Legends are Forever, Inc. (Legends) trademarked the slogan “Legends are Forever.” When Nike used the slogan in an ad campaign featuring basketball player Kobe Bryant, Legends sued Nike. 

But, during discovery, Legends repeatedly failed to comply with Nike’s reasonable requests. Ultimately, Nike was forced to file a motion to compel Legends to produce the requested documents and witnesses. So, Nike requested more than just discovery: It also asked the court for recovery of all of the costs and fees it incurred in litigating the motion to compel, totaling $25,186.91. This sum included Nike’s attorney’s fees (ranging from $250 to $450 per hour) and all the travel expenses incurred by the two Nike attorneys who attended the hearing on the motion to compel. 

The court agreed with Nike, granting it both discovery and its fees. Legends challenged the order, arguing that a small company should not have to pay for Nike’s high-priced attorneys. 

Questions:

1. What is a reasonable penalty for unacceptable behavior during discovery?

2. What are three factors a court considers when establishing a reasonable hourly rate for attorney’s fees?

3. Why is the amount awarded to Nike, $12,332.82, less than the amount it asked for, $25,186.91?

4. What did the Court say about the argument that Legends will be economically disadvantaged by the award?