Hiscox Dedicated Corporate Member, Ltd. v. Matrix Group Limited, Inc.
8:09-cv-02465
M.D. Fla.Jun 15, 2012Background
- Defendants Matrix Group Limited, Inc. and Louis Orloff moved for an award of attorneys’ fees under Florida fee-shifting statutes; Plaintiff Hiscox Dedicated Corporate Member, Ltd. opposed.
- After an 11-day trial, the jury found in Defendants’ favor on fraud, misrepresentation, and alarm-suspension issues, and awarded damages totaling $2,715,100.00; remittitur reduced Damages to the Building portion.
- The Court denied Hiscox’s Rule 50 motion and granted remittitur, entering an Amended Judgment in Defendants’ favor of $2,577,691.75.
- Defendants sought fees from four firms totaling roughly $2.81 million, later narrowed by the Court after excluding non-compensable items; the Court conducted a lodestar analysis under Florida law.
- The Court applied a 20% across-the-board reduction for block billing, vague entries, clerical tasks, and fruitless strategies, found no multiplier warranted, and awarded $2,218,671.60 in attorneys’ fees.
- The final order reflects a detailed, multi-firm fee computation and a comprehensive reduction after reviewing hours and rates.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Florida fee-shifting statute awards apply to prevailing insureds. | Hiscox contends Defendants are entitled to fees under §627.428. | Defendants rely on statute and public-policy factors supporting a fee award. | Yes; fee shifting applies to prevailing insureds under Florida law. |
| Whether the lodestar amount properly computed hours and rates. | Hiscox argues hours and rates are inflated and block-billed. | Defendants claim reasonable hours and rates; any adjustments to lodestar are warranted. | Court reduced lodestar by 20% due to block billing and vagueness. |
| Whether a contingency multiplier should be applied. | Defendants seek a multiplier to reflect risk and contingent fee arrangement. | Multiplier necessary to attract competent counsel and reflect risk. | No multiplier; lodestar amount suffices. |
| Whether clerical work and non-attorney tasks may be billed; whether certain tasks were recoverable. | Clerical and non-legal tasks are non-recoverable overhead. | Some tasks are compensable; others should be reduced. | Disallowed $37,965 for clerical specialists; across-the-board reductions for clerical tasks. |
| Whether the amount awarded should be adjusted further for unsuccessful strategies. | Defendants’ unsuccessful strategies warrant reduction. | Strategic decisions merited consideration. | 20% reduction to account for fruitless litigation strategies. |
Key Cases Cited
- Blanchard v. Bergeron, 489 U.S. 87 (U.S. 1989) (factors for reasonableness of fees; base lodestar influences multiplier analysis)
- Holiday v. Nationwide Mut. Fire Ins. Co., 864 So.2d 121 (Fla. 5th DCA 2004) (tort/contract category; allow multiplier where appropriate)
- Loranger v. Stierheim, 10 F.3d 776 (11th Cir. 1994) (across-the-board reductions permissible when time records are voluminous)
- Duckworth v. Whisenant, 97 F.3d 1393 (11th Cir. 1996) (deducting hours for fruitless or excess litigation activity)
- Fireman’s Fund Ins. Co. v. Tropical Shipping & Constr. Co., 254 F.3d 987 (11th Cir. 2001) (lodestar serves fee-shifting statute goals; discourage contesting valid claims)
- State Farm Fire & Cas. Co. v. Palma, 629 So.2d 830 (Fla. 1993) (entitlement to fees and related disputes governed by fee-shifting statutes)
