United States District Court, E.D. Pennsylvania
ALLA PASTERNACK, Executrix of the Estate of Leon Frenkel, Plaintiff,
BRUCE K. KLEIN, et al., Defendants.
Alla Pasternack, Executrix of the Estate of Leon Frenkel,
seeks an award of attorneys' fees and costs in the amount
of $197, 170.53 following the entry of a judgment in
Plaintiff's favor on July 24, 2017. For the following
reasons, the Court will award counsel $135, 528.68.
April 18, 2014, Leon Frenkel sued Bruce Klein and Victory
Partners LLC (“Defendants”) for breach of
contract related to two promissory notes. On August 11,
2014, after Defendants failed to appear, the Court entered a
default judgment in favor of Plaintiff. On October 30, 2015,
Defendants challenged the sufficiency of Plaintiff's
service of the Complaint and moved to set aside the default
judgment. After a period of discovery on the issue of
service, the Court set aside the default judgment on March
21, 2016, and denied Plaintiff's motion for
reconsideration the following month.
December 2016, the Court granted partial summary judgment to
Plaintiff, finding that Victory Partners LLC breached the
Note. On July 24, 2017, following a bench trial conducted on
January 9, 2017, this Court found that Defendants breached
the Pledge Agreement and pierced the corporate veil of
Victory Partners LLC. The Court awarded Frenkel's estate
$318, 744.01. Defendants appealed. Pursuant to the
Court's Order, the issue of attorneys' fees remains.
the Victory Partners LLC Note and Pledge Agreement contain
attorneys' fee clauses. The Note states:
Borrower shall pay all costs of collection incurred by
Lender, including without limitation, the reasonable
attorney's fees and disbursements of Lender's legal
representative, which costs may be added to the indebtedness
and shall be paid promptly on demand, together with all
outstanding amounts due to Lender with interest thereon at
the Default rate.
Ex. A ¶ 7, ECF. No. 103.) The Pledge Agreement states:
The parties hereto agree that Pledgor will upon demand pay to
Holder the amount of any and all reasonable expenses,
including the reasonable fees and expenses of counsel which
Holder may incur in connection with (i) the sale of, or
realization upon, any of the Collateral, or (ii) the exercise
or enforcement of any of the rights of Holder hereunder.
(Id., Ex. B. ¶ 5.)
Note is governed by Pennsylvania law and the Pledge Agreement
is governed by New York law. (Id., Ex. A ¶ 4;
id., Ex. B ¶ 11.)
Choice of Law
Plaintiff sued to enforce his rights under both the Note and
Pledge Agreement, which call for the application of
Pennsylvania and New York law, respectively, this Court ...