GOVERNMENT OF THE UNITED ST ATES VIRGIN ISLANDS OPPOSITION TO CO-EXECUTORS MOTION FOR AWARD OF ATTORNEYS FEES In the Matter of the Estate of Jeffrey Epstein Case No Originating Case No Page2 BACKGROUND On January the Government filed a lawsuit against the Estate the Trust and numerous Epstein business affiliates and associates for violation of the Criminally Influenced and Corrupt Organization Act CICO V.I.C et seq and civil conspiracy seeking forfeiture and divestment of assets in favor of the Government civil penalties damages and other remedies a redacted copy of the Governments Second Amended Complaint is attached as Government Exhibit The Government alleges that for decades Jeffrey Epstein conducted an enterprise whereby he used his web of businesses in the Virgin Islands to transport female victims many of them children to his privately-owned Little St James Island where they were sexually abused injured and held captive in violation of Virgin Islands criminal laws See Ex 2d Amend Compl I,I The Government further alleges that Southern Trust Company Inc a Virgin Islands corporation of which Jeffrey Epstein was President/Director and Co-Executors Darren lndyke and Richard Kahn were corporate officers-committed fraud against the Virgin Islands Economic Development Authority by claiming at least million in unearned tax benefits See id at r,r On January the Government filed its Motion to Intervene in the Probate Action Governments Motion to Intervene and on February the Government filed its Emergency Motion to Immediately Freeze All Assets and Cash on Hand Governments Motion to Freeze Assets On February the Court denied the Governments Motion to Intervene without prejudice and directed the Government to file a claim in the Epstein Estate instead of seeking to intervene The Court also struck the Governments Motion to Freeze Assets GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS OPPOSITION TO CO-EXECUTORS MOTION FOR AWARD OF ATTORNEYS FEES In the Matter of the Estate of Jeffrey Epstein Case No Originating Case No Page3 The Courts orders on the Governments Motion to Intervene and the Governments Motion to Freeze Assets were formally issued on February On March the Government filed its Notice of Appeal and Petition for Review of Magistrate Judges Orders Governments Petition for Review pursuant to V.I Super Ct and/or On February the Court denied the Governments Petition for Review with prejudice finding that the underlying orders were not final judgments eligible for appeal On February the Government filed a claim in the Epstein Estate ARGUMENT I THE EPSTEIN EST ATE IS NOT ENTITLED TO ATTORNEYS FEES UNDER SECTION Section provides that courts may award attorneys fees to the prevailing party in the judgment V.I.C Here the underlying orders are not judgments and the Epstein Estate is not the prevailing party Thus the Epstein Estates requests for attorneys fees should be denied A The Orders Underlying the Epsteins Estates Request For Attorneys Fees Are Not Judgments Rule of the Virgin Islands defines judgment as a decree and any order from which an appeal lies The Rule embraces two different types of orders any final decision from which an appeal is permitted and any appealable interlocutory order See Island Tile and Marble The Epstein Estate cites to V.I.C to support its request for attorneys fees The standard for awarding attorneys fees under section is the same as the standard for awarding attorneys fees under V.I.C See Ka/loo Estate of Small V.I applying the attorneys fees standard of section V.I.C to a claim for attorneys fees under V.I.C GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS OPPOSITION TO CO-EXECUTORS MOTION FOR AWARD OF ATTORNEYS FEES In the Matter of the Estate of Jeffrey Epstein Case No Originating Case No Page4 LLC Bertrand V.I V.I citing to Charles Alan Wright Arthur Miller Mary Kay Kane Federal Practice Procedure The orders stemming from the Governments Motion to Intervene and the Governments Motion to Freeze Assets are not final decisions The orders unquestionably do not dispose of the litigation Further the Court denied the Governments Motion to Intervene without prejudice and struck the Governments Motion to Freeze assets-allowing the Government to correct the errors identified by the Court In addition the Courts orders do not specify that they are final judgments and the Court did not expressly determine that there is no just reason for delay V.I Civ The Superior Court Judge reviewing the Governments Petition for Review found these facts to be determinative in finding that the orders were not final orders eligible for appeal As such the Court reviewed the Governments Petition for Review pursuant to its reconsideration authority under V.I.C not as an appeal pursuant to section or See Feb Mem Order at see also Valerino Manning V.I Super Ct appeal is not the same as reconsideration Similarly these orders are not appealable interlocutory orders Interlocutory orders can only be appealed in limited circumstances such as granting/modifying/refusing an injunction appointing receivers or refusing orders to wind up receivership and other orders in which the Superior Court judge finds a controlling question of law as to which there is substantial ground for Decisions by the Virgin Islands Supreme Court and Superior Court interpreting and applying the Federal Rules of Civil Procedure remain applicable where the relevant provision of the Virgin Islands Rules of Civil Procedure resemble its federal counterpart See Gov of the V.l Takata Corp V.I V.I Super Ct GOVERNMENT OF THE UNITED ST ATES VIRGIN ISLANDS OPPOSITION TO CO-EXECUTORS MOTION FOR AW ARD OF ATTORNEYS FEES In the Matter of the Estate of Jeffrey Epstein Case No Originating Case No Page5 difference of opinion and that an immediate appeal from the order may materially advance the ultimate termination of litigation See V.I.C None of those circumstances apply here The Epstein Estate Is Not The Prevailing Party The test adopted by the Superior Court for determining whether a party is a prevailing party is whether a party has achieved at least some of the benefits sought in litigation Rohn Daily News Pub/g Co Inc V.I V.I Super Ct Under this standard the operative criteria for such an award of attorneys fees is success at the conclusion of proceedings rather than the means by which success is achieved Id internal citation omitted As such attorneys fees are awarded at the conclusion of litigation not in the beginning or in the midst of it Bell Radcl fe V.I LEXIS at V.I Super Ct Apr None of the defendants are prevailing parties because this matter is still pending internal citation omitted As discussed above the Courts denial of the Governments Motion to Intervene and striking of the Governments Motion to Freeze Assets were not final judgments and did not dispose of this litigation To the contrary the Government has now filed a claim in this proceeding and is free to seek the same type of relief it requested as an intervenor A warding attorneys fees to the Epstein Estate when the Government may still ultimately prevail and obtain the same relief it requested as an intervenor contradicts the entire notion of a prevailing party The Court did not deny the Governments Motion to Freeze Assets The Court simply struck the motion allowing the Government to later refile GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS OPPOSITION TO CO-EXECUTORS MOTION FOR AWARD OF ATTORNEYS FEES In the Matter of the Estate of Jeffrey Epstein Case No Originating Case No Page6 II THE COURT SHOULD EXERCISE ITS GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS OPPOSITION TO CO-EXECUTORS MOTION FOR AWARD OF ATTORNEYS FEES In the Matter of the Estate of Jeffrey Epstein Case No Originating Case No Page I THE EPSTEIN ESTATES REQUEST FOR ATTORNEYS FEES IS EXTREMELY UNREASONABLE The Epstein Estates request for attorneys fees is extremely unreasonable Counsels hourly rates are excessive and their billing entries contain vague descriptions duplicative tasks unrelated work and clerical duties In the event the Court decides to award attorneys fees the attorneys hourly rates should be reduced to a maximum of per hour and all inappropriate billing entries should be excluded A Counsels Hourly Rates Are Excessive When determining the reasonableness of an hourly rate courts compare the hourly rate being charged with the customary charges of Virgin Islands attorneys See Lakeview Loan Serv LLC Singh V.I V.I Super Ct July It is universally accepted that the party seeking fees bears the burden of producing satisfactory evidence-in addition to the attorneys own affidavit-that the requested rates are in line with those prevailing in the community for similar services by lawyers of reasonable comparable skill experience and reputation Isaac Rhonda Crichlow V.I LEXIS V.I Super Ct Sept citing Blum Stenson U.S The Supreme Court of the Virgin Islands has held that a reasonable hourly rate is calculated according to the prevailing market in the community See Hodge Superior Court of the Virgin Islands U.S Dist LEXIS at D.V.I Nov noting requested fees must be based on counsels usual billing rates which are in accord with customary and prevailing market rates in the Virgin Islands for legal services The Estates reliance on New York rates and rates above the prevailing market rates for attorneys in the Virgin Islands is misplaced Virgin Islands courts have found hourly rates between wZi p?n O?е FG?y ߴ?Z n?y 1C?Y K?V e?m?Cn??U??j?M-?N?섅N N?o _kc ڿz G_ zi?u?t ױ?V Er ʐcZ DA Eu M?k?u A O?O?Dq GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS OPPOSITION TO CO-EXECUTORS MOTION FOR AW ARD OF ATTORNEYS FEES In the Matter of the Estate of Jeffrey Epstein Case No Originating Case No Page8 to be reasonable including a hourly rate for a trial counsel who had practiced law for years See Lakeview Loan Serv V.I at In in Matter of Estate of Benjamin V.I V.I the Court found the hourly rate of attorney Marjorie Whalen one of the attorneys now representing the Epstein Estate and requesting fees-to be excessive and reduced the hourly rate to The Epstein Estate is seeking over for less than hours of work billed at the following hourly rates Attorney Daniel Weiner Attorney Andrew Heymann Attorney Christopher Kroblin Attorney Marjorie Whalen Attorney Shari Andrade Legal Assistant Shauna Betz See Epstein Estates Mot Aff Daniel Weiner Ex Epstein Estates Mot Aff Christopher A Kroblin Ex These hourly rates are excessive and far exceed the customary charges of Virgin Islands attorneys which range from per hour Attorney Weiners rate for example exceeds the high-end of the customary range by almost If the Court awards the Epstein Estate attorneys fees it should reduce each attorneys hourly rate to no more than per hour GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS OPPOSITION TO CO-EXECUTORS MOTION FOR AW ARD OF ATTORNEYS FEES In the Matter of the Estate of Jeffrey Epstein Case No Originating Case No Page9 Several Billing Entries Are Inappropriate And Should Be Excluded Counsel for the Epstein Estate submitted several inappropriate billing entries that should be excluded including entries that contain vague descriptions duplicative tasks unrelated matters and clerical work A chart identifying the Governments specific objections to counsels billing entries is attached as Government Exhibit Vague Descriptions Requests for attorneys fees must be sufficiently specific to allow the court to determine whether the hours claimed are unreasonable for the work performed See Crown Bay Marina L.P Subbase Drydock Inc No U.S Dist LEXIS at D.V.I July Courts have found that entries lumping together multiple tasks without identifying the amount of time spent on each task are not sufficiently specific Id Several of the Epstein Estates billing entries have vague descriptions and contain multiple tasks which makes it impossible for the Government to determine what work counsel performed and how much time counsel spent on each task See Govt Ex Entry Nos For example Attorney Heymanns description for billed hours is Strategize on opposition to AG motion to freeze assets and standard and research and related advice to clients See Govt Ex Entry No Similarly Attorney Andrades description for billed hours is Calendared deadline for response to GVIs emergency motion tried to gain access to court website for docket called clerks office to determine when GVI Government Exhibit is an annotated version of the billing information the Epstein Estate provided in its Motion The Government created additional columns and rows all highlighted in gray to state its objections and make the chart easier to read GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS OPPOSITION TO CO-EXECUTORS MOTION FOR AW ARD OF ATTORNEYS FEES In the Matter of the Estate of Jeffrey Epstein Case No Originating Case No Page emergency motion was filed communication w/team re strategy See Govt Ex Entry No These vague entries should be excluded Duplicative Tasks Courts have previously reduced fee awards for duplication of effort among several attorneys including multiple-lawyer conferences not involving opposing counsel See Morcher Nash Supp 2d D.V.I The Epstein Estates Motion contains several billing entries for duplicative work See Govt Ex Entry Nos For example Attorneys Weiner Heymann Kroblin Whalen and Andrade all billed time to drafting and editing opposition to the Governments Motion to Intervene See Govt Ex Entry Nos The Government should not have to pay counsels exorbitant hourly rates for several attorneys to perform the same tasks Thus the Court should exclude all duplicative entries Unrelated Matters The Epstein Estates Motion also includes tasks unrelated to the Governments Motion to Intervene the Governments Motion to Freeze Assets or the Government Petition for Review and should therefore be excluded See Govt Ex Entry Nos In some instances counsel lumps together these unrelated tasks with tasks that do relate to the at-issue motions making it impossible for the Government to separate the appropriate and inappropriate billing entries For example Attorney Kroblins description for billed hours is Preparation for hearing including proposed agenda proposed witnesses and hearing binders and review of the quarterly accounting and edit of the same See Govt Ex Entry No Reviewing and editing the quarterly accounting is not related to the at-issue motions however the GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS OPPOSITION TO CO-EXECUTORS MOTION FOR AW ARD OF ATTORNEYS FEES In the Matter of the Estate of Jeffrey Epstein Case No Originating Case No Page Government cannot determine what portion of the billed hours Attorney Kroblin spent on this task As such these types of entries should be excluded Clerical Work Expenses for clerical work such as copying and filing are considered overhead and should be excluded See Crown Bay Marina L.P U.S Dist LEXIS at see also Matter of Estate of Benjamin V.I at excluded hours Kellerhals Ferguson Kroblin PLLC billed to contacting Courts clerks regarding status updates and conferences The Epstein Estates Motion contains several billing entries for clerical work See Govt Ex Entry Nos For example Attorney Andrade billed five hours at per hour for preparing binders for February hearing See Govt Ex Entry No In addition the Epstein Estates Motion includes billing entries for legal assistant Shauna Betz Counsel cites to a case in which Ms Betzs time was included in an award for attorneys fees Epstein Estates Mot at however counsel failed to explain that in that case Ms Betz was identified as a paralegal-not a legal assistant-and the tasks she performed included drafting pleadings See Matter of Estate of Benjamin V.I at Here Ms Betzs tasks are entirely clerical such as assisting with copying and filing documents and should be excluded See Govt Ex Entry Nos see also Crown Bay Marina L.P U.S Dist LEXIS at citing Jordan SEPTA U.S Dist LEXIS at E.D Pa Mar Purely clerical or secretarial tasks should not be billed at a paralegal rate GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS OPPOSITION TO CO-EXECUTORS MOTION FOR AWARD OF ATTORNEYS FEES In the Matter of the Estate of Jeffrey Epstein Case No Originating Case No Page CONCLUSION For all the reasons set forth the Court should deny the Epstein Estates Motion for Award of Attorneys Fees Alternatively the Court should exclude the billing entries the Government identifies herein and in Government Exhibit and reduce counsels hourly rate to a maximum rate of per hour Dated March Respectfully Submitted DENISE GEORGE ESQUIRE ATTORNEY GENERAL VIRGIN ISLANDS DEPARTMENT OF JUSTICE By Isl Carol Thomas-Jacobs CAROL THOMAS-JACOBS ESQUIRE Chief Deputy Attorney General Virgin Islands Department of Justice Office of the Attorney General Kronprindsens Gade G.E.R.S Complex 2nd Floor St Thomas U.S Virgin Islands Email carol.jacobs doj.vi.gov ext GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS OPPOSITION TO CO-EXECUTORS MOTION FOR AW ARD OF ATTORNEYS FEES In the Matter of the Estate of Jeffrey Epstein Case No Originating Case No Page CERTIFICATE OF SERVICE IT IS HEREBY CERTIFIED that this document complies with the page or word limitation set forth in Rule and a true and correct copy of the Government of the United States Virgin Islands Opposition to Co-Executors Motion for A ward of Attorneys Fees was served via the electronic filing system and by email to counsel of record on March to CHRISTOPHER ALLEN KROBLIN ESQ ANDREW HEYMANN ESQ WILLIAM BLUM ESQ SHARI DANDRADE ESQ MARJORIE WHALEN ESQ KELLERHALS FERGUSON KROBLIN PLLC Royal Palms Professional Building Estate Thomas Suite St Thomas V.I Email ckroblin kellfer.com aheymann solblum.com wblum solblum.com sdandrade kellfer.com mwhalen kellfer.com DANIEL WEINER HUGHES HUBBARD REID LLP One Battery Park Plaza New York NY United States Email daniel weiner hugheshubbard.com By Isl Carol Thomas-Jacobs CAROL THOMAS-JACOBS ESQUIRE Chief Deputy Attorney General Virgin Islands Department of Justice Office of the Attorney General Kronprindsens Gade G.E.R.S Complex 2nd Floor St Thomas U.S Virgin Islands Email Carol.Jacobs doj.vi.gov ext
