TPCO US Holdings, LLC v. Ned Fussell

Background

TPCO US Holding, LLC originally filed this case in state court against Ned Fussell, Mosaic Ag., Inc., Paula Bruning, Christopher Potter, Sukanya Lauer, Lacy O’Callaghan, and Does 1 through 10. The complaint asserted four state-law claims involving a land purchase agreement, cultivation and supply agreements, a loan for outdoor cannabis cultivation, and declaratory relief.

Fussell and Mosaic removed the case to federal court. TPCO moved to remand, meaning to return the case to state court. The court granted TPCO’s remand motion and also granted its request for attorneys’ costs and fees under 28 U.S.C. § 1447(c), leaving the amount for later determination. The court ordered the parties to discuss the fee amount, but they did not do so. TPCO submitted a declaration supporting its requested fees, and the removing defendants did not file a response. One defendant objected to billing by a partner outside California but stated that there would otherwise be no objection if those fees were removed.

Fee calculation

The court used the lodestar method, which calculates a fee by multiplying reasonable hours by a reasonable hourly rate. TPCO requested $30,850.10 for 60.2 hours billed by two partners, one associate, and one paralegal. The rates were $660 per hour for Krista M. Enns, $655 for Elliot M. Smith, $370 for Abigail Riffee, and $305 for Sara Mishic.

The court found the rates reasonable. It concluded that Smith’s location outside California did not make his fees unreasonable, and it found that Mishic’s rate, although higher than the average Bay Area paralegal rate cited by the court, was supported by her more than 20 years of experience.

The court also found that the hours were reasonably spent responding to the removal, preparing the motion to remand and reply, conducting legal research, and preparing for the hearing. Because multiple attorneys worked on the filings and the court could not determine from a quick review whether some work was duplicative, it applied a 10% reduction, described as a “haircut.”

Ruling

The court granted attorneys’ fees of $27,765.09, calculated as $30,850.10 less 10%. The order states that it disposes of Docket No. 11. Judge Edward M. Chen signed the order as a United States District Judge.