E.D. New York cuts consumer protection fee award 49.4%, including for clerical work

What happened

Latham & Watkins, counsel for the fee applicant, sought $597,553 in fees under a contract fee clause in In re Whaleco Privacy Litigation. Judge Margo K. Brodie awarded $302,547.60, a reduction of $295,005.40. The court lowered the hourly rate for paralegal Kim and the Litigation Support Team, reducing fees by $93,307. It then reduced total attorneys' fees across the board by 40%, citing excessive hours, attorney rates for paralegal tasks, block billing, and clerical tasks, rather than reviewing each entry.

What the court said

the billing practices of billing for excessive hours, billing at attorney rates for paralegal tasks, block billing, and billing for clerical tasks warrant a reduction of hours. In lieu of reviewing and deducting for each entry ... the Court reduces the total attorneys’ fees across-the-board by 40%.

the billing practices of billing for excessive hours, billing at attorney rates for paralegal tasks, block billing, and billing for clerical tasks warrant a reduction of hours. In lieu of reviewing and deducting for each entry ... the Court reduces the total attorneys’ fees across-the-board by 40%.

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

Why it matters

The ruling shows a court may apply an across-the-board percentage cut instead of an entry-by-entry review when time records show block billing, clerical tasks billed as legal work, and paralegal work billed at attorney rates. It also shows courts will set paralegal rates independently of the rates requested.

How to keep this out of your fee petition

• Leave purely clerical work off the fee petition.
• Describe paralegal tasks so the substantive work is clear.
• Split mixed entries into their substantive and clerical parts.

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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