Judge: David B. Gelfound, Case: 23CHCV01389, Date: 2025-05-22 Tentative Ruling
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Case Number: 23CHCV01389 Hearing Date: May 22, 2025 Dept: F49
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Dept.
F49 |
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Date:
5/22/25 |
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Case
Name: Timothy Jones and Katherine Svoboda v. Ford Motor Company, Sunrise
Ford, and Does 1 through 50 |
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Case No.
23CHCV01389 |
LOS ANGELES SUPERIOR COURT
NORTH VALLEY DISTRICT
DEPARTMENT F49
MAY 22, 2025
MOTION FOR ATTORNEY FEES
Los Angeles Superior
Court Case No. 23CHCV01389
Motion
filed: 9/11/24
(duplicate motion refiled on 1/31/25)
MOVING PARTY: Plaintiffs Timothy Jones and Katherine
Svoboda
RESPONDING PARTY: Defendant Ford Motor Company
NOTICE: OK.
RELIEF
REQUESTED: An
order awarding attorney fees and costs in the total amount of $43,975.08,
consisting of (1) $38,842.00 in attorney fees, and (2) $5,132.58 in costs.
TENTATIVE
RULING: The
motion is GRANTED IN PART.
BACKGROUND
Plaintiffs Timothy Jones and Katherine Svoboda (“Plaintiffs”)
filed this Song-Beverly Consumer Warranty Act lawsuit over alleged defects in their
2019 Ford Mustang GT, VIN: 1FA6P8CF7K5202429 (the “Subject Vehicle”), which was
manufactured by Defendant Ford Motor Company (“FMC”). Plaintiffs purchased the
Subject Vehicle on January 14, 2020, entering into an express written warranty
contract with Ford. (Compl. ¶¶ 5, 10.)
On May 10, 2023, Plaintiffs filed a Complaint against Ford, Sunrise Ford (“Sunrise”) and Does 1 through 50, alleging
the following five causes of action: (1) violation of Song-Beverly Act – breach
of express warranty; (2) violation of Song-Beverly Act – breach of implied
warranty; (3) violation of the Song-Beverly Act section 1793.2(b); (4) violation
of Song-Beverly Act section 1796.5; and (5) negligent repair. Subsequently, on August
10, 2023, FMC filed its Answer to the Complaint, erroneously styled as a joint
Answer on behalf of both FMC and Sunrise. This error was corrected by a
November 8, 2023, stipulation striking references to Defendant Sunrise from the
Answer.
On April 30, 2024, Plaintiffs filed a Notice of Settlement.
On September 11, 2024, Plaintiffs filed the instant Motion
for Attorney Fees (the “Motion”). On January 17, 2025, FMC filed an Opposition,
and on January 24, Plaintiffs filed a Reply. Subsequently, on January 31, 2025,
Plaintiffs refiled the identical Motion.
ANALYSIS
Attorney fees are allowed as costs when authorized by
contract, statute, or law. (Code Civ. Proc., § 1033.5, subd. (a)(10)(B).)¿ In a
lemon law action, costs and expenses, including attorney’s fees, may be
recovered by a prevailing buyer under the Song-Beverly Act. (See Civ. Code, §
1794, subd. (d).)¿
“If the buyer prevails in an action under this section, the
buyer shall be allowed by the court to recover as part of the judgment a sum
equal to the aggregate amount of costs and expenses, including attorney’s fees
based on actual time expended, determined by the court to have been reasonably
incurred by the buyer in connection with the commencement and prosecution of
such action.” (Civ. Code, § 1794, subd. (d).)¿
Thus, the statute includes a “reasonable attorney’s fees”
standard.¿ The attorney bears the burden of proof as to the “reasonableness” of
any fee claim. (Code Civ. Proc., § 1033.5, subd. (c)(5).) This burden requires
competent evidence as to the nature and value of the services rendered. (Martino
v. Denevi (1986) 182 Cal.App.3d 553, 559.) “Testimony of an attorney as to
the number of hours worked on a particular case is sufficient evidence to
support an award of attorney fees, even in the absence of detailed time
records.” (Ibid.)¿
A plaintiff’s verified billing invoices are prima facie
evidence that the costs, expenses, and services listed were necessarily
incurred. (See Hadley v. Krepel (1985) 167 Cal.App.3d 677, 682.) “In
challenging attorney fees as excessive because too many hours of work are
claimed, it is the burden of the challenging party to point to the specific
items challenged, with a sufficient argument and citations to the evidence.
General arguments that fees claimed are excessive, duplicative, or unrelated do
not suffice.” (Lunada Biomedical v. Nunez (2014) 230 Cal.App.4th 459,
488, quoting Premier Med. Mgmt. Sys., Inc. v. California Ins. Guarantee Assn.
(2008) 163 Cal.App.4th 550, 564.) The Court has discretion to reduce fees that
result from inefficient or duplicative use of time. (Horsford v. Bd. of
Trustees of California State Univ. (2005) 132 Cal. App. 4th 359, 395.)¿
In determining reasonable attorney fees, the trial court
begins with the lodestar, i.e., the number of hours reasonably expended
multiplied by the reasonable hourly rate. (Warren v. Kia Motors America, Inc.
(2018) 30 Cal.App.5th 24, 36.) The lodestar may then be adjusted based on
factors specific to the case in order to fix the fee at the fair market value
of the legal services provided. (Ibid.) These factors include (1) the
novelty and difficulty of the questions involved, (2) the skill displayed in
presenting them, (3) the extent to which the nature of the litigation precluded
other employment by the attorneys, (4) the contingent nature of the fee award.
(Ibid.)¿
A.
Motion for
Attorney Fees
(1)
Procedural
Effect of Continuance and Refiling of the Motion
The hearing for the Motion was originally set for January
31, 2025. Defendant FMC timely filed its Opposition on January 17, 2025, and Plaintiffs
filed a timely Reply on January 24, 2025. Plaintiffs’ subsequent refiling of
the identical Motion on January 31, 2025, does not reset the motion schedule.
As such, the continuance does not invalidate these filings.
The Motion, filed on September 11, 2024, remains the operative filing, and the
Opposition and Reply are directly applicable.
Accordingly, the Court will consider the arguments raised in
the Opposition and Reply.
(2)
Prevailing
Party
Plaintiffs seek an award of attorney fees pursuant to the settlement
agreement reached by the parties. (Saeedian Decl. ¶¶ 25-26.) It is undisputed
that Plaintiffs are the prevailing party in this action and are entitled to a
reasonable amount in attorney fees.
(3)
Reasonableness
of Hourly Rates
“The reasonable
hourly rate is that prevailing in the community for similar work.” (PLCM
Group v. Drexler (2000) 22 Cal.4th 1084, 1095.) “The experienced trial
judge is the best judge of the value of professional services rendered in [their]
court.” (Ibid.)
Plaintiffs seek
to recover attorney fees for work performed by five attorneys: (1) Michael
Saeedian at $695 per hour; (2) Adina Ostoia at $695 per hour; (3) Christopher
Urner at $525 per hour; (4) Jorge L. Acosta at $350 per hour; and (5) Sergo
Aivazov at $300 per hour. Additionally, Plaintiffs request fees for paralegal services
at a rate of $250 per hour. (Saeedian Decl. ¶¶ 16, 28.)
In Opposition, Defendant FMC contends that the requested
rates are excessive for what it characterizes as a straightforward case. FMC cites
the Real Rate Report’s First Quartile rates – $252/hr. for partners, $231/hr.
for associates, and $130/hr. for paralegals – as a more appropriate benchmark.
(Opp’n. at pp. 16-17.)
The Court finds the
Real Rate Report of limited persuasive value in this context. The report reflects
average billing rates for non-contingent, general liability work and does not
account for the enhanced risk borne by counsel in Song-Beverly Act cases
prosecuted on a contingency basis. Here, Plaintiffs’ counsel undertook representation on a full
contingency basis, advancing all costs. (Saeedian Decl. ¶ 6.)
Plaintiffs provide supporting evidence of prevailing rates in
similar consumer protection cases, including reference to the Laffey Matrix for
lodestar comparability and case law approving comparable rates. (Id. ¶ 12.) They also demonstrate the qualifications
and lemon law litigation experience of each attorney. (Saeedian Decl. ¶¶ 1-5.)
The Court evaluates
the reasonableness of the requested rates by considering the case’s procedural
posture and complexity. This matter resolved prior to trial, following
discovery and motion practice, including disputes involving multiple defendants
and discovery. (See Urner Decl. Ex. “A” [showing discovery disputes].) While
the case presented moderate complexity, it did not involve novel legal issues
or extensive litigation sufficient to justify the upper end of the hourly rates
spectrum.
Based on the
specific facts of this case, the Court exercises its discretion to adjust the
requested hourly rates to more accurately reflect the prevailing rates in the
community for similar work:
Michael Saeedian
and Adina Ostoia: $520 per hour;
Christopher Urner:
$400 per hour;
Jorge Acosta and
Sergo Aivazov: $300 per hour;
Paralegal: $200
per hour.
These adjusted
rates balance the skill and experience of counsel with the nature and
complexity of the case, consistent with PLCM Group and other applicable
authorities.
(4)
Reasonableness of
Hours Incurred
“A trial court
assessing attorney fees begins with a touchstone or lodestar figure, based on
the ‘careful compilation of the time spent and reasonable hourly compensation
of each attorney ... involved in the presentation of the case.” (Christian
Research Institute v. Alnor (2008) 165 Cal.App.4th 1315, 1321.) “The
reasonableness of attorney fees is within the discretion of the trial court, to
be determined from a consideration of such factors as the nature of the
litigation, the complexity of the issues, the experience and expertise of
counsel and the amount of time involved. The court may also consider whether
the amount requested is based upon unnecessary or duplicative work.” (Wilkerson
v. Sullivan (2002) 99 Cal.App.4th 443, 448.)
Here, Plaintiffs’
lodestar is supported by a detailed contemporaneous billing statement (Saeedian
Decl. Ex. “A.”) reflecting 92.5 hours of legal work performed across multiple
stages of litigation, including: pleading, discovery, and motion practice; meet
and confer efforts; settlement negotiation and documentation; and preparation
and filing of the Motion. (Ibid.)
Defendant FMC
disputes the reasonableness of certain work, arguing: (1) Plaintiffs’
opposition to the stipulated ex parte application to strike Sunrise’s Answer was
unnecessary; (2) several withdrawn or vacated discovery motions were
unnecessary; (3) fees for client intake and Complaint drafting are excessive;
(4) fees for research and document summarization are excessive; and (5) tasks such
as receiving proofs of service and scheduling appearances are non-legal and
should be stricken. (Opp’n. at pp. 1-9, 11-12.) Furthermore, FMC argues that a
20% negative multiplier is warranted. (Id. at p. 18.)
The Court first rejects
FMC’s argument for a negative multiplier. Here, FMC provides no
evidence of unreasonable conduct, inefficiency, or disproportionate effort by
Plaintiffs’ counsel. The Court’s adjustment of the hourly rates already
accounts for the case’s moderate complexity and procedural posture, rendering a
negative multiplier unnecessary.
Next, the Court notes
that Plaintiffs’ counsel declares under oath that the billing entries were
created contemporaneously or in accordance with the firm policy (Saeedian Decl.
¶ 9); that time
entries were reviewed for clerical, or non-essential tasks and adjusted
accordingly (id. ¶ 10).
The Court finds the billing records credible and the hours expended to be
largely reasonable.
The Court further
finds that the requested fees related to the October 6, 2023, ex parte
application and withdrawn/vacated discovery motions are recoverable, as they responded
to opposing counsel’s tactics. (Serrano v. Priest (1977) 20 Cal.3d 25,
47.) FMC’s claim that a stipulation negates fees lacks legal support and
evidence of bad faith. (Premier Medical Management Systems, Inc. v.
California Ins. Guarantee Assn. (2008) 163 Cal.App.4th 550, 564.)
Additionally, fees for tasks like receiving and updating files are billable as
legal work integral to case management. (Guinn v. Dotson (1994) 23
Cal.App.4th 262, 269; Salton Bay Marina, Inc. v. Imperial Irrigation Dist.
(1985) 172 Cal.App.3d 914, 951.) FMC’s examples are minimal and do not prove
purely clerical work.
As to drafting
the Complaint and conducting research, the Court acknowledges that they are
critical, given the case’s multiple defendants and discovery disputes. However,
because the Complaint resembles a standard lemon law template, a modest reduction
of 1.5 hours (from 9 to 7.5 hours, aggregated from December 9, 2022, to May 11,
2023), at the paralegal rate of $200/hr. is warranted.
Accordingly, the
Court GRANTS IN PART the Motion as to attorney fees and finds the reasonable
lodestar total to be $29,800.00, calculated as follows:
Michael Saeedian:
$520/hr. x 21.9 hr. = $11,388.00
Adina Ostoia: $520/hr.
x 0.1 hr. = $52.00
Christopher
Urner: $400/hr. x 18.3 hr.= $7,320.00
Jorge L. Acosta: $300/hr.
x 8.9 hr.= $2,670.00
Sergo Aivazov:
$300/hr. x 0.1 hr. = $30.00
Paralegal: $200/hr.
x (43.2 -1.5) hr. = $8,340.00
Total: $29,800.00
(5)
Reasonable Costs
and Expenses
Under the Song-Beverly Act, a
prevailing buyer shall be allowed to recover as part of the
judgment a sum equal to the aggregate amount of costs and
expenses. (See Civ. Code § 1794, subd. (d).) The California Legislature
intended the word “expenses” to cover outlays not included in the detailed
statutory definition of “costs,” and the Song-Beverly Act’s legislative history
demonstrates the Legislature exercised its power to permit recovery of a host
of litigation
expenditures beyond those permitted by Code of Civil
Procedure § 1033.5. (See Jensen v. BMW of North America, Inc. (1995) 35
Cal.App.4th 112, 137-138.)
A properly verified memorandum of
costs generally satisfies the prevailing party’s initial burden of establishing
that the claimed costs were necessarily incurred. (Hadley v. Krepel (1985)
167 Cal.App.3d 677, 682.)
Here, Plaintiffs submitted a
verified memorandum of costs totaling $5,132.58. (Saeedian Decl. Ex. “B.”) Plaintiffs provide
detailed worksheets for items allowable as costs under Code of Civil Procedure
section 1033.5, subdivision (a): filing, motion, and jury fees, deposition
costs, and service of process expenses. (Id. at pp. 3-4.)
Additionally, Plaintiffs indicate that the vast majority of
the “other” costs are attributable to the vehicle inspection fee in the amount
of $2,097.39. (Id. at p. 6.) Although the “other” category includes
costs not expressly enumerated in Code of Civil Procedure section 1033.5,
subdivision (a), these costs are recoverable under subdivision (c) as they were
reasonably necessary to the conduct of litigation. (Code Civ. Proc., § 1033.5,
subd. (c)(2).)
Here, the vehicle inspection fee of
$2,097.39, in particular, was reasonably necessary for Plaintiffs’ evaluation
of the vehicle’s nonconformities under Civil Code section 1793.2, subdivision
(d), and contributed directly to the resolution of the case. FMC does not
contest the $5,132.58 in costs, and the Court finds them reasonably incurred
based on Plaintiffs’ verified memorandum and supporting worksheets, awarding
them in full.
Accordingly, the Court GRANTS the
Motion as to reasonable costs and expenses.
Based
on the foregoing, the Court GRANTS IN PART the Motion, awarding Plaintiffs $34,932.58,
comprising $29,800.00 in attorney fees and $5,132.58 in reasonable costs.
CONCLUSION
The
Motion for Attorney Fees is GRANTED IN PART. The Court awards $34,932.58 in reasonable
attorney fees and costs against Defendant Ford Motor Company, and in favor of
Plaintiffs Timothy Jones and Katherine Svoboda.
Moving
party to give notice.