Tatintsian v. Vorotyntsev

Background

This opinion concerns attorney-fee applications arising from defaults in two related actions: the Tatintsian Action, No. 1:16-cv-7203-GHW, and the Khmaladze Action, No. 1:16-cv-8029-GHW. The corporate defendants were Shoplink, Inc., Aum Code LLC, and IT Adapter LLC. Their counsel withdrew in November 2019. After the corporate defendants missed multiple deadlines to retain replacement counsel, the court entered defaults against Shoplink in the Tatintsian Action and against Aum Code LLC, IT Adapter LLC, and Shoplink in the Khmaladze Action.

The corporate defendants retained counsel only after default-judgment proceedings began. On March 25, 2020, the court vacated the defaults under Federal Rule of Civil Procedure 55(c), which allows a court to set aside an entry of default for “good cause.” The court found that the defaults were willful but concluded that the other parties would not be substantially prejudiced if the defaults were vacated and that the corporate defendants had made a modest showing that they had potentially meritorious claims. As a condition of vacatur, the corporate defendants had to reimburse the reasonable attorney fees and costs incurred by the other parties in the default-judgment and vacatur proceedings.

Legal standard

The court required the fee applicants to provide contemporaneous time records identifying each attorney, the date, the hours worked, and the work performed. It considered the prevailing market rates in the Southern District of New York and the rates a reasonable paying client would accept. The court also considered whether the claimed hours were excessive, redundant, unnecessary, or clerical rather than legal work.

Tatintsian Action fee request

Gary Tatintsian requested $15,176.85 in fees and costs. The court approved hourly rates of $375 for Kristen Santillo, $300 for Fern Mechlowitz, and $150 for Kathleen McPolin. The court found the requested 47.5 hours generally reasonable, but reduced the award because 1.2 hours for preparing an appearance sheet was excessive and part of a 2.7-hour attorney entry involved clerical work that could not properly be billed entirely at an attorney rate. The court also disallowed a $26.35 postage charge but allowed other identified expenses, including $101.20 in electronic docket-access fees.

The court reduced the request by $438.85 and ordered the corporate defendants to pay Tatintsian $14,738 in attorney fees and costs connected with the default-judgment and vacatur proceedings.

Khmaladze Action fee request

The plaintiffs in the Khmaladze Action requested $11,062.50 in attorney fees and sought payment for 27.5 hours of work. The court approved hourly rates of $525 for Partha Chattoraj and $275 for Rachel Briant. It treated Briant as an associate for purposes of the fee analysis even though she was billed at a law-clerk rate. The court found the claimed time generally reasonable, but treated half of a 2.25-hour block entry as clerical work and calculated that portion at a $150 paralegal rate.

The court reduced the request by $421.88 and ordered the corporate defendants to pay $10,640.62 in attorney fees for the Khmaladze Action. The court rejected the corporate defendants’ argument that the fee awards should be denied or limited to work performed after March 3, 2020, explaining that the earlier work was made necessary by their failure to retain counsel and their willful default.

Disposition

The court granted the attorney-fee applications. It ordered the corporate defendants to pay $14,738 in fees and costs in the Tatintsian Action and $10,640.62 in fees in the Khmaladze Action within 14 days after the order. After payment, the court would vacate the defaults. If the corporate defendants failed to pay on time, the defaults would not be lifted and the court would promptly adjudicate the plaintiffs’ default-judgment applications. The court also directed the plaintiffs to file a status letter within 16 days and directed counsel for the corporate defendants to serve the order on Mikhail and Elena Vorotyntsev.