Rong De Investments Ltd. v. GFS Investments, Inc.

Background

The court had previously confirmed an arbitration award against GES Investments, Inc. under the Federal Arbitration Act. In that earlier order, the court declined to award fees and costs for work performed in the underlying arbitration but concluded that Rong De Investments Ltd. could recover reasonable fees and costs for bringing the federal court action. The court directed Rong De to provide billing records and other supporting documentation.

Rong De submitted a request for $36,035 in attorney’s fees for 62.80 hours of work by four attorneys at Zhong Lun New York LLP, plus $345 in costs. The firm sought rates of $650 per hour for the partner and $500 per hour for each associate.

Attorney’s fees

The court applied the lodestar method, which calculates a reasonable fee by multiplying a reasonable hourly rate by a reasonable number of hours. It found the requested rates too high for this straightforward, unopposed petition to confirm an arbitration award. The court reduced the partner’s rate to $500 per hour and the associates’ rates to $300 per hour.

The court also found the 62.80 claimed hours excessive. More than 27 hours were spent preparing, filing, and serving the six-page petition, and approximately 20 hours were spent preparing a default-judgment motion. The court noted that default judgments are generally inappropriate in proceedings to confirm or overturn arbitration awards. It also found that at least 5.5 hours appeared to concern the underlying arbitration, for which the court had already declined to award fees.

The court determined that a reasonable attorney would have spent no more than 25 hours litigating the federal action. It calculated 12.5 hours at the partner rate of $500 per hour and 12.5 hours at the associate rate of $300 per hour, resulting in a $10,000 attorney’s-fee award.

Costs and disposition

The requested $345 in costs consisted of a $100 certification fee, $40 for certified copies, and $205 in process-server fees. The court found these costs reasonable and routinely permitted.

Judge Vernon S. Broderick denied the application for $36,035 in attorney’s fees, awarded Rong De $10,000 in attorney’s fees instead, and granted Rong De’s request for $345 in costs. The court’s opening description characterized the overall request for fees and costs as granted in part and denied in part.