Capital Pure Assets, Ltd. v. CC Technology Corporation
2:24-cv-00680
| D. Nev. | Jun 17, 2025Background
- CC Technology Corporation (Defendant/Counterclaimant) moved for calculation of sanctions after previously obtaining an order enforcing settlement and awarding sanctions against Capital Pure Assets, Ltd. and associated individuals (Plaintiffs/Counter-Defendants).
- The core dispute arose from Counter-Defendants’ refusal to make an initial $14,000 payment as required under the settlement agreement, which the Court had already found constituted a violation.
- The motion at issue sought the specific calculation of attorneys’ fees and costs attributable to the motion to enforce settlement.
- Plaintiffs objected primarily to the scope of recoverable hours and certain redacted billing entries, as well as to legal research costs that predated the motion.
- The Court limited fee recovery to hours and expenses directly caused by the misconduct (the refusal to pay), excluding unrelated or insufficiently supported fees and costs.
- The Court awarded $8,682.60 in attorneys’ fees and $845.29 in costs to Defendant, less than the total sought.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Appropriate scope of fee recovery | Fees should be limited to work tied to enforcing the settlement; pre-motion hours shouldn’t qualify. | Fees for efforts to obtain settlement signatures should be recoverable. | Fees limited to work directly resulting from the misconduct (refusal to pay). |
| Recovery of redacted billing entries | Entries are too vague/redacted to substantiate; should be reduced. | Redactions are privilege-preserving; can submit for in camera review. | Court applied a 20% reduction to these entries due to lack of detail. |
| Reasonableness of hourly rates | No challenge. | Rates are reasonable for attorneys’ quality and work. | Rates accepted as reasonable under applicable standards. |
| Recovery of legal research costs | Entries include unrelated pre-motion research; much should be excluded. | Costs should be recoverable as billed. | Court excluded 60% of first entry and 100% of second, awarding only directly related costs. |
Key Cases Cited
- Mangold v. Cal. Public Utilities Com’n, 67 F.3d 1470 (9th Cir. 1995) (Federal courts in diversity apply state law to attorneys’ fees calculations)
- Shuette v. Beazer Homes Holdings Corp., 124 P.3d 530 (Nev. 2005) (Court discretion governs method of reasonable fee determination)
- Herbst v. Humana Health Ins. of Nevada, 781 P.2d 762 (Nev. 1989) (Lodestar method is a presumptively reasonable fee calculation)
- Hensley v. Eckerhart, 461 U.S. 424 (1983) (Insufficiently supported fee requests may be reduced)
- Hornwood v. Smith’s Food King No. 1, 807 P.2d 208 (Nev. 1991) (Factors in fee awards include advocate qualities, work, and outcome)
