Chevron Corporation v. Donziger

Background

This order resolves Joshua Rizack and The Rising Group Consulting, Inc.’s motion under Federal Rule of Civil Procedure 45(d) for payment of reasonable attorneys’ fees and costs incurred while complying with a third-party subpoena issued by Chevron Corporation. The court had previously awarded Rizack fees and costs incurred from December 3, 2019 forward and allowed him to later seek reimbursement for earlier expenses.

The subpoena led to substantial electronic-document work, including the retrieval and search of electronic documents under a detailed protocol, a motion by Chevron to compel production of mirror images of electronic devices, negotiations over the protocol, document review, and motions concerning payment of fees and costs. The opinion states that the resulting fees and costs amounted to several hundred thousand dollars, although it does not state a total award in this order.

Arguments and analysis

Chevron argued that additional reimbursement was unwarranted because Rizack allegedly obstructed discovery, intentionally deleted documents, and testified untruthfully at his deposition. The court rejected those arguments, finding Chevron’s theory speculative and unsubstantiated. The court noted that Rizack produced documents multiple times and attended two depositions while unrepresented, and that his early efforts were understandably imperfect given the burdensome demands.

The court also rejected Chevron’s argument that expenses incurred while Rizack resisted the subpoena were not reimbursable. It concluded that Rizack was attempting to comply as an unrepresented non-party and later had to retain counsel to protect his rights. The court also determined that Chevron’s objection to a protocol that would have effectively removed Rizack’s attorney from reviewing Rizack’s own documents resulted from Chevron’s own actions.

The court interpreted “compliance” broadly to include fees and costs connected with the subpoena, the motion to compel production of mirror images, negotiation and implementation of the protocol, and the fee-related motions. It reviewed billing records, fee information from counsel and the forensic expert, and other evidence. Applying the method for calculating a presumptively reasonable fee—reasonable hourly rates multiplied by reasonable hours—the court found that Rizack’s counsel staffed the matter efficiently and that the fees and costs were reasonable.

Order

The court ordered Chevron to pay Rizack’s attorneys’ fees and costs incurred before December 3, 2013 in connection with the subpoena, including work concerning negotiation, review, and implementation of the protocol; motions related to the subpoena or protocol; and Rizack’s fee applications. The order also stated that Chevron remained obligated to pay fees and costs incurred from December 3, 2019 forward under the earlier fee order. Chevron was additionally ordered to pay all costs incurred by Rizack’s forensic expert, Crypsis Group, in attempting to collect fees and costs from Chevron.

The court found the fees and costs of Rizack, Carlton Fields, P.A., and Crypsis Group reasonable. Chevron was not required to pay charges for reviewing and discussing the contempt order against Aaron Marr Page, or for discussing, studying, communicating about, and implementing the assignment of Rizack’s 0.25% interest in the Ecuador judgment to Chevron. Rizack and Crypsis Group were ordered to provide revised invoices by June 2, 2020, and Chevron was ordered to pay the awarded fees and costs by June 30, 2020. The court found Chevron’s other arguments without merit.