some award of costs under the
FLSA, see 29 U.S.C. § 216(b), the Court cannot overlook their
limited degree of success in this action. Plaintiffs request
$54,753.66 for costs. It does not appear that plaintiffs have
reduced their request based on their limited success. In fact,
Champion points out that in several categories (service fees,
deposition transcripts, witness fees, and photocopies) plaintiffs
have requested costs that were not related to the limited issue
upon which the class prevailed. The Court cannot accept the
proposition, under the particular circumstances of this case, that
plaintiffs are entitled to an award for all the costs incurred in
this action despite their extremely limited success. Cf. Roy v.
County of Lexington, 141 F.3d 533, 549 (4th Cir. 1998) (recognizing
that district court retains discretion to apportion costs under 29
U.S.C. § 216(b)). Moreover, even if the Court were to award plaintiffs some of
their costs, since 29 U.S.C. § 216(b) does not preclude a
prevailing defendant from recovering costs under Federal Civil Rule
of Procedure 54(d), see Davis v. City of Hollywood, 120 F.3d 1178,
1181 (11th Cir. 1997), plaintiffs generally would be responsible to
Champion for its costs. Champion, as explained above, is also a
prevailing party since it received a partial judgment in its favor
after successfully attacking plaintiffs' FLSA on-call claim and
FLSA overtime computation claim on summary judgment. See
Firefighters' Inst. For Racial Equality, 220 F.3d at 905
(prevailing party is a party in whose favor judgment is rendered).
Thus, any award of costs would entail an apportionment among the
parties. Instead of being consumed with apportioning costs, a much
cleaner approach is to deny costs to both sides. The Court is aware that this decision may seem to penalize
Champion as the predominantly prevailing party. However, a
district court's authority to deny costs is not limited to
situations involving misconduct or other action worthy of penalty
on the part of the prevailing party. See Greaser, 145 F.3d at 985
(declining to hold that the court's discretion to deny costs is
limited to such situations); Association of Mexican-American
Educators v. State of California, 231 F.3d 572, 592-93 (9th Cir.
2000) (en banc) (overruling previous cases suggesting that the only
proper reason for denying costs to a prevailing party is to punish
misconduct by that party). And, in fact, the decision is not meant
as a punishment to Champion. Rather it is a recognition that this
litigation was poorly managed. Plaintiffs accuse Champion of
taking a "scorched earth approach" to this litigation and defending
in the tradition of total warfare. Champion counters by arguing
that plaintiffs conducted this litigation in an "obstructive and
haphazard manner, pursued unnecessary issues, and incurred
unreasonably large costs." The Court believes there is a grain of
truth to both allegations. Certainly, plaintiffs' case could have been better focused.
Instead, the claims were continually modified, class
representatives for each claim were never clearly identified,
actions were pursued in both state and federal courts by the
plaintiff class, and initial damage disclosures were never
produced. And certainly, counsel for the parties could have
interacted more professionally. The docket is replete with
numerous discovery motions, allegations of abuse, requests for
sanctions, and motions to strike filed by the parties. The sheer
number of such motions is an indication of a break down in the
working relationship. An award of costs would deteriorate the
relationship further. While this normally would not be an
important consideration, the Court is aware that the related state
case is not finally resolved and the federal case is before the
Eighth Circuit Court of Appeals. Under these circumstances, the
relationship between the parties and counsel is a legitimate
concern for the Court. Finally, the Court is also concerned with the high amount of
costs requested and the ability to pay on behalf of the individual
class members. Champion requests $51,992.03. Spreading this
amount out over all of the class members would still result in a
substantial expense owed by the individual nurses and healthcare
workers. The Court is unwilling to impose such a substantial cost. Therefore, under the particular facts of this case, the Court
in the exercise of its discretion pursuant to Federal Rule of Civil
Procedure 54(d) declines to award costs to either of the parties,
since each of them prevailed, at least in part, in this Court.
Testa v. Village of Mundelein, Ill., 89 F.3d 443, 447 (7th Cir.
1996) (district court did not abuse its discretion in ordering each
party to bear its own costs considering the mixed outcome of the
claims); Allen v. O'Hara, Inc. v. Barrett Wrecking, Inc., 898 F.2d
512, 517 (7th Cir. 1990) (district court did not abuse its
discretion in denying costs where both parties prevailed in part);
Johnson, 623 F.2d at 1282 (no abuse of discretion to order each
party to bear its owns costs where each party prevailed in part);
Armour & Co. v. Nard, 463 F.2d 8, 9-10 (8th Cir. 1972) (same).
II. ATTORNEYS' FEES
Plaintiffs' counsel move the Court for an award of attorneys'
fees and related non-taxable expenses. They request: $112,925.15
for attorneys' fees and $13,048.10 for related non-taxable
expenses. (3) Attorneys' fees for prevailing plaintiffs are recoverable
pursuant to 29 U.S.C. § 216(b) which provides that "the court . .
. shall, in addition to any judgment awarded to the plaintiff or
plaintiffs, allow a reasonable attorney's fee to be paid by the
defendant, and costs of the action." While the award of fees for
prevailing plaintiffs is mandatory in an FLSA action, the district
court has wide latitude to determine the amount of the fee. Uphoff
v. Elegant Bath, Co., 176 F.3d 399, 406 (7th Cir. 1999). The
determination of a reasonable attorneys' fee under the FLSA is
within the sound discretion of the district court. Id. The Eighth Circuit has recently explained that in determining
an appropriate award of attorneys' fees, a trial court should
undertake a two-part analysis: first, determine the claims on which
the plaintiff prevailed and, second, on the claims on which
plaintiff prevailed, determine what amount of attorneys' fee is
appropriate, taking into consideration, the extent of plaintiff's
success on those claims. Burks v. Siemens Energy & Automation,
Inc., 215 F.3d 880, 882 (8th Cir. 2000) (citing Hensley v.
Eckerhart, 461 U.S. 424 (1983)). The Court has already determined
that plaintiffs prevailed on the single limited issue of failing to
include call pay in the overtime computation. This error resulted
in a recovery of $5,707.37 for plaintiffs for the two periods of
irregular overtime computation, along with a recovery of an
additional $5,707.37 in liquidated damages. Thus, the issue for
the Court is determining a reasonable fee considering plaintiffs'
limited success in this action. In determining a reasonable fee, a court generally utilizes
what is called the lodestar method. See H.J. Inc. v. Flygt Corp.,
925 F.2d 257, 260 (8th Cir. 1991). Lodestar is determined by
multiplying the reasonable number of hours expended by the market
rate. Uphoff, 176 F.3d at 407. Market rate equals the rate that
lawyers of similar ability and experience in the community charge
their paying clients for the type work in question. Id. The
attorney's actual billing rate for comparable work is presumptively
appropriate to use as the market rate. Id. (citations omitted). Champion argues that plaintiffs' counsel have not met their
burden of proving the market rate. See Spegon v. Catholic Bishop
of Chicago, 175 F.3d 544, 554 (7th Cir. 1999). As correctly noted
by Champion, the burden of establishing market rate rests with the
fee applicant. Id. In an effort to meet this burden, plaintiffs'
counsel offer an affidavit establishing the following hourly rates: As these attorneys have fee-paying clients, their actual billing
rate within the community is presumptively appropriate to use as
the market rate. Id. at 555. Moreover, the Court is satisfied
that these rates are reasonable, if not low, in comparison to other
attorneys within the Fargo-Moorhead community with equivalent
ability and experience. Consequently, the Court will utilize the
figures offered by plaintiffs' counsel as the market rate. B. Reasonable hours The next step in the lodestar calculation is to determine the
number of hours reasonably expended on the claims. Burks, 215 F.3d
at 882. The general rule is that fees must be reasonably expended:
services that are redundant, inefficient, or simply unnecessary are
not compensable. Jenkins v. State of Missouri, 127 F.3d 709, 716
(8th Cir. 1997). Consequently, hours that were not reasonably
expended must be excluded from the initial fee calculation.
Hensley v. Eckerhart, 461 U.S. 424, 434 (1983). Counsel are
obligated to exercise billing judgment with regard to their fee
application meaning that "hours that are not properly billed to
one's client also are not properly billed to one's adversary." Id.
The fee applicant bears the burden of establishing the reasonable
amount of hours expended on the claims. See id. at 433. Plaintiffs' counsel collectively claim 922.685 hours of work.
Determining the reasonable hours expended in this case is extremely
difficult primarily for two reasons: plaintiffs had limited success
in this case and plaintiffs' counsel's records are imprecise and
vague. Turning to the degree of success, the Court notes that in
the overall context of this case, plaintiffs' prevailing issue of
correctly including call pay into the overtime computation was
tiny. This fact is underscored by the recognition that Champion
voluntarily corrected and repaid the affected employees absent any
court order to do so. Nevertheless, the Court is not prepared to
deem plaintiffs' success nominal and resists Champion's argument to
do so. The success plaintiffs enjoyed, while small, was important and
benefitted not only themselves but other employees. Additionally,
this benefit extends into the future since Champion presumably has
developed a computer system that correctly computes overtime. The
Court in no way demeans plaintiffs' or their counsel's efforts.
However, in setting a reasonable fee the most critical factor for
the Court is the degree of success the party obtained. Hensley,
461 U.S. at 436. As noted above, in this case that degree of
success is very small: reduced to numbers, it equates to about
$11,414.74. Turning to counsel's record keeping, the Court's review of the
four plus years of WIPs from the two separate firms involved in
plaintiffs' case indicates that winnowing which hours were devoted
to plaintiffs' prevailing claim would be akin to finding the
proverbial needle in a haystack. As Champion points out, it
requested that plaintiffs' counsel keep detailed records which
specifically allocated the time spent on each of plaintiffs'
numerous state and federal claims. Counsel for plaintiffs
declined, however, to keep such specific records. As a result,
they were forced to go over four plus years of WIPs to try to
reconstruct how much time was spent on their prevailing issue.
Attorney Nelson recognizes in his affidavit that he has done his
best to estimate that amount of time. Upon completing the task, Attorney Nelson, on behalf of his
firm, requests 137.9 hours for work done before the overtime
correction was made and 623.3 hours for work done after the
correction was made. Nelson indicates that this represents 11.31%
of all time expended by his firm in this case. Additionally
Attorney Bredahl, utilizing Nelson's 11.31% approach, requests
approximately 161.485 hours for work done by his firm. This
amounts to a total of 922.685 hours of work. Accepting that
Attorneys Nelson and Bredahl have made a good faith and honest
effort to identify the hours expended on the limited issue upon
which plaintiffs prevailed, the Court believes that this method of
reconstructing time is fraught with subjectivity, uncertainty and
unreliability. This case contained as many as thirteen different federal and
state claims made by a class of plaintiffs over the course of a
very long litigation life - over four years. Eleven claims were,
in fact, dismissed prior to the date set for trial. To complicate
matters even further, not every plaintiff in the class had exactly
the same claims: for instance, some had overtime claims and some
did not; some presented state claims and some did not.
Additionally, the claims an individual plaintiff presented changed
over the course of the litigation so that, at some points, the
Court and defense counsel would believe that a plaintiff asserted
a particular claim only later to learn that that plaintiff no
longer pursued the particular claim but another. Under these
circumstances a reconstruction of time, while not per se precluding
an award of attorney's fees, see MacDissi v. Valmont Industries,
Inc., 856 F.2d 1054, 1061 (8th Cir. 1988), must be viewed with a
high level of skepticism. Aside from the obvious difficulties in reconstructing hours in
this case, Champion also objects that the hours plaintiffs' counsel
propose are disproportionate, duplicative, vague, and unnecessary.
For example, Champion points out that 93% of the overtime
correction payments were made by September of 1997, yet the Ohnstad
Twichell firm alone requests 137.9 hours for work done before
September of 1997 and 623.3 hours of work done after the
corrections were made. The hours sought after September 1997
amount to almost 4 ½ times those sought before that date. The
Court is astounded and concerned by such a disproportionate
request. As another example of improperly requested time, the
Court notes that plaintiffs' counsel have charged for time devoted
to plaintiffs that did not assert the claim upon which the class
prevailed. Although the Court could continue with more examples of
vague entries and duplicative efforts, it finds it unnecessary. It
is sufficient to say that the hours must be reduced as the Court
cannot, in good conscience, justify expending 922.685 legal
services hours on the plaintiffs' prevailing claim. In reducing the hours, the Court has two choices: review the
WIPs and attempt to identify and eliminate the hours spent on non-compensable claims, duplicative time, and unnecessary efforts or
simply reduce the hours to reflect plaintiffs' limited success and
imprecise records. See H.J. Inc., 925 F.2d at 260 (citing Hensley,
461 U.S. at 436-37). Of course, it would be preferable if the
Court could reduce the time based on the non-compensable claims,
duplicative time and unnecessary efforts. See id. at 261. That,
however, is impossible. The Court is in no position to review over
four years of WIPs from two separate law firms and identify which
hours of work relate to plaintiffs' prevailing claim. Such a
review would be exhaustive and fraught with subjectivity and error
by the Court as well, especially considering the vagueness of some
of the entries and the interrelatedness of the claims presented.
Consequently, an across the board cut is required. The question is
how much. In this regard, the Court is cognizant that it must
consider, as a part of reasonableness, the amount of time that
could ever reasonably be spent on an issue of this nature. See
Gumbhir v. Curators of Univ. of Missouri, 157 F.3d 1141, 1146 (8th
Cir. 1998). This inquiry is required since attorneys "should not
be permitted to run up bills that are greatly disproportionate to
the ultimate benefits that may be reasonably attainable." Id.
The Court determines that given the limited attention devoted
to the prevailing claim in motions and briefs before this Court,
and that Champion made the corrections and paid the affected
employees before the plaintiffs had even sought a court order
requiring it to do so, the plaintiffs' requested hours should be
reduced by 75%. Accordingly, plaintiffs' compensable time is
reduced to 230.67 hours. (4) This award is more than adequate, if not
in fact, generous, to compensate plaintiffs' counsel. In addition to their request for costs and attorneys' fees,
plaintiffs also request an award for related non-taxable expenses.
Plaintiffs' counsel, following the same 11.31% approach, request
$12,853.35 for the Ohnstad Twichell firm, $96.93 for Bredahl &
Assoc. costs that were paid through Ohnstad Twichell Trust Account,
and $97.82 in costs for Bredahl & Assoc. These additional amounts
represent meeting expenses, office rental fees, research materials,
Westlaw research, long distance telephone calls, faxes, postage,
materials, UPS services, secretary of state filing fees, certified
copies, mail services, PACER, staff travel, in-house photocopies,
expert witness fees, and newspaper publication costs. Champion
resists any award of these expenses and alternatively argues that
any award of expenses should be greatly reduced. Expenses not properly taxed as costs under 28 U.S.C. § 1920
may be included as a part of reasonable attorney's fees under civil
rights and other fee shifting statutes. See
Calderon v. Witvoet,
112 F.3d 275, 276 (7th Cir. 1997); Pinkham v. Camex, Inc., 84 F.3d
292, 295 (8th Cir. 1996); Jane L. v. Bangerter, 61 F.3d 1505, 1517
(10th Cir. 1195); Kelley v. Bowen, 862 F.2d 1333, 1335 (8th Cir.
1988). The general rule appears to be that the expenses must be
reasonable and of the kind normally billed to the client and not
absorbed by the law firm as overhead expense. Jane L., 61 F.3d at
1517; Neufeld v. Searle Lab., 884 F.2d 335, 342 (8th Cir. 1989).
In applying this rule, the Court believes that while the attorney-client agreement may provide some basis for determining which
expenses are customarily billed to a client, the Court is certainly
not bound by such an agreement. The Court finds that the expenses claimed for long distance
telephone calls, faxes, postage, mail services, UPS costs,
newspaper publications, fees for the secretary of state and
certified copies are reasonable and are of the type normally billed
to clients. Pinkham v. Camex, Inc., 84 F.3d at 295 (costs for long
distance, faxes, messenger and express mail are expenses normally
charged to clients); Kelley v. Bowen, 862 F.2d at 1335 (telephone
calls, postage, and air courier costs normally billed).
Photocopying expenses are also allowable as a charge normally
billed to clients. See Northcross v. Board of Educ. of the Memphis
City Sch., 611 F.2d 624, 639 (6th Cir. 1979) (reasonable
photocopying expenses are recoverable). There is some concern over
whether the charges for photocopying expenses are reasonable;
Ohnstad Twichell alone requests close to $12,000. The Court
believes that at first blush, the amounts for photocopying are
shocking; however, they likely are reasonable given the complexity,
length, and size of this litigation. The Court will not strike the
requests as unreasonable or excessive. The Court, however, is
concerned with the per page charge for copies assessed by Bredahl
& Assoc. Upon reviewing their submitted billable worksheets for
expenses, it appears that Bredahl & Assoc. charged $.20 per page
per copy. The set charge was $.15 per page. Consequently, the
request will be reduced accordingly. (5) The Court, in its discretion, does not approve of other
inappropriate expenses. See Winter v. Cerro Gordo County
Conservation Bd., 925 F.2d 1069, 1074 (8th Cir. 1991) (concluding
that court did not abuse its discretion in denying expenses for
telephone calls, expert witnesses, travel, photocopies, food and
lodging, computer legal research, depositions and filing fees).
First, the Court disapproves of the meeting expenses as vague and
inappropriate. These charges apparently reflect in-town lunch
expenses. For example, a typical entry in the Ohnstad Twichell
WIPs notes "10/28/99 Valentino's - DHHS Meeting $40.00." Such
entries do not indicate whether the clients were involved or
whether the attorneys ate lunch out and charged the clients.
Second, staff travel time is excluded. Although it may be
appropriate to bill for attorney travel time for trips in different
states or cities, see Neufeld, 884 F.2d at 342 (approving of travel
expenses where attorneys traveled to Florida and Illinois to take
depositions), it is unreasonable to charge for travel time between
two offices of the same firm within the same metropolitan area.
Other categories of typical overhead expenses are also excluded,
notwithstanding any agreement by the client to cover the expenses;
these include: rental of additional office space; research
materials; materials and paper. Costs such as these should be
absorbed by the firm overhead. Additionally, the expert witness
fees expense is disapproved as this expert did not address the
issue upon which plaintiffs prevailed. Finally, the expenses for using Westlaw, and similarly PACER,
must be excluded. See Standley v. Chilhowee R-IV School Dist., 5
F.3d 319, 325 (8th Cir. 1993); Leftwich v. Harris-Stowe State
College, 702 F.2d 686, 695 (8th Cir. 1983). While this Court may
disagree, it is the clear and binding law of this circuit that the
expense of "computer-based legal research must be factored into the
attorneys' hourly rate, hence the cost of the computer time may not
be added to the fee award." (6) Standley, 5 F.3d at 325.
See also
Emmenegger v. Bull Moose Tube Co., 33 F.Supp.2d 1127, 1137 (E.D.
Mo. 1998) (applying law of circuit to disallow computer assisted
legal research). Excluding the above categories from the expenses results in a
preliminary amount of $22,456.14 for the Ohnstad Twichell firm,
$855.56 for Bredahl & Assoc. expenses paid through the Ohnstad
Twichell Trust Account, and $627.83 for Bredahl & Assoc. (7) This
equals a total preliminary amount of $23,939.53. Following
Attorney Nelson's 11.31% approach, this results in a combined
request of $2,707.56. Utilizing the Court's 75% reduction, this
amounts to an appropriate expense award of $676.89. (8)
D. Hours Expended on Preparation of Attorneys' Fees Motion
Plaintiffs' counsel have submitted a supplemental motion for
fees and costs related to the preparation of their motion for
attorney fees. Counsel request an additional $11,086.00 (9) in fees
and $32.03 in costs. Although plaintiffs have not separately
charted the hours, the Court calculates that 82.9 (10) hours of work
are requested. (11)
Under most fee shifting statutes, courts have allowed parties
to seek a reasonable fee for time spent preparing and defending an
application for attorneys' fees. See, e.g.,
Wyent v. Okst, 198
F.3d 311, 316 (2nd Cir. 1999) (discussing § 1988 fees); Vaughn
v.Heckler, 860 F.2d 295, 296 (8th Cir. 1988) (awarding partial fees
for time spent preparing EAJA fee application). The Court's review
indicates that plaintiffs' counsel have included time spent
preparing their Rule 54(d) motion for costs and responding to
Champion's motion regarding the same. Since the Court has
determined that each party will bear its own costs, the time spent
preparing and responding to the costs motions also is not allowed.
After reviewing and considering the time entries, the Court
calculates that approximately 37.6 hours were devoted to the issue
of costs. (12) Accordingly, that amount of time is deducted which
leaves 45.3 hours remaining. Notwithstanding the Court's reduction, spending 45.3 hours on
a fee application is unreasonable. Considering the amount of time
allowed on the merits of the case (230.67), this amounts to roughly
20 minutes for fee application per one hour of merits. As a
comparison, in Uphoff, the district court determined that 9.9 hours
of attorney time in connection with the preparation of a fee motion
was unreasonable and reduced the billable hours to 1.6. 176 F.3d
at 411. The court of appeals upheld the reduction deeming it
reasonable in light of the number of hours counsel spent litigating
the merits of the case: under 100 hours. Id. Other cases from the
Seventh Circuit Court of Appeals are similar: Ustrak v. Fairman,
851 F.2d 983 (7th Cir. 1988) awarding 1.6 hours as reasonable time
spent for fee motion preparation (disallowing 15 minutes to
preparing fee petition for every hour spent on merits); Kurowski v.
Krajewski, 848 F.2d 767 (7th Cir. 1988) awarding 1.6 hours (in light
of 140 hours on the merits) as reasonable time spent for fee motion
preparation amount of time; Spegon v. Catholic Bishop of Chicago,
175 F.3d 544 finding it unreasonable to spend approximately same
number of hours on fee petitions as merits (9 hours on fee petition
and 10.8 hours on merits). One apparent reason that plaintiffs' counsel may have spent so
much time on fee preparation is that their records were not precise
from the beginning. Nelson notes that he had to go back through
their WIPs and estimate how much time was actually spent regarding
the issue on which they prevailed. This lack of clear record
keeping should not be used as a way to increase the amount of fees
awarded to counsel. See Farrar, 506 U.S. at 115 (noting that fee
awards were never intended to produce windfalls to attorneys).
This is especially true in light of Champion's numerous requests
that plaintiffs' counsel keep specific time records. In light of these circumstances, and finding the case-law from
the Seventh Circuit persuasive, the Court reduces the hours for the
fee application to 3.69 hours. The Court has already determined
that no more than 230.67 hours could have reasonably been devoted
to the merits of the issue upon which plaintiffs prevailed.
Adopting the approach of 1.6 hours fee time per 100 hours merit
time, see Uphoff, 176 F.3d at 411, the Court calculates a
reasonable amount of time for preparation of a fee application as
follows: 230.67 x .016 = 3.69 hours. Instead of apportioning 3.69
hours between counsel and paralegal time and since the majority of
time spent on the fee application was counsel time, the Court
awards these hours at counsel's rate of $145 per hour.
Accordingly, the sum of $535.05 is awarded. The additional request for $32.03 in costs for Westlaw
research will not be allowed for the reasons expressed above. Plaintiffs' motion for taxation of disputed costs, (doc.
#461), is DENIED. Plaintiffs' motion for attorneys' fees and
related non-taxable expenses, (doc. #462), is GRANTED in the amount
of $28231.33 for attorneys' fees and $676.89 for non-taxable
expenses. Champion's motion for taxation of disputed costs, (doc.
#465), is DENIED. Plaintiffs' supplemental motion for attorneys'
fees and costs, (doc. #479), is GRANTED in the amount of $535.05. IT IS SO ORDERED. RODNEY S. WEBB, CHIEF JUDGE 1. The chart below reflects the costs that each party
requests the Court to tax. 2. Contrary to plaintiffs' suggestion, the fact that
plaintiffs were deemed a prevailing party on one limited issue
does not prevent the Court from deeming Champion the
predominantly prevailing party in light of the other issues. See
Johnson v. Nordstrom-Larpenteur Agency, Inc., 623 F.2d 1279, 1282
(8th Cir. 1980) (district court did not err in ordering each
party to bear its own costs when each party had prevailed on one
or more of its claims, defenses, or counterclaims). See also
Northbrook Excess & Surplus v. Procter & Gamble Co., 924 F.2d
633, 641-42 (7th Cir. 1991) (explaining that under Rule 54(d)
prevailing party is the party who prevails as to the substantial
part of the litigation).
3. The breakdown of requested fees in this motion is as
follows: a. Attorney Fees: b. Hours: c. Related Non-Taxable Expenses: 4. Utilizing Exhibit C from Attorney Nelson's Affidavit in
Support of Motion for Fees and Attorney Bredahl's Affidavit, the
Court calculates the following: 5. The Court calculates that Bredahl & Assoc. made 2629
copies. At a rate of $.15 per copy, this amounts to $394.35.
6. The Court is satisfied that the actual time spent
researching on Westlaw was billed. See
Standley, 5 F.3d at 325
n.7 (recognizing that time spent doing the computer-based legal
research is compensable as part of counsels' billable hours).
Forum publications: 8. This amounts to an apportionment of: Ohnstad Twichell: Bredahl & Assoc. through Ohnstad Twichell T/A: Bredahl & Assoc.: Total: $676.89 9. The Court believes that an error in addition has been
made. Upon repeated calculations of the underscored dollar
amounts in the submitted WIP, the Court repeatedly calculates
$10,825.00. The Court utilizes its own figure.
10. Champion asserts that plaintiffs request 84.7 hours of
work; however, upon numerous additions of the underscored hours
in the submitted WIP, the Court repeatedly calculates 82.9 hours.
11. The Court calculates the following: 12. The Court deducts the following from each person:
ORDER
Associate Attorney Brenda Foyt:
$90-110
Associate Attorney Pete Dosland:
$135
Shareholder Dean Rindy:
$135
Shareholder Robert Hoy:
$135-145
Paralegals:
$40-80
Shareholder Marshall McCullough
$130-135
Shareholder Steven McCullough
$125-135
Shareholder Duane Breitling
$125-135
Shareholder Mike Nelson:
$125-145
Shareholder Jeff Bredahl:
$125
Associate Tracy Gompf:
$125
UNITED STATES DISTRICT COURT
Type of Cost
Champion
Plaintiffs
Filing Fee
30.00
120.00
Service Fees
345.30
Fees of Crt Reporter
Hearing transcripts
1,988.53
1,801.53
Deposition transcripts
18,571.51
10,256.74
Witness Fees
375.00
PhotoCopies
29,910.44
41,835.09
(additional copies)
1,446.05
Docket Fee
20.00
Miscellaneous
45.50
TOTALS
$51,992.03
$54,753.66
$92,739.50 requested by Ohnstad Twichell firm;
$20,185.65 requested by Bredahl & Assoc.
761.20 claimed by Ohnstad Twichell firm;
161.485 claimed by Bredahl & Assoc. (calculated by Court)
$12,853.35 for Ohnstad Twichell;
$96.93 for costs expended by Bredahl & Assoc. and
covered by Ohnstad Twichell Trust Account;
$97.82 for costs of Bredahl & Assoc.
a. Brenda R. Foyt:
11.5
hours reduced by 75% =
2.875 @ $ 90 p/h =
$ 258.75
13.3
hours reduced by 75% =
3.325 @ $110 p/h =
$ 365.75
b. Robert G. Hoy:
2.7
hours reduced by 75% =
.675 @ $135 p/h =
$ 91.13
1.2
hours reduced by 75% =
.30 @ $145 p/h =
$ 43.50
c. Dean A. Rindy:
.1
hours reduced by 75% =
.025 @ $135 p/h =
$ 3.37
d. J. Peter Dosland:
3.4
hours reduced by 75% =
.85 @ $135 p/h =
$ 114.75
.3
hours reduced by 75% =
.075 @ $145 p/h =
$ 10.88
e. Barbara A. Just:
1.5
hours reduced by 75% =
.375 @ $ 80 p/h =
$ 30.00
f. Saree Reveling:
25.5
hours reduced by 75% =
6.375 @ $ 55 p/h =
$ 350.63
2.9
hours reduced by 75% =
.725 @ $ 70 p/h =
$ 50.75
g. Anja Kalvoda:
.5
hours reduced by 75% =
.125 @ $ 40 p/h =
$ 5.00
h. M. McCullough:
.1
hours reduced by 75% =
.025 @ $130 p/h =
$ 3.25
.1
hours reduced by 75% =
.025 @ $135 p/h =
$ 3.37
i. S. McCullough:
.2
hours reduced by 75% =
.05 @ $125 p/h =
$ 6.25
3.6
hours reduced by 75% =
.9 @ $130 p/h =
$ 117.00
3.98
hours reduced by 75% =
.995 @ $135 p/h =
$ 134.33
j. Duane Breitling:
4.6
hours reduced by 75% =
1.15 @ $125 p/h =
$ 143.75
.8
hours reduced by 75% =
.2 @ $130 p/h =
$ 26.00
20.1
hours reduced by 75% =
5.025 @ $135 p/h =
$ 678.37
k.
Robin D. Busch:
136.7
hours reduced by 75% =
34.175 @ $ 80 p/h =
$2734.00
l. Michael Nelson:
135.0
hours reduced by 75% =
33.75 @ $125 p/h =
$4218.75
49.3
hours reduced by 75% =
12.325 @ $130 p/h =
$1602.25
107.8
hours reduced by 75% =
26.95 @ $135 p/h =
$3638.25
236.0
hours reduced by 75% =
59.0 @ $145 p/h =
$8555.00
(23185.08)
m. Bredahl & Assoc:
161.485
hours reduced by 75% =
40.37 @ $125 p/h =
$5046.25
Totals:
230.665
$28231.33
(1) Ohnstad Twichell Expenses:
Long distance telephone calls:
325.84
Faxes:
2471.98
Postage:
1910.82
UPS:
89.75
Sec. Of State Fees:
39.00
Certified Copies:
80.00
Mail Services:
241.95
Photocopies:
11814.75
4602.24
Mail Center:
879.81
Total
$22456.14
(2) Bredahl & Assoc. Expenses paid
through Ohnstad
Twichell Trust Account:
Postage:
102.93
Copies:
750.05
Long distance telephone calls:
2.58
Total
$855.56
(3) Bredahl & Assoc. Expenses:
Postage:
166.98
Copies:
394.35
Copyright Clearance Center:
66.50
Total:
$627.83
$22,456.14 x 11.31% = 2539.79 reduced by 75% = $634.95
$855.56 x 11.31% = 96.76 reduced by 75% = $ 24.19
$627.83 x 11.31% = 71.00 reduced by 75% = $ 17.75
(1) Attorney Nelson
66.6 hours @
$145 per hour
($9657)
(2) Paralegal STR
13.6 hours @
$70 per hour
($ 952)
(3) Paralegals RDB/BAJ
2.7 hours @
$80 per hour
($ 216)
Total
82.9 hours
$10825
(1) Attorney Nelson:
30.1 hours;
(2) Paralegal STR:
7.5 hours;
(3) Paralegals RDB/BAJ
0 hours.
Total
37.6 hours
deducted.