Nesse v. Green Nature-Cycle, LLC

Background

Trustees of several employee benefit funds brought claims against Green Nature-Cycle, LLC under the Employee Retirement Income Security Act (ERISA) and the Labor Management Relations Act, based on a collective bargaining agreement. They sought unpaid fund contributions, interest, liquidated damages, attorneys’ fees, and costs.

The court had previously granted the plaintiffs’ motion for summary judgment and denied Green Nature-Cycle’s motion. That earlier order awarded $23,489.21 in unpaid contributions and determined that the plaintiffs were entitled under ERISA to interest, the greater of interest or plan-based liquidated damages, and reasonable attorneys’ fees and costs. This opinion addressed the remaining amounts.

Attorneys’ Fees

The plaintiffs requested $66,085 for 287.25 hours billed by three attorneys. The court found the attorneys’ hourly rates reasonable based on their experience in employee-benefits litigation and rates charged in the relevant market. It also found that having three attorneys work on the case was reasonable because the attorneys did not duplicate their efforts and responsibilities shifted between attorneys during the litigation.

The court rejected Green Nature-Cycle’s objections that the fees should be reduced because counsel billed in quarter-hour increments, engaged in unnecessary litigation conduct, worked too many hours for a simple case, or achieved only partial success. The court concluded that the work responding to the disputed document, seeking entry of default, handling discovery, and addressing the issues raised in summary judgment was reasonable. It awarded the full $66,085 in attorneys’ fees.

Interest

The collective bargaining agreement required interest at a rate set by the trustees, but the court found that the relevant trust agreement did not prescribe an interest rate and that the plaintiffs had not provided the collection policy on which they relied. The court therefore used the rate prescribed by 26 U.S.C. § 6621.

The court applied a 4% rate to the unpaid contributions from April, May, and June 2017 and calculated simple interest through June 2, 2020. It awarded $2,753.33 in interest under ERISA. It also awarded an additional $2,753.33 under ERISA’s provision requiring an amount equal to the greater of interest or liquidated damages. Because the interest amount was greater than the $2,348.92 in liquidated damages available under the collective bargaining agreement, the court used the interest amount.

Costs and Order

The plaintiffs requested $19,728.61 in costs, including filing, postage, service, copying, courier, transcript, deposition, parking, search, and Westlaw research expenses. The court held that Westlaw research was part of attorneys’ fees and could not be separately taxed as a cost under the fee-shifting statute. It therefore awarded $3,932 in costs.

Judge Eric C. Tostrud granted the plaintiffs’ motion for an award of interest, attorneys’ fees, and costs. The order awarded $23,489.21 in unpaid contributions, $2,753.33 in interest, $2,753.33 under ERISA’s additional award provision, $66,085 in attorneys’ fees, and $3,932 in costs, and directed that judgment be entered.