Hoffman Letter W-Enclosure 5-29-13 (00033457)

7/28/2019 Hoffman Letter W-Enclosure 5-29-13 (00033457)

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~~GIBNEYANTHONY&FI~HERT'Y~.P

May9, 013

VIAFIRSTCLASSMAIL nd EMAIL:i m e b u i l d e r ( a , l i v e . c o mLeland S t a n f o r d Hoffman, r .2 252 Table RockRoad,SPC3Medford, OR7501

Attorn eys a t La w665 i f t h Av e nu eNew o r k , NY 10022212 .688.5151212.6 88.8 315 Faxwww.gibney.com

Mich ae l L e e212.705.9835 [email protected]

Re : Ro lex WatchU . S . A . , I n c . v . Leland t a n f o r d Hoffman, r . e t a l . :12 -CV-007 36-SI

Dear M r.Hoffman:Asyoua r e aware, h i s f i r m i s c o u n s e l t o Rolex WatchU.S.A., n c . ("Rol ex") n

t h e abovec a p t i o n e d m a t t e r .Enclosedi s a copyof M a g i s t r a t e Judge Papak's May29, 2013 "Opinionand

Order" r d e r i n g you t o pay o Rolex t h e amount of15,000 a s s a n c t i o n s f o r yourf a i l u r et o compl y w i t h t h e s e t t l e m e n t agreement.

P l e a s e c o n t a c t t h e u n d e r s i g n e d a s soon a s p o s s i b l e t o d i s c u s s your payment of h es a n c t i o n s . I f youdonotc o n t a c t t h e u n d e r s i g n e d , Rolex w i l l comme nce anyand a l la v a i l a b l e l e g a l methods o c o l l e c t t h e $15,000.

Ve ry Truly Yours,GIBNEY,ANTHO &LHERTY,LP

B y : ~Michael L e e

E n c l o s u r e

San F r a n c i s c o O f f i c e : 455Mar ket S t r e e t , S u i t e 2200 , San F r a n c i s c o , CA 94 105 e l 415.901.2270A s s o c i a t e d O f f i c e s : Gr osS i Wal tens puhl ,Rue Beaur egard9, CH-1204 Gene va, w i t z e r l a n d t e l +41 22.3 11.3 833

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PA PflK, a g i s t r a t e J ~ ~ d g e :P l a i n t i f f RolexWatch U . S . A . , In a " R o l e x " ) i l e d t h i s a c t i o n a g a i n s t d e f e n d a n t L e l a n d

S t a n f o r d H o f f i i i a n , r . (doingb u s i n e s s a s A z ~ t i c ~ u e Ti me, ww.i'OI~YCTown.com, n d .w w w . h o ~ o l o g i s t . c o m ) , o nA p r i l 2S,2012, l l e g i n g H o f f i n a n ' s l i a b i l i t y f o r t r a d e m a r k i n f r i n g e m e n ti n v i o l a t i o n of15 U. S.C. 114, y b e r s q u a t t i n g i n v i o l a t i o n of 15 U.S.C. ~ 1 1 2 5 ( d ) ( 1 ) ( A ) , an du n f a i r c o m p e t i t i o n i n v i o l a t i o n of SU.S.C. l 2 5 ( a ) , an ds e e k i n g mo neydamag es, an

a c c o u n t i ~ i g , i n j u n c t i v e r e l i e f t o e n j o i n Hoffman from e n g a g i n g i n any u r t h e r a l l e g e d l y i n f r i n g i n gc o n d u c t , and awar d of t s a t t o r n e y f e e s and c o s t s . Ono vember1 5 , 2d 2 , t h e p a z t i e s a d v i s e d t h ec o u n t t h a t t h e y had e t t l e d t h e i r d i s p u t e i n p r i n c i p l e . Although Hoffman u b s e g i l e n t l y t o o k t h e

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p o s i t i o n t h a t h i s e x p r e s s e d c o n s e n t t o t h e p a r t i e s ' s e t t l e m e n t agreementwas o t e n f o ~ c e a b l e , on

Januazy 24, 013, r u l e d t h a t t h e p a n t i e s ' s e t t l e m e n t agreementwas omplete, i n d i n g , and

e n f o r c e a b l e .

Nowe f o r e t h e c o u r t i s R o l e x ` s motion # 6 1 } , s t y l e d a s amotionf o r i m p o s i t i o n of

s a n c t i o n s a g a i n s t Hof fmano r h i s t a i l u ~ e t o complywith h i s o b l i g a t i o n s und er h e p a r t i e s '

s e t t l e m e n t agreement,butargued a s amotion o r awardoft t o r n e y f e e s p u z s u a n t t o t h e p a r t i e s '

s e t t l e m e n t agreement and,n t h e a l t e r n a t i v e , f o r i m p o s i t i o n ofh e a t t o r n e y- f e e s a n c t i o n . I have

c o n s i d e r e d t h e motzonan d i l ofh e p l e a d i n g s and p a p a r s on i l e . F o z l a e r e a s o n s s e t f o r t h

below, o l e Y ' s motion s g r a n t e d a s d i s c u s s e d below.LEGAL.TAi~IDARDS

I . MotionforA r ~ v a r d o f f ' A t t o r a ~ e y FeesPursuant o ContractUnderOregonlaw:I n a t ~ y a c t i o n o r s u i t i n whichac l a i m i s made a s e d ona o n t ~ a c t t h a t s p e c i f i c a l l yp r o v i d e s t h a t a t t o z n e y F e e s and c a s t s i n c u i 7 e d t o e n f o r c e t h e p r o v i s i o n s of h ec o n t r a c t s h a l l beawarded o oneofl a e p a n t i e s , t h e p a z r y t h a t p r e v a i l s on h e c l a i ms h a l l be n t i t l e d t o r e a s o n a b l e a t t o r n e y f e e s i n a d d i t i o n t o c o s t s and d i s b u r s e m e n t s ,4 v i t h o u t r e g a z d . t o whether h e p r e v a i l i n g p a r t y i s t h e p a n t y s p e c i f i e d i n t h e c o n t ~ a c ta n c ~ w i t h o u t r e g a r d t o ~ v h e t h e ~ t h e p r e v a i l i n g p a r r y i s a a r t y t o t h e c o n t r a c t ,

Or.Rev. t a t . 2 0 . 0 9 & ( 1 ) . "[A]waid[ofe e s p u r s u a n t t o S e c t i o n 2 0 . 0 9 & ( 1 ) ) s m anda tory ; h e t r i a l

c o u r t hasno i s c r e t i o n t o deny f , a l t h o u g h i t does have d i s c r e t i o n a s t o wha t amounts

` r e a s o n a b l e . " ' B e n c h r ~ r ~ z r k l V o ~ ~ t h f t ~ e s t , I n c . v . Sambhr, 191O z . App. 20, 523 2004), u o t i n g U . S .

I V a t z m c r l R e s o w ~ e e s , I n c . v . G r c t y , 66 a . App. 69,773 1984) ,Moreover, h e c o u r t h a s ~ a nindependentd u t y t o reviewa a r t y ' s f e e p e t i t i o n f o r r e a s o n a b l e n e s s . SeeGa te s . D e a r k m e j i a n ,

937 .2 d 139 2,14Q1(9t h C i r . 1 9 9 3 ) .

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For p u r p o s e s of e t e ~ ~ z n i n i n g t h e r e a s o n a b l e n e s s of e e p e t i t i o n made u r s u a n t t o S e c t i o n

2 0 . 0 9 6 ( l j , t h e c o u r t should c o n s i d e r "not o n l y ...theamount ofime e q u i ~ e d , but a l s o suc ha d d i t i o n a l f a c t o r s a s t h e n o v e l t y andd i f f i c u l t y of h e q u e s t i o n i n v o l v e d , h e amo unt n v o l v e d a ~ a d

t h e r e s u l t o b t a i n e d , among t h e r f a c t o r s . C h a l r ~ ~ e r s v . O f e g o n A t r t o . I n s , Co., 263 z . ~ 4 ~ 4 9 ,

ASS-456 1 9 7 2 ) ,I I . t l ~ o # i o n f or T i n p o s i t i o u of h eA t t o i n c y - F e e S a n ~ c t i o r ~

D i s t r i c t c o u r t s have h e i n h e r e n t power o i s s u e s a n c t i o n s a g a i n s t a a r t y o r l a w y e r f o r a

" f u l l range ofi t i g a t i o n a b u s e s . " C h a r f ~ b e r s v , 1VASC0,n c . , 501 U.S.32 ,~61991). "Such" i n h e r e n t power .. .canbe inv oked even f p r o c e d u ~ a l ~ u l e s e x i s t whichs a n c t i o n t h e s ame

CO i1C1l1Ct." I d . a t ~9. Th e o u ~ t ` s i n h e ~ ~ e n t power o s a n c t i o n i n c l u d e s t h e power o t a x a a r t y w i t h

anopposing a r r y ' s a t t o r n e y f e e s " a s a s a n c t i o n f o r t h e p a a t y ' s j ' w i l l f i ~ l d i s o b e d i e n c e of o u r to r d e r , ' d . O t t 45,a r o t i ~ ~ g Alyes kuP i p e l i n e S e r v i c e Co. . Y ~ ' i l d e r n e s s S o c i e t y , 421 U.S. 2~0,258(1975), z r o l r r ~ g F l e i s c h m a n r ~ D i s t i l l i n g Corp. . 1 L l a i e r Brewing C o . , 386U.S.714, 181967),o r wh en h e p a r r y a c t s i n t h e c o u r s e of i t i g a t i o n " i n bad f a i t h , v e x a t i o u s l y , w a n t o n l y , or o ro p p r e s s i v e r e a s o n s , " ida t X 4 5 - ~ 4 6 , g a r o t i s a g ~ ( l y e s k a , ~2 I U.S. t 25$-259, 2 r o t i g F . D.ich Co.

v . U nited t ~ r t e s ex e l . I r a d t r s t t ~ i a ! L c r n r b e ~ ~ C o . , 1 ' 1 U.S,116, 129 1970. See l s o , e . g . , Fink .Gomez, 39F. 3d989 , 91-9939 t h C i r . 2 0 0 1 ) .

Wherea c o u n t t a x e s ap a r t y w i t h an oppos ing p a t t y ' s a t t o l ~ e y f e e s p u r s u a n t t o t h e c o u r t ' s

i n h e r e n t power o s a n c t i o n , t h e ~ e i s n o t h i n g t o s u g g e s t h a t [ t h e ] s a n c t i o n s award [must] i r e c t l y

c o r z e l a t e w i t h t h e a d d i t i o n a l time" n c u i ~ e d by h e opposing p a r t y i n co ns equence ofh e con du ctw a i 7 a n t i n g i m p o s i t i o n ofa n c t i o n s . E ~ ~ o n v . L a 1 c ~ O f f i c e s o fidney L l r c k e l l , 638F.3d1015, 1035(9thC i r , 2012). To h e c o n t r a r y , [ t ] h e d i s t r i c t c o u n t l e a s wided i s c r e t i o n i n c r a $ i n ~ a s a n c t i o n s

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awarda r i d " awardoft t o ; ~ z ~ e y f e e s a s a s a n c t i o n i n an amount h a t d i f f e r s fiom h e opposing

p a r t y ' s a c t u a l l y i n c u ~ ~ ~ e d f e e s i s "not anabuse of i s c r e t i o n . " I d .MATERIALrACTS

Following s e t t l e m e n t n e g o t i a t i o n s , onNo ve mb e r 5,201 2, o u n s e l f o r Rolex ~ ~ e q u e s t e d

v i a emailt h a t c o u n s e l f o r Hoffmanp r o v i d e " c o n f i i 7 n a t i a n " t h a t s p e c i f i c s e t t l e m e n t t e i 7 n s s e t f o r t h

i n se ve nenumeratedp a r a g r a p h s we re a c c e p t a b l e " t o h i s c l i e n t . That same a y , o u n s e l f o rHoffmanresponded v i a emai l h a t "We ave a e a l , " a d v i s i n g t h a t Hof fman wo u l d b e g i n

compliancew i t h h i s o b l i g a t i o n s a s s e t o ~ ~ t h i n t h e s evene n u t n e x a t e d p a r a g r a p h s . The o l l o w i n g

d 1 y , November 16, 2012, o u n s e l f o r Roles o x w a x d e d t o c o u n s e l f o r Hoffmana d r a f t w r i t t e n

s e t t l e m e n t agre ement n c o r p o r a t i n g a i l s evenofh e enumerat edp a z ~ a g r a p h s s e t t i n g f o r t h t h e t e i 7 n s

t h e p a n t i e s had a g r e e d t o , a s well a s a d d i t i o n a l p r o v i s i o n s t h a t t h e p a n t i e s hadn o t y e t n e g o t i a t e d .

The h i z t e e n t h p a r a g r a p h ofh e w r i t t e n s e t t l e m e n t agreement, h z c h ~ , t h e p a r t i e s hadno tp r e v i o u s l y n e g o t i a t e d , read a s o l l o t i v s :

The a r t i e s a g r e e t h a t t h e c o n f i d e n t i a l i t y ofh i s a g r e e m e f z t i s am a t e r i a lc o n s i d e r a t i o n f o r t h e i r e n t e r i n g i n t o t h i s a g r e e m e n t . A c c o r d i n g l y , n e i t h E r ofh ep a ~ t i e s , n o r any of h e i r r e s p e c t i v e d i r e c t o r s , o f f i c e r s , a g e n t s , employe es , f f i l i a t e s ,a s s i g n s , i n s u x e r s , s u c c e s s o r s , a t t o r n e y s , o r o t h e r r e p r e s e n t a t i v e s , s h a l l d i s c l o s e anyt e i 7 n s o r c o n t e n t s ofh i s agreement, r d i s p a r a g e t h e o t h e r p a r t y .Five days a t e x , on V ` o v e m b e r 21, 2012, o u n s e l f o r Hoffrnan a d v i s e d c o u n s e l f o r Ro le x

v i a email t h a t ~ z s c l i e n t had "one e q u e s t e d chang ei n t h e s e t t l e m e n t a g r e e m e n t , " su ch

m o d i f i c a t i o n t o b e made o one of h e n e g o t i a t e d termso f h e agree ment no t t i s s u e h e r e . Thep a r t i e s n e g o t i a t e d t h e d e t a i l of o f fman's e q u e s t e d change,and onNovember 30, 012, o u n s e l

f o r Hoffman d v i s e d c o u n s e l f o r Ro le x t h a t af o r m u l a t i o n of h e r e q u e s t e d m o d i f i c a t i o n proposed

b y c o u n s e l f o x Ro l e x v a s a c c e p t a b l e t o H o ff man.Counsel e q u e s t e d t h a t Rol exp r o v i d e aco p y

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ofh e " f i n a l s e t t l e m e n t agreement" n c o r p o z a t i z ~ g t h e n e g o t i l t e d m o d i f i c a t i o n C o y h i s c l i e n t ' s

s i g n a t u r e .Ove r h e f o l l o w i n g weeks, o u n s e l f o r Hoffm a n r e p e a t e d l y a d v i s e d c o u n s e l f o r Rol e1 h a t

Hoffm a n i n t e n d e d t o s i g n t h e agreement n t h e f o i i n provi dedby Rol ex on ~ I o v e m b e x 3 0 , 2012.S p e c i f i c a l l y , c o u n s e l a d v i s e d on D e ce m b e r 6,012, h a t Hoffm a n i n t e n d s on i g n i n g t h ea g r e e m e n t , " on D e ce m b e r 7 , 2012, h a t Hoffm a n n d i c a t e d t o hi m h a t he i v o u l d s i g n t h eagreement h e f o l l o t i v i n g t i v e e k , onD e ce m b e r 1 ~ , 2012,h a t ~ i s c l i e n t w a s n d e t ~ t a k i n g t o s a t i s f y

h i s o b l i g a t i o n s under i n e n e g o t i a t e d terms of} ~ e agreement, n don D ece mb e r 1, 412,h a tHoffm a n s t i l l i n d i c a t e s h i s i n t e n t i o n t o s i g n t h e a g r e e m e n t . " U l t i m a t e l y , ho weve r,Hoffm a ne l e c t e d t o a t t e m p t t o r e p u d i a t e t h e a g r e e m e n t , t a k i n g t h e p o s i t i o n t h a t t h e u n n e g o t i a t e d i n u t l l a l

c o n f i d e n t i a l i t y p r o v i s i o n s i t f o r t h a t p a r a g ~ a p h 13 ofh e u n e Y e c u t e d s e t t l e n n e n t agreementw a s

u n a c c e p t a b l e t o him . Hoffm a n x p r e s s e d himself i l l i n g t o s i g n t h e a gre em en t b s e n t t h a tp r o v i s i o n .

Ona n u a r y 24,2013, i s s u e d anOp ini on a nd Order # 52) yand t l u o u g l i whi ch foundt h e p ~ i- r y ' s s e t t l e m e n t agzeement o be c o m p l e t e , b i n d i n g , a nd e n f o r c e a b l e , ands p e c i f i c a l l y

o r d e r i n g Hoffm a n t o com p l y w i t h i t s t e r m s . It s u n d i s p u t e d t k a t t h e p a r t i e s ' s e t t l e m e n ta g i e e i n e n t r e q u i r e d Hoffinan o h a n s : f e z t o Rolex 1 I i n t e r n a t d oma i n n a m e s e g i s t e r e d t o hi m t h a ti n c l u d e d t h e namer o l e ; c " o r o t h e r n a m e s rademarked b y Rol ex,o d e l e t e from l l t w i t t e ra c c o u n t s a n c i w e b s i t e s c o n t r o l l e d b y hi m an y t a t e m e n t s r e g a r d i n g R o l e x ' s a n d / o r i t s a t t o r n e y s '

b u s i n e s s p ~ a c t i c e s , r e p u t a t i o n s , o r p e r s o n a l a p p e a r a n c e s , o s t o p a d v e r t i s i n g a t o l l - f r e e t e l e p h o n e

d u m b e r a d d r e s s e d t o hi m u s i n g t h e n a m e "ROLEX"n dt o r e m ove e f e z e n c e s t o t h e t e l e p h o n en u m b e r s i n g t h a t name from t w i t t e r a c c o u n t s andw e b s i t e s c o n t a o l l e d b y hi m ,o re m ove from

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a l l t w i t t e r a c c o u n t s , ~ v e b s i t e s , ands o c i a l mediaa c c o u n t s c o n t r o l l e d byhim l l p h o t o g r a p h s of

R o l e : ~ ' s p r o d u c t s n o t c r e a t e d by Hoffm a nand l l b a n n e r s d i s p l a y i n g t r a d e m a r k s r e g i s t e r e d t o

Role:, o s t o p u s i n g t h e tezms e x c l u s i v e " o r " p r o f e s s i o n a l " i n c o n n e c t i o n w i t h e f f o r t s t o market

R olex e p a i r s e r v i c e s , and o p l a c e a ~ o z n i n e n t d i s c l a i m e r a t t h e top of achw e b s i t e page

c o n t r o l l e d by him on whichRolexp r o d u c t imageso r r e f e r e n c e s a r e d i s p l a y e d . I t i s f u r t h e r

u n d i s p u t e d t h a t t h e p a r t i e s ' se t t l e m e ~ i t a g ~ e e z n e i ~ t p r o v i d e d t h a t i n t h e eve nt "any e g a l a c t i o n ,

p r o c e e d i n g or ~ b i t ~ ~ a t i o n [wa]s n i t i a t e d t o e n f o r c e o r i n t e r p r e t " i t s p r o v i s i o n s , Rolexwould be

" e n t i t l e d t o r e c o v e r any and l l ...fees andc o s t s i n c u c x e d " i n consequence of~ o f f i n a n ' s cond uct

i n v i o l a t i o n of h e a g ~ e e r n e n t .Ona n u a r y 25, Q13, o u n s e l f o r R o t e : c s e n t H o f f r a a n ' s then- c o u n s e l ofe c o r d an e m a i l

mes sag e e i t e r a t i n g Ho ffman's o b l i g a t i o n s under h e p a n t i e s ' s e t t l e m e n t a g r e e m e n t . Having

r e c e i v e d no e s p o n s e t h e r e t o , c o u n s e l f o r R o l e : f o l l o w e d u p w i t h a i m i l a r such ~ ~ i a i l message

o ~ i J a n u a r y 30, 013. Thats am e day, o f f n n a n ' s c o u n s e l responded v i a email s f o l l o w s :

Wha t chang es r e you n d i c a t i n g t h a t my3 i e n t has notm a d e?Myl i e n tr e p r e s e n t s t h a t hehasm a d e l l ofh e ~ e g t t e s t e d c h a n g e s .Alsoo F i J a n u a r y 30, 013, o u n s e l f o r Rolex s e n t c o u n s e l f o r Hoffma na e t a i l e d e m a i l

mes sages e t t i n g f o r t h withp a r t i c u l a r i t y a l l of h e a c t i o n s Hoffimanwa s e q u i r e d t o l a k e u n d e r t h e

p a n t i e s ' s e t t l e m e n t agr eement h a t he hadn o t y e t t a k e n . The se i n c l u d e d Ho ffman's a i l u r e t o

t r a n s f e r t o RoIeY h e domain name t t p : / h ~ o l e Y c r a w n . w o r d p r e s s . c o m t h a t ha d be en e g i s t e z ~ e d t o

Hoffman, p p r o x i m a t e l y t h i r t y s p e c i f i c a l l y i d e n t i f i e d w e b s i t e pagesand t w e e t s c o n t r o l l e d by

Hoffma n on v h i c l i s t a t e m e n t s r e g a r d i n g R o l e x ' s a n d / o a t s a t t o i 7 i e y s ' b u s i n e s s p r a c t i c e s ,

r e p u t a t i o n s , o r p e r s o n a l appearancesw e z e d i s p l a y e d , a p p r o x i m a t e l y l u ~ e e t i v e b s i t e p a g e s

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c o n t r o l l e d byHoffmanon i v h i c h t h e name"ROLEX" a s u s e d i n c o r u l e c t i o n w i t h at e l e p h o n en l u n b e r r e g i s t e r e d t o Hoffman, p p r o x i m a t e l y two w e b s i t e pages o n t a o l l e d by Hoffman onwhich p h o t o g x a p h s of oles r o d u c t s wered i s p l a y e d , a p p t o Y i m a t e l y e l e v e n w e b s i t e p a g e s onw l u o c i ~ Hoffman d v e r t i s e d h i s Roles e p a i r s e r v i c e s u s i n g t h e ter m p r o f e s s i o n a l , " andHoffman' s a i l u r e t o p l a c e t h e x e q u i r e d d i s c l a i m e r a t t h e t o p of a g e s r e f e r e n c i n g R o l e x ' st r a d e m a r k s .

Counsel o r Hoffmann o t h a v i n g r e s p o n d e d t o R o l e x ' s message, and Hoffman h a v i n gf a i l e d t o c o t ~ e c t any of h e i d e n t i f i e d d e f i c i e n c i e s i n h i s c o m p l i a n c e w i t h t h e p a i ~ i e s ' a g r e e m e n t ,c o u n s e l f o r Role: r e q u e s t e d t h i s c o u r t ' s i n t e r v e n t i o n , by e t t e r . One b z u a ~ y 1 , 2013, o u n s e l f o rHoffman e s p o n d e d w i t h a e t t e r t o t h e c o u r t i z i d z c a t i n g t h a t Hoffmanwas n i x l l c o m p l i a n c e w i t hh i s o b l i g a t i o n s u n d e r t h e a g r e e m e n t .

On e b r u a r y 1 3 , 2013, h e p a n t i e s and t h e c o u r t p a r t i c i p a t e d i n a t e l e p h o n e c o n f e r e n c e t od i s c u s s t h e p a r t i e s ' d i s p u t e . Once t bec amea p p a r e n t t h a t Hoffmanwas o t , i n f a c t , i n

complianc e w i t h h i s o b l i g a t i o n s , t h e c o u n t rem oved t s e l f fromt h e d i s c u s s i o n , and e ~ ~ r n i t t e d t h ep a r t i e s t o c o n t i n u e t h e i r d i s c u s s i o n s i n t h e c o u r t ' s a b s e n c e . Over h e c o u r s e of h e t e l e c o n f e r e n c e ,c o u n s e l f o r Rolex d e n t i fed w i t h p a r t i c u l a r i t y eachand e v e r y i n s t a n c e of offman's a i l u r e t ocomp lyw i t h h i s c l e a r o b l i g a t i o n s t i n d e r t h e a g r e e m e n t . N o t w i t h s t a n d i n g t h e s e e f f o r t s , H a f f i n a nh a v i n g c o n t i n u e d h i s f a i l u r e t o complyi v i t h h i s o b l i g a t i o n s , on F e b ~ ~ u a i y 1 5 , 2013,o u n s e l f o rR o l e : x e c ~ u e s t e d f i i r t h e r c o u n t i n t e r v e n t i o n t o e n f o ~ c e t h e a g r e e m e n t . R o l e x ' s l e t t e r r e q u e s t f o x f u r t h e r c o u r t i n t e r v e n t i o n was u p p o r t e d by documents d e n t i f y i n g w i t h p a r t i c u l a r i t y a i l of h ei n s t a n c e s of o f f n l a n ' s c o n t i n u e d no ncompliance w i t h h i s o b l i g a t i o n s , These n c l u d e d a l ld e f i c i e n c i e s p r e v i o u s l y i d e n t i f i e d i n R o l e x ' s d e t a i l e d e m a i l mes sag e of a n u a r y 30, 013.

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On a z c h 8, 013,h e p a r t i e s a p p e a r e d i n open o u r t t o d i s c u s s Hoffman's

n o n c o r r ~ p l i a r i c e with h i s o b l i g a t i o n s undert h e s e t t l e m e n t a g r e e m e n t . At h a t t i m e , H of f m a nhadc a i ~ e c t e d noneof f ~ e d e f i c i e n c i e s i d e n t i f i e d t o him w i t h p a r t i c u l a r i t y on J a n u a r y 30, 013, nda g a i n on F e b i l i a i y 1 5 , 20 . Duringt h e c o u r s e of h a t h e a r i n g , Hoffinan i v a s a b l e t o c o n z i e c t t oi r i s w e b s i t e s , w i t t e r a c c o u n t s , and o c i a l m ediaa c c o u n t s , and t o m a l c a ch anges soa s t o b r i n g

himself n t o p a r t i a l co mpl ianc ew i t h h i s o b l i g a t i o n s , Over h e c o u z ~ s e of h e n e t t t h r e e d a y s , n

x e s p o n s e t o r e p e a t e d prompting v i a emai lby o u n s e l f o r Rolex, of f m a n o r r e c t e d a l l r e m a i n i n g

non complia ntw e b s i t e p a g e s , w e e t s , and s o c i a l m ediaa c c o u n t s . Hoffman' sco mpli ancew i t h t h e

o b l i g a t i o n t o t r a n s f e r t h e h t t p : / / r o l e x c r o w n . w o r d p z e s s . c o m dom a in wa s byt h a t tune i m p o s s i b l e ,b e c a u s e H of f m a n hadc a n c e l e d t h e dom ainna m e a t h e r t ha n r a n s f e z t t o Roles , ndno o n g e rhad a u t h o r i t y t o e f f e c t t h e r a n s f e z .

This motion fotl owedon ~ l a r c h 1 S , 2013.ANALYSIS

Aso t e d above, Rolex b o t h a s s e n t s a o n t r a c t u a l z i g h t t o a ~ ~ 7 a r d oft s a t t o r n e y f e e sr e a s o n a b l y i n c u r r e d i n c o n n e c t i o n w i t h o b t a i n i n g Hoffman' s compl iancew i t h h i s o b l i g a t i o n s

undert h e p a r t i e s ' s e t t l e m e n t agreementand ,n t h e a l t e r n a t i v e , s e e k s i m p o s i t i o n of h e a t t o t n e y -f e e s a n c t i o n on h e b a s i s of o f f i n a n ' s d i l a t o r y compl ianc e w it h t h o s e o b l i g a t i o n s . I a d d r e s s b o t hof o 1 e Y ' s f e e - s h i f t i n g t h e o r i e s i n h i r n , be low.I . A t t o ~ n e y Feesas Contr actu alEntitlement

A. R o l e s ' s C o n t r a c f ~ ~ 1 1 ~ u t i t i c m c i x t t o Award of FcesAs o t e d above, h e p a r t i e s ' s e t t l e m e n t agreement x o v i d e s t h a t i n t h e e v e n t "any e g a l

a c t i o n , p r o c e e d i n g o r a z b i h a t i o n i s i n i t i a t e d t o e n f o r c e o r i n t e r p r e t " i t s p z o v i s i o n s , Rolex s

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" e n t i t l e d t o r e c o v e r any and l l ...feesandc o s t s i n c u r r e d " i n consequenceo f offman's conduct

i n v i o l a t i o n o f h e agreement .Su chp r o v i s i o n s a r e c l e a r l y e n f o r c e a b l e underOr e g o n a w . See

Or .Rev. t a t . 2 0 . 0 9 6 ( 1 ) ; s e e a l s o , e . g . , W i l k e s v . Z u r l i n d e n , 328Or.626, 31-6 3~ 1999) ;

B e n c h r n a r k N a t h t i v e s t , 191Or . App. t 523.I a g r e e w i t h Role: t h a t H o f f m an a i l e d t o co m ply w i t h t h e terns andp r o v i s i o n s o f f ~ e

p a r t i e s ' s e t t l e m e ~ i t agreement,and h a t Rolex n c u r r e d a t t o r n e y f e e s i n c o n n e c t i o n w i t h i t s

r e a s o n a b l y n e c e s s a r y e f f o z t s t o o b t a i n h i s c o m p l i a n c e . In consequence, a g r e e w i t h Rolext h a t i t

i s e n t i t l e d t o awar d o f l l i t s a t t o r n e y f e e s r e a s o n a b l y i n c u r r e d o n any a t e s u b s e q u e n t t o J a n u a r y

24,2013 t h e d a t e o nwhich a ~ u l e d t h a t t h e p a r t i e s l e a d an n f o r c e a b l e a g r e e m e n t , ando nwhichIe : c p x e s s l y o ~ d e r e d H o f f m a n o co m ply w i t h i t s p r o v i s i o n s ) .

B. t e e s Re a s o nably u c u a r e dRolex s e e k s a w a ~ d o f t s f e e s i n t h e am o unt i t h e r o f 46,61 . 8 7 , which am o unt s

c h a r a c t e r i z e d a s c o n s t i t u t i n g a l I f e e s i n c u r r e d byRo le x s i n c e No ve m be r 30, 012, r o f

$ 2 6 , 3 9 9 . 0 0 , h a r a c t e r i z e d a s c o n s t i t u t i n g a l l f e e s i n c u i ~ e d byRoIeYs i n c e J a m ~ a i y 24,013. Ins u p p o z t o f t s p e t i t i o n , R o l e : c o f f e ~ s t h e d e c l a r a t i o n o f a l t e r - 1 ~ l i c h a e l Le e h a t Rolex h a si n c u i ~ e d f e e s i n t h o s e am o u nt s i n c e t h o s e d a t e s . Ro le: doe sn o t f f e r any contempo r aneously

m a i n t a i n e d t i n g e r e c o r d s , any t a t e m e n t a s t o t h e ~ ~ e a s o n a b l e h o u r l y r a t e o r r a t e s o f o l e s ' sc o u n s e l , any d e n t i f i c a t i o z a o f l ~ e a t t o r n e y o r a t t o r n e y s o r o t h e r t i m e k e e p e r s whope rfor medwo r k

o nR o l e x ' s b e h a l f d u r i n g t h e ~ e l e v a n t tim ep e r i o d , o r any e s c r i p t i o n o f h e t a s k s i n c o n n e c t i o nw i t h whicht h e r e q u e s t e d f e e s we r e n c u r r e d .

"The a r t y seekingan a w a ~ d o f e e s mu s t ubmit v i d e n c e s u p p o r t i n g t h e hours wo rke d

and l x e r a t e s c l a i m e d . " VanG e r t i v e n . v . G a r a r a r r t e e 1 L l a r t . L i f e C o . , 21~F.3d 10 1 , 10459 t h C i s .

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2 0 0 0 ) , i t i n g H e n s l e y v . . E c k e ~ l r a r t , X61U . S . 42~,X3319 3 ) . F ' e e p e t i t i o n s l a c k i n g s u f f i c i e n ts u p p o r t i n g m a t e r i a l s t o p e i n l i t t h e c o u r t t o make d e t e r m i n a t i o n of h e r e a s o n a b l e n e s s ofh e

h o u r l y r a t e s c l a i m e d o r of h e t a s k s p e z ~ f o ~ m e d z ~ ~ a y be o t a l l y o ~ p a z t i a l l y d e n i e d . SeeLyon .

ChaseBank 1 S A , V . . ~ . , 656 . 3 d 877, 8929 t l i C i r . 2 0 1 1 ) ; Dr y r e e k L a n d f i X l , I n c . v . Y Y a s t eS o l u t i o n s Group, n c . , Case No. V-0~-3029-ST, 007 .S. i s t . LEXIS 16 70, x ` 1 4 - 1 5 (D.r .M a t . 6, 0 0 7 ) .

Here,t i s i m p o s s i b l e t o d e t e r m i n e fromR o l e Y ' s s u p p o r t i n g m a t e r i a l s whicha t t o z n e y s

i n c u ~ r e d t h e r e q u e s t e d f e e s , t h e h o u z l y a t e c h a r g e d i n c o n n e c t i o n w i t h t h o s e a t t o i ~ e y s ' s e r v i c e s ,

what a s k s t h o s e a t t o r n e y s p e r f o r m e d o r howmany o u r s t h o s e a t t o r n e y s expendedo r s R o l e : c ' sb e h a l f . R o l e : ~ ' s f a i l u r e t o p r o v i d e any a t e x i a l s s u p p o r t i n g i t s f e e p e t i t i o n w i t h p a T ~ t i c u l a r i i yr e n d e r s t h e c o u r N s t a s k of e t e r m i 7 u n g t h e r e a s o n a b l e n e s s ofo l e x ' s f e a p e t i t i o n n o t m e r e l y

d i f f i c u l t o r p r o b l e m a t i c b u t i m p o s s i b l e . I n c o n s e q u e n c e , awardRoleso n l y a nominal e e of

$100 n c o n n e c t i o n w i t h i t s p e t i t i o n f o r f e e s p u r s u a n t t o c o n t r a c t .I I . Aftorney Feesa s Sanction o z ~ F a i l u z e t o Complywith aCourtOrder

~s o t e d above,h i s c o u r t h a s b r o a d d i s c r e t i o n t o t a ; ~ a a ~ t y w i t h ano p p o n e n t ' s a t t o i ~ e y

f e e s a s a a ~ ~ c t i o n f o r t h e p a r t y ' s f a i l u r e t o c omply w i t h a o u r t o ~ d e r . SeeC h a j ~ 7 b e f s , 501U.S. t

4S. Alsoa s n o t e d above, onT a n u ~ t i y 24, 013, x p r e s s l y o r d e r e d Hof fman o c omply i v i t h t l ~ eterms of h e p a r t i e s ' e t t l e m e n t a g r e e m e n t , andd e s p i t e m u l t i p l e o c c a s i o n s on which h e s p e c i f i c

i n s t a n c e s of i s noncompliancewerep a i n s t a k i n g l y i d e n t i f i e d t o him n d e t a i l , he o n t i n u e d

n o n c o m p l i a n t u n t i l a p p z ~ o x i m a t e l y March . 1 , 2013,B e f o r e t h l t t i m e , Hof fman a r t i c i p a t e d i n a

t e l e c o n f e r e n c e w i t h t h e c o u n t and w i t h c o u n s e l f o r Rolex, t whichhecommitted t o c o z r e c t i n g

t h e d e f i c i e n c i e s i n h i s c o m p l i a n c e , and l a t e r a p p e a ~ e d i n ~ e r s o n b e f o r e t h e c o u r t w i t h o u t h a v i n g

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made z ~ y p e r c e p t i b l e e f f o r t t o f o l l o r ~ v t l u ~ o u g h o n h a t commitment.I a g r e e ~ r v i t h Roles h a tHo f fman's a i l u r e t o comply w i t h t h i s c o w ~ t ' s o z d e z o f a n u a z y 2 ~ 4 , 20] , i t t a o u t s i g n i f i c a n t c o u r ti n t e r v e n t i o n w a i 7 a n t s i m p o s i t i o n o f h e a t t o r n e y - f e e s a n c t i o n .

As o t e d ab ove, Rolex o f f e r s t h e swornd e c l a r a t i o n o f alter-M ichael Lee h a t " [ s ] i n c eJ a n u a r y 24, 013, h e d a t e o nwh ich h i s C ourt r d e r e d t h a t t h e S e t t l e m e n t A g ~ e e m e n t wasb i n d i n g o n [Ho ~fman] ande x p r e s s l y o r d e r e d h im o comply . v i t h i t s p r o v i s i o n s ] , Roles a si n c t u 7 ~ e d a t t o r n e y s ' f e e s r e l a t e d t o t h i s m a t t e z i n t h e amo unt o f 2 6 , 3 9 9 , 0 0 . Also a s n o t e d a b o v e ,Rolex p r o v i d e s no s u p p o r t i n g m a t e r i a l s f o r t h e c o u r t t o c o n s i d e r i n d e t e r m i n i n g whether l l o rs o meo f h o s e f e e s w e z ~ e z e a s a n a b l y i n c i i i 7 ~ e d . H o wever ,w h en h i f t i n g f e e s a s a a n c t i o n , a l s o a st a o t e d ab o ve h e c o u n t neednotaw ard l l o r D r i l y r e l s o n a b l y i n c u i 7 e d f e e s , b u t r a t h e r may a i l o rt h e f e e - s h i f t i n g s a n c t i o n a c c o r d i n g t o i t s d i s c z ~ e t i o n . See v o r a , 688 F.3d a t 1035 .

I t i s clew f ro m the e c o r d b e f o r e t h e c o u n t t h a t c o u n s e l f o r Rolexwas e q u i r e d t o expenda i g n i f i c a n t am o u nt o f imeco mbing h r o u g h t h e v a r i o u s w e b s i t e s , t w i t t e r a c c o u n t s , and o c i a l

mediaa c c o u n t s ~ e g i s t e a e d t o H o f f ma n n o r d e x t o d e T e z n i i n e t h e d e g z e e o f i s n o n . c o m p l i a r z c ew i t h h i s o b l i g a t i o n s under h e p a n t i e s ' s e t t l e m e n t agreementI nd o i d e n t i f y t h e i n s t a n c e s o f i snoncompliance w i t h p a r t i c u l a r i t y , andmo reover h a t c o u n s e l v a s pu t o t h i s t a s k o n mo ret h a no ne o c c a s i o n . I t , i s i t t ~ t h e r c l e a r t h a t , i n a d d i t i o n t o t h e f o r e g o i n g , c o u n s e l expended c o n s i d e z a b l e

e f f o r t s t o o b t a i n Ho f fman'sco mpliance, n c l u d i n g s i t t i n g by i v h i l e H o f f man made h e r e q u i r e dchanges o ne by o ne t l a b o r i o u s l e n g t h i n o pen o u n t . I n c ~ t h a t t i s r e a s o n a b l e under h ec i r c u m s t a n c e s t o s a n c t i o n H o f f man w i t h an award o f t t o r n e y f e e s i n R o l e x ' s f a v o r i n t h e amo u nto f 1x ,900.

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CONCLUSION

F o e t h e r e a s o n s s e t f o r t h above, o l e Y ' s motion# 61) t y l e d a s a motion o r i m p o s i t i o n ofs a n c t i o n s i s g r a n t e d , andHo ffma n s o r d e ~ e d t o payR o l e Y ' s a t t o r n e y f e e s and c o s t s i n t h e t o t a l

a m o unto f15,000.

. . \Datedt h i s 29th da yo fY l a y , 201 3.)

Ho norable a t e l Pa pa kU n z t e d S t a t e s 1 ~ I a g i s t r a t e Judge

Pa ge 12 OPINIJN~1ND ORDER

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