fees amount to $752.00 and will be deducted from the $12,322.50 requested. Thus, in summary,
Plaintiffs are required to pay Navy Federal a total of $11,570.50 in attorneys’ fees ($12,322.50 minus
the $752.00 reduction set forth above) for preparing for and taking the Stell, Foust, and Liposchak
depositions.

As for the $4,627.42 in costs claimed by Navy Federal for the Stell, Foust and Liposchak
depositions, the court finds all of the costs requested to be reasonable. See Expense Summary
Information (Ex. A) at 5. The costs were for such reasonable and necessary items as travel to
depositions and court reporter fees. (id.; Navy Federal’s Pet. at 3.) Thus, Plaintiffs are also required
to pay Navy Federal $4,627.42 in costs, for a combined total $16,197.92 for the taking and preparing

of the Stell, Foust, and Liposchak depositions.

B. Fees and costs incurred in preparing and filing the Rule 11 and Rule 37
Motions, supporting Memoranda and Reply (excluding any interoffice
conference time)

Navy Federal states that it has incurred $1 9,655.60 in attorneys’ fees for preparing and filing
the Rule 11 and Rule 37 motions, supporting memoranda and reply brief. (Navy Federal’s Pet. at
4; id., Time Entries (Ex. B) at 1-10.) Plaintiffs did not object to that amount. The court finds that
the attorneys’ fees requested for the briefing of the two motions for sanctions are reasonable, because
Navy Federal had to spend significant time and resources investigating Plaintiffs’ fraudulent conduct
(after learning of the fraudulent documents involved in this case), and the briefing of those motions
was substantial. See Time Entries (Ex, B) at 1-10; Polony Aff. 7 6, 8; Navy Federal’s Pet, at 1

(arguing that “[a}t every stage, and up until the depositions were concluded, the Plaintiffs were

actively trying to further their fraud. In the end, this tangled tale of deceit has cost Navy in excess

5.


indication of the fees incurred by Equifax, the defendant in this case, or any suggestion that costs
incurred by Kilpatrick were passed on to Equifax. The Report and Recommendation adopted by the
district court required Plaintiffs to pay “[t]he reasonable attorneys’ fees and costs incurred by
Defendants ....” Kojis,2004 WL 1005664 at *12 (emphasis added). Equifax provides no evidence
that Equifax actually incurred any fees and costs, and no authority to support its claim that it may
recover costs and attorneys’ fees in this situation.

Furthermore, although Mr. Miller states that $5,097.00 of the $6,998.72 in the fees that
McGuire Woods billed Kilpatrick were incurred in connection with the depositions and Rule 11 and
Rule 37 motions, Equifax provides no computations to support that conclusion. See Miller Aff, q
6. Instead, it attaches a sheaf of bills and time print-outs from McGuire Woods, without any
accompanying affidavit from anyone at McGuire Woods. Apparently, Equifax expects the court to
wade through the time entries to try to determine which entries relate to work for which the District
Judge awarded fees. The court declines to do so.

Equifax also attaches bills for airfare and hotel costs incurred by Mr. Miller in traveling to
Chicago for the Kojises’ depositions. However, those costs were not awarded by the District Judge.
The sanctions awarded were only fees for time spent waiting for the Kojises to appear for their
depositions and the court reporter charges. In addition, there is no evidence that the Kojises’
depositions were the only reason why Mr. Miller came to Chicago. Accordingly, Equifax’s Petition

for Attorneys’ Fees and Costs is denied.

Conclusion

For the foregoing reasons, Defendant Navy Federal’s request for $38,062.67 is granted in part

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A. Fees and costs incurred in taking the depositions of Jeanne Stell, Royal Foust
and Vicki Liposchak (including reasonable preparation time, but excluding
any interoffice conference time)

Navy Federal states that it has incurred $12,322.50 in attorneys’ fees and $4,627.42 in costs
(totaling $16,949.92) for the depositions of Jeanne Stell (in Texas), Royal Foust (in California) and
Vickie Liposchak (in California). (Navy Federal’s Pet, at 3; id., Time Entries & Expense Summary
Information (Ex. A) at 1-5.) In support of its request, Navy Federal attached the time entries from
the billing records of the two attorneys working on this matter, (Navy Federal’s Pet., Time Entries
(Ex, A) at 1-4.) Plaintiffs did not object to the amounts sought by Navy Federal.

The court finds that the vast majority of the attorneys’ fees tequested for the Steil, Foust, and
Liposchak depositions are reasonable and therefore will be awarded, However, some of the fees
requested did not specifically involve the Preparation for or taking of those three depositions, as
required by the court’s order. For example, some of the time entries pertained to interoffice
conferences, or work performed after the depositions had been taken, which were not awarded under
the order. Thus, the following time entries, and corresponding attorney fees, will not be allowed:
(1) 6/27/03 (Telephone conversations with Rich Polony - $35.00); (2) 6/30/03 (Telephone
conversation with Larry Smith - $1 7.50); (3) 6/30/03 (Conference with Plaintiffs’ counsel Mr. Smith
- $38.00); (4) 7/28/03 (In preparation for drafting summary of significant testimony - $87.50); (5)
7/28/03 (Prepared summary of significant testimony - $87.50); (6) 8/20/03 (Attendance at the
deposition of Ms. Kojis - $114.00); (7) 8/20/03 (Review of time records in support of Rule 11
motion - $190.00); (8) 8/21/03 (Attendance at the deposition of Mr. and Mrs. Kojis - $95.00); (9)
9/4/03 (Email to Jim Hutchings re: Foust deposition - $35.00); and (10) 9/9/03 (Reviewed email

from Jim Hutchings re: Foust deposition - $52.50). See Time Entries (Ex. A) at 1, 2, 3, 4. Those

4.



of $92,733.18”); see also Navy Federal’s Motion for Sanctions Pursuant to Rule 11 [dkt34]; Navy
Federal’s Rule 37 Motion [dkt 36]; and Navy Federal’s Reply [dkt 44, 58].
Thus, Plaintiffs are required to pay Navy Federal $19,655.60 in fees for preparing and filing

the Rule 11 and Rule 37 motions, supporting memoranda and reply brief.

Cc Fees incurred for the time spent by Defendants’ attorneys on August 20 and
21, 2003 waiting for the Kojises to appear for their depositions, and the court
reporters’ fees for those depositions
Finally, Navy Federal states that it incurred $1,260.00 in attorneys’ fees for having to wait
for the Kojises to appear for their depositions, and $202.75 in court reporter costs (totaling
$1,462.75). (Navy Federal’s Pet, at 5; id., Time Entries & Expense Summary Information (Ex. C)
at 1.) Plaintiffs did not object to those amounts, Mr. MacEntee’s time entries indicate that he spent
0.8 hours (incurring $140.00 in attorneys’ fees) waiting for Ms. Kojis to appear for her deposition
on August 20, 2003, and 1.3 hours (incurring $227.50 in attorneys’ fees) waiting for Mr. Kojis to
appear on August 21, 2003. See Time Entries (Ex. C) at 1. Mr. Polony’s time entries indicate that
he spent 0.6 hours (incurring $114.00 in attorneys’ fees) waiting for Ms. Kojis on August 20, 2003,
and 0.5 hours (incurring $95.00 in attorneys’ fees) waiting for Mr. Kojis on August 21, 2003. See
Time Entries (Ex. A) at 4. The remainder of the time entries included in Exhibit C involved work
outside the scope of the court’s order (e.g., time spent preparing for Ms. Kojis’ deposition), and
therefore will not be allowed. Thus, in sum, Plaintiffs are required to pay Navy Federal a total of
$576.50 in attorneys’ fees for having to wait for the Kojises to appear for their depositions.
As for the expenses claimed with respect to the Kojises’ depositions, the court finds the

$202.75 requested for court reporter fees to be reasonable. See Expense Summary Information (Ex.

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and denied in part, in that Plaintiffs are ordered to pay to Navy Federal Credit Union $36,632.77 in
attorneys’ fees and costs incurred by Navy Federal; Plaintiffs Johnna Kojis and Stanley Kojis shall

pay that amount to Navy Federal Credit Union; Defendant Equifax’s request for $7,234.96 in fees

and costs is denied; Navy Federal’s Motion for Entry of Judgment on its Petition for Attorneys’ Fees

and Costs is stricken as moot.

ITIS SO ORDERED.

GERALDINE SCAT BROWN

United States Magistrate Judge

February 7, 2005



UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION
STAN and JOHNNA KOJIS, )
Plaintiffs, ) Cause No. 02 C 8428
)
ve ) Judge Wayne R. Andersen
) Magistrate Judge Geraldine Soat Brown
EQUIFAX CREDIT INFORMATION )
SERVICES and NAVY FEDERAL )
CREDIT UNION )
Defendants. )

MEMORANDUM OPINION AND ORDER

In a prior Order adopting this courts’s Report and Recommendation, the District Judge
awarded defendants Equifax Credit Information Services (“Equifax”) and Navy Federal Credit Union
(“Navy Federal”) their reasonable attorneys’ fees and costs for certain work performed in this case.
(Order, Sept. 27, 2004.) [Dkt 67.] The District Judge referred the determination of the amount of
attorneys’ fees and costs to this court. (/d.) Navy Federal and Equifax each filed a Petition for
Attorneys’ Fees and Costs along with materials supporting their request for fees and costs. [Dkt 72,
73, 74.] In addition, Navy Federal filed a Motion for Entry of Judgment on its Petition for Attorney
Fees and Costs. [Dkt 76.] Plaintiffs have not objected to the amounts sought by Navy Federal or
Equifax in their petitions. For the following reasons, Navy Federal’s Petition for Attorneys’ Fees
and Costs is granted in part and denied in part as discussed herein, and Plaintiffs are ordered to pay
$36,632.77 in attorneys’ fees and costs to Navy Federal; Equifax’s Petition for Attorneys’ Fees and
Costs is denied. In addition, Navy Federal’s Motion for Entry of Judgment on its Petition for
Attorneys’ Fees and Costs is stricken as moot, as the district court already terminated and entered

judgment on this case [dkt 67, 68; see also dkt 71], and Navy Federal’s Petition fpr Attorneys’ Fees


C)at 1. Thus, Navy Federal is also awarded $202.75 in court reporter expenses, for a combined total
$779.25 for fees and costs associated with the Kojises’ depositions.

In summary, Plaintiffs are ordered to pay to Navy Federal a total of $36,632.77 ($31,802.60
in attorneys’ fees and $4,830.17 in costs including court reporter expenses). While that amount is
substantial, it is reasonable and appropriate compensation for the work Navy Federal’s counsel was
required to undertake because of Plaintiffs’ sanctionable conduct, as described in this court’s Report
and Recommendation dated May 6, 2004. See Kojis, 2004 WL 1005664 at *6 (concluding that
Plaintiffs supported their complaint with documentation manufactured and forged by Ms. Kojis).
Moreover, the amount sought by Navy Federal is less than half of the total amount of attorneys’ fees

incurred by Navy Federal to defend this case, $92,733.18. (Polony Aff. | 7; Navy Federal’s Pet. at

1)

IL Attorneys’ Fees and Costs Requested by Equifax

In its petition for $7,234.96 in attorneys’ fees and costs, Equifax states that it has paid a
predetermined, flat fee to its national counsel, Kilpatrick Stockton LLP (“Kilpatrick”), for
representing it in this matter. (Equifax’s Pet. ] 3; Miller Aff. 14.) Equifax does not state what that
flat fee was, nor does Mr. Miller state the amount of that flat fee in his affidavit in support of the
petition. Mr. Miller does state in his affidavit, however, that Kilpatrick has incurred its own fees in
this matter through its hiring of local counsel, McGuire Woods, who billed Kilpatrick directly for
all fees incurred by it in helping to defend the matter. (Equifax’s Pet. 3; Miller Aff. 7 2, 4.)

The affidavit of Mr. Miller along with the materials submitted with Equifax’s petition reflect

only the amount of fees and costs incurred by Kilpatrick in defending this matter; they give no

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CE EEEEEEDU'S': rrr

and Costs is resolved with the issuance of this order,

Background

The factual background of this case is set out more fully in this court’s Report and
Recommendation dated May 5, 2004. [Dkt 66.] See Kojis v, Equifax Credit Information Servs, >No.
02 C 8428, 2004 WL 1005664 at *1-4 (N.D. Ill. May 6, 2004) (Brown, M.J.), In that opinion, this
court recommended that Defendants’ Motion for Sanctions Pursuant to Rule 11 and Rule 37 Motion
for Terminating Sanctions be granted as follows: (a) that Plaintiffs’ complaint be dismissed with
Prejudice; and (b) that Plaintiffs be required to pay: (i) the reasonable attorneys’ fees and costs
incurred by the defendants in taking the depositions of Jeanne Stell, Royal Foust and Vicki
Liposchak (including reasonable Preparation time, but excluding any interoffice conference time);
(ii) the reasonable attorneys’ fees and costs incurred by the defendants in Preparing and filing the
Rule 11 and Rule 37 Motions, Supporting Memoranda and Reply (excluding any interoffice
conference time); and (ii) the reasonable attorneys’ fees incurred for the time spent by the
defendants’ attorneys on August 20 and 21, 2003 waiting for the Kojises to appear for their
depositions, and the court reporters’ fees for those depositions, Jd at *12. On September 27, 2004,
the District Judge adopted this court’s recommendation, and directed the defendants to submit to this
court a petition for reasonable fees and costs. (Sept. 27, 2004 Order.)

Following the District J udge’s order, Navy Federal and Equifax each submitted a Petition
for Attorneys’ Fees and Costs that had been awarded, Notably, the District Judge’s order did not
award all of the fees and costs incurred by the defendants in defense of this litigation. Thus, Navy

Federal’s Petition seeks $3 8,062.67, not the total amount incurred by Navy Federal in defending this

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litigation, which Navy Federal States is $92,733.18. (Navy Federal’s Pet. at 1, 2, 5.) Equifax
requested attorneys’ fees and costs in the total amount of $7,234.96, (Equifax’s Pet. at 2.) Each
defendant submitted materials in Support of its petition. (Navy Federal’s Pet., Exs. A, B, C, Time
Entries & Expense Summary Information {dkt 73]; Affidavit of Richard B. Polony [dkt 72];
Equifax’s Pet., Exs, A, B, C, Time Entries & Receipts [dkt 74]; id., Affidavit of Bradley J. Miller
{dkt 74].) On October 29, 2004, this court held a hearing on the defendants’ petitions for attorneys’
fees and costs. (Order, Oct. 29, 2004.) [Dkt 75.] At that hearing, the court ordered that any
Tesponse to the petitions must be filed by November 29, 2004. (/d.) Plaintiffs never filed any

Opposition to Navy Federal’s or Equifax’s request for attorneys’ fees and costs.

Discussion

L Attorneys’ Fees and Costs Requested by Navy Federal

The court has reviewed the materials filed by Navy Federal in support of its request for
$38,062.67 in attomeys’ fees and costs. Based on the billing records submitted along with the
affidavit of Richard Polony, as well as a review of the pleadings and briefs that have been filed in
this lawsuit, the court finds the hourly rates charged by the attorneys in this case on behalf of Navy
Federal ($190.00 by Mr. Polony, a partner, and $175.00 by Barry MacEntee, an associate) to be
reasonable and not in excess of the rates charged by other attorneys in the Chicago area. See Navy
Federal’s Pet. at 2; Polony Aff. 91, 3-5. The court further finds the hours expended in this case to

be reasonable, with a few exceptions that are discussed below.