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