JLM Couture, Inc. v. Gutman

Background

The motion concerned attorneys’ fees and costs arising from JLM Couture, Inc.’s successful motion to hold Hayley Paige Gutman in civil contempt of a preliminary injunction. The court had previously found that Gutman willfully violated the injunction by marketing her future bridal brand, announcing her return to the bridal industry, promoting a future bridal collection, and posting videos of herself sketching dress designs on Instagram. The court had awarded JLM its reasonable fees and costs incurred in prosecuting that contempt motion.

JLM requested $189,455 in attorneys’ fees and $825.09 in costs, for a total request of $190,280.09. Gutman opposed the request and argued that the award should be no more than $6,915.64. She argued that some requested work was outside the contempt motion, that the hours and billing practices were excessive or improper, that the hourly rates were unreasonable, and that she could not afford the requested award.

Court’s analysis

The court ruled that JLM could recover reasonable fees for investigating Gutman’s conduct, preparing and litigating the contempt motion, opposing Gutman’s related cross-motion for fees, opposing Gutman’s emergency motion in the Court of Appeals seeking a stay, and preparing the fee application. The court found those activities sufficiently connected to the contempt proceeding and the relief awarded for Gutman’s willful violation.

The court reviewed time records for three JLM attorneys: Sarah M. Matz, David M. Marcus, and Michelle C. Malone. It found that the lawyers’ work was sometimes excessive and duplicative, particularly their overlapping revisions, conferences, and preparation of the contempt brief. But it rejected Gutman’s proposed reduction to 36.125 hours, finding that the contempt motion required significant investigation of social-media activity and legal work involving the injunction and contract restrictions.

The court applied an across-the-board 30 percent reduction to the attorneys’ hours. Matz’s compensable hours were reduced from 120.9 to 84.63, Marcus’s from 98.3 to 68.81, and Malone’s from 209.1 to 146.37. The court accepted Matz’s $550 hourly rate and Marcus’s $400 rate. It reduced Malone’s rate from $400 to $300 because she had approximately three to four years of experience when she worked on the motion.

The court declined to impose any additional reduction based on limited redactions, block billing, or the absence of evidence that JLM had already paid the invoices. It also rejected Gutman’s argument that her financial situation justified refusing a significant award, finding that she had the ability to pay the award granted.

For costs, the court awarded the full $825.09 requested, consisting of $760.64 for Westlaw legal research and $64.45 for courier services. The court found the research costs reasonable and adequately supported.

Disposition

The court granted in part and denied in part JLM’s motion for attorneys’ fees and costs. It awarded JLM $117,981.50 in attorneys’ fees and $825.09 in costs, for a total award of $118,806.59. The order resolved docket entry number 261, while the case remained referred to Magistrate Judge Cave for general pretrial management.