E.D. New York cuts commercial fee award 30%, including for missing contemporaneous records

What happened

Alzal Corp. sought $111,428.20 in attorneys' fees under a contract fee clause, with Kleyman Law Group as counsel. The magistrate judge recommended awarding $77,984.50, a reduction of $33,443.70 or 30%. The court recommended denying $10,000 for one timekeeper and $1,000 for another over missing contemporaneous records, and reducing one timekeeper's fees by 40% and another's by 20%. It also reduced hourly rates for several timekeepers and excluded unidentified persons whose rates were not justified.

What the court said

recommends that Alzal's request for attorneys' fees for Kleyman Law Group should be denied.

The Court therefore respectfully recommends that the fees for King should be reduced by 40% and that Alzal should awarded $9,000 for King's services.

the Court respectfully recommends that Alzal's request for attorneys' fees for Faga's services should be denied.

the Court finds that a reduced attorneys' fee award is warranted for Arthur Morrison's services reflected in the docket and filings in this case.

The court also reduced the award for: hourly rate reduced, other, hourly rate reduced, hourly rate reduced, hourly rate reduced.

Why it matters

The ruling shows that a fee applicant's time records and rate justifications are examined line by line. Where contemporaneous records are missing, the court may deny or reduce fees for specific timekeepers rather than accept the requested totals, and unsupported hourly rates for staff and unidentified persons may be cut or excluded.

How to keep this out of your fee petition

• Record time the same day the work happens.
• Keep the original records, not only a cleaned-up summary.
• Be able to show when each entry was created.

Cite this ruling

See hourly rates the E.D. New York approves and attorney fee motions in New York federal courts.

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