StoneX Group Inc. v. shipman

Background

The plaintiffs requested $6,455 in costs and attorney fees under Federal Rule of Civil Procedure 37(d)(1)(A)(i), which allows sanctions when a party fails to attend that party’s own deposition. Shipman failed to appear for his scheduled deposition on May 24, 2023.

Of the requested amount, $1,685 represented stenographer and videographer costs. The remaining $4,770 represented two hours of attorney time while the plaintiffs’ attorneys waited for Shipman to appear.

Court’s Analysis

The court determined that the stenographer and videographer expenses were directly connected to the deposition and were wasted because Shipman did not attend. The court also found that the events leading to Shipman’s nonappearance were known to Shipman and his counsel several hours before the deposition. Because the plaintiffs’ counsel was not notified before the deposition or, at the latest, at its scheduled start time, the court found that the failure to provide notice was not substantially justified.

The court approved the requested hourly rate of $1,285.50 for Lloyd B. Chinn, a partner at Proskauer Rose. It found that Daryl G. Leon’s requested hourly rate of $1,102.50 was higher than the rate typically approved for associates at similar firms in the district and reduced it to $800.

Ruling

Judge Valerie Figueredo ordered Shipman to pay $5,850, described in the order as the reasonable expenses and fees incurred by the plaintiffs as a result of his failure to appear for the noticed deposition.