Keister v. PPL Corp.
Keister v. PPL Corp.
Opinion of the Court
MEMORANDUM
Since the baseless nature of this action was revealed, the Court has spent upwards of one hundred and forty pages on its complete disposition — a troubling expenditure of judicial resources for a claim based in make-believe. By Memorandum dated December 29, 2015, the Court granted Defendant PPL Corporation’s Rule 11 Sanctions Motion and Defendant International Brotherhood of Electrical Workers, Local 1600’s Rule 54 Motion for Fees. As I noted then, both motions “spring from the filing of a baseless employment discrimination suit” by Ernest Keister, through his attorney Donald P. Russo, Esquire, a lawyer who had already been sanctioned under Rule 11 in the form of public reprimand by the Honorable Robert D. Mariani of this Court by the time I found Mr. Russo to have committed a second Rule 11 violation.
I therefore concluded that an award of reasonable attorney’s fees was the least severe sanction required to deter Mr. Russo’s improper conduct. As such, after the Court’s December 29, 2015 Memorandum, all that remained to be done before bringing this now-prolonged litigation to a close was determination of the amount of fees that Mr. Russo must pay his adversaries in light of the meritless nature of the claims he had maintained. In accordance with the analysis set forth herein, the minimum reasonable amount needed to deter Mr. Russo from engaging in subsequent frivolous suits, as well as the minimum reasonable award directly attributable to Mr. Russo’s vexatious conduct, is a fee award of $57,958.59 for Defendant PPL and $57,958.96 for Defendant Local 1600.
1. BACKGROUND
The serpentine story of this litigation is well documented in the Court’s prior Memorandum of December 29, 2015 and in its Summary Judgment Memorandum dated October 6, 2015.
Plaintiffs lawsuit, the entirety of which was disposed of by this Court’s October 6, 2015 Memorandum granting in full both Defendants’ Motions for Summary Judgment, alleged two claims of age discrimination against PPL — one under the Age Discrimination in Employment Act of 1967, 29 U.S.C. §§ 621 et seq. (“ADEA”) and, a second under the Pennsylvania Human Relations Act, 43 P.S. §§ 951 et seq. (“PHRA”) — as well as a third claim involving a supposed hybrid violation of § 301 of the Labor Management Relations Act of 1947, 29 U.S.C. § 185(a) (“LMRA”) brought against both PPL and the Union.
As the evidence unwound itself durin¿ discovery and depositions, it became clear that Plaintiff lacked any evidence of the wrongs he pleaded. Quite frankly, as I explained in my December 29, 2015 Memorandum, certain of Plaintiffs key factual allegations, which helped his claim survive much longer than it should otherwise have, were “unrepresentative of the truth and often ■[ ] wholly at odds with Plaintiffs own deposition testimony.”
The core problem with this litigation was, as I have previously emphasized, Mr. Russo’s less-than-forthright averments, through which the action “was needlessly kept alive at several junctures that should have resulted in its outright termination.”
From the outset, I found that by considering the background of this case as well as the background of similarly baseless cases filed by Mr. Russo in federal court, “an award of reasonable attorney’s -fees [was] the least severe sanction necessary to deter Mr. Russo’s tendency to file frivolous actions.”
Like so many times in the past, Mr. Russo unfortunately chose not to take the straightforward path. In fact, Mr. Russo is quite familiar with Rule 11 Sanctions and related ethical scrutiny. The Honorable Lawrence F. Stengel of the United States District Court for the Eastern District of Pennsylvania has previously termed Mr. Russo’s employment discrimination work “dubious,” “ill-conceived,” “poorly presented,” “silly,” and “riddled with credibility shortcomings.” In addition, as noted above, just one week before he filed his briefs in opposition to Defendants’ Summary Judgment Motions in this case', Mr. Russo was publicly sanctioned under Rule 11 by the Honorable Robert D. Mariani of this Court for maintaining a similar employment discrimination claim that Judge Mariani deemed “patently unmer-itorious” and “frivolous.” Judge Mariani would go on to criticize Mr. Russo’s “litigation history” as “troubling.” Mr. Russo also recently received a second public reprimand, this time from the Supreme Court of Pennsylvania’s Disciplinary Board. Suffice it to say, Mr. Russo is simply not getting the message.12
Having disposed completely of Defendants’ Motions for Summary Judgment as well as having determined that an award of reasonable attorney’s fees is the least severe sanction necessary to deter Mr. Russo, I must now assess the appropriate amount of the fee award, taking all relevant mitigating and aggravating factors into account.
II. LAW
The only remaining issue is the amount of reasonable attorney’s fees necessary to adequately deter Mr. Russo from filing similarly frivolous actions and reasonably attributable to Mr. Russo’s vexar tious conduct in the instant case. “[T]he so-called ‘American Rule’ prohibits fee shifting in most cases.”
In. this regard, if a court finds that fraud has been practiced upon it, or that the very temple of justice has been defiled, it may assess attorney’s fees against the responsible party, as it. may when a party shows bad faith by delaying or disrupting the litigation or by hampering enforcement of a court order. The imposition of sanctions in this instance*700 transcends a court’s equitable power concerning relations between the parties and reaches a court’s inherent power to police itself, thus serving the dual purpose of vindicating judicial authority without resort to the more drastic sanctions available for contempt of court and making the prevailing party whole for expenses caused by his opponent’s obstinacy.15
The United States Court of Appeals for the Third Circuit has applied this exception to hybrid claims brought pursuant to § 301 of the LMRA. Specifically, in the context of litigation brought to vacate arbitration awards under § 301, the Third Circuit has stated, “Under the American rule, each party normally must bear the burden of its own legal expenses, including attorneys’ fees. One of the narrow exceptions to this rule is a finding that the losing party litigated in bad faith, vexatiously, or for oppressive reasons.”
Moreover, in Mobil Oil Corp. v. Independent Oil Workers Union, the Third Circuit went on to elaborate as to the type of conduct that constitutes litigation “in bad faith, vexatiously, or for oppressive reasons” in the LMRA § 301 context. According to the Third Circuit, conduct that warrants an award of fees in such an LMRA case includes: “[whether the party’s] position is so lacking in merit that costs and attorney’s fees should be (imposed) against it”; “[whether the party] demonstratefed] its good faith belief in the strength of the arguments it advanced”; “[whether the party] has a history of refusing to comply with arbitration awards [or court orders]”; and “[whether the party] presented a substantial legal issue.”
Once it is established that the party prevailed, the court must determine reasonable fees under the lodestar formula: the “number of hours reasonably expended on the litigation multiplied by a reasonable hourly rate.”
“The most useful starting point for determining the amount of a reasonable fee is the number of hours reasonably expended on the litigation.”
“After determining the number of hours reasonably expended, the district court must examine whether the requested hourly rate is reasonable.”
In setting a reasonable fee, the district court “necessarily has discretion in making this equitable judgment.”
III. ANALYSIS
A. Defendant PPL’s Lodestar Fee and Cost Award is $64,007.09.
Defendant PPL has submitted the affidavit of lead counsel Steven E. Hoffman, Esquire, in addition to a detailed, supporting fee bill.
Mr. Hoffman was assisted in the matter by his colleagues Edward J. Easterly, Es
According to Mr. Hoffman’s affidavit, Norris, McLaughlin bills partner time at $275.00 per hour, associate time at $175.00 per hour, and paralegal time at $125.00 per hour. In Beattie v. Line Mountain School District, I reset the standard forum rates for attorneys in the Williamsport vicinage of this Court to range from $150 to $325 per hour, depending on the attorney’s experience, the complexity of the litigation, and the quality of the submitted work product.
The Court finds that, based upon their experience, the extent of the discovery required, the quality of their submissions, and their alignment with previously approved forum rates, the hourly rates charged by each of the three Norris, McLaughlin attorneys on behalf of PPL were consistent, reasonable, and necessary in putting forth a vigorous defense in this action. In calculating the lodestar amount, the Court will reduce Ms. Cecala’s hourly rate from $125.00 to $90.00, consistent with precedent for paralegal rates in this venire of the Court.
Table 1 below depicts PPL’s lodestar fee and cost award calculation. The initial lodestar total is $64,007.09. Line-by-line reductions are calculated below in Section III.
Timekeeper Rate Hours Total
Steven E. Hoffman, Esq. $275.00 94.10 $25,877.50
Edward J. Easterly, Esq. (Partner Rate) $275.00 107.60 $29,590.00
Edward J. Easterly, Esq. (Associate Rate) $175.00 29.00 $5,075.00
John J. Buckley, III, Esq. $175.00 8.60 $1,505.00
Connie Cecala $90.00 6.00 $540.00
Costs $1,419.59
Total $64,007.09
B. Defendant Local 1600⅛ Lodestar Pee and Cost Award is $61,896-46.
Defendant Local 1600 has also submitted the affidavit of counsel Quintes D. Taglioli, Esquire, in addition to a detailed, supporting fee bill.
, The primary issue the Court has confronted in reviewing Mr. Taglioli’s fee bill is that the hourly rate he charged to the Local 1600 lands well to the low end of the reasonable fee range set by Beattie and typically charged to private employers in labor disputes by lawyers of Mr. Taglioli’s skill and experience. As Mr. Taglioli’s affidavit indicates, “lawyers who represent labor unions in labor and employment matters bill' at rates substantially less than hourly rates of lawyers representing employers.”
In the context of statutory fee awards for parties who prevail in cases that touch upon matters in the public interest, the Supreme Court of the United States has supported a district court’s ability to vary an award of attorney’s fees upward or downward based upon the following twelve factors:
(1) the time and labor required;
(2) the novelty and difficulty of the questions;
(3) the skill requisite to perform the legal service properly;
(4) the preclusion of employment by the attorney due to acceptance of the case;
(5) the customary fee;
(6) whether the fee is fixed or contingent;
(7) time limitations imposed by the client or the circumstances;
(8) the amount involved and the results obtained;
(9) the experience, reputation, and ability of the attorneys;
(10) the “undesirability” of the case;
(11) the nature and length of the professional relationship with the client;
(12) awards in similar cases.54
Furthermore, when it interpreted the term “reasonable fees” in a similar context, the Supreme Court confirmed that fee awards “are to be calculated according to the prevailing market rates in the relevant community.”
To that extent, the Supreme Court has crafted a definition of the term “reasonable attorney’s fee” that transcends various species of litigation, simply by requiring a presiding judge to “contemplate[ ] reasonable compensation, in light of all of the circumstances, for the time and effort expended by the attorney for the prevailing plaintiff, no more and no less.”
Thus, as applied to the instant case, in Student Public Interest Research Group (“SPIRG”) of New Jersey, Inc. v. AT&T Bell Laboratories, the Honorable Edward R. Becker, writing for the Third Circuit, determined that when private, for-profit law firms accept cases that touch upon matters in the public interest, “the community billing rate charged by attorneys of equivalent skill and experience performing work of similar complexity, rather than the firm’s billing rate, is the appropriate hourly rate for computing the lodestar.”
The crux of the issue as it pertains to Mr. Taglioli’s unopposed request for subsidization of his fee to align it with that of a prevailing, competitive rate — is whether legal services performed for labor unions at a below-market price properly come within the reach of the above-quoted Supreme Court and Third Circuit decisions authorizing such supplementation. Based on my review of the law and, equally important, the economics of such fee arrangements, I am of the view that supplementation of Mr. Taglioli’s lodestar hourly rate is entirely appropriate here.
At a very surface level, whether representation of a labor union by a private firm serves the public interest by enabling organized labor is a question whose answer could easily vary based upon the identity of the respondent and his or her own political predilections. The law as developed by the Supreme Court and the Third Circuit demands a more steadfast approach, however. Indeed, upon closer review of the law, whether a given attorney’s fee qualify for supplementation based on the Blum and SPIRG line of cases necessarily hinges on whether market forces in the particular practice area exert undue downward pressure on what would otherwise be a competitive price for legal services. Thus, while the initial development of the doctrine permitting fee supplementation had its roots in cases involving traditional public interest arrangements and pro bono publico representation, several federal courts have extended the reasoning in Blum, SPIRG, and their progeny to attorneys who represent labor unions.
Because the case law outlining the calculation of attorney’s fees in the Third Cir
Accordingly, I deem it appropriate to adjust Mr. Taglioli’s hourly rate upward. Not only does such an upward adjustment correct for market distortions that have resulted in artificially low hourly rates, but just as. critically, it recognizes Mr. Taglio-li’s superior work product. In addition to the results obtained by Mr. Taglioli for his client, such a supplementation of his fee award confirms that his performance in this litigation was fully worthy of the-market-paying rate in labor and employment disputes occurring in the Williamsport vici-nage of this Court. Accordingly, Mr. Tagli-oli’s hourly rate should be adjusted upward to $275.00 per hour in order to align with the market rate received by Mr. Hoffman in this litigation and in accordance with all of the factors discussed above.
Table 2 below depicts the Union’s lodestar fee and cost award calculation. The initial lodestar total is $61,896.46. Line-byline reductions are calculated below in Section III.
Table 2. Local 1600’s Lodestar Fee and Cost Award Calculation
Timekeeper Rate Hours Total
Quintes D. Taglioli, Esq. $275.00 . 215.10 $59,152.50
Daniel E. Taglioli, Esq. $185.00 5.00 $925.00
Costs $1,818.96
Total $61,896.46
C. The Court Has Reviewed Mr. Russo’s Objections, Has Conducted A Line-by-line Review Of Defendants’ Fee Bills, Has Applied The Mitigating Factors Set Forth In Doering, And Now Adjusts The Fee Awards
“The court may not reduce an award sua sponte; rather, it can only do so in response to specific objections made by the opposing party.”
1. Mr, Russo’s Objections That PPL Employed “Excessive” Resources And Failed To Mitigate Its Expenses Are Wholly Without Merit, Given The Unique Posture Of This Litigation.
Mr. Russo submits four objections, though the four objections are ill-defined, and the bounds of one necessarily bleed into the others. His primary contention in his first objection is that PPL’s fee request is excessive because PPL was “under a duty to ‘measure its opposition’ and not expend so much time and money as to ‘overwhelm the relatively weak resources of the opposition.’”
Mr. Russo cites to In re Smith, a bankruptcy decision refusing to grant a Rule 11 motion brought by the Internal Revenue Service (IRS) because the IRS “was clearly ‘guilty of overkill.’”
In the second instance, the reality of this case is that although it eventually was disposed of on summary judgment after
Regardless, the basic factual claim that staffing three attorneys and a paralegal on the defense team here constituted excess is unsupported. There is a simple but obvious difference between a firm’s larding on artificial billable hours and its expending legitimate time defending against an action. As the finder of fact and the tribunal most familiar with the posture of this action and the attorneys’ presentations, I would reaffirm as I did in my December 29, 2015 Memorandum, that counsel for Defendants here submitted written work, offered oral presentations, and maintained appropriate decorum with the Court in a way that placed them in the top echelon of advocates who appear before me. Moreover, counsel for PPL points out, and the supporting records accurately reflect, that the majority of the work on this matter was completed by two of its firm’s attorneys— one partner and one associate who was elevated to the rank of partner during the course of this litigation.
Just because PPL’s approach was not excessive does not mean that the Court need not trim back any unnecessarily du-plicative entries. I am, of course, still required to engage in such an inquiry. However, because of the nature of Defendant’s objection, it is important to observe at the outset that nothing about the way in which PPL has staffed this case was in the least bit excessive. A defendant is certainly entitled to raise a defense on its own behalf, and when a plaintiff alleges the types of conduct Mr. Russo and his client alleged here, assembly of a vigorous defense should not surprise an enterprising plaintiffs lawyer.
Construing Mr. Russo’s objections as liberally as possible, his next point of contention is that PPL failed to “mitigate the award it seeks.”
To explain by way of contrast, Mr. Russo’s objections on this front highlight Pollution Control, a case purportedly standing for the proposition that district courts will be reversed for imposition of post-motion fees.
To quote the Pollution Control court, in that case, “defendants’ conduct was far more egregious... in that they failed even to respond to the diversity problem.”
The Court finds it instructive to address the following potential counterargument: If the underlying case was so meritless, why did Defendants require such extensive time and effort to bring.it to resolution? The answer is that Mr. Russo, at several junctures already enumerated, consistently disguised the fatal flaws of his client’s claims by furthering unsupported factual allegations and failing to adequately, address Defendants’ factual contentions. This was a case built largely on Mr. Russo’s posturing, the consistent filing of pleadings, which amounted to nothing more than bluffs that Defendants here were not afraid to call. That the underlying claims were peritless was known to at least one person: Mr. Russo. Yet, he chose to conceal his case’s weaknesses rather than litigate in good faith. Had Defendants not been forced to deal with Mr. Russo’s circuitous and less than straightforward pleadings, this litigation would have ended long ago. Because the frivolous nature of the underlying claims was concealed, by Mr. Russo, Defendants are entitled to the reasonable attorney’s fees in the full amount of those fees, incurred defending the entire case. That is because . the entire case was enabled by Mr. Russo’s violations.81 .
Moreover, not only is Mr. Russo’s reliance on the Pollution Control decision questionable, but the harsh irony of Mr. Russo’s mitigation argument is that PPL presented him with the chance to mitigate his losses in the form of a Rule 11 Safe Harbor Notice, a notice-that Mr. Russo effectively crumpled up and tossed back into the faces of PPL’s lawyers. In fact, in response to PPL’s Rule 11 Safe Harbor Notice, Mr. Russo brazenly instructed PPL’s lawyers in a rambling, single-spaced, three-page letter that he would bring PPL’s “obstreperous and intransigent behavior to the Court’s attention.”
2. The Court Will Reduce Both Parties’ Lodestar Awards Based Upon Its Line-by-line Review of the Parties’ Fee Bills.
Although Mr. Russo’s objections as to excessive staffing and failure to mitigate on PPL’s part are unavailing, the Court also conducted an independent, line-by-line review of PPL’s and the Union’s fee bills so that it might eliminate any entries that were duplicative, unsupported, or unreasonably charged. Taking into account the individual entries contested by Mr. Russo as well as the Court’s independent line-byline review, I would make the following downward revisions to PPL’s and the Union’s fee awards for reasons listed below:
Reductions to PPL’s Fee Award
1. July 21, 2014: Reduction of time spent by JB to “Prepare Case Management Plan” from “2.50” to “2.00” hours based upon the collaborative nature of the joint case management plan, the review and revision of the plan by other lawyers, and the ultimate submission.
2. September 11, 2014: Reduction of time spent by SEH to “Receive and review Keister emails” from “1.00” to “0.50” hours based upon the time reasonably expected to be expended, given the nature of the itemized task.
3. October 10, 2014: Reduction of time spent by SEH to “Receive and review EEOC file” from “1.50” to “1.00” hours based upon the time reasonably expected to be expended, given the nature of the itemized task.
4. January 6, 2015: Reduction of time spent by EJE to “Review EEOC file to prepare for deposition” from “1.90” to “1.00” hours based upon the time reasonably expected to be expended, given the nature of the itemized task, as well as the similar nature of an itemized entry by SEH on October 10, 2014.
5. January 12, 2015: Reduction of time spent by EJE to “Review file to prepare for deposition of Plaintiff’ from “5.90” to “5.00” hours, based upon the time reasonably expected to be expended, given the nature of the itemized task.
6. February 16, 2015: Reduction of time spent by EJE to “Review file and draft responses to discovery requests” from “4.00” to “3.50” hours, based upon the time reasonably expected to be expended, given the nature of the itemized task.
7. March 10, 2015: Reduction of time spent by EJE to “Prepare for deposition of Plaintiff’ from “5.40” to “5.00” hours, based upon the time reasonably expected to be expended, given the nature of the itemized task.
8. March 24-25, 2015: Reduction of total time spent by EJE preparing for and attending Berwick depositions • from “9.90” to “8.00” hours based upon the time reasonably expected to be expended, given the nature of the itemized task.
9. April 1, 2015: Reduction of time spent by CC on “Deposition digest of E. Keister” from “5.90” to “4.50” hours, based upon the time reasonably expected to be expended, given the na*711 ture of the itemized task, as well as a similarly lengthy itemization by CC on March 31,2015.
10. April 7, 2015: Reduction of time spent by EJE to “Draft Rule 11 Safe Harbor Notice for attorneys fees” from “5.20” to “2.50” hours, based upon the time reasonably expected to be expended, given the nature of the itemized task.
11. May 4-6, 2015: Reduction of total time spent by EJE Drafting Motion for Sanctions from “5.80” to “5.00” hours based upon the time reasonably expected to be expended, given the nature of the itemized task.
12. June 29, 2015: Reduction of time spent by EJE to “Revise Motion for Summary Judgment...” from “2.80” to “1.50” hours based upon the time reasonably expected to be expended, given the nature of the itemized task, as well as the similar nature of itemized entries made by SEH during June 2015.
13. October 29, 2015: Reduction of time spent by EJE to “Attend Rule 11 Hearing” from “9.00” to “0.00” hours based upon EJE’s non-participatory capacity in the hearing.
For the sake of completeness, the Court also notes that in his objections to PPL’s fee bill, Mr. Russo takes issue with PPL’s expenditure on a hotel room in Mifflinville, Columbia County for Mr. Easterly for what was purportedly this Court’s Rule 11 hearing. As PPL notes, a review of the record indicates that this expenditure was incurred in connection with depositions that took place at Defendant’s Berwick, Columbia County location and not the Rule 11 hearing held in Williamsport, Lycoming County.
Moreover, in its line-by-line review of PPL’s fee bill, the Court has reviewed each of the objections Mr. Russo specifically enumerated in his responsive papers as to particular entries of time.
Reductions to the Union’s Fee Award
1. May 14, 2013: Reduction of time spent on “Telephone Call,..; Review of file; [and] Preparation of Memorandum” from “2.40” to “2.00” hours based upon the time reasonably expected to be expended, given the nature of the itemized tasks.
2. June 7, 2013: Reduction of time spent on “Preparation of Motion to Dismiss [and] Review of Amended Complaint and Brief filed by Opposing” from “5.70” to “5.00” hours based upon the time reasonably expected to be expended, given the nature of the itemized tasks.
3. June 18-24, 2014: Reduction of total time spent on “Research; Preparation of Brief in Support; [and] Finalization and Filing of Motion to Dismiss” from “29.10” to “27.00” based upon the time reasonably expected to be expended, given the nature of the itemized tasks.
4. June 20, 2014: Reduction of time spent on “Review of Order, Memorandum in Support of Order and Amended Complaint; [and] Correspondence with Union Representative Zerbe” from “3.70” to “3.00” based upon the time reasonably expected to be expended, given the nature of the itemized tasks.
*712 5. June 28, 2014: Reduction of time spent on “Preparation of Answer” from “3.90” to “3.00” based upon the time reasonably expected to be expended, given the nature of the itemized tasks.
6. July 1, 2014: Reduction of time spent on “Telephone call with Atty. Hoffman; [and] Preparation of Answer and Affirmative Defenses” from “4.30” to “3.50” based upon the time reasonably expected to be expended, given the nature of the itemized tasks.
7. July 28, 2014: Reduction of time spent on “Email to and from Union Representative Zerbe; Email to and from Atty. Hoffman; [and] Review of Case Management Report” from “4.30” to “3.50” based upon the time reasonably expected to be expended, given the nature of the itemized tasks.
8. March 5, 2015: Reduction of time spent on “Review of discovery requests[and] Email to and from Atty. Russo” from “4.40” to “3.75” based upon the time reasonably expected to be expended, given the nature of the itemized tasks.
9. June 23, 2015: Reduction of total time spent on all itemized tasks for this date from “12.30” to “10.00” based upon the bulk nature of the entry and the nature of the itemized tasks.
10. June 24, 2015: Reduction of total time spent on all itemized tasks for this date from “4.70” to “4.50” based upon the bulk nature of the entry and the nature of the itemized tasks.
11.June 25, 2015: Reduction of total time spent on all itemized tasks for this date from “6.30” to “6.00” based upon the bulk nature of the entry and the nature of the itemized tasks.
12. October 7, 2015: Reduction of total time spent on all itemized tasks for this date from “5.70” to “5.25” based upon the bulk nature of the entry and the nature of the itemized tasks.
13. October 15, 2015: Reduction of total time spent on all itemized tasks for this date from “4.90” to “4.50” based upon the bulk nature of the entry and the nature of the itemized tasks.
14. November 24-29, 2015: Reduction of total time spent on “Preparation of Reply Brief’ from “15.80” to “14.00” based upon the time reasonably expected to be expended, given the nature of the itemized tasks.
⅜ ‡ ‡
3. Mr. Russo’s Timeliness Objection As To The Union’s Rule 54 Motion Is Again Rejected For Reasons Of Judicial Economy And Avoidance Of Piecemeal Appeals.
Lastly, Mr. Russo also renews an objection he made to the Union’s Rule 54 Motion, namely that the Motion was untimely because the Court had not yet entered final judgment in favor of the Union at the time it took up the Union’s Rule 54 Motion. Citing obvious concerns of judicial economy, the Court fully dismissed this exact objection in its December 29, 2015 Memorandum.
The simple choice this Court faced, given Mr. Russo’s clearly expressed intent to appeal its decision to the Third Circuit, was one between a single appeal and a piecemeal approach involving up to three
[Considerations of judicial economy and 'the particularized posture of this case both support disposition of the Rule 54 Motion for Fees at this time, concurrently with PPL’s Motion for Rule 11 Sanctions. Furthermore, the Court finds that it would otherwise strain the purpose of Rule 54 to refuse to resolve the Union’s Motion for Fees now, as final -judgment would have already been entered but for the need to withhold it pending disposition of all related Rule 11 claims ... .There is no reason why the Court should not take up both the Rule 11 Motion and the Motion for Fees simultaneously rather than dismissing one -without prejudice only to be filed soon thereafter to satisfy a mere formality.88
Thus, considering for another time these significant concerns as they relate to judicial economy and avoidance of piecemeal appeals for three motions springing from identical facts, in conjunction with the preference of the Third Circuit to avoid unnecessarily segmented review, I would again find that it was proper to dispose of the Union’s Rule 54 Motion at the same time as PPL’s Rule 11 Motion but before entering final judgment.
4. Applying The Principles Set Forth In The Third Circuit’s Doering De-cisión, Mr. Russo’s Egregious, Repeated Rule 11 Violations Significant Additional Mitigation.
Before concluding my discussion of the appropriate fee award necessary to deter Mr. Russo from engaging in future Rule 11 violations, I must consider, as directed nearly thirty years ago by the Honorable A. Leon Higginbotham, Jr., of the Third Circuit, the mitigating factors set forth in Doering v. Union County Board of Chosen Freeholders.
While this Court has considered Doer-ing’s instructions, I refuse to extend that case so far as Mr. Russo would stretch it— essentially carving a permanent, judge-made safe harbor for sole practitioners who violate Rule 11. The main teaching this Court discerns from Doering is one requiring temperate, deliberate fact-gathering on the part of the district court so that hasty imposition of “punitive” sanctions does not inadvertently “drive the sanctioned party out of practice.”
Moreover, generalized notions of hardship befalling a sole practitioner like Mr. Russo are insufficient to negate a fee award under Doering. The Doering case involved an attorney who allegedly reported less than $40,000 gross annual income on his prior, year tax return.
Somewhat unclearly, Doering also enumerates two other equitable factors for a district court’s consideration. It states: •
Finally, the district court, on remand, must consider two other specific mitigating factors when it fashions a Rule 11 sanction against [the offending lawyer]. First in that regard, it must consider the fact that he has already been subject to adverse press scrutiny as a result of the sanction by the district court. Secondly it must consider the fact that he has been subject to at least one other disciplinary action.96
It is not evident to this Court why Doering considers a previous disciplinary action to be a mitigating, rather than aggravating, factor in the Rule 11 setting. Nevertheless, read • in context, the Court understands Doering to be referring to at least one other disciplinary action aimed at the same conduct in the same case, given that the plaintiffs lawyer in Doering was, deemed to owe fees under both 42 U.S.C. § 1988 as well as under Rule 11. Such is not the case here. Rather, Mr. Russo has engaged in a second and successive violation of Rule 11 in a now distinct action from that before Judge Mariani, highly suggestive in- this Court’s view, of minimal regard for the consequences of his actions. Because Mr. Russo has not yet been sanctioned in the form of a monetary award in this particular matter, there is no need to mitigate the awards under that Doering factor.
■ Finally, the Court recognizes that, as in Doering, Mr. Russo may have suffered “adverse press scrutiny” as a result-of his Rule 11 sanction. Such scrutiny is nebulous to quantify, and Mr, Russo has made no such estimation during the Court’s hearing or in his responsive papers. As such, I will liberally assume that adverse press scrutiny has cost Mr. Russo $1,000 in new business.. Accordingly, I will reduce both Defendants’ awards by $500.00 each,
It is the view of the Court -that the progression of this case, like so many of Mr. Russo’s cases, has borne a consistent theme, and that theme is “Enough is enough.” As •'the Court reads the Doering decision, it is evident that the safeguards it puts in place are meant to protect against unchecked imposition of excessive fee awards that could drive innocuous, first-time offenders out of practice. Doering is not -a decision that is meant to forever protect repeat offenders like Mr. Russo from the reach of the Court. Doering does
Doering, at heart, is a Rule 11 decision that concerns itself with deterrence, even if that deterrence must be measured in light of all the circumstances. As Judge Higginbotham wrote, the hallmark task of a district court when disposing of a Rule 11 or related motion is “to do justice in the particular case,” keeping in mind that the core purpose of Rule 11 is “to discourage plaintiffs from bringing baseless actions or making frivolous motions.”
The equitable considerations in this case weigh decidedly against Mr. Russo. Mr. Russo filed his groundless opposition briefs to Defendants’ Summary Judgment Motions in this case just one week after he was sanctioned in the form of public reprimand by Judge Mariani of this Court for similarly baseless allegations in a nearly identical matter.
Ultimately, it is the judgment of this Court that an award of attorney’s in the amount calculated herein is the least severe sanction necessary to thwart Mr. Russo’s consistently problematic track record. That final calculation is delineated below.
5. Considering All Equitable Factors And Line-By-Line Reductions Discussed Above, The Final Amount Of The Applicable Fee Awards Are $57,958.59 For PPL And $57,958.96 For The Union.
In conclusion and considering all of the above factors, PPL’s fees are reduced by 0.50 hours for Mr. Buckley, 1.00 hours for Mr. Hoffman, 18.40 hours for Mr. Easterly (all billed after Mr. Easterly was named a partner), and 1.40 hours for Ms. Cecala. The $500.00 adverse press mitigation factor from Doering is subtracted. The final fee award for PPL is $57,958.59.
Timekeeper Rate Hours Total
Steven E. Hoffman, Esq. • $275.00 93.10 $25,602.50
Edward J. Easterly, Esq. (Partner Rate) $275.00 89.20 $24,530.00
Edward J. Easterly, Esq. (Associate Rate) $175.00 29.00 $,5075.00
John J. Buckley, III, Esq. $175.00 8.10 $1,417.50
Connie Cecala $90.00 4.60 $414.00
Costs $1,419.59
Adverse Press Mitigation ($500.00)
Total $57,958.59
The Union’s fees are reduced by 12.50 hours for Mr. Q. Taglioli. The $500.00 adverse press mitigation factor from Doering is subtracted. The final fee award for the Union is $57,958.96.
Table 4. Local 1600’s Final Adjusted Fee and Cost Award Calculation
Timekeeper Rate Hours Total
Quintes D. Taglioli, Esq. $275.00 202.60 $55,715.00
Daniel E. Taglioli, Esq. $185.00 5.00 $925.00
Costs $1,818.96
Adverse Press Mitigation ($500.00)
Total $57,958.96
IY. CONCLUSION
The efficient functioning of our judicial cannot permit Mr. Russo to file a third, fourth, or fifth baseless action before his conduct is set straight. Any other outcome would permit him a slap on the wrist and signal to future defendants that battling such meritless lawsuits is an unfortunate cost of doing business — a cost that in so many ways necessarily makes its way back to the consumer in the form of increased utility rates, product pricing, or municipal taxes. That is not the way in which our judicial system is meant to operate.
For someone whose litigation history has sadly become as checkered as Mr. Russo’s, it is time for the federal judiciary to affirm that in fact enough is enough. Based on the Court’s detailed review of this matter and of the egregious conduct I have witnessed here, have read about in similar federal cases throughout the state, and have spoken about with my colleagues, it is my opinion that every penny awarded to Defendants is not only appropriate and supported by existing law but is also the least severe sanction necessary to deter
An appropriate Order follows.
. See ECF No. 62 at 4-5.
. ECF Nos. 54, 62.
. See ECF No. 54 at 5, 38-40.
. See id. at 42.
. See ECF No. 54,
. ECF No. 62 at 3.
. Id. at 4.
; Id.
. Id.
. Mat 5,
. ECF No. 63.
. ECF No. 62 at 5 (internal citations omitted).
. Chambers v. NASCO, Inc., 501 U.S. 32, 45, 111 S.Ct. 2123, 115 L.Ed.2d 27 (1991) (quoting Alyeska Pipeline Service Co. v. Wilderness Society, 421 U.S. 240, 259, 95 S.Ct. 1612, 44 L.Ed.2d 141 (1975)).
. Chambers, 501 U.S. at 45, 111 S.Ct. 2123 (quoting Alyeska, 421 U.S. at 259, 95 S.Ct. 1612). See also F. D. Rich Co. v. U. S. for Use of Indus. Lumber Co., 417 U.S. 116, 129 & n.17, 94 S.Ct. 2157, 40 L.Ed.2d 703 (1974) (collecting cases) (“The federal judiciary has recognized several exceptions to the general principle that each party should bear the costs of its own legal representation. We have long recognized that attorneys’ fees may be awarded to a successful party when his opponent has acted in bad faith, vexatiously, wantonly, or for oppressive reasons.”).
. Chambers, 501 U.S. at 46, 111 S.Ct. 2123 (internal citations and quotations omitted).
. Mead Corp., Mead Packaging Div. v. Int'l Printing & Graphic Commc'ns Union, Bristol Local 497, AFL-CIO, 572 F.Supp. 786, 795 (E.D. Pa. 1983) (quoting Mobil Oil Corporation v. Independent Oil Workers Union, 679 F.2d 299, 305 (3d Cir. 1982)). See also, Kane Gas Light and Heating Co. v. International Brotherhood of Firemen and Oilers, Local 112, 687 F.2d 673, 682-683 (3d Cir. 1982).
. Mobil Oil Corp. v. Indep. Oil Workers Union, 679 F.2d 299, 305 (3d Cir. 1982).
. See, e.g, Truesdell v. Philadelphia Hous. Auth., 290 F.3d 159, 163 (3d Cir. 2002) (“The Supreme Court has given a ‘generous formulation’ to the term ‘prevailing party.’ ”). See also Tyler v. O'Neill, 112 Fed.Appx. 158, 161 (3d Cir. 2004) ("Where a defendant successfully defends against a plaintiff’s substantial claims and judgment is entered accordingly, the defendant is generally considered the prevailing party.”).
. Hensley v. Eckerhart, 461 U.S. 424, 433, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983); Pennsylvania v. Delaware Valley Citizens' Council for Clean Air, 478 U.S. 546, 554, 106 S.Ct. 3088, 92 L.Ed.2d 439 (1986); Maldonado v. Houstoun, 256 F.3d 181, 184 (3d Cir. 2001).
. Rode v. Dellarciprete, 892 F.2d 1177, 1183 (3d Cir. 1990) (Nygaard, J.).
. Id. (quoting Hensley, 461 U.S. at 433, 103 S.Ct. 1933).
. Hensley, 461 U.S. at 429-30, 103 S.Ct. 1933.
. Rode, 892 F.2d at 1183.
. Hensley, 461 U.S. at 433, 103 S.Ct. 1933.
. Rode, 892 F.2d at 1183.
. Id.
. |d.
. Id. (citing Blum v. Stenson, 465 U.S. 886, 895, 104 S.Ct. 1541, 79 L.Ed.2d 891 (1984)).
. Interfaith Cmty. Org. v. Honeywell Intern., Inc., 426 F.3d 694, 704 (3d Cir. 2005) (Becker, J.) (quoting Report of the Third Circuit Task Force on Court Awarded Attorney Fees, 108 F.R.D. 237, 261 (1986)).
. Id. at 437.
. Id.
. Id.
. Id. at 436.
. Id. at 437.
. ECF No. 64. ECF No. 64 Ex. 1.
. ECF No. 64 at 1.
. ' Id. at 2.
. Id.
. Id. at 3.
. Id. at 6. Mr. Easterly’s time was billed at the associate rate prior to January 2015 and at the partner rate thereafter.
. Id. at 5.
. Id. at 2.
. No. 4:13-CV-02655, 2014 WL 3400975, at *10 (M.D. Pa. July 10, 2014).
. ECF No. 64 at 6.
. See, e.g., Joe Hand Promotions, Inc. v. Tickle, No. 4:12-CV-01874, 2016 WL 393797, at *12 n.89 (M.D. Pa. Feb. 2, 2016).
. ECFNo. 66.
. Id. at 1.
. Id at 2.
. Id. at 9. Because the 5.0 hours billed on March 25, 2015 entry is not divided in any way between the two attorneys, the Court conservatively assumes that all 5.0 hours of deposition preparation and attendance were billed by Daniel Taglioli at $185.00 per hour.
. Id. at 3.
. Id. at 15, 22.
. Id. at 17, 24.
. Id.
. Hensley, 461 U.S. at 430, 103 S.Ct. 1933 ("The product of reasonable hours times a reasonable rate does not end the inquiry. There remain other considerations that may lead the district court to adjust the fee upward or downward.’’) (citing Johnson v. Georgia Highway Express, Inc., 488 F.2d 714 (5th Cir. 1974)).
. Blum v. Stenson, 465 U.S. 886, 895, 104 S.Ct. 1541, 79 L.Ed.2d 891 (1984).
. Id.
. Id. at 893.
. Id. at 894 (quoting Stanford Daily v. Zurcher, 64 F.R.D. 680, 681 (N.D. Cal. 1974)).
. Blanchard v. Bergeron, 489 U.S. 87, 93, 109 S.Ct. 939, 103 L.Ed.2d 67 (1989).
. Id. at 94.
. Hensley, 461 U.S. at 447, 103 S.Ct. 1933 (Brennan, J., concurring in part and dissenting in part).
. 842 F.2d 1436, 1450 (3d Cir. 1988).
.See, e.g., Marinelli v. City of Erie, 25 F.Supp.2d 674, 682 (W.D. Pa. 1998) (“We do not read the controlling authority in this circuit to state that the community market value rule for determining counsel fees under a fee-shifting statute such as the ADA applies only where the plaintiff is represented by a public interest or non-profit firm.”), rev'd on other grounds, 216 F.3d 354 (3d Cir. 2000); M.R.S.
. Richard A. Posner, Economic Analysis of Law § 11,2. at 429 (8th ed. 2010).
. Id. at 431.
. Interfaith Cmty. Org. v. Honeywell Int'l, Inc., 426 F.3d 694, 711 (3d Cir. 2005) (Becker, J.) (second emphasis added).
. ECF No. 63 at 2.
. Id. at 2.
. Id. at 2-3.
. ECF No. 67 at 2.
. Id.
. 111 B.R. 81, 87 (Bankr. E.D. Pa. 1990).
. Id. at 86.
. ECF No. 67 at 2, 5.
. ECF No. 67 at 3.
. ECF No. 68 at 3.
. Pollution Control Indus. of Am., Inc. v. Van Gundy, 21 F.3d 152, 156 (7th Cir. 1994).
. Id.
. Id.
. ECF No. 62 at 45. ’
. ECF No. 68 Ex. 1 at 2.
. ECF No. 68 Ex. 1 at 2.
. ECF No. 68 at 4.
. ECF No. 68 at 2.
. ECF No. 67 at 3.
. ECF No. 62 at 15.
. ECF No. 62 at 15.
. 857 F.2d 191, 195 (3d Cir. 1988).
. Id.
. Id. at 196.
. Id.
.Id.
. See id.
. ECF No. 67 at 4. Tr. of Oct. 29, 2015 Sanctions Hearing at 30:15-20.
.- Id. at 196,
. Id. at 193-94.
. Id. at 195.
. Moore v. Air Methods, Inc., No. 3:14-CV-0684, 2015 WL 4590988, at *1 (M.D. Pa. July 29, 2015).
.No. 111 DB 2015.
Reference
- Full Case Name
- Ernest KEISTER v. PPL CORPORATION and International Brotherhood of Electrical Workers, Local 1600
- Cited By
- 4 cases
- Status
- Published