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Parts & Electric Motors, Inc. v. Sterling Electric, Inc.

Citations: 123 F.R.D. 584; 1988 U.S. Dist. LEXIS 15052; 1988 WL 143075Docket: No. 83 C 2349

Court: District Court, N.D. Illinois; December 21, 1988; Federal District Court

Narrative Opinion Summary

The case involves Parts and Electric Motors, Inc. (P. E.) suing Sterling Electric, Inc. for violations of the Sherman and Clayton Acts, resulting in a jury awarding trebled damages of $3,695,976.00 to P. E. Sterling's post-trial motion for judgment notwithstanding the verdict was initially granted by the court but was later reversed by the Seventh Circuit, affirming the jury's decision. P. E. sought attorney's fees and costs, calculated using the lodestar method, which Sterling contested. The court made adjustments to the fee requests, disallowing hours for tasks deemed overhead or billed excessively. The court also reduced expert witness fees to comply with statutory maximums. Sterling's appeal of the denial for a new trial was dismissed, and P. E. was awarded $570,872.09 in costs and attorney's fees. The court did not grant P. E.'s request for a lodestar enhancement based on exceptional results or risk of nonpayment, referencing precedents set by the Supreme Court. The ruling underscores the application of antitrust damages principles and the limitations on fee recovery, adhering to statutory guidelines and established judicial precedents.

Legal Issues Addressed

Antitrust Damages under Sherman and Clayton Acts

Application: The court awarded P. E. trebled damages amounting to $3,695,976.00 under antitrust laws following Sterling's liability for violations.

Reasoning: Following a jury trial that found Sterling liable, damages were awarded to P. E. amounting to $1,231,992.00, which were trebled to $3,695,976.00 under antitrust laws.

Attorney's Fees Calculation and Lodestar Method

Application: P. E.'s attorney's fees were calculated using the lodestar method, and the court reduced certain fees due to unreasonable billing practices.

Reasoning: P. E. calculated the attorney's fees using a 'lodestar fee' plus an enhancement for the contingent nature of the fee agreement and their success at trial.

Judgment Notwithstanding the Verdict

Application: The court granted Sterling's motion for judgment notwithstanding the verdict, which was later reversed by the Seventh Circuit, enforcing the jury's initial verdict.

Reasoning: After the verdict, the court granted Sterling's motion for judgment notwithstanding the verdict based on the Seventh Circuit’s ruling in Will v. Comprehensive Accounting Corporation, leading to a conditional new trial order.

Limits on Expert Witness Fees

Application: The court adhered to statutory limits on expert witness fees, reducing P. E.'s claim for Dr. Skoog's fees to the statutory maximum.

Reasoning: P. E cannot recover compensation for Dr. Skoog’s services beyond $240 for his testimony, as Dr. Skoog only participated in the trial and deposition for eight days.

Recoverability of Paralegal and Attorney Time

Application: The court ruled on the recoverability of hours billed by attorneys and paralegals, adjusting hours for tasks considered overhead or excessive.

Reasoning: Sterling challenges the recoverability of paralegals Paul A. Minorini and John J. Grieger’s hours, arguing that their tasks should be considered overhead.

Risk of Nonpayment and Lodestar Enhancement

Application: The court denied P. E.'s request for a lodestar enhancement for risk of nonpayment, citing Supreme Court precedent.

Reasoning: In Pennsylvania v. Delaware Valley Citizens’ Council (Delaware II), the Supreme Court ruled that enhancing a lodestar fee for the risk of loss is not allowed under standard fee-shifting statutes.