G & E Real Estate, Inc. v. Avison Young - Washington, D.C., LLC , 317 F.R.D. 313 ( 2016 )


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  •                             UNITED STATES DISTRICT COURT
    FOR THE DISTRICT OF COLUMBIA
    G&E REAL ESTATE, INC.,
    Plaintiff
    v.
    Civil Action No. 14-418 (CKK)
    AVISON YOUNG–WASHINGTON, D.C.,
    LLC, et al.,
    Defendants
    MEMORANDUM OPINION and ORDER
    (March 30, 2016)
    Before the Court is movant Offit Kurman, P.A.’s [130] Second Motion for Payment of
    Legal Fees and Electronic Discovery Vendor Fees in Compliance with Order Granting Motion
    for Subpoena Issued to Vornado/Charles E. Smith, L.P. Dated April 2, 2014. This motion pertains
    to a subpoena served on Vornado by Plaintiff in connection with the lease by Vornado, a
    landlord, to Defendant Analytic Services. The Court notes that, while Vornado is not a party to
    this case and does not appear to have any financial stake in its outcome, neither is Vornado a
    stranger to this case. Indeed, it is Vornado’s lease to Defendant Analytic Services that is at the
    core of this case. Offit Kurman represented Vornado in the matters relating to the subpoena and
    now seeks to recover attorney’s fees in the amount of $145,843.50 for the work that it did on
    Vornado’s behalf. Offit Kurman also requests that Plaintiff be required to pay the invoices issued
    by LightSpeed LLC, the electronic discovery vendor used by the parties. The invoices directed to
    Offit Kurman amount to $2,010.94. 1 Offit Kurman seeks to require Plaintiff to bear all of these
    1
    Offit Kurman also submitted invoices by LightSpeed that had been directed to Plaintiff’s
    counsel. But those invoices are not properly the subject of this motion because they were neither
    directed to the non-party Vornado or to Vornado’s counsel.
    1
    expenses under Federal Rule of Civil Procedure 45(d)(2)(ii), which contains certain protections
    for non-parties who have been served with a subpoena.
    Upon consideration of the pleadings, 2 the relevant legal authorities, and the record as a
    whole, the Court GRANTS IN PART and DENIES IN PART Offit Kurman’s [130] Second
    Motion. The Court will GRANT the motion as to the $2,010.94 in invoices, requiring Plaintiff to
    pay those invoices, and as to $1,137.50 in attorney’s fees, requiring Plaintiff to reimburse
    Vornado for those services. The Court otherwise DENIES Offit Kurman’s request.
    I. BACKGROUND
    The Court has previously set out and discussed the facts underlying this case. See
    generally G&E Real Estate, Inc. v. Avison Young-Washington, D.C., LLC, No. CV 14-418
    (CKK), 
    2016 WL 777908
    (D.D.C. Feb. 26, 2016). Furthermore, given the issues presented in the
    pending motion, there is no need to present the factual background of this case prior to
    addressing the issues raised in the pending motion. Instead, the Court reserves presentation of the
    relevant background for the issues discussed below.
    II. LEGAL STANDARD
    Under Federal Rule of Civil Procedure 45, a party may serve a subpoena on a non-party.
    However, if that non-party objects and if a court orders compliance with the subpoena, the court
    2
    The Court’s consideration has focused on the following documents:
    • Offit Kurman, P.A.’s Second Motion for Payment of Legal Fees and Electronic
    Discovery Vendor Fees in Compliance with Order Granting Motion for Subpoena Issued
    to Vornado/Charles E. Smith, L.P. Dated April 2, 2014 (“Mot.”), ECF No. 130;
    • Pl.’s Opp’n to Second Mot. for Payment of Legal Fees and Electronic Discovery (“Pl.’s
    Opp’n”), ECF No. 134; and
    • Reply of Offit Kurman, P.A., to Opp’n of Pl. G&E Real Estate, Inc., to Second Mot. for
    Payment of Legal Fees and Electronic Discovery Vendor Fees (“Reply”), ECF No. 136.
    In an exercise of its discretion, the Court finds that holding oral argument in this action would
    not be of assistance in rendering a decision. See LCvR 7(f).
    2
    “must protect a person who is neither a party nor a party’s officer from significant expense
    resulting from compliance.” Fed. R. Civ. P. 45(d)(2)(ii). Under Rule 45, as significantly revised
    in 1991, “the questions before the district court are whether the subpoena imposes expenses on
    the non-party, and whether those expenses are ‘significant.’ ” Linder v. Calero-Portocarrero, 
    251 F.3d 178
    , 182 (D.C. Cir. 2001) (quoting Fed. R. Civ. P. 45(c)(2)(B) (1991)). “If they are, the
    court must protect the non-party by requiring the party seeking discovery to bear at least enough
    of the expense to render the remainder ‘non-significant.’ ” 
    Id. In other
    words, if expenses are
    significant, the district court must shift the expenses above the level of “significance” to the party
    serving the subpoena.
    A final point is regrettably necessary regarding the text of the rule itself. Both parties
    persist in quoting the 1991 version of Rule 45 which required protection from “significant
    expense resulting from inspection and copying commanded.” 
    Id. (emphasis added).
    The final
    words in this provision of Rule 45 appear to have been amended several times since 1991,
    ultimately resulting in the simple language, “resulting from compliance,” that is now in effect.
    Fed. R. Civ. P. 45(d)(2)(ii). It is true that the decision of the United States Court of Appeals for
    the District of Columbia Circuit (“D.C. Circuit”) in Linder remains the principal case on the
    subject of Rule 45 in this Circuit. However, the language of this rule that this Court must apply is
    the current language, not the language from a quarter-century ago. Both parties’ reliance on the
    final words of the applicable clause in the 1991 rule is ill-advised, particularly insofar as they
    suggest that the former words have particular relevance to their arguments. That said, the Court
    concludes that the change in the provision ultimately has no material impact on the outcome of
    the pending motion and will proceed to apply Rule 45 in its current form.
    3
    III. DISCUSSION
    Before proceeding to the substance of the pending motion, the Court notes that it appears
    unusual that the law firm Offit Kurman is seeking fees on its own behalf, not on behalf of its
    client, Vornado, albeit in connection to work that it did for that client. That is unusual because
    Rule 45 affords protections to non-parties who have been served with subpoenas, not to their
    lawyers. In other words, the rule provides no direct protection to Offit Kurman. In any event,
    because Offit Kurman seeks fees for work done for Vornado pertaining to the subpoena, the
    Court addresses the motion on the merits.
    The primary question facing the Court in this motion is whether the expenses for which
    Offit Kurman seeks reimbursement constitute “significant expense[s] resulting from
    compliance.” Fed. R. Civ. P. 45(d)(2)(ii). In terms of the dollar figure of the total request—
    $145,843.50 in attorney’s fees and $2,010.94 in LightSpeed invoices—there is no doubt that this
    amount would be significant. See 
    Linder, 251 F.3d at 191
    (having “no trouble” concluding that
    $199,537.08 in expenses are significant and relying on case where $9,000 was deemed
    significant). However, that is not the end of the inquiry. The Court must determine whether these
    are “expense[s] resulting from compliance” in the first instance.
    The Court understands Plaintiff to be arguing, essentially, that (1) attorney’s fees are per
    se non-compensable and (2) the amount of attorney’s fees are grossly excessive and do not
    qualify as expenses that result from the required compliance with the subpoena. As to the former,
    the Court agrees with Offit Kurman that attorney’s fees may be compensable. But as to the latter,
    the Court agrees with Plaintiff that the fees requested are excessive and that it cannot be said that
    the fees, as a whole, resulted from the requirement that Vornado comply with the subpoena
    issued. Pursuant to the Court’s analysis below, the Court concludes that all but a small fraction of
    4
    the fees requested are unreasonable and thus non-compensable. The Court concludes that the
    small subset of fees that resulted from compliance, together with the invoices issued to Offit
    Kurman, are significant and warrant compensation.
    A. Legal Framework under Rule 45
    The Court begins with text of Rule 45. As stated above, a non-party ordered to comply
    with a subpoena must be protected from any “significant expense resulting from compliance.”
    Fed. R. Civ. P. 45(d)(2)(ii). It is critical, therefore, that only expenses that result from, and
    therefore, are caused by, the order of compliance are potentially compensable. Simply because a
    non-party undertook certain tasks and incurred associated expenses in the aftermath of an order
    compelling compliance with a subpoena does not mean that those costs resulted from that order.
    In other words, only reasonable expenses are compensable. An unreasonable expense, even
    undertaken in some sense as a response to a subpoena, does not result from that subpoena.
    Instead, it results from whatever set of decisions by and on behalf of the non-party led to those
    unreasonable expenses being incurred. This understanding—that only reasonable expenses
    qualify under Rule 45—has been adopted by a significant number of courts across the country.
    See, e.g., In re Application of Michael Wilson & Partners, Ltd., for Judicial Assistance Pursuant
    to 28 U.S.C. 1782, 520 F. App’x 736, 739 (10th Cir. 2013) (citing United States v. Columbia
    Broadcasting Sys., Inc., 
    666 F.2d 364
    , 371 n.9 (9th Cir. 1982)) (“Although Rule 45(c)(2)(B)(ii)
    protects a nonparty subpoena respondent from ‘significant expense,’ expenses, including
    attorney’s fees, must be reasonable.”); In re Modern Plastics Corp., 
    536 B.R. 783
    , 788 (Bankr.
    W.D. Mich. 2015) (only reasonable expenses compensable); United States v. McGraw-Hill
    Companies, Inc., 
    302 F.R.D. 532
    , 536 (C.D. Cal. 2014) (“But, one thing is certain: an
    unreasonably incurred expense is not an expense ‘resulting from compliance.’ ”); In re:
    5
    Propulsid Products Liability Litigation, No. MDL1355, 
    2003 WL 22341310
    , at *2 (E.D. La.
    Sept. 3, 2003) (same).
    This same analysis is as applicable to attorney’s fees as it is to other expenses.
    Notwithstanding Plaintiff’s argument to the contrary, the weight of authority indicates that
    attorney’s fees are not per se excluded from potentially compensable expenses. See In re
    Application of Michael Wilson & Partners, 520 F. App’x at 739; In re Modern Plastics 
    Corp., 536 B.R. at 788
    ; Bell Inc. v. GE Lighting, LLC, No. 6:14-CV-00012, 
    2014 WL 1630754
    , at *12
    (W.D. Va. Apr. 23, 2014); Georgia-Pac. LLC v. Am. Int’l Specialty Lines Ins. Co., 
    278 F.R.D. 187
    , 190 (S.D. Ohio 2010). However, such fees are only compensable if they are reasonable. See
    In re Application of Michael Wilson & Partners, 520 F. App’x at 739; McGraw-Hill 
    Companies, 302 F.R.D. at 536
    ; In re Modern Plastics 
    Corp., 536 B.R. at 788
    . These conclusions follow
    directly from the text of the rule, which does not suggest any basis to distinguish, categorically,
    between attorney’s fees and other expenses. But the rule also requires that only expenses
    reasonably incurred as a result of compliance with a subpoena are compensable.
    Before applying this standard to the case at hand, the Court turns briefly to Plaintiff’s
    argument that attorney’s fees are not compensable expenses because the “[r]ule speaks of
    protection of expense resulting from the inspection and copying sought.” Pl.’s Opp’n at 6
    (emphasis in original). This argument fails at the starting gate because, as explained above, the
    current version of the rule does not include this language. The rule, again, states that a non-party
    must be protected from “significant expense resulting from compliance.” Fed. R. Civ. P.
    45(d)(2)(ii). In other words, the rule says precisely what Plaintiff says it does not say. Compare
    Pl’s Opp’n at 6 (“It could have spoken in terms of protection from expenses resulting from the
    subpoena. It did not.”). The Court also notes that Offit Kurman, in its reply, never pointed out
    6
    that this argument by Plaintiff lacks any foundation. Indeed, it was Offit Kurman that premised
    its request on the older version of Rule 45 in the first instance. Keeping in mind that it was Offit
    Kurman who initially led the parties down this problematic path, the Court moves on to apply the
    current incarnation of Rule 45 to the circumstances presented in the pending motion.
    B. Attorney’s Fees
    It certainly is the duty of Plaintiff, who served the subpoena on Vornado, to avoid
    imposing unwarranted expenses on Vornado. See Fed. R. Civ. P. 45(d)(1) (“A party or attorney
    responsible for issuing and serving a subpoena must take reasonable steps to avoid imposing
    undue burden or expense on a person subject to the subpoena.”). But that obligation does not
    mean that a Plaintiff may be charged with expenses that cannot be said to be reasonable and to be
    caused by an order requiring compliance with such a subpoena. As explained above, the rule
    itself does not allow such a result. The Court concludes that Offit Kurman has not shown that the
    fees for which it seeks compensation were reasonable and that they resulted from compliance
    with the subpoena.
    All issues pertaining to Vornado’s compliance with the subpoena issued by Plaintiff,
    including issues related to the fees associated with that subpoena, have been vigorously
    contested. Indeed, as Plaintiff argues, Vornado has fought the subpoena vigorously since the
    issue first arose. The Court need not walk through the history of this case in full; instead,
    reviewing a few milestones along this road more than adequately supports the Court’s conclusion
    that the expenses for which Offit Kurman seeks compensation are not reasonable.
    On September 22, 2014, Vornado moved to quash Plaintiff’s subpoena, and Plaintiff
    subsequently cross-moved to enforce the subpoena. The Court then granted Plaintiff’s motion to
    enforce the subpoena, denied the motion to quash in part, and held in abeyance the request for
    7
    fees. See Order dated October 8, 2014, ECF No. 99. Several month later, Offit Kurman filed its
    first motion for fees, ECF No. 109, and Plaintiff filed a motion to compel, ECF No. 113. 3 At a
    Status Hearing held on June 17, 2015, the Court noted that the privilege log produced by
    Vornado was insufficient and, that same day, the Court ordered the parties to meet and confer, in
    person, in order to attempt to narrow the issues in dispute. See Minute Order dated June 17,
    2015. The Court also ordered Vornado to produce a new privilege log, after the conference, with
    respect to the materials that would remain at issue. 
    Id. Counsel complied
    with this Court’s order:
    on June 22, 2015, counsel for Plaintiff met with counsel for Vornado, at the offices of Offit
    Kurman. See Withdrawal of Motion, ECF No. 123. Indeed, as a result of that meeting, the parties
    resolved the issues regarding the disputed materials, and Plaintiff withdrew its motion to compel.
    See 
    id. What happened
    at that June 22, 2015, meeting is critical. Vornado and Offit Kurman
    offered to allow Plaintiff to review all of the 1900 documents then in dispute with a clawback
    arrangement. Reply at 11. Plaintiff’s counsel reviewed all of those documents in one day. Pl.’s
    Opp’n at 5. Plaintiff’s counsel determined that those documents “were largely duplicative and
    not material” and agreed to withdraw the motion to compel as to them. 
    Id. Several additional
    documents were then produced by agreement. The parties’ activities that one day resolved all of
    the remaining issues regarding the subpoena.
    3
    The Court concluded that the first motion for fees was premature because there were remaining
    disputes, at that time, regarding Vornado’s compliance with the subpoena. Accordingly, the Court
    denied Offit Kurman’s first motion for fees without prejudice, and the Court stated that a
    renewed motion for fees could be filed upon resolution of the issues pertaining to the subpoena.
    See Minute Order dated April 8, 2015. Offit Kurman timely filed the renewed motion, which is
    now before the Court.
    8
    Offit Kurman argues in response that “no good deed goes unpunished” and describes
    Plaintiff’s argument as “bemoaning that Vornado thereby avoided the further enormous expense
    of producing a privilege log with the detail needed to satisfy Plaintiff.” Reply at 11. With respect
    to the latter point, it has no basis. As the Court previously determined, Vornado’s original
    privilege log was insufficient. As a result, Vornado’s additional efforts were not caused by the
    need to satisfy Plaintiff’s whim, as Offit Kurman suggests; they were necessary in order to
    provide a privilege log that could justify Vornado’s assertion of privilege regarding numerous
    documents. The responsibility for additional proceedings resulting from Vornado’s failure to
    properly assert its privileges falls on Vornado and on Offit Kurman, not on Plaintiff. With respect
    to Offit Kurman’s suggestion that “no good deed goes unpunished,” that could not be farther
    from the truth. The fact that the parties were ultimately able to work out an arrangement through
    which Plaintiff’s counsel could assess the documents withheld suggests that such an arrangement
    would have been possible far earlier in these contentious proceedings. Other than Offit Kurman’s
    lament regarding the futility of good deeds, Offit Kurman has never suggested otherwise. Sitting
    down with a clawback arrangement appears to have been wise and efficient when counsel finally
    did so, and doing so earlier could have yielded even greater benefits. Indeed, there is nothing in
    the record that suggests that the parties could not have resolved these issues amicably with far
    less effort.
    Concomitantly, the efforts that Offit Kurman undertook to litigate fiercely and to expend
    significant resources on the document review effort are not “significant expenses resulting from
    compliance.” Therefore, they are, in large part, not compensable. It appears from the record
    that—for whatever reason—Vornado and its attorneys decided to litigate issues related to the
    subpoena zealously. And they appear to have done so with no eye towards minimizing their
    9
    expenses or towards working cooperatively with Plaintiff’s counsel to resolve the disputed
    issues. Plaintiff has represented as much, and Offit Kurman has done nothing to contest that
    view. Moreover, the Court’s own experience with this litigation over the past several years
    confirms that assessment, as well.
    Offit Kurman has provided no reason why it could not have made the offer to allow
    Plaintiff to review documents with a clawback arrangement prior to engaging in the expensive
    and time-consuming privilege review. Instead, they contested the subpoena vigorously and
    insisted on painstakingly reviewing the documents in question. It is Vornado’s right to do so if it
    believes that doing so serves its own interests, but it may not then charge Plaintiff with the costs
    of this effort. 4 See McGraw-Hill 
    Companies, 302 F.R.D. at 536
    (quoting O’Chesky v. Koehler (In
    re Am. Hous. Found.), No. 12–cv–00222, 2013 Bankr. LEXIS 2268, at *13, 
    2013 WL 2422706
    ,
    at *3 (N.D. Tex. June 4, 2013)) (“[T]he Court is skeptical that ‘services provided by an attorney
    to a non-party for the non-party’s sole benefit and peace of mind’ can be counted as ‘expenses.’
    In other words, Rule 45 does not cut a blank check to non-parties—unnecessary or unduly
    expensive services do not ‘result from compliance’ and, therefore, do not count as ‘expenses.’ ”).
    Notably, the Court’s review of the numerous entries in Offit Kurman’s billing records suggests
    that the entire effort for which Offit Kurman now seeks compensation was guided by this overall
    strategic approach to the subpoena issue—fierce litigation and expensive document review—
    rather than a creative and collaborative approach to resolving the issues at hand.
    4
    The fact that Vornado had a right to take this approach does not mean that doing so is advisable,
    even aside from the merits of this fee shifting motion. Cf. Fed. R. Civ. P. 1 (The rules “should be
    construed, administered, and employed by the court and the parties to secure the just, speedy, and
    inexpensive determination of every action and proceeding.”).
    10
    In particular, the parties could readily have sat down at the beginning of the subpoena
    dispute to discuss potential terms to use for a search of electronic information. It does not appear
    that they even attempted to do so. Distilled to its essence, Plaintiff’s subpoena request is a fairly
    narrow one, pertaining to one tenant, one leased facility, and one leasing transaction. The Court
    notes that an agreement as to search terms likely would have enabled Vornado to conduct a more
    targeted search that would have substantially minimized the costs to all involved. Indeed, doing
    so may very well have obviated any review of the large volume of irrelevant materials that were
    ultimately generated by Vornado’s search. The failure of Vornado and Offit Kurman to suggest
    such a process confirms that the work for which Offit Kurman seeks compensation was not
    reasonably caused by compliance with the subpoena.
    It would have been a best practice for Plaintiff to have early, if not often, suggested
    collaborative ways to resolve the issue of the subpoena, such as allowing for review by
    Plaintiff’s counsel with a clawback agreement, as eventually took place. The record does not
    reflect that Plaintiff did so. But it also does not reflect that Plaintiff would have been hesitant to
    agree to such an arrangement should one have been proposed. Ultimately, Plaintiff’s failure to
    suggest alternative resolutions to the subpoena disputes does not transform the approach that
    Vornado and Offit Kurman took into a reasonable one. So, too, Plaintiff’s failure to present
    alternatives does not transform Offit Kurman’s fees into reasonable ones that can be considered
    to result from Vornado’s compliance with the subpoena.
    In light of the foregoing analysis, the Court concludes that the vast majority of Offit
    Kurman’s fees are not compensable, from the early response to the subpoena through the
    laborious document review process through the preparation of motions for fees. However, the
    Court concludes that certain discrete activities are reasonable, such as the hours expended by
    11
    Offit Kurman to enable Plaintiff’s counsel to sit down and review the contested documents. See
    Motion ¶ 74. However, it is difficult to parse out these expenses. For instance, in Offit Kurman’s
    motion, Offit Kurman describes the tasks associated with responding to Plaintiff’s motion to
    compel and related activities, which the firm refers to as Task 008. See Mot. ¶¶ 50-77. In the
    motion, Offit Kurman also lists the hours for which it seeks compensation associated with
    Task 008, broken out by attorney. See 
    id. at 17.
    In exhibit A to the motion, the individual billing
    entries are sorted first by attorney and then usually-but-not-always by date. See, e.g., Mot., Ex. A
    (entries for Stephen Nichols). To determine which individual spent time on activities that may be
    compensable, it is necessary to examine the time billed by each of the seven individuals who
    billed time under Task 008. However, it is difficult to determine how or why responsibilities
    were divided among the attorney and paralegals working on individual tasks, and therefore, it is
    difficult to determine to what extent any work was duplicative. That said, cross-referencing those
    billing entries with Offit Kurman’s description in the motion of the activities under each task, it
    appears the following expenditures of time were associated with the ultimate resolution to
    disputes regarding the subpoena:
    •   2.3 hours billed by Gregory Johnson on June 22, 2015;
    •   0.2 hours billed by Bryn Sherman on June 22, 2015 (“Review docs to be copied
    by Gill [Plaintiff’s counsel]”) ;
    •   0.3 hours billed by Sherman on June 23, 2015 (“Review docs provided by Gill”);
    and
    •   0.2 hours billed by Sherman on June 24, 2015 (“Review e-mail of Tom with 3
    docs Gill took”).
    With respect to these hours, the Court concludes that they are “expenses resulting from
    compliance” with the subpoena. At the rates billed by Vornado’s attorneys, these entries amount
    to $1,137.50. (The Court returns to whether these expenses are “significant” below, after
    12
    considering the remainder of issues pertaining to the attorney’s fees sought, as well as the
    invoices from LightSpeed.)
    Other than these hours, the Court has been unable to isolate any hours that solely pertain
    to supporting the ultimately-agreed-upon review mechanism. It may be that some hours, such as
    those required to set up the review platform with LightSpeed, the vendor, would be compensable.
    However, it is simply impossible to distinguish those hours that would have been necessary to
    enable a review/clawback arrangement from the hours spent on non-compensable tasks. As
    stated above, it appears from the record that Offit Kurman’s actions, as a whole, were colored by
    a litigious approach to resolving this dispute. Moreover, it appears that, with minimal exceptions,
    setting up the document review system would not require attorneys billing at full attorney rates.
    For these reasons, the Court cannot say with any assurance that any of the other time billed by
    Vornado’s attorneys is reasonable and could be considered an “expense resulting from
    compliance.” 5
    C. Other Expenses (Invoices)
    Through the pending motion, Offit Kurman also seeks to force Plaintiff to pay several
    invoices from LightSpeed, the electronic discovery vendor used by the parties. As noted above,
    the several invoices directed to Plaintiff’s counsel are outside the scope of this motion. There is
    5
    The parties dispute whether the factors presented by the district court in In re The Exxon Valdez,
    
    142 F.R.D. 380
    , 383 (D.D.C. 1992), remain relevant to the Court’s analysis under Rule 45 in
    light of the D.C. Circuit’s decision in Linder. The Court need not resolve that dispute today
    because the application of those factors would not alter the Court’s conclusion that only a small
    fraction of the fees in this case are compensable. In particular, as noted above, Vornado’s lease to
    Defendant Analytic Services is at the core of this case. The Court would conclude that the fact of
    this relationship would outweigh the fact that this case is not particularly in the public interest
    and the fact that both parties appear to have the ability to pay the fees in question. See 
    id. Assessing all
    of the Exxon Valdez factors would, therefore, not change the result in this case.
    13
    no reason to believe that somehow Offit Kurman or Vornado will be charged with paying those
    bills. Indeed, the parties have represented that Plaintiff has agreed to pay all of LightSpeed’s
    bills, and the Court has no reason to doubt that it will do so. That said, the Court considers the
    three bills addressed to attorneys at Offit Kurman to be “expenses resulting from compliance”
    with the subpoena. These three bills total $2,010.94. Next the Court considers whether these
    expenses, together with the minimal allowable attorney’s fees are “significant” and, therefore,
    warrant compensation.
    *       *       *
    In sum, the Court has concluded that $1,137.50 in attorney’s fees and $2,010.94 in other
    costs constitute “expenses resulting from compliance” with Plaintiff’s subpoena, for total
    expenses of $3,148.44. The only question left is whether these expenses, taken together, are
    “significant” for the purposes of Rule 45. The Court concludes that they are significant. The
    parties have not devoted any of their briefing to the precise thresholds for “significance” because
    they were, reasonably, focused on the much larger amounts requested by Offit Kurman. That
    said, the Court notes that the D.C. Circuit in Linder cited favorably a district court decision from
    the Northern District of Texas in which that court had concluded that $9,000 in expenses were
    significant. See 
    Linder, 251 F.3d at 182
    . Although $3,148.44 is undoubtedly substantially less
    than $9,000, it is not orders of magnitude lower, such that this Court would conclude that it is not
    significant. Indeed, a district court in the Western District of Louisiana concluded that even $43
    in copying costs, together with postage (for sending 11 sheets of paper), was significant. See
    Broussard v. Lemons, 
    186 F.R.D. 396
    , 398 (W.D. La. 1999). Accordingly, the Court concludes
    that Vornado must be protected from these expenses under Rule 45(d)(2)(ii). Therefore, the Court
    14
    awards Offit Kurman $1,137.50 in attorney’s fees, which Plaintiff must pay. In addition, Plaintiff
    must pay LightSpeed for the three bills directed to Vornado’s attorneys. 6
    As a final matter, the Court notes that it is not within the scope of this Court’s authority to
    determine whether Vornado should pay its attorney’s fees or whether the law firm of Offit
    Kurman should bear those fees on its own. Insofar as there is any such dispute, it is between
    Offit Kurman and its client to resolve in accordance with their private arrangements, and the
    Court expects it will be resolved in the ordinary course of business. 7
    IV. CONCLUSION AND ORDER
    For the foregoing reasons, it is hereby ORDERED that Offit Kurman’s [130] Second
    Motion for Payment of Legal Fees and Electronic Discovery Vendor Fees is GRANTED IN
    PART and DENIED IN PART.
    That motion is GRANTED insofar as the Court AWARDS Offit Kurman $1,137.50 in
    attorney’s fees, to be paid by Plaintiff, and ORDERS Plaintiff to pay the three LightSpeed bills
    addressed to Offit Kurman, which amount to $2,010.94. The motion is otherwise DENIED.
    SO ORDERED.
    Dated: March 30, 2016
    /s/
    COLLEEN KOLLAR-KOTELLY
    United States District Judge
    6
    No party has represented that the bills addressed to Offit Kurman have been paid. If Plaintiff
    has already paid these bills, there is no remaining obligation to do so. By contrast, if Offit
    Kurman has, by chance, paid those bills, Plaintiff shall reimburse Offit Kurman for the amounts
    paid. The Court expects the parties to resolve amicably any questions arising from such
    eventualities.
    7
    In light of the Court’s conclusion that only a minimal portion of Vornado’s expenses are
    compensable, there is no need to address Plaintiff’s more speculative theories about how
    Vornado could receive reimbursement for its attorney’s fees in this case, such as by relying on a
    putative (but unidentified) indemnification clause.
    15
    

Document Info

Docket Number: Civil Action No. 2014-0418

Citation Numbers: 317 F.R.D. 313

Judges: Judge Colleen Kollar-Kotelly

Filed Date: 3/30/2016

Precedential Status: Precedential

Modified Date: 1/13/2023