Opinion

Escapex IP LLC v. Google LLC

Court
District Court, N.D. California
Filed
Feb 12, 2024
Cited by
0 cases
Authority
More cited than 19.0%

“Rule 59(e) . . . may not be used to relitigate old matters, or to raise arguments or present evidence that could have been raised prior to the entry of judgment.”

How later courts described this case

  • “Rule 59(e) . . . may not be used to relitigate old matters, or to raise arguments or present evidence that could have been raised prior to the entry of judgment.”

Written by the judges who cited it.

The opinion

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

ESCAPEX IP LLC, Case No. 22-cv-08711-VC

Plaintiff,

ORDER GRANTING MOTION FOR

v. ATTORNEYS' FEES UNDER 28 U.S.C.

§ 1927

GOOGLE LLC,

Re: Dkt. No. 66

Defendant.

The motion for attorneys’ fees is granted. This order assumes the reader’s familiarity with

the facts of the case, the relevant law, and the arguments made by the parties.

When an attorney unreasonably or vexatiously multiplies the proceedings, courts may

require the attorney to personally satisfy “the excess costs, expenses, and attorneys’ fees

reasonably incurred because of such conduct.” 28. U.S.C. § 1927. To impose sanctions under

§ 1927, a court must find that the attorney’s conduct was at least reckless. See Fink v. Gomez,

239 F.3d 989, 993 (9th Cir. 2001). Here, the attorneys for EscapeX acted recklessly by filing a

frivolous Rule 59(e) motion that unreasonably multiplied the proceedings of this case.

EscapeX’s Rule 59(e) motion—seeking reversal of this Court’s previous fee order—

argued that reversal was warranted based on newly discovered evidence. See Dkt. No. 59. But

the evidence EscapeX presented in no way met the standard of newly discovered evidence under

Rule 59(e). EscapeX submitted two declarations—one from EscapeX’s president and one from

an engineer who drafted EscapeX’s claim charts—both of which contained information that was

already known by EscapeX at the time of Google’s original fee motion. Just because EscapeX

failed to include these declarations at that time does not mean that they constituted “newly

discovered evidence.” See School District No. 1J, Multnomah County, Oregon v. ACandS, Inc., 5

F.3d 1255, 1263 (9th Cir. 1993). EscapeX also provided no argument explaining why these

declarations should have been considered “newly discovered evidence.” Other than reciting the

legal standard for a Rule 59(e) motion, EscapeX’s motion cited no authority for its position that

the declarations constituted new evidence. Instead, the motion simply summarized what was in

the declarations and raised arguments that could have been made prior to entry of the initial fee

award. See Exxon Shipping Co. v. Baker, 554 U.S. 471, 486 n.5 (2008) (“Rule 59(e) . . . may not

be used to relitigate old matters, or to raise arguments or present evidence that could have been

raised prior to the entry of judgment.”). As a result, EscapeX’s Rule 59(e) motion was frivolous.

And EscapeX’s attorneys’ refusal to withdraw or amend their motion when informed by

Google’s counsel of its numerous problems, at a minimum, constitutes recklessness.

Moreover, in its opposition to Google’s current attorneys’ fees motion, EscapeX argues

that it filed its Rule 59(e) motion based on its belief that the original fee order was manifestly

unjust. See Dkt. No. 73. However, this argument is found nowhere in EscapeX’s actual motion.

If the basis for the motion was indeed a belief that there was manifest injustice, then that is even

more reason to find that EscapeX’s attorneys acted recklessly or in bad faith by filing a motion to

reconsider on the grounds of newly discovered evidence.

In light of this conduct, Google requests reimbursement for its attorneys’ fees and costs

in the amount of $92,602.95. See Dkt. No. 66 (requesting $34,447.65 in fees and costs incurred

in responding to the Rule 59(e) motion and in preparing this fees motion); Dkt. No. 83

(requesting an additional $58,155.30 in fees and costs incurred in filing this fees motion,

preparing/filing a reply, and arguing at the hearing). While Google’s request for $34,447.65 in

connection with responding to the Rule 59(e) motion and preparing this fees motion is facially

reasonable, its request for $58,155.30 for its subsequent work is not. It is unreasonable for the

cost of filing—as opposed to preparing—a fees motion, preparing and filing a reply brief, and

arguing at a 13-minute hearing to be more than 1.5 times greater than responding to a Rule 59(e)

motion and preparing a fees motion. Therefore, Google is entitled to reimbursement of its

reasonable attorneys’ fees and costs in the amount of $63,525.30 to be levied jointly and

severally against EscapeX’s attorneys, William P. Ramey, III and Susan S.Q. Kalra.!

IT IS SO ORDERED.

Dated: February 12, 2024 Koo.

um ini

VINCE CHHABRIA

United States District Judge

' Google also requests that the previously awarded fees and costs be levied jointly and severally

against these attorneys. However, they did not make this request at the time they sought their

original attorneys’ fees award, making this current request untimely.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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