Judge: Holly J. Fujie, Case: 21STCV00971, Date: 2025-01-10 Tentative Ruling
DEPARTMENT 56 JUDGE HOLLY J. FUJIE, LAW AND MOTION RULINGS. The court makes every effort to post tentative rulings by 5.00 pm of the court day before the hearing. The tentative ruling will not become the final ruling until the hearing [see CRC 3.1308(a)(2)], and are also available in the courtroom on the day of the hearing [see CRC 3.1308(b)]. If the parties wish to submit on the tentative ruling and avoid a court appearance, all counsel must agree and choose which counsel will give notice. That counsel must 1) call Dept 56 by 8:30 a.m. on the day of the hearing (213/633-0656) and state that all parties will submit on the tentative ruling, and 2) serve notice of the ruling on all parties. If any party declines to submit on the tentative ruling, then no telephone call is necessary and all parties should appear at the hearing in person or by Court Call. Court reporters are not provided, and parties who want a record of motions and other proceedings must hire a privately retained certified court reporter.
Case Number: 21STCV00971 Hearing Date: January 10, 2025 Dept: 56
SUPERIOR
COURT OF THE STATE OF CALIFORNIA
FOR
THE COUNTY OF LOS ANGELES - CENTRAL DISTRICT
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Plaintiff, vs. FORD
MOTOR COMPANY, MCCOY and MILLS FORD; and DOES 1 through 10, inclusive,
Defendants. |
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[TENTATIVE] ORDER RE: MOTION FOR ATTORNEYS’ FEES Date: January 10, 2025 Time: 8:30 a.m. Dept. 56 |
MOVING
PARTY: Plaintiff Jason Delgado
(“Plaintiff’)
RESPONDING
PARTY: Defendant Ford Motor Company and McCoy and Mills Ford (“Defendants”)
The Court has considered the moving
and opposition papers. No reply has been filed.
BACKGROUND
Plaintiff filed the instant lemon-law action against
Defendants on January 11, 2021. The first amended complaint (“FAC”) alleges causes
of action for: (1) violation of Subdivision (d) of Civil Code Section 1793.2;
(2) violation of Subdivision (b) of Civil Code Section 1793.2; (3) violation of
Subdivision (a)(3) of Civil Code Section 1793.2; (4) breach of express
warranty; and (5) breach of implied warranty of merchantability; (6) fraud by
omission; and (7) negligent repair.
JUDICIAL NOTICE
Plaintiff
requests judicial notice of 22 orders approving awards of attorneys’ fees in
other,
unrelated lemon law cases in both California and
federal court. These orders are not relevant to
this Court’s determination of whether the award of
fees and costs sought in this case is proper. Accordingly, the requests for
judicial notice are DENIED. (Gbur v. Cohen (1979) 93 Cal.App.3d 296, 301
[[J]udicial notice … is always confined to those matters which are relevant to
the issue at hand.”].)
DISCUSSION
Attorneys’ fees are allowed as costs when
authorized by contract, statute or law. (Code Civil Procedure (“CCP”), §
1033.5, subd. (a)(10)(B).)
In a lemon law action, costs and expenses,
including attorneys’ fees, may be recovered by a prevailing buyer under the
Song-Beverly Act. Civil Code section 1794 states: 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).)
The attorney claiming fees bears the
burden of proof as to “reasonableness” of any fee claim. (CCP, § 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.” (Id.)
In determining a reasonable attorneys’
fee, 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. (Id.) These
facts 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. (Id.)
Plaintiff moves for an award of
attorneys’ fees in the amount of $181,564.81, consisting of: (1) $111,611.50 in
attorney fees for Strategic Legal Practices, APC (“SLP”); (2) $7,564.00 in
attorney
fees for Ecotech Law Group (ELG); (3) a 1.35 multiplier enhancement on the
attorney
fees
(or $41,711.43); (4) $15,677.88 in costs and expenses for SLP; and (5) $5,000.00
to review the opposition, draft a reply, and attend the hearing on this Motion.
Entitlement
to Attorneys’ Fees
Plaintiff contends that he is the
prevailing party in this action because of a signed 998 offer in which
Defendants ultimately agreed to settle this case. The Court agrees and
Defendants do not dispute this. Plaintiff is the prevailing party in this
action entitled to a reasonable amount of attorneys’ fees.
Reasonableness
of Fees
Reasonable Hourly Rate
“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 [her] court.”].)
Plaintiff seeks to recover attorneys’ fees
for 25 different attorneys and 2 law clerks from SLP and 1 attorney from ELG who
worked on the case. Their hourly rates are as follows: (1) Tina Abdolhosseini:
2021 rate of $415/hr; (2) Mani Arabi: 2022 rate of $ 450/hr and 2023 rate of
$495/hr; (3) Nadine Aslaadi: 2021 rate of $350/hr and 2022 rate of $375/hr; (4)
Neal Butala: 2021 rate of $460/hr; (5) Tionna Carvalho: 2021 rate of $450/hr,
2022 rate of $550/hr, 2023 rate of $570/hr and 2024 rate of $595/hr; (6) Joy de
Leon: 2023 rate of $575/hr; (7) Mark Gibson: 2021 rate of $475/hr and 2022 rate
of $485/hr; (8) Ariel Harman-Holmes: 2022 rate of $400/hr; (9) Susanna Joseph:
2022 rate of $465/hr; (10) Jared Kaye: 2023 rate of $395/hr; (11) Timothy
Kenney: 2023 rate of $410/hr; (12) Karin Kuemerle: 2022 rate of $595/hr; (13)
Daniel Law: 2021 rate of $425/hr and 2022 rate of $440/hr; (14) Jami Littles:
2023 rate of $595/hr; (15) Regina Lotardo: 2021 rate of $435/hr; (16) Rebecca
Neubauer: 2023 rate of $495/hr: (17) Matthew Pardo: 2022 rate of $410/hr; (18)
Ezra Ryu: 2021 rate of $385/hr; (19) Nino Sanaia: 2021 rate of $385/hr, 2022
rate of $385/hr and 2023 rate of $425/hr; (20) Harjap Singh Malik: 2021 rate of
$350/hr; (21) Udayan Singia: 2021 rate of $325/hr; (22) Tyson Smith: 2023 rate
of $475/hr; (23) Yenok Tantanyan: 2024 rate of $325/hr; (24) Michael Tracy:
2023 rate of $475/hr; (25) Steven Whang: 2022 rate of $475/hr; (26) Greg Yu:
2022 rate of $595/hr; (27) Alexandra Zindel: 2022 rate of $400/hr; and (28)
Dara Tabesh: $610/hr.
For each of the SLP attorneys and clerks,
attorney Payam Shahian attests to their legal experience and the reasonableness
of their rates. (Shahian Decl. ¶¶ 9a-aa.) Dara Tabesh of ELG attests to his
legal experience and reasonableness of his rates as well. (Tabesh Decl. ¶¶ 3-8.)
The Court finds, based on the submitted evidence in the Shahian and Tabesh
declarations and the Court’s own experience, that Plaintiff’s attorneys’
requested hourly rates are reasonable for attorneys with their experience and
in this area of the law. The range of rates charged in this matter by SLP is
reasonable for attorneys of similar experience, in the same area, dealing with
the same subject matter. (See Goglin v BMW of North America (2016) LLC 4
Cal.App.5th 462, 473-74 [approving $575 per hour fee on lemon law action for
attorneys in Los Angeles].)
Defendant argues that the use of 28
different timekeepers for a routine lemon law action is unreasonable and
excessive. This Court agrees from its own experience in practice that 26
attorneys working on a case will necessarily result in unnecessary duplication
in work, and that even the seven attorneys and one law clerk which Plaintiff
states accounted for vast majority of the work appears to this Court to be
excessive for this type of case. The Court has discretion to reduce fees that
result from inefficient or duplicative use of time. (Horsford v. Board of
Trustees of California State University (2005) 132 Cal.App.4th 359, 395.)
The Court will consider this issue in determining whether the total number of
hours was reasonable.
Reasonable 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.)
Plaintiff’s fee recovery is based
on 250.20 hours spent by attorneys at SLP and 12.4 hours spent by ELG
litigating this case through this motion for which Plaintiff has submitted
billing records. (Shahian Decl., ¶ 19; Ex. 23; Tabesh Decl, Ex. 1.) At the
rates identified above, Plaintiffs represent that they are seeking a lodestar
of $119,175.00.
Defendants object to several of
Plaintiff’s requested hours on the grounds that Plaintiff’s counsel billed time
that was unreasonable and unnecessary.
First, Defendants object to fees incurred
that relate to the causes of action not under the Song-Beverly Act. (Opp. pp.
12:14-13:14) Specifically, Defendants object to 27.6 hours ($10,751.50) billed
on January 19 and 20, February 3 and 23, March 25, April 13 and 26, and May 2,
2022, on the ground that these tasks relate to the fraud cause of action only
and thus Plaintiff is not entitled to recover fees for these tasks under the
Song-Beverly Act. (Ford Decl., Ex. E)
Second, Defendants object to various tasks
as billed at excessive amounts of time. (Opp. pp. 13:15-15:13) Specifically,
Defendants object to the following:
· 2.4 hours ($1,140.00)
for drafting the complaint
· 8.5 hours ($2,763.50)
for drafting the initial discovery requests
· 6.0 hours ($2,550.00)
for drafting and finalizing the opposition to the motion to compel
· 6.5 hours ($2,990.00)
for reviewing the demurrer and drafting an opposition
· 4.5 hours ($1,575.00)
for drafting a meet and confer letter and scheduling an IDC
· 13.3 hours ($4,655.00)
for drafting and finalizing the motion to compel further requests for
production
· 27.9 hours
($14,770.00) for drafting and revising the reply to the motion to compel
further requests for production
· 2.2 hours
($847.00) for drafting and finalizing the FAC
· 13.3 hours ($7,437.00)
for work by both SLP and ELG on preparing the ex parte application
· 14.2 hours ($5,650.00)
for work on drafting and finalizing amended discovery responses
· 2.5 hours
($987.00) for preparing for and attending the deposition preparation meeting
· 18.3 hours ($10,434.00)
for work by both SLP and ELG on motions to compel further discovery responses
· 0.9 hours ($523.00)
to review and finalize the settlement after the date on which Plaintiff accepted
the settlement offer
· 12.4 hours
($4,030.00) to draft the instant Motion for attorney’s fees
Third, Defendants object to certain
time-entries as block-billed or clerical in nature. (Opp. pp. 15:14-17:2)
Specifically, Defendants object to 10.6 hours ($4,422.50) billed on April 2 and
May 2, 2021, October 6, 14, 28 and December 6, 2022, January 17, March 1, 17
and 27, April 23 and 24, 2023 as clerical in nature and 4.1 hours ($2,330.00)
billed on December 29, 2022, January 19, September 5 and 28, 2023 as block-billed.
The Court agrees in part. The Court agrees
that under Civil Code section 1794 Plaintiff is only entitled to recover fees from
causes of action brought pursuant to the Song-Beverly Act. The Court therefore
reduces the fee by $10,751.50.
Next, the Court agrees that the 13.3 hours
drafting the motion to compel further and 27.9 hours to draft the subsequent
reply is excessive and not reasonable. The
Court finds that 10 hours is a reasonable amount of time to spend drafting and
revising the motion and 6 hours is a reasonable amount of time to spend on the
reply. The Court therefore reduces the time spent to draft the motion by 3.3
hours or $1,155.00 and reduces the time spent on the reply by 21.9 hours or $11,860.00
Moreover, the Court finds that 13.3 hours
for work on the ex parte application is not reasonable as the application was
only 4 pages long. The Court will thus reduce this item by 7 hours or $3,594.00.
Further, the 2.3 hours billed to email
opposing counsel regarding the discovery responses and schedule an IDC with the
Court is excessive. A reasonable amount of time for this task would be 1.0
hours, thus the Court will reduce this item by 1.3 hours or $455.00.
Next, the Court agrees that it should not
have taken 12.4 hours to draft this fee motion as this appears to be
substantially a template motion regularly used by plaintiffs. While the billing
and supporting evidence may have taken some time to gather, the Court finds
that the reasonable amount of time would be 5 hours for a reduction of $2,405.00
Lastly, as no reply to the Opposition was
filed and the hearing on this matter will not take more than 1 hour, the Court
will reduce the $5,000 for anticipated time to review the opposition, draft a
reply and attend the hearing on this Motion by $4,500.00.
Having analyzed the motions and pleadings
filed, and having reviewed the billing statements provided, the Court
determines that a reasonable lodestar in this case, to limit any duplicative and
excessive fees, is $89,815.00
Multiplier
While the lodestar reflects the basic fee
for comparable legal services in the community, it may be adjusted based on
various factors, including “(1) the novelty and difficulty of the questions involved,
and the skill displayed in presenting them; (2) the extent to which the nature
of the litigation precluded other employment by the attorneys; (3) the
contingent nature of the fee
award”
and (4) the success achieved. (Serrano v. Priest (1977) 20 Cal.3d 25,
49.)
Nonetheless, the court must not consider
extraordinary skill and the other Serrano factors to the extent these are
already included with the lodestar. (Ketchum v. Moses (2001) 24 Cal. 4th
1122, 1138-1139.) “[A] trial court should award a multiplier for exceptional
representation only when the quality of representation far exceeds the quality
of representation that would have been
provided
by an attorney of comparable skill and experience billing at the hourly rate
used in the
lodestar
calculation. Otherwise, the fee award will result in unfair double counting and
be
unreasonable.”
(Id. at 1139.)
Plaintiff requests a lodestar multiplier
enhancement of 1.35 in the additional amount of
$41,711.43
on the grounds that the Plaintiff’s counsel obtained an excellent outcome, and
because “SLP undertook representation of Plaintiff on a contingency basis—if
the action failed and Plaintiff did not recover, neither would their counsel.
(Shahian Decl. ¶ 14.)” (Mot. p. 14:7-8.) Plaintiff also argues that the delay
in payment justifies a multiplier. (Mot. p. 14:14-22.)
The Court finds that under the
circumstances of this case, a lodestar multiplier is not appropriate. This is a
straightforward lemon law case. Nothing before the Court indicates that the
case presented novel issues or that the quality of representation far exceeded
the quality of
representation
that would have been provided by attorneys of comparable skill and experience
billing
at the same rates. While Plaintiff argues that counsel accepted the case only
on a
contingency
basis and there was a delay in payment the Court finds that such consideration
and
risk
is already included within the lodestar amount. That is because the substantial
hourly rates
allowed
for by the court are hourly rates for lemon law cases done on a contingency
basis. Based on the foregoing, the Court declines to award a lodestar
multiplier.
Entitlement
and Reasonableness of Costs
Allowable costs “shall be reasonably
necessary to the conduct of the litigation rather than merely convenient or
beneficial to its preparation.” (CCP, § 1033.5, subd.
(c)(2).)
Any items not specifically mentioned by statute “may be allowed or denied in
the court's discretion.” (CCP, § 1033.5 subd. (c)(4).)
Song-Beverly allows a successful plaintiff
to recover both “costs” and “expenses.” (Civ. Code, § 1794, subd. (d).) Courts
have held that “it is clear the Legislature intended the word
‘expenses'
to cover items not included in the detailed statutory definition of ‘costs.”’ (Jensen
v.
BMW
of North America, Inc.
(“Jensen”) (1995) 35 Cal.App.4th 112, 137.) The court in Jensen
held
that “[t]he legislative history indicates the Legislature exercised its power
to permit the
recovery
of expert witness fees by prevailing buyers under the Act … ,” noting that the
legislature
included “expenses” in the lemon law act because '“[t]he addition of awards of
“costs
and
expenses” by the court to the consumer to cover such out-of-pocket expenses as
filing fees,
expert
witness fees, marshall’s fees, etc., should open the litigation process to
everyone.’
[Citation.]”
Plaintiff requests a total of $15,677.88
in costs and expenses. (Shahian Decl., Ex. 23) Defendants contend that
Plaintiff’s costs should be denied because Plaintiff does not provide a
memorandum of costs or any evidence to support the costs. (Opp. pp. 18:21-19:8.)
Plaintiff seeks recovery of $3,995.00
for expenses paid for “Legal Services/Case” and “Legal Services and Related
Costs” incurred on September 28, 29 and 30, October 14, 2021 and September 28,
2022. Plaintiff also seeks $1,029.30 for “Expense paid for JOB#6294892 Case No.
21STCV00971” incurred on February 8, 2023. Plaintiff seeks recovery of $110.00
for “Expense paid for Logistics & Processing” incurred on May 2 and June
12, 2023. Further, Plaintiff requests $54.95 for “Addt’lChgs,” “PDF/Ship,” and
“Base Chg” incurred on September 14, 2023. The Court is unable to determine
what these expenses entail or if they are statutorily authorized. Without any
further explanation or evidence, these expenses are uncertain and possibly excessive.
Thus, the Court will reduce the costs by
$5,189.25.
Moreover, Plaintiff accepted
Defendants’ 998 offer to compromise on September 28, 2023 (Baker Decl., ¶ 117.)
Plaintiff seeks to recover $899.70 for “Expenses paid for Cancellation of
Services,” “Expenses paid for Delivery and Postage,” Addt’lChgs,” and “Base
Chg” incurred between November 3, 2023 and April 25, 2024. There is no
description or invoice for these items. The Court thus finds that these costs
incurred after Plaintiff accepted the 998 offer are not reasonable or
necessarily incurred. Accordingly, the Court will reduce the expenses sought by
$899.70.
Based on the foregoing, Plaintiff’s
Motion for Attorneys’ Fees is GRANTED in part. The court awards $89,815.00 in
attorneys’ fees and $9,588.93 in costs.
Moving
Party is ordered to give notice of this ruling.
Parties who intend to submit on this
tentative must send an email to the Court at SMC_DEPT56@lacourt.org as directed
by the instructions provided on the court website at www.lacourt.org. If the department does not receive an email
and there are no appearances at the hearing, the motion will be placed off
calendar.
Dated this 10th day of January 2025
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Hon. Holly J.
Fujie Judge of the
Superior Court |