Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_11-cv-00896/USCOURTS-cand-4_11-cv-00896-95/pdf.json

Nature of Suit Code: 220
Nature of Suit: Foreclosure
Cause of Action: 28:1332 Diversity-Petition for Removal

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United States District Court

Northern District of California

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

ALLY BANK, et al.,

Plaintiffs,

v.

LARA KARAKASEVIC, et al.,

Defendants.

Case No. 11-cv-00896-YGR (MEJ)

ORDER REQUESTING FURTHER 

BRIEFING

Dkt. No. 951

Plaintiffs originally filed their Motion for Attorneys’ fees on April 26, 2016. See Original 

Mot., Dkt. No. 916. The undersigned issued a Report and Recommendation (“R&R”) on that 

Motion recommending the presiding judge deny it without prejudice on several grounds. See First 

R&R, Dkt. No. 937. First, Plaintiffs had failed to explain whether they had exercised billing 

judgment and whether they eliminated excessive, duplicative, and unnecessary hours from the fee 

request. Id. at 1-2. Second, Plaintiffs had not demonstrated their rates were in line with the 

prevailing market rates of the relevant community. Id. at 2. Third, Plaintiffs made no effort to 

explain how the “tort of another” doctrine applied to this case, such that all defendants were liable 

for all fees incurred. Id. The presiding judge adopted the First R&R and ordered Plaintiffs to 

submit supplemental briefing and evidence curing the defects identified in that R&R. Order 

Adopting First R&R, Dkt. No. 939. 

Plaintiffs submitted supplemental briefing in response. Mot., Dkt. No. 951; MPA, Dkt. 

No. 952. Having reviewed Plaintiffs’ responses, the undersigned now requests additional 

information on the following issues:

(1) The billing statements attached to Stephen Seto’s Declaration list numerous entries 

for time billed by “DHM” and “DVS.” See Seto Decl., Ex. E, Dkt. No. 955-1. Seto does not 

Case 4:11-cv-00896-YGR Document 965 Filed 10/18/16 Page 1 of 3
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United States District Court

Northern District of California

identify these timekeepers in his Declaration, and the undersigned therefore cannot determine 

whether their hourly rates of $160 and $295 are reasonable. 

(2) Plaintiff has summarized the hours billed per category of Defendant. See Seto 

Decl., Ex. D. In addition, for each timekeeper for whom Plaintiffs are seeking to recover fees, 

please summarize the total hours billed over the course of the action.

(3) Plaintiffs seek to recover either $25,419.21 or $22,100.26 in costs. Compare MPA

at 11, with Seto Decl. ¶ 11. To support their request, they submitted approximately 350 pages of 

bills, highlighting the expenses they contend are recoverable. See Seto Decl., Ex. F. Please 

summarize the costs requested, identify which category allowable by Civil Local Rule 54-3 and/or 

28 U.S.C. § 1920 each cost may be recovered under, confirm that each item requested conforms 

with the requirements of the Local Rule and/or Section 1920, and clarify the total amount of costs 

Plaintiffs are seeking to recover. “[I]t is not the Court’s job to scour the record to justify 

Plaintiffs’ request.” First R&R at 1.

(4) Do Plaintiffs still seek attorneys’ fees from the Individual Homeowner Defendants? 

The presiding judge entered default judgment against Defendant Guillotte, the Young Defendants,

and the Eweis Defendants, but only on Plaintiffs’ fraud, conspiracy to defraud, and negligence 

claims. See Dkt. Nos. 704 (R&R re: Guillotte); 730 (Order Adopting Guillotte R&R); 769 (R&R

re: Young Defs.); 785 (R&R re: Eweis Defs.); 909 (Order Adopting R&Rs re: Young and Eweis 

Defs.). Plaintiffs thus cannot recover attorneys’ fees from these Defendants pursuant to the 

mandatory provisions of 18 U.S.C. § 1964(c) (prevailing plaintiff in civil action brought under 

Racketeer Influenced and Corrupt Organizations (“RICO”) Act “shall” recover reasonable 

attorneys’ fees). Moreover, Plaintiffs appear to have abandoned their “tort of another” theory, but 

have not identified a legal basis for recovering fees from these Defendants. If Plaintiffs still steek 

to recover attorneys’ fees from these Defendants, what is Plaintiffs’ legal basis for doing so? 

(5) Similarly, Plaintiffs argue Defendants Karakasevic, Di Chiara, Smith, Shon-TeEast-A, and Walks With Spirit are “main perpetrators” of the fraud. Although the presiding judge 

did not enter default judgment against these Defendants on Plaintiffs’ RICO claims, Plaintiffs 

argue these Defendants should be liable jointly and severally for $651,403 in attorneys’ fees

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Plaintiffs incurred in prosecuting the main action. See MPA at 8-9 (“It is appropriate for the Court 

to award the fees and costs jointly against all the main perpetrator and sham entity defendants 

since their initial scheme was the lynch-pin to all the additional litigation required in this matter.”), 

see also id. at 3-4 (defining Main Perpetrators and Sham Entities). On what legal basis do 

Plaintiffs seek to recover attorneys’ fees from these Defendants? The Court is in no better position 

to “determine . . . whether all individual Defendants should be held liable for the full amount of 

any award the District Court grants” (First R&R at 3) than it was when it recommended the 

presiding judge deny the Motion without prejudice. 

Plaintiffs shall file a response to the foregoing questions by November 1, 2016.

IT IS SO ORDERED.

Dated: October 18, 2016

______________________________________

MARIA-ELENA JAMES

United States Magistrate Judge

Case 4:11-cv-00896-YGR Document 965 Filed 10/18/16 Page 3 of 3