MEMORANDUM OPINION AND ORDER
Plaintiff Bode & Grenier, LLP, a law firm doing business in the District of Columbia, commenced this action against Defendants Carroll Knight, Delta Fuels, Inc., Delta Fuels of Michigan, Inc., and Knight Enterprises, Inc. “for damages arising out of Defendants’ failure to pay Plaintiff for legal services that Plaintiff provided to Defendants.” See Complaint and Jury Demand (Document No. 16). Defendants asserted a counterclaim against Plaintiff, alleging that Plaintiff violated its fiduciary duties by disclosing client confidences in its complaint. Defendants’ Answer to Complaint, Affirmative Defenses, Counterclaim and Jury Demand (Document No. 2) at 8. The court (Roberts, C.J.), ruling on the parties’ cross-motions for summary judgment, entered judgment for Plaintiff on Defendants’ counterclaim, and denied Defendants’ motion for summary judgment as to' Plaintiffs claims. Memorandum Opinion and Order (Document No. 64) at 21-22.
Thereafter, Plaintiff filed a First Amended Complaint (Document No. 65) asserting claims against all Defendants for breach of contract (Count I) and quantum meruit /unjust enrichment (Count II); as to Defendant Carroll Knight, for recovery pursuant to a guaranty (Count III) and
The parties consented to proceed before the undersigned United States Magistrate Judge for all purposes. Notice, Consent, and Reference of a Civil Action to a Magistrate Judge (Document No. 77); Referral to Magistrate Judge (Document No. 76). At the pretrial conference, the court granted Plaintiffs motion to dismiss Counts III and IV of its amended complaint. See Final Pretrial Order (Document No. 93) at 2. Following the pretrial conference, Defendants, in accordance with an order of the court, sought leave to amend their answer in order to assert additional affirmative defenses. The court denied Defendants’ request, Memorandum Opinion and Order (Document No. 97), and trial commenced in accordance with the court’s scheduling order.
After the jury was empaneled, the court granted in part a motion in limine filed by Plaintiff, and Defendants then withdrew their jury demand. 11/13/2012 Minute Entry. Accordingly, the jury was excused and the undersigned conducted a bench trial on Counts I, II, and V, the remaining counts. Id. Plaintiff withdrew Count II of its complaint, id., and the court granted Plaintiffs motion for judgment on Count I, Order (Document No. 108). With respect to Count I, the breach of contract claim, the parties stipulated that the reasonable value of the legal services rendered by Plaintiff for the benefit of Defendants is $70,000. See id. at 1. The parties further stipulated that they would address Count V, the request for attorneys’ fees, in accordance with Federal Rule of Civil Procedure 54(d). See id. at 1-2. Accordingly, the court entered judgment against all Defendants in the amount of $70,000. Judgment in a Civil Action (Document No. 109).
In accordance with the parties’ agreement, Plaintiff filed a Motion for Attorneys’ Fees (Document No. Ill) requesting $264,362.69 in fees and costs incurred in this matter, pursuant to a provision in the parties’ contract. Plaintiff subsequently sought leave of the court to reduce its request to $262,507.69, representing that certain billings were “inadvertently repeated” resulting in $1,855 in “overstated” fees. Plaintiffs Motion for Leave to File Amendment/Correction to Plaintiffs Motion for Attorneys’ Fees and Memorandum in Support of Plaintiffs Motion for Attorneys’ Fees (“Motion for Leave to Amend”) (Document No. 113) 'at 1. Upon consideration of the motions, the memoranda in support thereof and opposition thereto, the attached exhibits, and the entire record herein, the undersigned will grant Plaintiffs motion to amend and grant in part Plaintiffs amended motion for attorneys’ fees.
CONTENTIONS OF THE PARTIES
In accordance with Federal Rule of Civil Procedure 54(d)(2), Plaintiff moves for “attorneys’ fees and expenses pursuant to the attorneys’ fee and expense provision in the operative Retainer Agreement,” contending that its request is reasonable. Amended Memorandum in Support of Plaintiffs Motion for Attorneys’ Fees (“Plaintiffs Memorandum”) (Document No. 113-2) at 1-2. More specifically, Plaintiff contends that the number of hours billed are based on “detailed, contemporaneous time records maintained by counsel in the ordinary course of business,” and that the hours expended were “necessary to respond to the issues and arguments raised by Defendants and/or necessary to vindicate the rights of Plaintiff.”
Defendants, in opposition to Plaintiffs motion, first contend that the parties’ “Promissory Note and [ ] Retention Letter should be read together so as to constitute a single, incorporated contract.” Defendants’ Memorandum in Opposition to Plaintiffs Motion for Attorney Fees (“Opposition”) (Document No. 114) at 7. Defendants thus contend that the court should apply Michigan law in evaluating the fee request, pursuant to a choice-of-law provision in the Promissory Note, and should “cap” the fee award at $45,000 pursuant to a provision in the Promissory Note limiting attorneys’ fees to 15 percent of the sum of the note. Id. at 11-12. With respect to the hours billed, Defendants, relying on Michigan law, submit that the court cannot award fees for hours incurred by Plaintiff while it was representing itself in this matter, and must thus limit the fee award to hours billed by attorney Randell Ogg. Id. at 12-14. In the alternative, if the court does not deny the hours billed by Plaintiff, Defendants submit that Plaintiff cannot recover fees for defending against the counterclaim because “it does not arise out of, or relate to, the underlying contract.” Id. at 14. Finally, Defendants request that the court deny the fees billed by attorney Mark Leventhal, contending that “the time that [he] spent on specific tasks was excessive and unreasonable.” Id. at 17.
Plaintiff submits that the relevant contract is solely the Retainer Agreement, also referred to as the Retention Letter, and that the Promissory Note’s provisions are not applicable because the two documents are not incorporated. Plaintiffs Reply to Defendants’ Opposition to Motion for Attorneys’ Fees (“Reply”) (Document No. 115) at 7-10. Plaintiff maintains that District of Columbia law governs this matter, relying on choice-of-law analysis and the previous proceedings in this matter. Id. at 2-7. Plaintiff thus avers that under District of Columbia law, it is entitled to fees that it incurred while representing itself. Id. at 10-11. Plaintiff further avers that it can recover fees associated with litigating the counterclaim because it was “related to a defense in the contract claim which had to be overcome.” Id. at 12. With respect to the fees billed by Mr. Leventhal, Plaintiff contends that Defendants failed to “identify specific time entries which they believe are excessive or unreasonable,” id. at 14, and further contends that “[a] fair analysis of the time expended shows [it] was reasonable .under the circumstances,” id. at 15. Finally, Plaintiff seeks an additional $14,155 for the attorneys’ fees that it incurred while preparing its reply brief. Id. at 2, 22.
APPLICABLE STANDARD
While the general rule in our judicial system is that a “prevailing litigant is ordinarily not entitled to collect a reasonable attorneys’ fee” from the opposing party, this rule can “be overcome by an enforceable contract allocating attorney’s fees.” Travelers Cas. & Sur. Co. of Am. v. Pac. Gas & Elec. Co.,
“The most useful starting point for determining the amount of a reasonable fee is the number of hours'reasonably expended on the litigation multiplied by a reasonable hourly rate.” Hensley v. Eckerhart,
In order to satisfy its burden concerning the number of hours, the party requesting fees must submit “sufficiently detailed information about the hours logged and the work done that permits the district court to make an independent determination whether or not the hours claimed are justified.” Carmel & Carmel PC v. Dellis Constr., Ltd.,
DISCUSSION
Motion for leave to amend
Shortly after filing its motion for attorneys’ fees in this matter, Plaintiff filed a motion for leave to amend, seeking to “amend and/or correct the amount of attorney fees sought in its Motion for Attorneys’ Fees [ ].” Motion for Leave to Amend at 1. Plaintiff represents that “[t]he billings for the month of February 2012 were inadvertently repeated,” which “overstated the total fees by $1,855 (5.3 hours).” Id. To remedy this error, Plaintiff requests that it be granted leave to reduce its fee request from $264,362.69 to $262,507.69. Defendants acknowledge this request in their opposition, see Opposition at 1 n.l, but did not respond to Plaintiffs motion for leave to amend. Accordingly,
Law governing motion for attorneys’ fees
Plaintiff and Defendant Carroll Knight executed a Retention Letter, dated August 7, 2007, which set forth the terms of Plaintiffs representation of Defendants, and provided that “[Defendants] will also be responsible for [Plaintiffs] costs of collecting any fees due and owing, including reasonable- attorney fees and expenses, as well as interest from the date of commencement of any legal action to collect the balance.” Declaration of William H. Bode in Support of Plaintiff[’s] Motion for Attorneys’ Fees (“Bode Declaration”), Exhibit 1 (Document No. 113-4). Plaintiff requests attorneys’ fees pursuant to this contractual provision. See Amended Plaintiffs Motion for Attorneys’ Fees at 1; Plaintiffs Memorandum at 1. Defendants aver that the terms of a Promissory Note, executed by the parties on the same day, also govern this matter because both documents constitute the parties’ contract. Opposition at 7. More specifically, Defendants submit that a choice-of-law provision in the Promissory Note requires that this court apply Michigan law to Plaintiff’s fee request, and that an attorneys’ fee' provision in the Promissory Note limits the amount of any fee award. Opposition at 11; see Opposition, Exhibit 2 (Document No. 114-2) at 1-2.
“Under general contract law, the plain and unambiguous meaning of an instrument is controlling, and the Court determines the intention of the parties from the language used by the parties to express their agreement.” Wash. Metro. Area Transit Auth. v. Mergentime Corp.,
After setting forth the terms of representation, the Retention Letter indicates that:
Notwithstanding the above, at the end of July 2007, this firm is owed the amount of $446,566 for legal services previously rendered in this matter. You have agreed 'to execute a Promissory Note in the amount of $300,000, payable in nine months, as a partial payment against this amount, and also to pay $20,000 per month for the next eight months as further partial payments of fees owed.*118 One-half of these monthly payments will be applied to the outstanding balance.
Bode Declaration, Exhibit 1 at 2. Although the Retention Letter does reference the Promissory Note, the undersigned finds that it does so for the limited purpose of explaining the payment schedule for “legal services previously rendered” and amounts already owed, as opposed to incorporating the document into the terms applicable to legal fees incurred in the future. The reference to the Promissory Note in the Retention Letter is prefaced by the phrase “[n]otwithstanding the above.” In contrast, in Tower Insurance Co. of New York v. Davis/Gilford, the court determined that it could “discern no other meaning or effect of th[e] language but to include the Subcontract’s terms as provisions of the Performance Bond in their entirety,” where the bond stated that the subcontract “is hereby referred to and made a part” of it.
The cases relied upon by Defendants for the proposition that the documents should be construed as a single contract, see Opposition at 7-8, are distinguishable from the present circumstances. Unlike the situation in Vicki Bagley Realty, Inc. v. Laufer, where the court noted that the two documents “specifically referred to the lease as an attachment or addendum to the sales contract,”
Although Defendants rely on other communications by the parties to “highlight the fact that both documents were intended to be incorporated together,” see Opposition at 9-10, the court bases its finding on the unambiguous language used by the parties to set forth the terms of their agreement. Notably, the plain language of the two provisions of the Promissory Note invoked by Defendants expressly limit their applicability to the Promissory Note. The attorneys’ fee provision provides that “[i]n the event of any default in the payment of this Note .... Such attorneys’ fees shall not exceed fifteen [ ] percent of the principal sum of this Note.” Opposition, Exhibit 2 at 1 (emphasis added). Similarly, the choice-of-law provision provides that “[t]his note shall be governed by the law of the State of Michigan.” Id. at 2 (emphasis added). Moreover, if the parties intended to. incorporate the Promissory Note into the Retention Letter, it is unclear why the two documents establish 'different terms for the collection of attorneys’ fees. Compare Bode Declaration, Exhibit 1 at 2, with Opposition, Exhibit 2 at 1.
Finally, while the court bases its conclusion on the plain language of the docu
Because the terms of the Retention Letter and the Promissory Note make clear that the two documents were not incorporated to constitute a single contract between the parties, the court finds that the provisions of the Promissory Note are not applicable to the instant request for attorneys’ fees. Accordingly, Defendants’ requests that the choice-of-law provision -be applied, and that the fee award be limited to $45,000, are both denied..
Defendants raise an alternative argument — that Michigan law should apply “since the documents were signed in the state of Michigan ... ” — but offer no authority in support of this contention. See Opposition at 7. Defendants do not explain why this court should, after multiple years of litigation, apply Michigan law. Accordingly, the court will continue to apply District of Columbia law in construing the contractual provisions.
Fees incurred by Plaintiff while representing itself
Defendants, relying on Michigan case law following the Supreme Court’s decision in Kay v. Ehrler,
Moreover, Defendants fail to address the distinction between awarding fees pursuant to an agreed-upon contractual provision, such is the case here, and awarding fees pursuant to fee-shifting provisions in statutes or court rules, as were the circumstances in the cited authority. See Kay,
For these reasons, the court will not preclude fees incurred “from July 31, 2008, the date the Complaint was filed, until ■January 31, 2012, the date when [attorney Randell Ogg] first appeared in the case.... ” See Opposition at 14.
Fees incurred while litigating counterclaim
In response to Plaintiffs initial complaint, Defendants brought a counterclaim alleging breach of fiduciary duty and seeking disgorgement or forfeiture of all legal fees paid by Defendants to Plaintiff, due to disclosures made by Plaintiff in its complaint. See Defendants’ Answer to Complaint, Affirmative Defenses, Counterclaim and Jury Demand (“Answer”) (Document No. 2) at 8-9. Defendants contend that they are “entitled to a reduction in fees in the amount of $33,605.00” for fees incurred by Plaintiff while defending against this counterclaim because it “does not arise out of, or relate to, the underlying contract.” Opposition at 14,16.
The attorneys’ fee provision in the Retention Letter broadly states that “[y]ou will also be responsible for our costs of collecting any fees due and owing, including reasonable attorney fees and expenses .... ” Bode Declaration, Exhibit 1 at 2. Defendants, through their counterclaim, sought an equitable award of disgorgement of legal fees “in an amount equal to all sums of money paid.” Answer at 9; see Memorandum Opinion and Order (Document No. 64) at 12-21. Because the relief requested affected fees already paid, Plaintiff, in defending against the counterclaim, did not incur “costs of collecting any fees due and owing.” See Bode Declaration, Exhibit 1 at 2; see also Nest & Totah Venture, LLC v. Deutsch,
However, as Plaintiff observes, see Reply at 11-12, Defendants also alleged breach of fiduciary duty, based on the same underlying conduct, as an affirmative defense, see Answer at 7; Defendants’ Answer to First Amended Complaint, Affirmative Defenses, and Jury Demand (Document No. 68) at'9. In this context,
Therefore, the court will not reduce the fee award by eliminating the hours billed for defending against Defendants’ counterclaim.
Reasonableness of fee request
Plaintiff seeks $256,663.75 in attorneys’' fees for 987.4 hours spent, and $5,843.94 for costs incurred during this litigation. Plaintiffs Memorandum at 8, 11. Plaintiff also seeks $14,155 in fees for 52 hours spent preparing its reply brief in support of its motion for fees. Reply at 22. The Retention Letter does not stipulate an hourly rate, number of hours, or means of calculation of attorneys’ fees; rather, it provides that Defendants will be responsible for “reasonable attorney fees and expenses.... ” See Bode Declaration, Exhibit 1. In the absence of a contractual provision, the court will apply the law of this Circuit in reviewing the reasonableness of Plaintiffs request. See Carmel & Carmel PC v. Dellis Constr., Ltd.,
In support of its request, Plaintiff submits affidavits and invoices detailing the experience of each attorney, the hours spent on each activity, and the costs incurred. See Amended Declaration of Randell Ogg in Support of Plaintiff[’s] Motion for Attorneys’ Fees (“Ogg Declaration”) (Document No. 113-3); Ogg Declaration, Exhibits 1 & 2; Bode Declaration; Bode Declaration, Exhibit 3; Supplemental Declaration of William H. Bode (“Supplemental Bode Declaration”) (Document No. 115-1), Exhibit D; Supplemental Declaration of Randell Ogg in Support of Plaintiff[’] Motion for Attorneys’ Fees (“Supplemental Ogg Declaration”) (Document No.
Defendants do not object to the rates charged. See Opposition at 16. With respect to the hours billed, however, Defendants object to the hours billed by attorney Mark Leventhal. See id. Although it was not addressed by Defendants, since it was raised in Plaintiffs reply brief, the court will also evaluate Plaintiffs request for additional fees incurred while preparing its reply brief.
Hours billed by attorney Mark Leventhal
Defendants request that the court reduce Plaintiffs fee award by $100,787.50, the amount incurred by Mr. Leventhal, contending that “the time that [he] spent on specific tasks was excessive and unreasonable,” in light of “the work performed by the other attorney[s] on the same projects while working on the case.” Opposition at 17.
Defendants’ characterization of Mr. Leventhal’s billing as “egregious,” see id.,' is unpersuasive. The comparisons between hours billed by Mr. Leventhal and hours billed by other attorneys in this matter do not provide a sufficient basis for the court to deny Mr. Leventhal’s fees, given that he was one of the primary associates working on this matter for Plaintiff during the relevant time period. Bode Declaration ¶ 25; Supplemental Bode Declaration ¶ 8; cf. Adolph Coors Co. v. Truck Ins. Exch.,
Additionally, Defendants do not assert the basis for their objections to the number of hours Mr. Leventhal spent on certain activities. See Opposition at 17. In the one case relied on by Defendants, the Court of Appeals denied the fees billed by one of the. attorneys after noting that she “submitted outrageously excessive time entries” for tasks such as completing a notice of appearance, drafting “relatively brief letters,” drafting a “boilerplate memorandum” without “citations to or discussion of the [most relevant] legal authorities,” and conferring with counsel. See Envtl. Def. Fund, Inc. v. Reilly,
Plaintiff has provided “sufficiently detailed information about the hours logged and the work done” by Mr. Leventhal such that the court can “make an independent determination whether or not the hours
Hours billed for preparing reply brief
Plaintiff seeks an additional $14,155 in fees for 52 hours spent preparing its reply brief in support of its motion for fees. Reply at 22; Supplemental Bode Declaration, Exhibit D; Supplemental Ogg Declaration, Exhibit 1.
Many of the points and authorities raised in Plaintiffs reply brief, albeit not all, were previously raised in Plaintiffs opposition to Defendants’ motion to limit the fee award. Compare Reply, with Plaintiffs Opposition to Defendants’ Motion to Limit Attorney Fee Award (Document No. 80). See Reply at 1 (“Defendants have reiterated their previous Motion to Limit Attorneys’ Fees [] which, as Plaintiff has previously argued, misstated the facts and law [].”). Plaintiff billed for approximately 70 hours of work on its opposition. See Ogg Declaration, Exhibit 1; Bode Declaration, Exhibit 3. The court thus finds that the additional 52 hours billed for the reply is unreasonable given the overlap between the submissions. Recognizing that Plaintiffs attorneys undertook necessary work to update the memorandum and corresponding exhibits, the court will not deny the entire $14,155 amount. Instead, the court will exercise its discretion and reduce the requested amount by 50 percent. See Carmel & Carmel,
CONCLUSION
For the foregoing reasons, it is, this 25th day of March, 2014,
ORDERED that Plaintiffs Motion for Leave to File Amendment/Correction to Plaintiffs Motion for Attorneys’ Fees (Document No. 113) is GRANTED, and accordingly, Plaintiffs Motion for Attorneys’ Fees (Document No. Ill) is DENIED AS MOOT; and it is
FURTHER ORDERED that the Amended Plaintiffs Motion for Attorneys’ Fees (Document No. 113-1) is GRANTED IN PART, and that Plaintiff is awarded $269,585.19 in attorneys’ fees and costs.
THIS IS A FINAL APPEALABLE ORDER.
Notes
. Plaintiff also raises several arguments concerning its contention that "Defendants ran up the expense and cost of this litigation....” Plaintiffs Memorandum at 3-6. The under-
. The Civil Division of the United States Attorney's Office for the District of Columbia updates and maintains a Laffey matrix, available at http://www.justice.gov/usao/dc/ divisions/Laffey_Matrix2 014 .pdf.
. Following the Kay decision, this Circuit observed that "[t]he Supreme Court has made clear ... that the exception to fees statutes for individual litigants who represent themselves does not extend to organizational litigants such as [the plaintiff law firm].” Baker & Hostetler LLP v. U.S. Dep’t of Commerce,
. In addition, the attention of counsel is directed to the court’s November 29, 2012 minute order, by which the court granted the parties' joint motion for an extension of time to appeal the court’s November 20, 2012 judgment in favor of Plaintiff as to Count I
