Textainer Equipment Management Limited v. United States
131 Fed. Cl. 701
| Fed. Cl. | 2017Background
- Capital sought URA attorney’s fees and costs after a taking judgment against the United States for 258 containers (not all owned by Capital).
- The case originated in 2008 with CAI International, Cronos, and Textainer alleging the Army took title to containers leased to TOPtainer without just compensation.
- The court later allowed Capital to pursue a takings claim; CAI and Cronos’ claims were rejected for lack of ownership or notice.
- A 2014 judgment awarded Capital $485,899.64 on its takings claim; CAI and Cronos claims were denied.
- Capital filed an URA application on Nov. 30, 2016 seeking approximately $1.25 million in fees and costs for roughly 2,000 hours of work.
- The government urged reductions: lower hourly rates, hours spent for unsuccessful plaintiffs, and insufficiently documented online research costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether URA fees may be awarded using lodestar with LSI Laffey starting point | Capital defends LSI Laffey as starting point per Biery. | Government urges reduced rates using adjusted Laffey matrix and fewer hours. | LSI Laffey starting point approved with reductions |
| Whether lead-counsel rates should be reduced based on other case work | Capital argues 15% reduction is unwarranted. | Government supports 15% rate reduction to reflect other work. | Rate reduction of 15% applied to lead counsel |
| What portion of hours attributable to unsuccessful plaintiffs may be excluded | Capital argues most hours were for Capital and attributable to Capital’s claims. | Government argues for substantial reductions for CAI and Cronos work and for Green Eagle defense. | Eliminate hours for Green Eagle and CAI/Cronos-related work; partial reductions for other periods |
| Whether hours spent on unsuccessful motions and non-capital ownership actions are recoverable | All hours reasonably spent on Capital-related issues were recoverable. | Disallow hours on unsuccessful motions and unrelated research. | Eliminate 112.35, 50.9, 17.25, 16.45, 7.5, and 7 hours as non-recoverable; adjust accordingly |
| Whether costs, including research costs, are properly documented and recoverable | Research costs are justified and documented. | Costs not sufficiently documented; some research costs disallowed. | Costs and research costs allowed at $11,930.93 |
Key Cases Cited
- Biery v. United States, 818 F.3d 704 (Fed. Cir. 2016) (URAs fees principles; lodestar starting point in URA cases)
- Hensley v. Eckerhart, 461 U.S. 424 (Supreme Court 1983) (reasonableness of hours and proportionality in fee awards)
