Nelly is demanding that a lawyer for one of his former St. Lunatics bandmates repay more than $78,000 he spent in legal bills to defeat her “frivolous” lawsuit over the rights to his debut album Country Grammar.
The case, filed by ex-bandmate Ali, was dropped in April after Nelly argued it was obviously filed years after the statute of limitations had expired. Last month, a federal judge ruled that the case was so bad that Ali’s lawyer must repay his legal bills as punishment for pursuing it too far.
In a court filing on Wednesday, Nelly’s attorneys handed Ali’s lawyer the tab: $78,007 in legal fees for three copyright litigators, covering 142 hours they say they spent working on the case after it was clear it should have been dropped.
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“These rates are reasonable because they reflect the market rate for similar services to our quality of work in the New York City area,” Nelly’s attorney Kenneth Freundlich writes in the filing.
Ali’s attorney, Precious Felder Gates, will have a chance to argue for a lower fine before the judge settles on a final number. In a statement to Billboard on Thursday, she said she still believes the sanction itself was “unwarranted,” saying she’d “acted with the honest conviction that our client’s claims merited judicial consideration.”
Wednesday’s filing highlights the risk of filing questionable lawsuits against well-heeled defendants – and a potential weapon for top musicians who have complained about a rise in such cases. Ed Sheeran, Cardi B, Jay-Z and many other stars have warned that such lawsuits are often aimed at extracting quick settlements by exploiting the hassle and expense of litigation.
The case against Nelly was filed last year by members of St. Lunatics, a hip-hop group also composed of St. Louis high school friends Nelly, Ali (Ali Jones), Murphy Lee (Tohri Harper), Kyjuan (Robert Kyjuan) and City Spud (Lavell Webb). It centered on Country Grammar, the star’s debut solo album that spent five weeks atop the Billboard 200 and helped launch a career that reached superstar heights with his 2002 chart-topping singles “Hot in Herre” and “Dilemma.”
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The lawsuit alleged that Nelly had cut his former crew members out of the credits and royalty payments for the hit album. It claimed the star had repeatedly “manipulated” them into falsely thinking they’d be paid for their work.
But three of the St. Lunatics quickly dropped out, saying they had never actually wanted to sue Nelly and hadn’t given authorization to the lawyers who filed the case. Though Ali initially moved ahead alone, he dropped the case entirely in April. That move came as Nelly’s lawyers were seeking to dismiss the decades-delayed case under the Copyright Act’s three-year statute of limitations.
Though the case was over, Nelly’s attorneys refused to let Ali and his lawyers walk away. They asked for sanctions — meaning legal penalties — over a “vexatious” lawsuit that “should never have been brought.”
In the American legal system, each side usually pays its own legal bills, even including defendants who win a lawsuit that they feel they shouldn’t have faced. Only in rare cases, including as punishment for misconduct, do judges order the loser to repay the winner’s fees.
Last month, U.S. Magistrate Judge Robert W. Lehrburger said the case against Nelly was that kind of rare situation. He said it should have been “patently obvious” to Felder Gates that the case was doomed by last November, but that she had instead “doubled down.”
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Felder, the judge said, should face punishment for “vexatiously protracting the proceedings in bad faith by her attempt to obfuscate the facts she knew barred Jones’s claims and her subsequent refusal to withdraw the amended complaint in the face of overwhelming arguments that the claims could not possibly succeed.”
At the time, Freundlich said he hoped the ruling “sends a message to lawyers that there will be consequences for dragging a defendant into an action that is frivolous on its face.”
Wednesday’s filing explained the amount that Nelly’s lawyers say Felder Gates should pay under that order. Freundlich, a veteran music industry litigator, says he spent 19 hours at his rate of $725 per hour; a senior counsel at his firm, Jonah A. Grossbardt put in 88 hours at $575 per hour; and an associate, Hugh H. Rosenberg, worked 35 hours at $375 per hour.
Such rates are typical for attorneys at those levels in major law firms in New York and Los Angeles. Many lawyers at bigger firms charge even more, and complicated cases can cost millions to litigate. But the judge is not required to grant the entire request and could very well settle on a lower number.
Felder Gates will have a chance to file a motion next week seeking a lower fine, but the judge’s order means that she will eventually have to pay Nelly some amount of fees. In her statement to Billboard, she continued to defend her firm’s conduct in the case.
“Our firm pursued a legitimate claim in good faith to protect rights expressly afforded to our client,” she said. “Based on the information available and the applicable law, we held a reasonable and well-supported belief that viable arguments existed to [extend] the statute of limitations, and we accordingly advanced those defenses.”
