AWI Builders, Inc. v. ThyssenKrupp Elevator Corporation

Summary

The United States District Court for the Central District of California denied Thyssenkrupp Elevator Corporation’s motion to strike and granted in part AWI Builders, Inc.’s motion for attorney’s fees, costs, and prejudgment interest. The court held that AWI was the prevailing party on the relevant construction contract claims and entitled to recover fees, but reduced the requested attorney’s-fee award to $300,000 because AWI failed to substantiate its requested amount and did not comply with the court’s standing-order requirements. The court also denied prejudgment interest and addressed an order to show cause concerning counsel’s candor to the court.

Holdings

1. A late reply and supporting materials should not be stricken where they are not redundant, immaterial, impertinent, or scandalous and the opposing party identifies no prejudice.
2. AWI was the prevailing party on the contract claims concerning both the 39 Congress Project and Sonora Project and was entitled to recover reasonable attorney's fees under the contracts and California Civil Code section 1717.
3. AWI was entitled to a reduced attorney's-fee award of $300,000 rather than the $1,340,917.50 it requested.
4. AWI was entitled to recover $166,426.70 in costs, including contractual expert-witness and consultant expenses, but not Westlaw research, postage and photocopying, hotel, or inadequately supported stop-notice-bond-release expenses.
5. AWI was not entitled to prejudgment interest.
6. Counsel David Sire made a false statement to the court in bad faith or tantamount to bad faith, unreasonably multiplied the proceedings, and sanctions should issue against Sire and his then law firm, Pacheco and Neach, PC, in an amount to be determined.

Questions Presented

1. Whether Thyssenkrupp's motion to strike AWI's late reply and fees-motion materials should be granted under Federal Rule of Civil Procedure 12(f).
2. Whether AWI was the prevailing party on the contract claims for purposes of contractual attorney's fees under California Civil Code section 1717.
3. What amount of contractual attorney's fees and costs AWI demonstrated it was entitled to recover.
4. Whether AWI was entitled to prejudgment interest under California Civil Code section 3287.
5. Whether AWI's counsel made a false statement and acted in bad faith or otherwise unreasonably multiplied the proceedings so that sanctions should issue.

Disposition

other