Page 1

Page 2 2014 U.S. Dist. LEXIS 27783, *

United States of America, Plaintiff, v. Funds From Fifth Third Bank Account #XXXXXX669 !n The Amount "f Fift# $ine Thousand Si% &undred Sevent# Five 'ollars And Three (ents )* 9,6+ .,-., et al., 'efendants in /em. (ase $o. 0-100+23 U$!T4' STAT4S '!ST/!(T ("U/T F"/ T&4 4AST4/$ '!ST/!(T "F 5!(&!6A$, S"UT&4/$ '!7!S!"$ 2014 U.S. Dist. LEXIS 27783

5arch , 2,08, 'ecided 5arch , 2,08, Filed P/!"/ &!ST"/9: United States v. Funds from Fifth Third Bank Account #0065006695, 20 ! U.S. "ist. #$%&S 5'((' ) $.". *ich., +ov. (, 20 !, ("U$S4;: [*1] For Unite States o! "#eri$a, P%ainti!!, &o'nter De!en ant( )onat*an ).&. +re,, U.S. De-art#ent o! )'sti$e, Detroit, .I. For FU/DS F01. FIF23 23I0D 4"/5 "&&1U/2 6XXXXXX7789 I/ 23E ".1U/2 1F FIF2: /I/E 231US"/D SIX 3U/D0ED SE;E/2: FI;E D1LL"0S "/D 230EE &E/2S <=98,779.03> I/ 23E /".E 1F &3I/" LI2E 0ES2"U0"/2, FU/DS F01. FIF23 23I0D 4"/5 "&&1U/2 6XXXXXX0711 I/ 23E ".1U/2 1F SE;E/2: FI;E 231US"/D /I/E 3U/D0ED 2?E/2: D1LL"0S "/D SIX2: 230EE &E/2S <=79,820.73> I/ 23E /".E 1F &3I/" LI2E 0ES2"U0"/2, De!en ants( Ste-*en ). D'nn, DU// &o'nse% PL&, 2ro,, .I. For &*ina Lite 0esta'rant@+as Lite Lo'nge, In$., FU/DS F01. FIF23 23I0D 4"/5 "&&1U/2 6XXXXXX0711 I/ 23E ".1U/2 1F SE;E/2: FI;E 231US"/D /I/E 3U/D0ED 2?E/2: D1LL"0S "/D SIX2: 230EE &E/2S <=79,820.73> I/ 23E /".E 1F &3I/" LI2E 0ES2"U0"/2, FU/DS F01. FIF23 23I0D 4"/5 "&&1U/2 6XXXXXX7789 I/ 23E ".1U/2 1F FIF2: /I/E 231US"/D SIX 3U/D0ED SE;E/2: FI;E D1LL"0S "/D 230EE &E/2S <=98,779.03> I/ 23E /".E 1F &3I/" LI2E 0ES2"U0"/2, &o'nter &%ai#ants( Ste-*en ). D'nn, DU// &o'nse% PL&, 2ro,, .I. <U'64S: Sean F. &oA, Unite &o'rt )' ge. "P!$!"$ B9: Sean F. &oA "P!$!"$ "P!$!"$ = "/'4/ 2*is &o'rt -reBio's%, or ere t*e +oBern#ent to ret'rn t*e seiCe !'n s to t*e &%ai#ant [*2] in t*is $iBi% !or!eit're a$tion. 2*e #atter is noD Ee!ore t*e &o'rt on t*e &%ai#antFs #otion seeGing an aDar o! attorne, !ees an $osts. 2*e #otion *as Eeen Erie!e an t*e &o'rt *ear ora% arg'#ent on FeEr'ar, 27, 2014. "s eA-%aine Ee%oD, t*e &o'rt s*a%% grant t*e #otion an aDar t*e &%ai#ant =98,277.79 in attorne, !ees an $osts. BA(>6/"U$' States Distri$t

Page 3 2014 U.S. Dist. LEXIS 27783, * 2*is +oBern#ent !i%e t*is $iBi% !or!eit're (0 2' 2 )+.". 6hio 20 !,I United a$tion on "-ri% 17, 2013. 2*e +oBern#ent seiCe States v. 2(!,'25.00 in U.S. t*e !'n s at iss'e !ro# &%ai#antsF EanG a$$o'nts, .urrenc4, 2009 U.S. "ist. #$%&S D*i$* tota% =139,989.77, on /oBe#Eer 18, 2012. !25( , 2009 5# !('('5 )".S... 2*erea!ter, .r. an .rs. &*e'ng, D*o oDn 2009,I United States v. 366.'5 &%ai#ant &*ina Lite 0esta'rant @@ +as Lite Board Feet, 53' F. Su//. 2d '(0, Lo'nge, In$. <H&*ina LiteH>, *ire Ste-*en D'nn 2003 5# 3!9'92 )$.". 7a. 2003,. <HD'nnH> as t*eir $o'nse%. "s eA-%aine in t*e aEoBe 2*e #atter %ater $a#e Ee!ore t*e &o'rt on tDo $ases, t*is is Ee$a'se a !or!eit're #otions( 1> a .otion to Dis#iss t*e &o#-%aint !or -ro$ee ing is in rem, not in For!eit're, !i%e E, &%ai#ant &*ina Lite, D*i$* /ersonam. 2*e -ro-ert, at iss'e, t*is &o'rt $onBerte into a .otion !or S'##ar, t*e tDo !'n s *ere, are t*e )' g#entI an 2> a .otion to Dis#iss &%ai#antFs e!en ants, not a $%ai#ant. 4, "#en e &o'nter$%ai#, !i%e E, t*e +oBern#ent. e!inition, a $o'nter$%ai# is -%ea ing D*i$* sets !ort* a $%ai# "!ter !'%% Erie!ing E, t*e -arties an ora% t*at t*e -%ea er *as against an arg'#ent, t*is &o'rt iss'e an 1-inion J 1r er o--osing -art, arising o't o! an on /oBe#Eer 4, 2013 <Do$Get Entr, /o. 42> o--osing -art,Fs $%ai# against t*e D*erein t*is &o'rt grante &*ina LiteFs .otion !or -%ea er. &d.1 see a8so Fed. 9. .iv. :. S'##ar, )' g#ent, is#isse t*e For!eit're [*3] !. 2*is a$tion Das not Ero'g*t &o#-%aint Dit* PreK' i$e, an or ere t*e -ro#-t against &*ina Lite an t*e ret'rn o! t*e seiCe !'n s to &*ina Lite. 2*is &o'rt +oBern#ent *as not asserte an, i so Ee$a'se it $on$%' e t*at t*e +oBern#ent $%ai#s against &*ina Lite. 0at*er, !ai%e to $o#-%, Dit* t*e 80@ a, reL'ire#ent !or &*ina Lite $*ose to interBene as a !i%ing its For!eit're &o#-%aint an t*e &o'rt $%ai#ant to t*e in rem e!en ant enie its reL'est !or an eAtension o! ti#e. !'n s. "s s'$*, it is not entit%e to !i%e $o'nter$%ai#s in t*e instant 2*e &o'rt a%so grante &*ina LiteFs reL'est a$tion. "n, $%ai#s it *as against t*e t*at it Ee -er#itte to !i%e a #otion seeGing +oBern#ent, i! -er#issiE%e, #'st attorne, !ees an $osts. 2*e Erie!ing on t*at Ee !i%e as a se-arate a$tion. #otion *as sin$e $on$%' e an t*e &o'rt *e% a *earing on FeEr'ar, 27, 2014. In a ition, t*e &o'rt grante t*e +oBern#entFs .otion to Dis#iss &%ai#antFs "#en e &o'nter$%ai# an is#isse &*ina LiteFs &o'nter$%ai#s Dit*o't -reK' i$e. In its .otion to Dis#iss, t*e +oBern#ent so'g*t to is#iss &*ina LiteFs -'r-orte $o'nter$%ai#s on seBera% gro'n s, in$%' ing t*at a $%ai#ant #a, not !i%e $o'nter$%ai#s in a $iBi% !or!eit're $ase. 2*is &o'rt !o'n t*at !irst arg'#ent to *aBe #erit an is#isse &*ina LiteFs &o'nter$%ai#s Dit*o't -reK' i$e, eA-%aining( ["] n'#Eer o! istri$t $o'rts, in$%' ing tDo istri$t $o'rts Dit*in t*e SiAt* &ir$'it, *aBe r'%e t*at a $%ai#ant $annot !i%e a H$o'nter$%ai#H in a $iBi% !or!eit're a$tion. See e.-., United States v. Assorted .om/uter $0ui/ment, su/ra1 [*4] United States v. 222,3!2.00 in U.S. .urrenc4, 20 ! U.S. "ist. #$%&S 0(3!, 20 ! 5# <11M4M13 1-inion J 1r er at 21>. A$A;9S!S 23 U.S... ;2(65 goBerns H0et'rn o! -ro-ert, to $%ai#antI %iaEi%it, !or Drong!'% seiC'reI attorne, !ees, $osts, an interestH an -roBi es, in -ertinent -art( <E><1> EA$e-t as -roBi e [*9] in -aragra-* <2>, in an, $iBi% -ro$ee ing to !or!eit -ro-ert, 'n er an, -roBision o! Fe era% %aD in D*i$* t*e claimant su?stantiall# @revails, t*e Unite States s*a%% Ee %iaE%e !or @@ <"> reasona?le attorne# fees and other litiAation costs reasona?l#

Page 4 2014 U.S. Dist. LEXIS 27783, * incurred ?# claimantI the #entI an <i i> an i#-'t e a#o' nt o! intere st t*at s'$* $'rre n$,, instr' #ents , or -ro$e e s Do'% *aBe earne at t*e rate a--%i$ aE%e to t*e 30@ a, 2reas 'r, 4i%%, !or an, -erio 'rin g D*i$* no intere st Das -ai <not in$%' ing an, -erio D*en t*e -ro-e rt,

<4> -ost@ K' g#ent interest, as set !ort* in se$tion 1871 o! t*is tit%eI an <&> in $ases inBo%Bing $'rren$,, ot*er negotiaE%e instr'#ents, or t*e -ro$ee s o! an inter%o$'tor, sa%e @@ <i> intere st a$t'a% %, -ai to t*e Unite States !ro# t*e ate o! seiC'r e or arrest o! t*e -ro-e rt, t*at res'%t e !ro# t*e inBest #ent o! t*e -ro-e rt, in an intere st@ Eearin g a$$o' nt or instr'

Page 9 2014 U.S. Dist. LEXIS 27783, * reaso naE%, Das in 'se as eBi e n$e in an o!!i$i a% -ro$e e ing or in $on ' $ting s$ient i!i$ tests !or t*e -'r-o se $o%%e$ ting eBi e n$e>, $o## en$in g 19 a,s a!ter t*e -ro-e rt, Das seiCe E, a Fe er a% %aD en!or $e#e nt agen$ , E, a State or %o$a% %aD en!or $e#e nt agen$ ,.

23 U.S... ;2(65)<,) , <e#-*asis a e >.1 1 &*ina [*7] LiteFs .otion i not seeG an aDar o! interest 'n er ; 2(65)<,) ,)B, or ).,. "t t*e FeEr'ar, 27, 2014 *earing, D'nn a Bise t*e &o'rt t*at t*e +oBern#ent *as ret'rne t*e seiCe !'n s, Dit* interest, to &*ina Lite. In its .otion !or "ttorne,Fs Fees an &osts, &*ina Lite #oBes to re$oBer its attorne, !ees an $osts in$'rre in t*is #atter an seeGs a tota% o! =98,277.79 in attorne, !ees an %itigation $osts in$'rre in t*is #atter. &*ina Lite asserts t*at t*e !ees aDar e s*o'% Ee aDar e to it, not its attorne,, Ee$a'se &*ina Lite *as Eeen -a,ing t*e attorne, !ees an s*o'% Ee rei#E'rse . <&*ina LiteFs .otion at 11>. 2*e +oBern#ent oes not is-'te t*at, as a -reBai%ing -art, in t*is !or!eit're a$tion, &*ina Lite is entit%e to an aDar o! its reasonaE%e attorne,Fs !ees in$'rre in t*is a$tion. 4't t*e +oBern#ent $onten s t*at t*e !ee aDar reL'este is too *ig* an t*at it s*o'% Ee re '$e !or seBera% reasons. It $onten s t*at t*e &o'rt s*o'% ( 1> re '$e t*e *o'r%, rate -ai to D'nn !ro# =329.00 to =290.00I 2> re '$e t*e rate !or *is %ega% assistant !ro# =80.00 -er *o'r to =29.00 -er *o'rI 3> e$%ine to aDar an, !ees !or DorG -er!or#e re%ating to &%ai#antFs &o'nter$%ai#s t*at [*7] Dere is#isse Dit*o't -reK' i$e E, t*e &o'rtI 4> e$%ine to aDar an, !ees !or DorG -er!or#e on a #otion !or -rote$tiBe or er t*at Das !i%e E, &%ai#antI an 9> re '$e an, aDar E, 10N !or E%o$G@Ei%%ing an Bag'e entries. ?it* its reL'este a K'st#ents, t*e +oBern#ent $onten s t*at an aDar o! no #ore t*an =17,778.48 is a--ro-riate in t*is $ase. 2*is &o'rt iss'e an or er reL'iring &*ina LiteFs oDner an D'nn to s'E#it a!!i aBits an o$'#ents s*oDing t*e a$t'a% attorne, !ees t*at &*ina Lite *as -ai . Sioe &*e'ng an D'nn Eot* !i%e "!!i aBits stating t*at &*ina Lite *as a$t'a%%, -ai D'nn a tota% o! =98,284.24 !or DorG on t*is $ase. 2*ose !ees Dere -ai E, an initia% =10,000.00 retainer in t*e !or# o! a &as*ierFs $*e$G, !o%%oDe

Page 7 2014 U.S. Dist. LEXIS 27783, * E, !o'r -ersona% $*e$Gs tota%ing =10,808.79, an *an %ing s'$* $ases. 3e oes GnoD t*en t*e re#aining a#o'nt -ai Bia seBen $re it o! attorne,s in %arge, %o$a% %aD !ir#s $ar $*arges. t,-i$a%%, $*arging =400@=900 -er *o'r. 2*is &o'rt *as Eroa is$retion in eter#ining t*e a--ro-riate aDar to &*ina Lite. 2*e stat'te &%ai#antFs $o'nse% is es-e$ia%%, itse%! H oes not s-e$i!, -re$ise%, *oD !ee aDar s De%% s'ite to t*is $ase. 3e *as s*o'% Ee $a%$'%ate ,H an si#-%, states t*at t*e -ra$ti$e taA an !inan$ia% %itigation +oBern#ent is %iaE%e !or HreasonaE%e attorne, !ees t*ro'g*o't *is 28@,ear %ega% $areer. an ot*er %itigation $osts reasonaE%, in$'rre E, 4e!ore %aD s$*oo% *e Das a senior t*e $%ai#ant.H 23 U.S... ; 2(65)<,) ,)A,. 2*e a' itor Dit* Ernst J :o'ng, /int* [*8] &ir$'it *as $on$%' e t*at t*e %o estar earning t*e .i$*igan &erti!ie #et*o is a--ro-riate to eter#ine t*e a#o'nt to P'E%i$ "$$o'ntant esignation. 3e Ee aDar e 'n er t*e stat'te. United States v. E%ogs !or ForEes on *is -ra$ti$e 2 36,( 6.00 in U.S. .urrenc4, 6(2 F.!d '5!, '55 areas, an is DorGing on a treatise )9th .ir. 20 ,. !or ?est -'E%is*ing. ?*en #aGing a eter#ination o! a reasonaE%e attorne, !ee, a istri$t $o'rt Eegins E, eter#ining Ft*e !ee a--%i$antFs %o estar, D*i$* is t*e -roBen n'#Eer o! *o'rs reasonaE%, eA-en e on t*e $ase an, an attorne,, #'%ti-%ie E, *is $o'rt@as$ertaine reasonaE%e *o'r%, rate.FH 5a8do v. .onsumers $ner-4 .o., '26 F.!d 302, 32 )6th .ir. 20 !,. 0. /easona?le &ourl# /ates " istri$t $o'rt *as Eroa is$retion in eter#ining D*at $onstit'tes a reasonaE%e *o'r%, rate !or an attorne,. 5a8do v. .onsumers $ner-4 .o., '26 F.!d at 322. 2*e SiAt* &ir$'it *as eA-%aine t*at a istri$t $o'rt Hs*o'% initia%%, assess t*e F-reBai%ing #arGet in t*e re%eBant $o##'nit,FH &d. at 32 . H2*e -reBai%ing #arGet rate is Ft*at rate D*i$* %aD,ers o! $o#-araE%e sGi%% an eA-erien$e $an reasonaE%, Ee eA-e$te to $o##an Dit*in t*e Ben'e o! t*e $o'rt o! re$or .FH &d. H" istri$t $o'rt is -er#itte to Fre%, on a -art,Fs s'E#issions, aDar s in ana%ogo's $ases, state Ear asso$iation g'i e%ines, an its oDn GnoD%e ge an eA-erien$e [*8] in *an %ing si#i%ar !ee reL'ests.FH &d. <$iting 7an =orn v. +ation>ide :ro/. ? .as. &ns. .o., (!6 F. A//@A. (96, (99 )6th .ir. 20 ,,. 3ere, &*ina LiteF o-ening Erie! asserts t*at a rate o! =329.00 -er *o'r !or .r. D'nn is Darrante , stating( 2*e rate $*arge E, &%ai#antFs $o'nse%, =329 -er *o'r, is reasonaE%e. &%ai#antFs $o'nse% *as *an %e seBera% $iBi% asset !or!eit're $asesI *e oes not GnoD o! an, ot*er attorne,s in #etro Detroit 2*e *o'r%, rate o! &%ai#antFs $o'nse% is es-e$ia%%, reasonaE%e giBen t*at it in$%' es LEXIS %ega% resear$* an ro'tine -ostage. 4'i% ing LEXIS $*arges into t*e rate is signi!i$ant, as $%ai#antFs $o'nse% -er!or#s s'Estantia% %ega% resear$*. &%ai#antFs $o'nse% 'se a %ega% assistant, at a #'$* %oDer [*10] rate o! =80 -er *o'rs, D*eneBer -ossiE%e on t*is $ase.

<P%.Fs 4r. at 10@11>. 2*e +oBern#ent $onten s t*at =290.00 is a #ore a--ro-riate *o'r%, rate !or DorG -er!or#e E, D'nn. <See +oBt.Fs 4r. at 7>. 2*e +oBern#ent $ites seBera% $ases D*erein istri$t $o'rts *aBe re '$e a reL'este *o'r%, rate. 3aBing $onsi ere t*e arg'#ents #a e E, Eot* si es, t*e &o'rt $on$%' es t*at an *o'r%, rate o! =329.00, -arti$'%ar%, giBen t*at it in$%' es a%% !ees an $osts !or $o#-'teriCe %ega% resear$*, is reasonaE%e !or t*e attorne, D*o *an %e t*is -arti$'%ar $ase. 2*is $ase -resente a #e %e, o! %ega% iss'es, #an, o! D*i$* *aBe not Eeen a resse in t*e SiAt* &ir$'it. In ee , t*is &o'rt s-ent a $onsi eraE%e a#o'nt o! ti#e resear$*ing t*e iss'es in t*is $ase. 2*e &o'rt a%so $on$%' es t*at t*e rate $*arge is reasonaE%e giBen D'nnFs eA-erien$e an -ro!essiona% Ea$Ggro'n . &%ai#antFs &o'nse% a%so states t*at a %ega% assistant Das 'se , D*ere -ossiE%e, at an *o'r%, rate o! =80.00. 2*e +oBern#entFs 0es-onse 4rie!

Page 7 2014 U.S. Dist. LEXIS 27783, * $*a%%enges t*e reasonaE%eness o! t*e rate Eeing t*is $ase. 2*at #otion Das re!erre to .agistrate so'g*t !or D'nnFs %ega% assistant. It $onten s t*at a )' ge .aKCo'E on "'g'st 14, 2013, E't s*e *a #ore a--ro-riate rate Do'% Ee =29.00 -er *o'r. not r'%e on it Ee!ore t*is &o'rt r'%e on t*e 2*is &o'rt $on$%' es t*at, eBen in t*e $'rrent -en ing is-ositiBe #otion !i%e E, &%ai#ant. [*11] e$ono#i$ $%i#ate, one Do'% Ee *ar @ "!ter t*is &o'rt iss'e its /oBe#Eer 4, 2013 -resse to !in a $o#-etent -ara%ega% in t*e e$ision, t*at #otion Das enie as #oot. "gain, .etro-o%itan Detroit area !or =22.00 an *o'r. 2*e t*is &o'rt $on$%' es it Das not 'nreasonaE%e !or &o'rt !in s t*at t*e reL'este *o'r%, rate o! &%ai#ant to *aBe !i%e t*at #otion to -rote$t its =80.00 -er *o'r is reasonaE%e !or t*is $ase. < See rig*ts. 2*e &o'rt s*a%% aDar !ees in$'rre re%ating &%ai#antFs 0e-%, 4r., EA. 3>. to t*is #otion. 2. Bork Performed "n (ounterclaims 2*e +oBern#ent $onten s t*at t*e !ee aDar s*o'% not in$%' e an, attorne, !ees !or DorG -er!or#e re%ating to &*ina LiteFs $o'nter$%ai#s in t*is a$tion, t*at Dere is#isse E, t*e &o'rt Dit*o't -reK' i$e. It asserts t*at a tota% o! =8,032.90 s*o'% Ee e '$te !or DorG -er!or#e re%ating to t*e $o'nter$%ai#s. In res-onse, D'nn $%ai#s t*at t*e $o'nter$%ai#s Dere ne$essar, an a--ro-riate, es-e$ia%%, giBen t*e %a$G o! SiAt* &ir$'it a't*orit, as to D*et*er s'$* $o'nter$%ai#s $an or s*o'% Ee Ero'g*t 'n er $ir$'#stan$es s'$* as t*ose in t*is $ase. 2*e &o'rt agrees Dit* &%ai#ant. "%t*o'g* t*is &o'rt '%ti#ate%, is#isse t*e $o'nter$%ai#s Dit*o't -reK' i$e, it Das not 'nreasonaE%e !or &%ai#ant to assert t*ose $%ai#s in or er -rote$t its rig*ts giBen t*e %a$G o! SiAt* &ir$'it a't*orit, on t*e iss'e. -. Fees /elatinA To Protective "rder 2*e +oBern#ent a%so $onten s t*at no attorne, !ees s*o'% Ee aDar e !or [*12] DorG E, D'nn in !i%ing a #otion !or -rote$tiBe or er in 8. AlleAed Bock1BillinA And 7aAue 4ntries Fina%%,, t*e +oBern#ent $onten s t*at t*ere s*o'% Ee an a$ross@t*e@Eoar e '$tion o! 10N o! a%% !ees reL'este !or HE%o$G@Ei%%ing an Bag'e entries.H <+oBt.Fs 4r. at 11>. "gain, t*e &o'rt *as Di e is$retion as D*et*er s'$* a e '$tion is a--ro-riate *ere. 3aBing $are!'%%, reBieDe D'nnFs Ei%%ing state#ents, t*is &o'rt $on$%' es t*at t*e reL'este e '$tion is not Darrante *ere. ("$(;US!"$ = "/'4/ For t*e reasons set !ort* aEoBe, I2 IS 10DE0ED t*at &%ai#ant &*ina LiteFs .otion !or "ttorne, Fees an &osts <Do$Get Entr, /o. 43> is +0"/2ED an t*at t*e &o'rt "?"0DS &%ai#ant &*ina Lite $osts an attorne, !ees in t*e a#o'nt o! =98,277.79. I2 [*13] IS S1 10DE0ED. MsM Sean F. &oA Sean F. &oA Unite States Distri$t )' ge Date ( .ar$* 9, 2014