Opinion

Wilson v. Decibels Of Oregon, Inc.

Court
District Court, D. Oregon
Filed
Nov 22, 2019
Cited by
0 cases
Authority
More cited than 28.6%

The opinion

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF OREGON

MEDFORD DIVISION

DANIEL WILSON, Civ. No. 1:17-cv-01558-MC

Plaintiff, OPINION & ORDER

v.

DECIBELS OF OREGON, INC.;

DENNIS SNYDER; LEO BROWN,

Defendants.

_______________________________________

RYAN HEMMING, Civ. No. 1:17-cv-01624-MC

Plaintiff, OPINION & ORDER

v.

DECIBELS OF OREGON, INC.;

DENNIS SNYDER; LEO BROWN,

Defendants.

_______________________________________

McSHANE, District Judge.

This matter comes before the Court on Motions for Attorney Fees and Costs filed in

Wilson v. Decibels of Oregon et al., Case No. 1:17-cv-01558-MC (the “Wilson case,”), ECF No.

39, and Hemming v. Decibels of Oregon, Inc., Case No. 1:17-cv-01624-MC (the “Hemming

case,”), ECF No. 41. Although these cases were filed separately, they involve the same

Defendants, the same counsel, and present identical arguments. The Court concludes that the

issue of attorney fees and costs is appropriately resolved in a consolidated Opinion and Order to

be entered in each case. The Court further concludes that this issue is appropriate for resolution

without oral argument. Plaintiffs’ Motions are GRANTED in part and DENIED in part.

BACKGROUND

I. The Matthew Wilson Case

Both Hemming and Wilson sought to join an earlier Fair Labor Standards Act (“FLSA”)

collective action, Matthew Wilson v. Decibels of Oregon, Inc. et al., Case No. 1:16-cv-00855-CL

(the “Matthew Wilson case,”), as opt-in plaintiffs. The Matthew Wilson case involved the same

attorneys as the present case and, with the exception of Leo Brown, was directed against the

same defendants as the present case. Magistrate Judge Clarke recommended that the motion to

certify a collective action class in the Matthew Wilson be denied and this Court adopted that

recommendation, over objections. Wilson and Hemming filed their own cases shortly after the

denial of certification, as discussed below.

The Matthew Wilson case was set for trial on May 22, 2018. On April 16, 2018, the

Matthew Wilson plaintiff accepted an offer of judgment and judgment was entered on April 24,

2018. On August 14, 2018, Judge Clarke granted in part and denied in part the Matthew Wilson

plaintiff’s motion for attorney fees.

II. Procedural History

The Wilson case was filed on October 2, 2017, and the Hemming case was filed shortly

afterwards on October 15, 2017. Both cases alleged claims for unpaid overtime under the federal

Fair Labor Standard Act (“FLSA”) and Oregon overtime statutes, ORS 653.055 and ORS

652.150. Litigation in both cases followed identical courses.

Defendants filed partial motions to dismiss in December 2017, which the Court granted

in part and denied part. Amended Complaints were filed in February 2018. Defendants filed

partial motions for summary judgment in each case in September 2018, which the Court granted

in part and denied in part on January 31, 2019.

Discovery issues were submitted informally, according to the practice of this Court, and

resolved in Defendants’ favor by minute order on June 15, 2018. Plaintiffs then filed motions to

compel in each case on January 18, 2019, which the Court denied on May 20, 2019.

On July 17, 2019, Hemming accepted an offer of judgment for $15,000 and Wilson

accepted an offer of judgment for $12,500, “plus reasonable attorney fees and costs incurred as

of the date of the this Offer as determined by the Court pursuant to FRCP 54(d).” The offers of

judgment were dated July 3, 2019. Final judgment was entered in both cases on August 1, 2019.

These motions for attorney fees and costs followed.

LEGAL STANDARDS

The Ninth Circuit has adopted the “lodestar” method for calculating attorney fees.

Camacho v. Bridgeport Fin., Inc., 523 F.3d 973, 978 (9th Cir. 2008). That calculation multiplies

a reasonable hourly rate by the number of hours reasonably expended in the litigation. Hensley

v. Eckerhart, 461 U.S. 424, 433 (1983); Pennsylvania v. Del. Valley Citizens’ Council for Clean

Air, 478 U.S. 546, 564 (1986). The court must then decide whether to enhance or reduce the

lodestar figure by evaluating a number of factors. Moreno v. City of Sacremento, 534 F.3d 1106,

1111 (9th Cir. 2008).

The court may adjust the lodestar to account for factors such as: (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 v. Screen Actors Guild, Inc., 526 F.2d 67, 70 (9th Cir. 1975). The court

need only consider the factors not already subsumed in the initial lodestar calculation. Fischer v.

SJB-P.D., Inc., 214 F.3d 1115, 1119 (9th Cir. 2000).

There is a strong presumption that the lodestar method produces a reasonable figure and

should only be enhanced or reduced in exceptional circumstances. Fischer, 214 F.3d at 1119

n.4. Courts have discretion, however, to adjust the lodestar figure either: (1) downward if the

plaintiff has achieved only partial or limited success or if the fee is otherwise unreasonable,

Hensley, 461 U.S. at 435-36, or (2) upward in “rare” and “exceptional” cases. Del. Valley

Citizens, 478 U.S. at 565.

DISCUSSION

Plaintiffs seek an attorney fee award of $95,540.00 for both cases, plus additional fees for

litigating the present motions. As discussed in the preceding section, the litigation of these cases

and the Matthew Wilson case overlapped substantially. Given the close similarity between the

Matthew Wilson case and the Wilson and Hemming cases, and the fact that the cases involved the

same attorneys, the Court considered Judge Clarke’s Opinion and Order on attorney fees to be

especially persuasive in considering the present motions. The Court notes, however, that the

Matthew Wilson case was resolved practically on the eve of trial after considerable discovery,

depositions, and motions practice. The Wilson and Hemming cases were resolved much earlier.

There have been no depositions in these cases and only limited motions practice.

Defendants acknowledge that Plaintiffs are entitled to fees and costs, but object to both

the rate charged by Plaintiffs’ counsel and the hours expended in these cases.

I. Attorney Fees

A. Reasonable Hourly Rate

A reasonable hourly rate is determined by looking at “prevailing market rates in the

relevant community,” as well as the skill, experience, and reputation of the lawyer. Blum v.

Stenson, 465 U.S. 886, 895 (1984); United States v. $28,000 in U.S. Currency, 802 F.3d 1100,

1105 (9th Cir. 2015). The party requesting the fees has the burden of producing “satisfactory

evidence,” in addition to the affidavits of counsel, that the requested rates are in step with those

“prevailing in the community for similar services by lawyers of reasonably comparable skill,

experience, and reputation.” Dang v. Cross, 422 F.3d 800, 814 (9th Cir. 2005) (internal

quotation marks and citation omitted). The best evidence of the prevailing rates in Oregon is the

Oregon State Bar Economic Survey, most recently issued in 2017. LR 54-3; Roberts v.

Interstate Distrib. Co., 242 F. Supp.2d 850, 857 (D. Or. 2002); Mumford v. Electric Inst., Inc.,

Case No. 3:15-cv-00375-AC, 2016 WL 8711693, at *2 (D. Or. April 29, 2016).

1. Quinn Kuranz

Plaintiffs’ counsel Quinn Kuranz claims a rate of $360 per hour. Kuranz specializes in

employment law and has been admitted to practice since 2011. In the Matthew Wilson attorney

fee decision, Judge Clarke determined that the Portland rates were an appropriate starting point

for assessing the reasonableness of Kuranz’s rates, rather than the southern Oregon rates, and the

Court adopts that reasoning. Judge Clarke approved a rate of $300 for Kuranz and, given the

substantial overlap between the Matthew Wilson case and the present cases, and the fact that the

decision was issued barely a year ago, the Court finds Judge Clarke’s reasoning persuasive.1 The

1 Plaintiffs attempt to argue that any challenge to the use of Portland attorney rates for Kuranz or for Arnett’s rate in

general are barred by issue preclusion based on the fee award in Matthew Wilson, while simultaneously arguing that

Kuranz and Arnett should be awarded higher rates than those awarded by Judge Clarke. This line of argument is not

well-taken and borders on frivolous. “The issue of reasonable rates is too case-specific to have been ‘actually

Court notes that $300 is slightly above the median rate ($280) and mean rate ($282) for attorneys

with seven to nine years of experience in the Portland area. The Court further notes that $300

represents the 75th percentile for Oregon attorneys with the same level of experience.

Accordingly, the Court concludes that $300 is reasonable rate for Kuranz.

2. Bonnie Allen-Sailer

Plaintiffs hired attorney Bonnie Allen-Sailer to assist in the completion of Plaintiffs’

motions to compel. Plaintiffs seek a rate of $300 per hour for Allen-Sailer. Allen-Sailer has

been in practice since 2014. Kuranz Decl. Ex. 12. The mean rate for a Portland attorney with

Allen-Sailor’s experience is $249 with a median rate of $250. Statewide, $257 represents the

75th percentile for Oregon attorneys with the same level of experience. The Court finds that

$250 is a reasonable hourly rate for Allen-Sailer.

3. Paralegal Fees

Kuranz was assisted by paralegal Kathryn Arnett and “legal assistant/law clerks” Clara

Toso and Christina Montes. Plaintiffs seek to recover fees for the work performed by all three at

a rate of $110. Defendants contend that, to the extent the fees are recoverable at all, they should

be billed at $20 per hour.

The Oregon State Bar Economic Survey does not include information about hourly rates

charged by paralegals in Oregon. In assessing claims for paralegal fees, courts within this

District have noted that “a reasonable hourly rate for a paralegal should not exceed that of a first

year associate.” Precision Seed Cleaners v. Country Mut. Ins. Co., 976 F. Supp.2d 1228, 1248

(D. Or. 2013). That determination is not the end of the inquiry, however, as “the attorney hourly

litigated and determined,’ even in a very similar case.” League of Wilderness Defenders/Blue Mountain Biodiversity

Project v. Turner, 305 F. Supp.3d 1156, 1166 (D. Or. 2018). The Court considers Judge Clarke’s attorney fee

opinion in the Matthew Wilson case for its persuasive value, but it is not—and cannot be—bound by Judge Clarke’s

determinations.

rate is used as a ceiling and is not by itself determinative of a reasonable hourly rate.” Id. at

1249. Courts look closely at the educational and occupational background of the paralegal in

question when crafting a reasonable rate. Id.

In Precision Seed Cleaners, the court declined to award a paralegal fee rate of $170,

finding it unreasonably high. 976 F. Supp.2d at 1249. Instead, the court awarded a rate of $125

to a paralegal with a certification and ten years of experience as a paralegal and a rate of $115 to

a paralegal with a degree in paralegal studies and an unknown number of years of experience.

Id. at 1248-49. In examining the claims of the other paralegals, the court noted that none of them

had any education or experience as a paralegal, although some had bachelor’s degrees or

experience working as legal assistants. Id. at 1249. Under those circumstances, the court found

a rate of $50 per hour to be reasonable. Id.

In the Matthew Wilson case, Judge Clarke found that Arnett’s paralegal work was

recoverable at a rate of $90 per hour based on her education and qualifications. The Court

adopts that reasoning and finds the same $90 rate to be reasonable with respect to Arnett. The

Court will assess whether the hours claimed for Arnett are reasonable in the following sections.

With respect to Toso and Montes, courts in this District are divided as to whether to

award fees for work perform by legal assistants. Compare, Aichele v. Blue Elephant Holdings,

LLC, 3:16-cv-02204-BR, 2018 WL 2357533, at * 5 (D. Or. May 24, 2018) (“The Court has not

found any report that reflects hourly billing for legal assistants (as opposed to paralegals)” and

declining to award any fees for legal assistant work); with Kulpala v. Delgoda, 3:15-cv-01890-

BR, 2016 WL 1618285, at *1 (D. Or. April 21, 2016) (noting that “attorneys’ fee awards

permitted by statute frequently compensate for work performed by law clerks and legal

assistants,” as a matter of efficiency). The Court has reviewed the record and concludes that, to

the extent Toso and Montes performed recoverable work, that those hours are properly billable at

$90 per hour.

B. Reasonable Hours

Plaintiffs seek 136.10 hours for Kuranz in these cases up to July 3, 2019, with an

additional 26.5 hours spent preparing the attorney fee motion. Kuranz Decl. at 5. Plaintiffs also

seek 12.3 hours for Allen-Sailer, for time spent on the motions to compel. Id. at 6. Plaintiffs

seek 262 hours of paralegal time for Arnett, and 32.4 hours of legal assistant/law clerk time for

Toso and Montes. Id. at 7-8.

In accounting for his hours on these cases, Kuranz affirms that he billed most of the time

to the Hemming case, but that “this time was spent working in pursuit of both cases as they were

for the most part identical.” Kuranz Decl. at 5. “[A]ll motions practice and discovery requests

were identical for both plaintiffs,” and Kuranz affirms that none of the time was double billed.

Id. The Court therefore considers the reasonableness of the hours taken together.

1. Offer of Judgment

On July 3, 2019, Defendants made an offer of judgment in each of the cases, which

Plaintiffs accepted on July 17, 2019. In their opening paragraphs, the offers of judgment state

that, pursuant to Federal Rule of Civil Procedure 68, Defendants offered to allow judgment to be

taken against them in a specified amount “plus reasonable attorney fees and costs incurred as of

the date of this Offer as determined by the Court pursuant to FRCP 54(d).”

Defendants argue that by the plain terms of the offer of judgment, Plaintiffs cannot

recover any costs or attorney fees incurred after July 3, 2019. The most significant effect of such

a limitation would be to prevent Plaintiffs’ counsel from recovering fees for litigating the present

motions.

Plaintiffs, relying on Haworth v. Nevada, 56 F.3d 1048 (9th Cir. 1995), argue that they

cannot be prevented from recovering attorney fees after an offer of judgment pursuant to Rule

68. This mischaracterizes the holding of Haworth, which dealt with the interaction between the

fee-shifting provisions of the FLSA and Rule 68(d), which provides that if an offer of judgment

is declined and the plaintiff receives a judgment that is less favorable than the offer, the “offeree

must pay the costs incurred after the offer of judgment.” Fed. R. Civ. P. 68(d); Haworth, 56

F.3d at 1051-52. This is obviously distinguishable from the present cases, in which the Plaintiffs

accepted offers of judgment that explicitly cut off the accrual of additional fees and costs.

This case is more analogous to Guerrero v. Cummings, 70 F.3d 1111 (9th Cir. 1995).

The Guerrero plaintiffs accepted an offer of judgment that, like the offers in the present cases,

limited fees and costs to those accrued before the date of the offer. Id. at 1112-13. Although the

civil rights statute in Guerrero, like the FLSA, generally allows that time spent establishing

entitlement to an amount of fees is compensable, “a settlement offer may be conditioned upon

the waiver of such fees.” Id. at 1113. “Accepting such an offer constitutes waiver, but only if

the waiver is clear and unambiguous.” Id. (internal quotation marks and citations omitted). The

usual rules of contract construction apply when interpreting the terms of an offer. Id.

Plaintiffs attempt to argue that the offers only provided a limitation on costs accrued after

July 3, and not on attorney fees accrued after that date. The language of the offers does not

support such an absurd construction, nor do the offers’ reference to Rule 54(d), which deals with

both costs and attorney fees. In assessing language almost identical to the present cases, the

Ninth Circuit concluded: “We see nothing ambiguous in these offers. By their own terms, the

offers explicitly limit fees and costs to those ‘incurred by this plaintiff prior to the date of this

offer in an amount to be set by the court.’ It is the reasonableness of those fees only—i.e., fees

incurred before the offers—that may be left to the court to determine.” Guerrero, 70 F.3d at

1113 (emphasis in original, internal parenthetical omitted); see also Flores v. Fergiss, Inc., No.

3:13-CV-01480-KI, 2014 WL 1123638, at *2 (D. Or. Mar. 20, 2014) (applying Guerrero to limit

post-offer fees in an FLSA case); Sanchez v. Fergiss, Inc., No. 3:13-CV-01481-KI, 2014 WL

1123646, at *2 (D. Or. Mar. 20, 2014) (holding same).

That is precisely the situation presented here. Plaintiffs accepted offers of judgment that,

like the offers in Guerrero, Flores, and Sanchez, plainly and expressly limited fees to those

accrued before the date of the offer.2 Despite Plaintiffs’ arguments to the contrary, there was no

ambiguity in the language of the offers of judgment and the Court finds no other cause to deviate

from the plain terms of the parties’ agreements. Accordingly, the Court excludes all hours

accrued after July 3, 2019, from the lodestar calculation. This will eliminate 26.5 hours claims

for Kuranz and 4.5 hours for Montes in the original fee motion. O’Connor Decl. Ex. E; Kuranz

Decl. Ex. 1, Ex. 13. It will also eliminate all hours claimed for the further litigation of these

attorney fee motions from consideration.

2. Clerical Tasks

The Court has reviewed the exhibits and some of the hours claimed by Kuranz and

Montes were spent on clerical tasks. O’Connor Decl. Ex. E; Kuranz Decl. Ex. 1, Ex. 13. “Costs

associated with clerical tasks are typically considered overhead expenses reflected in an

attorney’s hourly billing rate, and are not properly reimbursable.” Lemus v. Timberland

Apartments, LLC, 876 F. Supp.2d 1169, 1179 (D. Or. 2012). This includes tasks such as

2 In the Matthew Wilson case, by contrast, the offer of judgment included “reasonable attorney fees and costs as

determined by the Court pursuant to FRCP 54(d),” with no limitation concerning post-offer fees except in the event

the offer was rejected and the plaintiff subsequently achieved a less favorable judgment. The Matthew Wilson

plaintiff was therefore free to pursue fees-on-fees.

calendaring, scheduling, and docketing. Id. The Court excludes 0.8 hours for Kuranz and 2.8

hours for Montes from the lodestar calculation for time spent on clerical tasks.

3. Time Spent on Unsuccessful Motions

The Court must determine the number of hours reasonably expended in furtherance of the

successful aspects of the litigation. Chalmers v. City of Los Angeles, 796 F.2d 1205, 1211 (9th

Cir. 1986). As previously noted, Plaintiffs filed motions to compel in these cases, which this

Court denied. In addition to being unsuccessful, the motions were also unnecessary, as the Court

had previously resolved discovery disputes in these cases on an informal basis in an effort to

control the costs of discovery. Indeed, the Court’s orders of denial reference the fact that the

motions to compel sought to revisit issues raised and resolved in the Court’s earlier discovery

order. The Court concludes that the hours expended on the unsuccessful motions to compel were

not reasonably incurred and declines to include those hours in the lodestar calculation. This

eliminates 15.9 hours for Kuranz and 12.3 hours for Allen-Sailer.

Defendants seek to exclude all time spent contacting potential opt-in plaintiffs for a

collective action under the FLSA. Although the cases settled and no such collective actions were

ever filed, potential opt-in plaintiffs might also conceivably have served as fact witnesses in

support of Plaintiffs’ claims. The Court therefore declines to reduce the hours claimed for

contacting those witnesses.

4. Duplicative, Redundant, or Excessive Hours

Fees may be reduced for expenses that appear excessive, redundant, or otherwise

unnecessary in light of the tasks performed. Hensley, 461 U.S. at 434. Defendants have raised a

number of specific objections, which the Court resolves as follows:

On December 22, 2017, Kuranz billed 4.2 hours for editing subpoenas and discovery

requests. Kuranz Decl. Ex. 1. The Court concludes this is duplicative of over ten hours spent by

Toso on the same documents, Kuranz Decl. Ex. 13, and therefore excludes 4.2 hours for Kuranz.

On May 25, 2018, Kuranz billed 2.5 hours for drafting a two-page letter. Kuranz Decl.

Ex. 1; O’Connor Decl. Ex. F. This is plainly excessive and the Court excludes 1.0 hour for

Kuranz.

Between October 2 and October 4, 2018, Kuranz billed 25.2 hours responding to

Defendants’ motions for summary judgment. Kuranz Decl. Ex. 1. This includes over 18 hours

billed on October 4, 2018, which strains credibility. In Plaintiffs’ Reply, Kuranz explains that

this was due to a “glitch” in the billing software in which hours expended on October 5 were

mistakenly billed to October 4. The Court declines to reduce the total hours in this instance.

Between September 11, 2018, and October 31, 2018, Kuranz billed 3.6 hours for

preparing a scheduling order. Kuranz Decl. Ex. 1. This is excessive and the Court reduces

Kuranz’s hours by 2.6.

Concerning the work performed by Arnett, Plaintiffs seek to recover for 262 hours, most

of which was spent reviewing the timecards and emails for Plaintiffs to identify “gap times” in

their schedules and to calculate unpaid overtime. Kuranz Decl. Many of Arnett’s billing entries

are for large blocks of time, often between 7 and 8 hours, billed to tasks like “Preparing

Hemming Wage Calculation spreadsheet” and “Prepare Hemming Gap & Lunch Accountability

Sheet.” Kuranz Decl. Ex. 2. Kuranz affirms that the result of Arnett’s work would have been

used as an exhibit at trial or in support of a dispositive motion. Upon review, the Court is

convinced that 262 hours is an excessive amount of time for two interrelated and relatively

straightforward wage disputes. See Kardell v. Lane Cnty., Case No. 6:13-cv-736-MC, 2019 WL

3337901, at *5-7 (D. Or. July 25, 2019) (reducing excessive hours claimed in a “garden variety

employment discrimination case” in which the issues “were neither complex, nor novel.”). The

Court therefore reduces Arnett’s hours by 25% or 65.5 hours.

Defendants’ objections are otherwise overruled. In total, the Court reduces Kuranz’s

hours by 7.8 and Arnett’s hours by 65.5 for hours that are duplicative, excessive, or otherwise

unnecessary. The Court declines to reduce fees based on lack of success.

Once all the exclusions are made, the Court finds that Kuranz reasonably expended 111.6

hours in these two cases at a reasonable hourly rate of $300, for a total attorney fee award of

$33,480. All hours expended by Allen-Sailer have been excluded, as they were spent on

unsuccessful and unnecessary motions to compel. Arnett reasonably expended 196.5 hours in

these two cases at a reasonable hourly rate of $90, for a total paralegal fee award of $17,685.

Toso and Montes reasonably expended 25.1 hours at a reasonable hourly rate of $90, for a total

legal assistant/law clerk fee award of $2,259.

Plaintiffs are entitled to a total attorney fee award of $53,424 divided between the two

cases.

II. Costs

Plaintiffs seek an award of costs pursuant to 28 U.S.C. § 1920 for filing fees and service

costs in the two cases. Defendants do not object to Plaintiffs’ costs and the Court finds that the

costs are appropriately recoverable. The Court therefore awards Plaintiffs’ full costs in the

amount of $465 in each case for a total award of $930 in costs.

CONCLUSION

Plaintiffs’ Motions for Fees and Costs, ECF No. 39 in Wilson v. Decibels et al., 1:17-cv-

1558-MC, and ECF No. 41 in Hemming v. Decibels et al., 1:17-cv-1624-MC, are GRANTED in

part and DENIED in part. Plaintiffs are awarded $53,424 in attorney and paralegal fees and

costs in the amount of $930 divided equally between the two cases.

It is so ORDERED and DATED this 22nd day of November, 2019.

s/Michael J. McShane

MICHAEL McSHANE

United States District Judge

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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