W.G. Barr Management, LLC v. ContekPro LLC

Background

Two Pitchers alleged that ContekPro breached an agreement to build and deliver a finished, pre-inspected kitchen container to Two Pitchers’ taproom. The complaint asserted claims for breach of contract, promissory estoppel, and breach of the implied duty of good faith and fair dealing. The court previously denied Two Pitchers’ summary-judgment motion and granted ContekPro’s cross-motion for summary judgment. The earlier ruling concluded that Two Pitchers had not brought the action within the one-year period required by the contract.

ContekPro then moved for attorneys’ fees and filed a bill of costs. The contract contained provisions allowing ContekPro to recover fees and costs resulting from Two Pitchers’ breach or from pursuing contractual remedies. It also contained a reciprocal provision allowing Two Pitchers to recover fees for ContekPro’s breach. The contract stated that Oregon law governed the dispute.

Attorneys’ Fees

The court applied Oregon Revised Statutes section 20.096, which requires a reasonable fee award to the party prevailing on a contract claim when the contract authorizes an award of attorneys’ fees and costs. The court rejected Two Pitchers’ argument that the statute did not apply because the contract already contained reciprocal fee provisions. Relying on Oregon decisions, the court held that the statute applies to reciprocal provisions as well as one-sided provisions.

The court also rejected Two Pitchers’ argument that the one-year filing provision was only a limitation on remedies and did not constitute a contractual breach supporting a fee award. The court stated that dismissals based on expiration of a limitations period are treated as merits dismissals for purposes of awarding attorneys’ fees. Because Two Pitchers would have been entitled to fees had it prevailed in enforcing the contract, ContekPro was entitled to fees as the prevailing party.

The court found ContekPro’s hourly rates reasonable. The requested rates included $450 per hour for two attorneys and rates of $195 and $225 per hour for a paralegal, as well as work by an Oregon attorney. ContekPro claimed 366.85 attorney hours and 105.40 paralegal hours. The court found that ContekPro sufficiently documented the hours, that the hours were reasonably necessary, and that Two Pitchers had not challenged their accuracy or reasonableness. The court therefore granted ContekPro’s motion for attorneys’ fees in the amount of $198,903.50.

Bill of Costs

ContekPro sought $875 in service fees, $3,948.55 in deposition costs, and $277.75 for photocopying. The court applied Federal Rule of Civil Procedure 54(d)(1), which generally creates a presumption that the prevailing party receives allowable costs. The court found that the requested costs were permitted under federal law and the Northern District of California’s local rules.

The court rejected Two Pitchers’ arguments that costs should be denied because its motion to alter or amend the judgment was pending, because of its limited financial resources, or because of ContekPro’s litigation tactics. The motion to alter or amend had already been denied. The court found that Two Pitchers’ financial information did not overcome the presumption favoring costs and that the parties’ disputed litigation strategies did not show misconduct warranting denial of costs.

Disposition

The court granted ContekPro’s motion for attorneys’ fees and costs. ContekPro was awarded $198,903.50 in attorneys’ fees and $5,101.30 in costs.