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Thabico Company v. Kiewit Offshore Services, Ltd.
2:16-cv-00427
S.D. Tex.
Sep 26, 2017
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Background

  • Thabico Company (plaintiff) filed a third lawsuit against Kiewit Offshore Services, Ltd. (defendant) about a crane transaction after prior defeats, prompting the court to find bad-faith forum-shopping and sanctionable conduct.
  • The Court previously granted sanctions against Thabico under its inherent power and Rule 11 (Order Granting Sanctions, D.E. 39).
  • Kiewit submitted a fee claim of $99,127.16 for defense costs; Thabico failed to meaningfully oppose that amount through counsel.
  • Thabico attempted to file pro se objections through its president; the Court struck those filings because a corporation cannot proceed pro se.
  • The Court reviewed Kiewit’s billing records, applied lodestar methodology, found hourly rates and staffing reasonable, but deducted charges for duplicative/excess entries, travel, Westlaw (treated as overhead), and arithmetic errors.
  • After deductions, the full recoverable fee was $85,174.78; the Court awarded sanctions equal to 75% of that amount—$63,881.09—against Thabico.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether corporate plaintiff may file pro se objections Thabico president signed objections pro se seeking to contest fees Kiewit moved to strike corporate pro se filing as unauthorized Court struck Thabico's pro se filings; corporations must be represented by counsel
Whether Kiewit may recover attorney's fees as sanctions under court's inherent power/Rule 11 Thabico sought to blame attorneys and relitigate merits; did not contest fee reasonableness Kiewit sought full defense costs as sanctions, relying on inherent power and Rule 11 Court held inherent-power/Rule 11 sanctions appropriate given bad-faith filing and awarded fees (but reduced percentage)
Proper method and reasonableness of requested fees Thabico did not meaningfully contest lodestar inputs Kiewit used lodestar with reasonable hourly rates and staffing Court applied lodestar, found rates/hours reasonable, made specific billing deductions, and accepted lodestar as basis
Scope of award (apportionment/blame) Thabico argued attorneys bore responsibility Kiewit sought sanctions only against Thabico (not its lawyers) Court found Thabico primarily at fault but attorneys shared some responsibility; awarded 75% of recoverable fees (not 100%)

Key Cases Cited

  • Chambers v. NASCO, 501 U.S. 32 (1991) (federal courts may use inherent power to sanction bad-faith litigation conduct)
  • Perdue v. Kenny A. ex rel. Winn, 559 U.S. 542 (2010) (lodestar presumption of reasonableness for fee awards)
  • Combs v. City of Huntington, Texas, 829 F.3d 388 (5th Cir. 2016) (district court must exclude excessive, duplicative, or inadequately documented billing)
  • Southwest Exp. Co., Inc. v. I.C.C., 670 F.2d 53 (5th Cir. 1982) (corporations cannot appear pro se)
Read the full case

Case Details

Case Name: Thabico Company v. Kiewit Offshore Services, Ltd.
Court Name: District Court, S.D. Texas
Date Published: Sep 26, 2017
Docket Number: 2:16-cv-00427
Court Abbreviation: S.D. Tex.