Spooner v. EEN, INC.
644 F.3d 62
| 1st Cir. | 2011Background
- Spooner sued EEN, Dan Egan, and Sugarloaf for unauthorized use of Spooner’s copyrighted song in a Sugarloaf ad.
- Plaintiff obtained injunctive relief and statutory damages ($40,000) after bench trial; Sugarloaf settlement reduced potential recovery to $10,000 post-off-set.
- Egan and EEN offered $10,000 (Rule 68 offer) and later $20,000 in non-Rule 68 settlement negotiations; both offers were rejected by Spooner.
- The district court awarded Spooner $98,745.80 in attorneys’ fees under 17 U.S.C. § 505, following the lodestar method with reductions.
- Defendants challenged the fee award as excessive and argued time should be limited to work before November 17, 2008; jurisdictional issues were resolved by an action on costs.
- On appeal, the First Circuit affirmed, concluding the district court acted within its discretion and did not abuse the fee determination.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the district court abuse its discretion in awarding fees? | Spooner argues the lodestar was properly calculated and adequately supported by time records and market rates. | EEN contends the fee amount is excessive and not compensable; hours or rates are inflated. | No abuse of discretion; lodestar properly calculated and supported; award sustained. |
| Should the fee award have been limited to work pre-dating the November 17, 2008 settlement rejection? | Spooner contends no Rule 68 limitation applies to non-Rule 68 settlement offers; middleware damages not controlling. | EEN argues rejection of a settlement offer should cap fees after that date under applicable authorities. | No, Rule 68 framework does not apply to the non-68 settlement; no pre-Offer cutoff required. |
| Is the fee award appealable given unresolved costs earlier in the case? | Spooner maintains fee order is final as part of costs and reviewable upon final judgment. | EEN argued lack of finality since costs were unresolved. | Jurisdiction cured; the fee award became final and appealable. |
Key Cases Cited
- Fogerty v. Fantasy, Inc., 510 U.S. 517 (U.S. 1994) (fee shifting and considerations for awards under § 505)
- Hensley v. Eckerhart, 461 U.S. 424 (U.S. 1983) (lodestar method; hours reasonable; adjustments permitted)
- Marek v. Chesny, 473 U.S. 1 (U.S. 1985) (costs and offers of judgment; finality considerations)
- City of Riverside v. Rivera, 477 U.S. 561 (U.S. 1986) (no strict proportionality between fees and damages)
- Gay Officers Action League v. Puerto Rico, 247 F.3d 288 (1st Cir. 2001) (lodestar framework and evidence requirements)
- Latin American Music Co. v. American Soc’y of Composers, Authors & Publishers, 642 F.3d 87 (1st Cir. 2011) (deference to district courts in fee decisions; factors acknowledged)
