including the attorney’s fees expert witness’s fee in the award of reasonable attorney’s fees and costs as sanctions under Rule 11
How later courts described this case
- including the attorney’s fees expert witness’s fee in the award of reasonable attorney’s fees and costs as sanctions under Rule 11
- “The court . . . is itself an expert on the question [of attorney’s fees] and may consider its own knowledge and experience concerning reasonable and proper fees and may form an independent judgment either with or without the aid of witnesses as to value.” (citation omitted)
- affirming award of prejudgment interest on sanctions award “under its inherent powers based on ‘the cost of the delay for the fees and expenses’”
- “The district court [] acted within the scope of its discretion by including in the sanctions award the costs, expenses, and attorney’s fees incurred by the defendants in obtaining the award.”
Written by the judges who cited it.
The opinion
UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
TAMPA DIVISION
GS HOLISTIC, LLC,
Plaintiff,
v. Case No. 8:22-cv-2179-VMC-TGW
BROTHER PASTOR LLC d/b/a
LARGO SMOKE SHOP, MATTHEW
S. MOSES, and EARL BURDETTE,
Defendants.
_____________________________/
ORDER
This matter comes before the Court pursuant to
Defendants Brother Pastor LLC, Matthew S. Moses, and Earl
Burdette’s Motion for Determination of Attorney Fees, Costs,
and Sanctions (Doc. # 36), filed on August 7, 2023. Plaintiff
GS Holistic, LLC responded on August 21, 2023. (Doc. # 38).
As set forth herein, the Motion is granted in part and denied
in part.
I. Background
The Court and the parties are familiar with the facts
and procedural history of this case. Thus, the Court will not
review that history in detail. Suffice it to say, on September
20, 2022, GS Holistic filed its complaint alleging trademark
infringement and unfair competition in violation of 15 U.S.C.
§§ 1114 and 1125(a). (Doc. # 1). Despite months of discussion
between the parties concerning the lack of factual basis to
assert trademark claims against Defendants, GS Holistic
continued to pursue the case.
On February 27, 2023, Defendants sent GS Holistic’s
counsel, Ms. Gabrielle Alexa Penalta, a Rule 11 letter with
a copy of their motion for sanctions, placing her on notice
that they would file the motion in twenty-one days unless GS
Holistic amended or withdrew the complaint. (Doc. # 30-2 at
32). In response, GS Holistic filed its amended motion to
dismiss the case voluntarily without prejudice on March 22,
2023. (Doc. # 28). Defendants filed their motion for sanctions
the next day, seeking the imposition of sanctions against
both GS Holistic and Ms. Penalta. (Doc. # 29). In the motion
for sanctions, Defendants requested attorney’s fees and costs
“incurred in 1) answering [GS Holistic’s] Complaint []; 2)
preparing the Uniform Case Management Report []; 3) preparing
and submitting Defendants’ Rule 26(a) disclosures; 4)
responding to [GS Holistic’s] [m]otion to [s]trike []; 5)
selecting a mediator; 6) engaging in discovery and 7) bringing
th[e] [m]otion for [s]anctions.” (Id. at 15-16).
On June 20, 2023, the Court granted GS Holistic’s amended
motion to dismiss case voluntarily without prejudice and
granted Defendant’s motion for sanctions. (Doc. # 34). The
Court found that the imposition of sanctions in the form of
attorney’s fees and costs against GS Holistic and its counsel,
Ms. Penalta, was warranted under both Federal Rule of Civil
Procedure 11 and 28 U.S.C. § 1927. (Id. at 11-15). The Court
wrote: “Put simply, Ms. Penalta has wasted both Defendants’
and the Court’s time, and made misrepresentations to the Court
which were objectively frivolous and which she knew to be
false.” (Id. at 14).
Now, Defendants seek a determination of the amount of
reasonable attorney’s fees and costs to be imposed as a
sanction. (Doc. # 36). The Motion is fully briefed (Doc. ##
38, 39) and ripe for review.
II. Discussion
Defendants ask for $40,070.00 in attorney’s fees,
$13,800.00 in expert fees for the attorney’s fees expert as
costs, $2,052.00 in other costs related to Defendant Moses’s
taking out of loans to pay defense counsel’s fees, and
prejudgment interest. (Doc. # 36). The Court will address
these categories in turn.
As a preliminary matter, the Court notes that the
sanctions imposed on Ms. Penalta are also imposed against her
firm, The Ticktin Law Group, PA, jointly. See Fed. R. Civ. P.
11(c)(1) (“Absent exceptional circumstances, a law firm must
be held jointly responsible for a violation committed by its
partner, associate, or employee.”).
A. Attorney’s Fees
“When a statute or rule of law permits an award of
reasonable attorneys’ fees . . . , a court should utilize the
lodestar method in computing the appropriate fees.” Baker v.
Fid. Mortg. Direct Corp., No. 8:10-cv-2596-SCB-TBM, 2011 WL
1560665, at *3 (M.D. Fla. Apr. 25, 2011) (citing Norman v.
Hous. Auth. of City of Montgomery, 836 F.2d 1292, 1299 (11th
Cir. 1988)). “Under the lodestar method, a court determines
the objective value of a lawyer’s services by multiplying the
hours reasonably expended by a reasonable hourly rate.” Id.
“A reasonable hourly rate is the prevailing market rate
in the relevant legal community for similar services by
lawyers of reasonably comparable skills, experience, and
reputation.” Norman, 836 F.2d at 1299. “The applicant bears
the burden of producing satisfactory evidence that the
requested rate is in line with prevailing market rates.” Id.
“Furthermore, fee applicants are required to exercise
‘billing judgment.’” Omnipol, A.S. v. Worrell, No. 8:19-cv-
794-VMC-TGW, 2021 WL 1842212, at *2 (M.D. Fla. Mar. 23, 2021)
(citation omitted), report and recommendation adopted, No.
8:19-cv-794-VMC-TGW, 2021 WL 1840513 (M.D. Fla. May 7, 2021).
“If they do not exclude ‘excessive, redundant, or otherwise
unnecessary hours,’ the court must exercise billing judgment
for the applicant.” Id. (citation omitted). “The fee opponent
‘has the burden of pointing out with specificity which hours
should be deducted.’” Id. (citation omitted). “There is a
strong presumption that the lodestar yields a reasonable fee
for this purpose.” In re Home Depot Inc., 931 F.3d 1065, 1082
(11th Cir. 2019).
As mentioned above, Defendants request $40,070.00 for
the work of three attorneys and a paralegal. (Doc. # 36 at
9). Defendants support their claim for attorney’s fees with
the declarations of counsel Crystal Broughan, Defendant
Moses, and an attorney’s fees expert, Dineen Wasylik. (Doc. #
36-1; Doc. # 36-2; Doc. # 36-3). Ms. Broughan’s declaration
reveals that the “total time expended by the Defense team
through July 31, 2023” was 100.4 hours. (Doc. # 36-2 at 6-
7). Broughan explains that Defendants’ counsel “exercised
billing judgment to remove any hours [they] deemed
duplicative or excessive for the tasks performed.” (Id. at
6). According to the Motion, “[p]rior to the case rising to
the level of Defendants seeking Rule 11 sanctions, the total
time spent on the case by all of Defendants’ timekeepers was
39.2 hours.” (Doc. # 36 at 5). Defendants’ counsel spent 13.2
hours preparing the motion for sanctions and 20.7 hours
responding to GS Holistic’s motion to voluntarily dismiss the
case without prejudice. (Id. at 5-6). Finally, Defendants’
counsel spent 26.7 hours researching and preparing the
instant Motion, including obtaining the attached
declarations. (Id. at 6). However, upon review of the hours
billed by Defendants’ counsel, Ms. Wasylik opined that only
99.6 hours were reasonably expended, for a total of $40,070
in reasonable attorney’s fees. (Doc. # 36-3 at 16). Ms.
Wasylik reached the 99.6 hours after reducing the 100.4 total
hours by 0.7 hours of Ms. Broughan’s time on administrative
or clerical tasks between July 17 and 19, 2023. (Id. at 11).
Ms. Broughan, a partner with twenty-three years’
experience, billed at a reasonable hourly rate of $500. (Doc.
# 36 at 9). Mitchell Ghaneie, a partner and patent attorney
with eight years’ experience, initially billed at an hourly
rate of $500 but later voluntarily reduced his rate to $250
an hour. (Id.). Associate attorney Julianna Favale, with
nearly two years’ experience, billed at an hourly rate of
$350. (Id.). Finally, paralegal Erin Poovey billed at an
hourly rate of $175. (Id.).
In response, GS Holistic agrees that the hourly rates
charged by Defendants’ counsel are reasonable. See (Doc. # 38
at 2) (“[T]he Plaintiff does not challenge the hourly fee
charged.”). But GS Holistic insists that an across-the-board
reduction of the attorney’s fees “to an amount between $15,000
and $20,000” is appropriate because “there was no need for
much of the work to have been done where there was an
irrefutable and determinative fatal flaw in [GS Holistic’s]
case.” (Id. at 2-3). It also argues that defense “counsel
failed to exercise billing judgment and [are] improperly
seeking attorneys’ [fees] for non-compensable or non-
reimbursable hours.” (Id. at 3). If the Court is not inclined
to issue an across-the-board reduction, GS Holistic has
identified numerous entries in Defendants’ attorney’s fees
ledger that it maintains should be reduced. (Doc. # 38-2;
Doc. # 38-3). According to GS Holistic’s calculation,
Defendants’ attorney’s fees of $40,070.00 should be reduced
by $16,875.00. (Doc. # 38 at 8). This would reduce the
approximately 100 hours of attorney time by 38.10 hours, for
a total of 61.90 hours remaining. (Id.).
The Court disagrees with GS Holistic’s assertion that
Defendants spent too many hours working on this case, given
its frivolous nature. Although GS Holistic and its counsel
never should have filed this trademark infringement action in
the first place, they did. And they continued litigating it
actively for months after Defendants advised GS Holistic of
the lack of factual or legal foundation for the case. GS
Holistic and counsel’s decision to actively litigate this
action after being alerted to the case’s frivolousness —
including requiring Defendants to file an answer, filing a
motion to strike Defendants’ affirmative defenses, scheduling
mediation, and failing to dismiss this action during the 21-
day safe harbor after being served with the motion for
sanctions — necessitated defense counsel’s extensive time
dedicated to the case.
Furthermore, GS Holistic, through counsel, informed
Defendants that it would be amending the complaint to assert
a patent infringement claim. Thus, Defendants reasonably
dedicated hours of attorney time to investigating the
anticipated non-frivolous claim. These hours were wasted only
because GS Holistic failed to timely amend the complaint to
assert the patent claim.
Notably, Defendants have already made concessions in
their billing to account for this odd procedural situation
created by GS Holistic’s misconduct. One of Defendants’
attorneys, Mr. Ghaneie, “voluntarily reduced his hourly rate”
— by 50% — “as a patent attorney once he realized [GS
Holistic’s] counsel was not going to file an amended complaint
for patent infringement and the Defense was going to have to
defend the Defendants in a frivolous case.” (Doc. # 36 at
10). The Court agrees with Defendants’ fee expert, Ms.
Wasylik, that Mr. Ghaneie’s “reduction in fee shows a strong
exercise of billing judgment.” (Doc. # 36-3 at 7).
In short, an across-the-board reduction in Defendants’
attorney’s fees is unwarranted here. The lodestar is the
appropriate method to apply. Defendants are entitled to all
reasonable attorney’s fees incurred in, among other things,
answering the complaint, preparing the Case Management
Report, preparing and submitting Defendants’ Rule 26(a)
disclosures, responding to GS Holistic’s motion to strike,
selecting a mediator, engaging in discovery, bringing the
motion for sanctions, and bringing the instant Motion. See
Norelus v. Denny’s, Inc., 628 F.3d 1270, 1302 (11th Cir. 2010)
(“The district court [] acted within the scope of its
discretion by including in the sanctions award the costs,
expenses, and attorney’s fees incurred by the defendants in
obtaining the award.”); Fed. R. Civ. P. 11(c)(2) (“If
warranted, the court may award to the prevailing party the
reasonable expenses, including attorney’s fees, incurred for
the motion [for sanctions].”). Because this case was
frivolous from the very beginning and Defendants advised GS
Holistic’s counsel of the frivolous nature of the case before
Defendants even appeared in this action (Doc. # 34 at 2-3),
effectively all of Defendants’ reasonable attorney’s fees and
costs incurred in defending this case are recoverable by
Defendants.
However, the Court will address some specific charges in
Defendants’ fee ledger to which GS Holistic objects. First,
the Court rejects GS Holistic’s assertion that hours incurred
by Defendants’ counsel in seeking dismissal of this case with
prejudice, including responding in opposition to GS
Holistic’s motion to dismiss the case without prejudice,
should be excluded from the award of attorney’s fees. (Doc.
# 38 at 4). Defense counsel were zealously advocating for
their clients in seeking dismissal with prejudice of this
frivolous case, given the sanctionable conduct of GS Holistic
and its counsel throughout the entirety of the case. While
the Court ultimately permitted the case to be dismissed
without prejudice as GS Holistic desired, Defendants were not
unreasonable in seeking dismissal with prejudice and
reasonably incurred over 20 hours in drafting their response
to GS Holistic’s motion for dismissal without prejudice and
in compiling the over 100 pages of exhibits that supported
the response. (Doc. # 36-3 at 10; Doc. # 30).
Next, GS Holistic has not persuaded the Court that any
of the hours billed by defense counsel were duplicative or
redundant because two or more attorneys were performing work
for Defendants. (Doc. # 38 at 5). “There is nothing inherently
unreasonable about a client having multiple attorneys, and
they may all be compensated if they are not unreasonably doing
the same work and are being compensated for the distinct
contribution of each lawyer.” Norman, 836 F.2d at 1302. Upon
review of the fee ledgers, the fee entries to which GS
Holistic objects (Doc. # 38-3), and Ms. Wasylik’s
declaration, the Court agrees with Defendants and Ms. Wasylik
that counsel exercised good billing judgment and did not
unreasonably have two or more lawyers perform the same work.
(Doc. # 36-3 at 8).
Finally, GS Holistic’s objection that some of the tasks
for which Defendants’ counsel billed are administrative or
clerical in nature has a bit more merit. (Doc. # 38 at 6);
see Cordova v. R & A Oysters, Inc., No. CV 14-0462-WS-M, 2016
WL 2642220, at *4 (S.D. Ala. May 9, 2016) (“Hours for clerical
activity will thus be cut in their entirety.”); Machado v. Da
Vittorio, LLC, No. 09-23069-CIV, 2010 WL 2949618, at *3 (S.D.
Fla. July 26, 2010) (“Clerical work, such as the compilation
of facts and statistics, coordinating schedules, basic
communications, procedural matters, and housekeeping matters,
is usually performed by legal assistants, not lawyers.”).
While most of the fee entries to which GS Holistic objects
are reasonable (and the Court is not convinced that any
constitute impermissible block billing), a few fee entries
identified by GS Holistic are clerical in nature. For example,
an October 14, 2022, entry for 0.2 hours for a call to Ms.
Penalta’s legal assistant to schedule a call with Ms. Penalta
was clerical. (Doc. # 38-3 at 1). Also clerical were three
entries involving emailing the mediator to schedule the
mediation and later canceling it after the case’s dismissal,
for a total of 0.4 hours. (Id. at 3, 6).
Likewise, certain emails between Defendants’ counsel and
Ms. Wasylik, regarding the timeline for the signing of a
letter of engagement, as well as the uploading and emailing
of relevant documents and invoices to Ms. Wasylik for her
review, were clerical, for a total of 1.2 hours. (Id. at 7-
10). Notably, some of these fee entries related to Ms.
Broughan’s communications with Ms. Wasylik (0.7 hours
incurred between July 17 and 19) were already removed as
administrative by Ms. Wasylik in reaching her total of 99.6
hours of reasonable attorney time. (Doc. # 36-3 at 11). Thus,
the 1.2 hours should be reduced by 0.7, for a total of 0.5
hours of administrative tasks regarding Ms. Wasylik to be
deducted from the 99.6 hours figure.
Yet, many of the fee entries to which GS Holistic objects
— including editing a notice of appearance, editing a draft
affidavit, and emails with Ms. Wasylik discussing the amount
and the reasonableness of attorney’s fees — are not clerical.
(Id. at 1, 6-10). These tasks are not clerical as they involve
the exercise of legal judgment.
In short, 1.1 hours of fee entries should be cut as
clerical from the 99.6 total hours, reducing the recoverable
attorney’s fees by $550. The Court awards Defendants a total
of $39,520 in attorney’s fees.
B. Costs
Defendants ask for an award of two types of costs, which
they claim are reasonable: (1) $13,800.00 in expert fees for
hiring Dineen Wasylik, an attorney and expert on reasonable
attorneys’ fees and costs in trademark infringement cases;
and (2) $2,052 for the direct loan expenses Defendant Moses
incurred. (Doc. # 36 at 14-15).
If “warranted for effective deterrence,” the Court may
enter a sanctions order “directing payment to the movant of
part or all of the reasonable attorney’s fees and other
expenses directly resulting from the violation.” Fed. R. Civ.
P. 11(c)(4) (emphasis added). Likewise, Section 1927 allows
for the imposition of “excess costs” and “expenses”
“reasonably incurred because of” the attorney’s unreasonable
and vexatious conduct. 28 U.S.C. § 1927.
As to the expert fees, Defendants explain that they hired
Ms. Wasylik to review their fee ledgers and other materials
to determine the reasonable attorney’s fees to be charged in
this trademark infringement case. (Doc. # 36 at 14). Ms.
Wasylik spent twenty-three hours reviewing documents and
drafting her declaration, at an hourly rate of $600, for a
total of $13,800. (Doc. # 36-3 at 15).
The Eleventh Circuit has acknowledged the value of
expert opinions to establishing the amount of reasonable
attorney’s fees. See Norman, 836 F.2d at 1299 (emphasizing
that “more than the affidavit of the attorney performing the
work” is needed to establish the prevailing market rate for
attorney’s fees and noting that “[e]vidence of rates may be
adduced through direct evidence of charges by lawyers under
similar circumstances or by opinion evidence” (emphasis
added)). Given the value of expert testimony to establishing
the reasonable attorney’s fee award, the Court finds that
Defendants are entitled to recover the reasonable cost of Ms.
Wasylik’s services. See Blossom v. Blackhawk Datsun, Inc.,
120 F.R.D. 91, 98 (S.D. Ind. 1988) (including the attorney’s
fees expert witness’s fee in the award of reasonable
attorney’s fees and costs as sanctions under Rule 11);
Gutierrez v. City of Hialeah, 729 F. Supp. 1329, 1335 (S.D.
Fla. 1990) (“Given the perverse possibility that the
imposition of Rule 11 sanctions will often give rise to
satellite litigation, the need to deter frivolous litigation
demands that this Court not only impose sanctions where Rule
11 is violated, but to also award attorneys’ fees and costs
in pursuing such sanctions.”).
GS Holistic asserts that “[e]xpert witness fees in
excess of the statutory amount under 28 U.S.C. § 1821 limits
are not recoverable.” (Doc. # 38 at 6). This is incorrect.
This Court is not limited by Section 1821 or 28 U.S.C. § 1920
in the amount of expert fees that can be awarded as a sanction
under Rule 11 and Section 1927. Barrios v. Regions Bank, No.
5:13-cv-29-WTH-PRL, 2013 WL 5230653, at *10 (M.D. Fla. Sept.
16, 2013) (“Although the other requested costs are not
enumerated in 28 U.S.C. § 1920, the Court likely has authority
to tax such costs pursuant to Rule 11, 28 U.S.C. § 1927, and
its own inherent authority.”), aff’d, 572 F. App’x 839 (11th
Cir. 2014). Rather, Rule 11 and Section 1927 themselves limit
what costs and expenses may be imposed, by providing that
“expenses directly resulting from the violation” of Rule 11
and “expenses” “reasonably incurred because of” the
sanctioned attorney’s unreasonable and vexatious conduct are
recoverable. Fed. R. Civ. P. 11(c)(4); 28 U.S.C. § 1927.
The only case cited by GS Holistic regarding a limitation
on costs, Pinkham v. Camex, Inc., 84 F.3d 292, 295 (8th Cir.
1996), is neither binding on this Court nor persuasive as to
the issue before the Court. That case involved the award of
attorney’s fees and costs to the prevailing party in a
copyright case under 17 U.S.C. § 505 and whether the “full
costs” awardable under Section 505 were limited by 28 U.S.C.
§ 1920 and Section 1821. Id. at 293-95. Pinkham did not
involve an award of fees and costs as a sanction under Rule
11 or Section 1927. Id. Furthermore, Section 1821 sets at $40
the attendance fee a witness may charge “for each day’s
attendance” “at any court of the United States, or before a
United States Magistrate Judge, or before any person
authorized to take his deposition pursuant to any rule or
order of a court of the United States.” 28 U.S.C. § 1821(a)(1)
& (b). The expert fees here are not to cover attendance at
any deposition or court proceeding. Rather, the expert fee
here covers the expert’s preparation of a declaration. Thus,
the Court rejects GS Holistic’s argument.
The Court must determine, however, whether the fee
charged by Ms. Wasylik was reasonable in this case. Ms.
Wasylik’s hourly rate of $600 is reasonable for an attorney
of her experience and ability. Furthermore, upon review, Ms.
Wasylik’s dedication of twenty-three hours to reviewing the
record and drafting her expert declaration were reasonable.
(Doc. # 36-3). The declaration is sixteen-pages and provides
an in-depth analysis of the reasonable hours expended by
counsel. (Id.). In its discretion and applying the Court’s
experience and common sense, the Court awards the entirety of
Ms. Wasylik’s fee of $13,800. See Norman, 836 F.2d at 1303
(“The court . . . is itself an expert on the question [of
attorney’s fees] and may consider its own knowledge and
experience concerning reasonable and proper fees and may form
an independent judgment either with or without the aid of
witnesses as to value.” (citation omitted)). Accordingly, the
Motion is granted with respect to the expert fees.
Next, Defendants seek to recover $2,052 “in direct loan
expenses” Defendant Moses incurred “when he applied for an
$8,000 loan in May 2023” “to afford legal representation in
this case.” (Doc. # 36 at 14). Defendants maintain that GS
Holistic and its counsel “should be responsible for paying
these direct loan expenses which were incurred after [the]
Rule 11 Motion was filed.” (Id.).
While the Court sympathizes with Defendants, the Court
in its discretion determines that these loan expenses are not
a reasonable cost that should be imposed on GS Holistic and
its counsel. Defendants’ choice to take out loans to finance
their defense, while understandable, was their own.
Furthermore, the relevant loan was taken out after the vast
majority of defense counsel’s work was complete; notably,
Defendants’ motion for sanctions and GS Holistic’s motion to
voluntarily dismiss the case were both filed in March 2023,
months before Defendant Moses took out the loan in May 2023.
(Id. at 14). Given that all reasonable attorney’s fees and
expert fees incurred by Defendants are being awarded to them,
it would be excessive to additionally award Defendants these
loan expenses. Thus, the Motion is denied as to these loan
costs.
C. Prejudgment Interest
Finally, Defendants seek the imposition of 12.95%
prejudgment interest on the award of attorney’s fees and
costs, calculated from the date the case was filed in
September 2022. (Doc. # 36 at 15). In support, Defendants
cite a Fifth Circuit case in which the court upheld the
district court’s award of prejudgment interest as a Rule 11
sanction. (Id.) (citing F.D.I.C. v. Maxxam, Inc., 523 F.3d
566, 594-95 (5th Cir. 2008) (affirming award of prejudgment
interest on sanctions award “under its inherent powers based
on ‘the cost of the delay for the fees and expenses’”)).
But “[a] number of courts have held that an award of
prejudgment interest on a sanction award is inappropriate.”
Ala. Aircraft Indus., Inc. v. Boeing Co., No. 2:11-CV-03577-
RDP, 2020 WL 13260391, at *2 (N.D. Ala. June 11, 2020); see
also Hoffman v. L & M Arts, No. 3:10-CV-0953-D, 2015 WL
3999171, at *10 (N.D. Tex. July 1, 2015) (in the context of
Rule 37 sanctions, declining to award prejudgment interest on
an award of attorney’s fees). “The reason courts award
prejudgment interest is to ‘fully compensate plaintiffs by
accounting for the time-value of money’ that was wrongly
withheld.” Ala. Aircraft Indus., Inc., 2020 WL 13260391, at
*3 (citation omitted). “On the other hand, a sanction award
(at least the type imposed here) is designed to require a
party to pay its opponent’s attorney fees.” Id. “Generally,
a sanction is not intended ‘to compensate the prevailing party
for the loss of use of monies owed.’” Id. (citation omitted).
Upon reflection and in its discretion, the Court
declines to award prejudgment interest on the attorney’s fees
and costs award here. See Id. (“After careful review, the
court determines that AAI is not entitled to prejudgment
interest on the sanction award entered against Boeing.”).
III. Conclusion
Thus, the Court determines that the instant Motion is
granted in part and denied in part, with Defendants awarded
$39,520 in attorney’s fees and $13,800 in costs. The Court is
mindful that this is a large sanctions award. However, these
reduced fees and costs are reasonable, given the work
Defendants’ counsel and its expert were required to perform
in litigating the case and pursuing sanctions.
The purpose of Rule 11 sanctions is to “‘reduce frivolous
claims, defenses or motions’ and to deter ‘costly meritless
maneuvers,’ thus avoiding unnecessary delay and expense in
litigation.” Donaldson v. Clark, 819 F.2d 1551, 1556 (11th
Cir. 1987). Likewise, “[t]he purpose of [Section] 1927 is to
deter frivolous litigation and abusive practices by attorneys
and to ensure that those who create unnecessary costs bear
them.” Boler v. Space Gateway Support Co. LLC, 290 F. Supp.
2d 1272, 1277 (M.D. Fla. 2003).
Here, the need for deterrence is strong. The Court notes
that GS Holistic is a frequent litigant, having filed forty-
seven cases in the Middle District of Florida alone and
approximately seven hundred cases across the country. (Doc.
# 36-3 at 12). Given its frequent resort to the federal
courts, it is imperative that GS Holistic comport itself in
accordance with Rule 11 in other pending and future cases.
The deterrent function of this sanctions award is
likewise important as to Ms. Penalta, given the waste of
judicial resources and numerous rule violations committed in
this case and Ms. Penalta’s various other cases in this
District. See, e.g., GS Holistic, LLC v. Kinder Combs 7 LLC,
No. 3:22-cv-1206-TJC-LLL, 2023 WL 5104701, at *1 (M.D. Fla.
Aug. 9, 2023) (“In each of the above [six] cases listed in
the caption, Ms. Penalta has failed to take some action
required by the Local Rules of this Court by either failing
to timely file a case management report, failing to timely
move for clerk’s default or default judgment. She has been
repeatedly warned. Enough is enough. Each of the above listed
cases are dismissed without prejudice.” (emphasis in
original)); IMiracle (HK) Limited v. Okie Smoky LLC, Case No.
3:22-cv-1389-MMH-MCR (M.D. Fla. July 5, 2023) at (Doc. # 40)
(order recounting numerous cases in which Ms. Penalta has
failed to follow the Local Rules, describing her practice in
this Court as “exceedingly careless,” and warning Ms. Penalta
that future violations will carry consequences throughout the
district); GS Holistic, LLC v. Venice Smoke Shop #3, Inc.,
No. 3:22-cv-1364-HES-PDB (M.D. Fla. Mar. 6, 2023) at (Doc. #
16) (noting multiple Local Rule violations by Ms. Penalta and
ordering her to “file a paper certifying she has read the
Local Rules and will comply with them”).
Accordingly, it is
ORDERED, ADJUDGED, and DECREED:
(1) Defendants Brother Pastor LLC, Matthew S. Moses, and
Earl Burdette’s Motion for Determination of Attorney
Fees, Costs, and Sanctions (Doc. # 36) is GRANTED in
part and DENIED in part.
(2) The Court awards $39,520 in attorney’s fees and $13,800
in costs for Defendants and against GS Holistic and its
counsel, Gabrielle Alexa Penalta and The Ticktin Law
Group, PA, jointly.
(3) The Clerk is directed to enter a judgment of attorney’s
fees and costs for Defendants Brother Pastor LLC,
Matthew S. Moses, and Earl Burdette and against
Plaintiff GS Holistic, LLC, and Gabrielle Alexa Penalta
and The Ticktin Law Group, PA, jointly in the total
amount of $53,320.
DONE and ORDERED in Chambers in Tampa, Florida, this 5th
day of September, 2023.
tin In. Mecmeply (neh
VIR IA M. HERNANDEZ’COVINGTON
UNITED STATES DISTRICT JUDGE
23