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Crypto Trading Firm Must Justify Attorney Fees

October 24, 2022 | Posted in : Billing Practices, Billing Record / Entries, Fee Affidavit, Fee Award, Fee Award Factors, Fee Request, Hourly Rates, Hours Billled

A recent Law 360 story by Katryna Perera, “Crypto Trading Firm Must Justify Atty Fees in $1.5M Judgment reports that a Georgia federal judge has awarded digital-asset trading company GSR Markets Ltd. more than $1.5 million in its fraud suit against purported bitcoin dealer Valkyrie Group LLC, but he said he wouldn't grant a default judgment until GSR submits evidence supporting the roughly $174,000 in attorney fees it's seeking in the matter. 

GSR had moved for $1.5 million in compensatory damages and attorney fees in its June default motion, but U.S. District Judge Michael L. Brown granted only the damages, saying in his order that the affidavit in support of attorney fees submitted by GSR's attorney fell short of establishing a "reasonableness" for the fees.

According to the order, Richard L. Robbins of Robbins Alloy Belinfante Littlefield LLC testified that the fees GSR incurred are based on the firm's standard hourly rates and that from January 2019 through May 2022 the firm billed GSR approximately $174,000 in attorney fees. 

Robbins had also testified that the legal services and fees were "customary and necessarily incurred" by GSR and that the requested fees are similar to those of other attorneys in Georgia.  But Judge Brown said, "this is not enough" to warrant an award of the fees.

"Neither plaintiff nor Mr. Robbins indicate how much time was billed or what specific services were provided.  They also fail to attach any billing statements," he said.  The judge directed GSR and its attorneys to submit "clear and detailed evidence" supporting its fee request within 14 days.