Glass-Inspiration GMBH Design + Engineering v. McGrath

Background

Glass-Inspiration and McGrath participated in a 25-month international arbitration that ended with an award in Glass-Inspiration’s favor of €936,220.79 and $189,774.50, plus interest. McGrath did not respond to three payment letters and did not move to vacate or set aside the arbitration award. Glass-Inspiration therefore petitioned and moved for judicial confirmation of the award.

The court previously confirmed the arbitration award and rejected McGrath’s argument that Minnesota’s corporate-dissolution statute barred the claim. The court found that argument forfeited and unmeritorious and had already determined that Glass-Inspiration was entitled to reasonable attorneys’ fees and costs incurred in bringing the confirmation petition and motion.

Fee Request

Glass-Inspiration sought $26,587.20 for work by American attorneys Jevon Bindman and Carmen Carballo of Maslon LLP, €10,902.90 for work by four Austrian attorneys, and $929.70 in costs. McGrath did not respond to the fee motion.

The court evaluated the request using the lodestar method, which multiplies reasonable hours by reasonable hourly rates. The court explained that Glass-Inspiration had the burden to document the hours and establish reasonable rates, and that the court had an independent duty to determine whether the requested award was reasonable even though McGrath did not object.

Austrian Attorneys’ Fees

The court declined to award fees for the Austrian attorneys. It found that many of their time entries were too vague to show what work was performed or whether it related to the confirmation petition and motion. Other entries concerned work performed before Glass-Inspiration appeared to contemplate filing the petition, including evaluation of the arbitration award and communications with the International Court of Arbitration.

The court also found that Glass-Inspiration had not shown why four Austrian attorneys were needed for relatively straightforward issues of American arbitration and corporate law in an American court. The court concluded that the Austrian attorneys had not met their burden to show that their services were necessary and appropriate for the petition and motion.

American Attorneys’ Fees

The court found the American attorneys’ time entries detailed and clear and concluded that most of their work was reasonable. It awarded fees for 17.2 hours for Bindman and 47.9 hours for Carballo, after excluding 3.4 hours related to the unnecessary involvement of the Austrian attorneys.

Bindman requested and received an hourly rate of $400. The court reduced Carballo’s requested hourly rate from $375 to $300 because the requested rate was high compared with rates in similar proceedings and the supporting evidence did not establish her specific experience. Applying the approved rates and hours produced a lodestar award of $21,250.00.

Costs and Disposition

The court found the requested $929.70 in court costs, service-of-process costs, and computerized legal-research costs reasonable and supported by the record. That amount included a $405.00 cost judgment previously entered by the Clerk of Court.

Judge Laura M. Provinzino ordered that Glass-Inspiration’s Motion for Attorneys’ Fees and Costs was GRANTED IN PART AND DENIED IN PART. The court awarded Glass-Inspiration $21,250.00 in attorneys’ fees and $929.70 in costs and ordered judgment entered accordingly.