Judge: Daniel S. Murphy, Case: 19STCV01929, Date: 2025-03-07 Tentative Ruling

Case Number: 19STCV01929    Hearing Date: March 7, 2025    Dept: 32

BACKGROUND

            On January 18, 2019, Plaintiff CJ Freshway Corporation filed this action against Defendants The N9 Int’l Trading, Inc. and Kaldea, Inc., alleging causes of action stemming from Defendants’ receipt of kickbacks from Plaintiff’s suppliers and customers.      Plaintiff filed the operative Second Amended Complaint on December 9, 2020, naming additional defendants Minho Lim and Ki Soon Seo.         

            After a jury trial, the jury found Defendants liable for, inter alia, violation of Penal Code section 496—receiving stolen property. Judgment was entered in favor of Plaintiff against Defendants on March 30, 2022. On June 22, 2022, the Court awarded attorney’s fees to Plaintiff. Defendants appealed the portion of the judgment pertaining to Penal Code section 496 and the award of attorney’s fees. Both were affirmed on appeal.  

            On February 7, 2025, Plaintiff filed the instant motion to recover attorney’s fees on appeal. Defendants filed their opposition on February 24, 2025. Plaintiff filed its reply on February 28, 2025.       

LEGAL STANDARD

“Except as otherwise expressly provided by statute, a prevailing party is entitled as a matter of right to recover costs in any action or proceeding.” (Code Civ. Proc., § 1032(b).) Attorney’s fees are recoverable as costs under section 1032 when authorized by contract, statute, or law. (Id., § 1033.5(a)(10).) “Thus, recoverable litigation costs do include attorney fees, but only when the party entitled to costs has a legal basis, independent of the cost statutes and grounded in an agreement, statute, or other law, upon which to claim recovery of attorney fees.” (Santisas v. Goodin (1998) 17 Cal.4th 599, 606.) “If a contractual attorney fee provision is phrased broadly enough, . . . it may support an award of attorney fees to the prevailing party in an action alleging both contract and tort claims.” (Id. at p. 608.)

DISCUSSION

I. Entitlement to Fees

“Any person who has been injured by a violation of subdivision (a) or (b) may bring an action for three times the amount of actual damages, if any, sustained by the plaintiff, costs of suit, and reasonable attorney’s fees.” (Pen. Code, § 496(c).) “When a contract or a statute authorizes the prevailing party to recover attorney fees, that party is entitled to attorney fees incurred at trial and on appeal.” (Douglas E. Barnhart, Inc. v. CMC Fabricators, Inc. (2012) 211 Cal.App.4th 230, 250.)

Here, the jury found Defendants liable under Penal Code section 496. Thus, Plaintiff is entitled to attorney’s fees under that statute. This extends to attorney’s fees on appeal. Accordingly, Plaintiff is entitled to recover the attorney’s fees incurred in the appeal. 

II. Reasonable Amount

            Plaintiff requests attorney fees in the amount of $163,320.00.

1. Reasonable Hourly Rates

The hourly rates normally charged by Plaintiff’s attorney’s range between $730.00 and $1,440.00 per hour.  Plaintiff’s attorney request $600.00 per hour on this litigation.

“In determining hourly rates, the court must look to the ‘prevailing market rates in the relevant community.’”  (Heritage Pacific Financial, LLC v. Monroy (2013) 215 Cal.App.4th 972, 100.)  In making this determination, “[t]he court may rely on its own knowledge and familiarity with the legal market.”  (Ibid.) 

The Court finds that $600.0 per hour is the reasonable hourly rate in this case. 

2. Hours Reasonably Expended

The total number of billable hours claimed by Plaintiff’s attorneys are 272.2 hours.

Defendant claims that the number of hours billed is unreasonable. 

The Court finds that the reasonable hours spent by Plaintiff’s attorneys in in this matter are 272.2 hours.

D. Entitlement and Reasonableness of Costs

Plaintiff has withdrawn its request for costs and expenses. 

D. Conclusion

Based on the foregoing reasons, Plaintiff’s motion for attorney fees is GRANTED.  The Court awards $163,320.00.