Praxair Distribution, Inc. v. Irish Oxygen Company

Background

Praxair Distribution, Inc. sued Irish Oxygen Company to collect unpaid invoices for services. The court had previously entered a default judgment—judgment based on Irish Oxygen’s failure to defend—and awarded Praxair $661,653.10 in damages, subject to a later request for interest, attorneys’ fees, and costs.

Praxair first sought $288,867.75 in attorneys’ fees, $20,667.99 in non-taxable costs, and $200,328.34 in interest. The court denied that request without prejudice because Praxair had not provided the Product Supply Agreement, which Praxair relied on as the basis for the additional amounts. Praxair then submitted a supplemental request containing that agreement.

The Product Supply Agreement states that Irish Oxygen must pay Praxair the fees and costs of collecting a delinquent account or enforcing the agreement, including reasonable legal fees and expenses. It also allows a monthly late charge on a delinquent balance equal to the lesser of 18 percent per year or the maximum charge permitted by law.

Attorneys’ Fees and Costs

Because the case was based on diversity jurisdiction, the court applied Connecticut law to whether attorneys’ fees were available and to the amount of any reasonable fee. Connecticut generally follows the American rule, under which each side pays its own attorneys’ fees, but permits fee awards when a contract provides for them. The court held that the Product Supply Agreement made Praxair contractually entitled to reasonable attorneys’ fees and costs.

Praxair sought payment for 642 hours of work by attorneys and staff from Bryan Cave Leighton Paisner LLP and Faegre Drinker Biddle & Reath LLP. The requested hourly rates ranged from approximately $463 to $650 for partners, $246 to $350 for associates, and $230 to $267 for support staff. The court found that the requested fees were unreasonably high because the rates were at the higher end of those charged in the locality and the involvement of six attorneys may have caused redundant work.

The court reduced the requested attorneys’ fees by 20 percent, from $288,867.75 to $231,094.20. It found the documented non-taxable costs—such as binding, printing, delivery, copying, research, and travel charges—reasonable and awarded the full requested amount of $20,667.99.

Interest

Praxair sought interest at 18 percent per year on outstanding invoices. The court recognized that contractual interest may be recovered when supported by an agreement, but held that Praxair had not proved the amount to a reasonable degree of certainty.

Praxair’s calculation appeared only in a legal memorandum and was not supported by an affidavit from the person who performed the calculation or by other evidence. Praxair also asserted that invoices were due 30 days after their dates, while the Product Supply Agreement stated that payment was due 10 days after the invoice date. In addition, Praxair’s claims involved both the Product Supply Agreement and a Distributor Agreement, and the record did not show that the Distributor Agreement provided a similar right to contractual interest.

The court therefore denied Praxair’s request for interest as asserted under the Product Supply Agreement.

Order

The court ordered that Praxair’s supplemental request for attorneys’ fees, non-taxable costs, and interest was granted in part and denied in part. Praxair was awarded $231,094.20 in attorneys’ fees and $20,667.99 in non-taxable costs. The court also granted Praxair’s motion for continued sealing and directed the clerk to maintain Docket Number 133 under seal.