Judge: James C. Chalfant, Case: 30, Date: 2023-12-12 Tentative Ruling
Case Number: 30-2019-01044945 Hearing Date: December 12, 2023 Dept: 85
City
of Huntington Beach v. State of California, et al., 30-2019-01044945
Tentative decision on motion for attorney’s fees: granted
in part
Intervenor
Kennedy Commission (“Kennedy”) moves for an award of $262,829.25 in attorney’s
fees on appeal, plus $51,650 for the fee motion, for a total of $314,479.25.
The
court has read and considered the moving papers, opposition, and reply, and
renders the following tentative decision.
A. Statement of the Case
1. Petition
30-2019-01044945
Petitioner City of Huntington Beach (“City”) commenced this
proceeding on January 17, 2019, in the Orange County Superior Court. The Second Amended Petition (“SAP”), filed on
December 9, 2019, is the operative pleading and it alleges claims for
traditional mandamus pursuant to CCP section 1085 and declaratory relief. The FAP alleges in pertinent part as follows.
SB
35 when into effect on January 1, 2018 and amended Government Code[1]
sections 65400, 65582.1, and 65913.4. SB
35 was part of a “housing package” intended to address the state’s alleged
housing shortage and high housing cost.
The Legislature declared that SB 35 applies to all cities and counties,
including charter cities. In part, SB 35
requires cities[2] that
have not made sufficient progress towards meeting their allocation of the
regional housing need assessment (“RHNA”).[3] SB 35 seeks to create a system where the
State controls how, where, and when housing is built in every city in
California. The effect of SB 35 is to
unconstitutionally commandeer cities’ discretionary land use authority and
permits State to “rezone” a city’s local land use for political purposes.
AB
101 went into effect in August 2019 and amended multiple sections of the
Government Code, Health and Safety Code, Public Resources Code, and Revenue and
Taxation Code. The unconstitutional
portions of this bill were introduced as part of a budget trailer bill that was
touted to incentivize jurisdictions to build more housing and assist in
providing housing to the homeless.
On October 9, 2019, the Governor signed SB 113 into law
which amended sections 65585 and 65589.11.
AB 101, as amended by SB 113, now requires that the Attorney General
follow a specific statutory procedure if HCD finds that a city's housing
element is not substantially compliant with state law. AB 101 makes a capricious finding that the
new law is a matter of statewide concern and therefore applicable to charter
cities. AB 101 requires HCD to notify a
city or county and authorizes HCD to notify the office of the Attorney General,
that the city or county is in violation of state law if the local government
has taken action in violation of specified provisions of law. The Attorney General must then request that
the court issue an order or judgment directing a violating city to bring its
housing element into substantial compliance, and the penalty for noncompliance
is a fine of $10,000 per month, with the possibility of multipliers for
continued noncompliance.
City’s
right to control the use of land within its jurisdiction has been consistently
recognized by the California Supreme Court as a municipal affair. As a charter city, City has supreme authority
over the regulation of land use and zoning within its borders. SB 35 and AB 101 violate the municipal
affairs doctrine, which provides that a charter city will not be governed by
state law in respect to municipal affairs.
The regulation of local land use and local zoning is a vital and core
function of local government and therefore is a municipal affair of a charter
city.
State
has a clear, present, and ministerial duty to administer the California
Constitution and laws of the state, including SB 35 and AB 101, without
interfering with City’s zoning and land use authority. State’s action in enacting SB 35
unconstitutionally ignores and undermines City’s rights as a charter city under
the municipal affairs doctrine to the detriment of the health, welfare, and
safety of its residents, as well as the authority of a charter city to establish
and provide for an orderly system of zoning and land use regulations.
City
seeks a writ of mandate and declaratory relief prohibiting State from enforcing
SB 35 and AB 101.
2. Petition 30-2019-01048692
Petitioner City commenced this proceeding on February 1,
2019 in the Orange County Superior Court.
The Petition alleges claims for traditional mandamus pursuant to CCP
section 1085 and for declaratory relief.
The Petition alleges in pertinent part as follows.
SB
166 amended section 65863 regarding “No Net Loss” local zoning and land
use. SB 166 was part of a housing
package intended to address the state’s alleged housing shortage and high
housing cost. When enacting SB 166, the
Legislature correctly determined that the law would not apply to charter
cities.
In
2018, the Legislature enacted SB 1333, which again amended section 65863 and
through post hoc rationalization
declared that it applies to all charter cities.
The unconstitutional mandates of SB 166 impermissibly strip City’s
constitutionally protected charter city authority with respect to local zoning
municipal affairs.
In
conjunction with SB 1333, SB 166 creates a system where State controls how,
where, and when housing is built in every city in California, regardless of
charter city status, and unconstitutionally purports to vest and exercise
authority in the state to rezone established local land designations for
political purposes.
City’s
right to control the use of land within its jurisdiction has been consistently
recognized by the California Supreme Court as a municipal affair. As a charter city, City has supreme authority
over regulation of local land use and zoning within its borders. SB 166 violates the municipal affairs
doctrine, which provides that a charter city will not be governed by state law
in respect to municipal affairs. The
regulation of local land use and local zoning are vital and core functions of
local government, and therefore municipal affairs, of a charter city.
State has a clear, present, and ministerial duty to
administer the California Constitution and laws of the State of California,
including section 65863, without interfering with City’s zoning and land use
authority. In enacting SB 166 and SB
1333, the Legislature unconstitutionally ignored and undermined City’s rights
as a charter city to control the zoning and land use designations within its
borders to the detriment of the health, welfare, and safety of its
residents.
City seeks mandamus prohibiting State from enforcing amended
section 65863 against it and a declaration that section 65863, as amended by SB
166 and SB 1333, is an unconstitutional overreaching into a charter city’s
ability to create local zoning schemes.
3. Course of
Proceedings
Petition 30-2019-01044945 (concerning SB 35) and Petition
30-2019-01048692 (concerning SB 166 and SB 1333) are Orange County Superior
Court cases that were assigned to the court on March 19, 2019. On June 4, 2019, the court consolidated the
two cases with 30-2019-01044945 as the lead case. The parties stipulated that, although
properly declaratory relief, the case may be tried on paper as mandamus.
On July 25, 2019, the court granted the Kennedy’s motion for
permissive intervention. The court also
granted Housing California (“Housing”) and the California Coalition for Rural
Housing (“CCRH”) leave to intervene on the condition that they and Kennedy file
a joint intervenors’ brief.
On January 28, 2021, the court denied the City’s petition
for writ of mandate but granted the declaratory relief claim, issuing a
declaration that the Housing Bills do not violate the municipal affairs
doctrine of the California Constitution and may be enforced.
On
March 3, 2021, CCRH and Housing filed their memorandum of costs. On March 6,
2021, Kennedy filed its memorandum of costs. On March 18, 2021, Petitioner City
filed a motion to strike the Intervenors' memoranda of costs which the court
denied on May 27, 2021.
On
October 26, 2021, the court granted Intervenors Kennedy’s motion for attorney’s
fees, and denied a fee motion by CCRH and Housing. The original award was for a $103,225.69
lodestar plus $40,329 for the fee motion, a total of $143,544.69.
On
November 3, 2021, the court recalculated the amount of Kennedy’s lodestar as $103,675.69
and total attorney’s fees award as $144,004.69.
B.
Applicable Law
CCP section 1021.5 (“section 1021.5”) codifies the “private
attorney general” exception to the general rule that each side bears its own
fees unless the parties contracted otherwise. See CCP §1021.
Section 1021.5 permits a trial court to award fees to a successful party in any
action that: “has resulted in the enforcement of an important right affecting
the public interest if (a) a significant benefit has been conferred on the
general public or a large class of persons, (b) the necessity and financial
burden of private enforcement are such as to make the award appropriate, and
(c) such fees should not in the interest of justice be paid out of the
recovery. The issue is committed to the trial court’s discretion. Flannery
v. California Highway Patrol, (“Flannery”) (1998) 61 Cal.App.4th
629, 634.
Courts
take a “broad, pragmatic view of what constitutes a ‘successful party’” in
order to effectuate the policy underlying section 1021.5. Graham v.
DaimlerChrysler Corp., (“Graham”) (2004) 34 Cal.4th 553, 565.
The party seeking attorney’s fees need not prevail on all of its alleged
claims in order to qualify for an award. Harbor v. Deukmejian,
(1987) 43 Cal.3d 1078, 1103; Daniels v. McKinney, (1983) 146 Cal.App.3d
42, 55. The party is considered successful under section 1021.5 if the
litigation “contributed substantially to remedying the conditions at which it
was directed.” Planned Parenthood v. Aakhus, (1993) 14 Cal.App.4th 162,
174. In other words, the “successful” party under section 1021.5 is the
party that succeeds on “any significant issue in litigation which achieves some
of the benefit the parties sought in bringing suit.” Maria P. v. Riles,
(1987) 43 Cal.3d 1281, 1292; see Tipton-Whittingham v. City of Los
Angeles, (2004) 34 Cal.4th 604, 610. A prevailing party who qualifies
for an award under section 1021.5 are entitled to compensation for all hours
reasonably spent by their counsel. Serrano v. Unruh, (“Serrano”)
(1982) 32 Cal.3d 621, 632–33.
Unlike the
separate substantial benefit doctrine, “the ‘significant benefit’ that will
justify an attorney fee award need not represent a ‘tangible’ asset or a
‘concrete’ gain but, in some cases, may be recognized simply from the
effectuation of a fundamental constitutional or statutory policy.” Woodland
Hills Residents Assn., Inc. v. City Council, (1979) 23 Cal.3d 917,
939. “[T]he benefit may be conceptual or doctrinal and need not be actual or
concrete; further, the effectuation of a statutory or constitutional purpose
may be sufficient.” Braude v. Automobile Club of Southern Cal.,
(1986) 178 Cal.App.3d 994, 1011. Moreover, the extent of the public
benefit need not be great to justify an attorney fee award. See, e.g.,
Protect Our Water v. County of Merced, (2005) 130 Cal.App.4th 488, 496
(significant public benefit where litigation prompted agency to improve methods
of creating and managing its CEQA records). The trial court determines “the
significance of the benefit, as well as the size of the class receiving
benefit, from a realistic assessment, in light of all the pertinent
circumstances, of the gains which have resulted in a particular case.” Woodland
Hills, supra, 23 Cal.3d at 939–940.
The party
seeking attorney’s fees must show that the necessity for pursuing the lawsuit
placed a burden on the plaintiff “out of proportion to his individual stake in
the matter.” Woodland Hills, supra, 23 Cal. 3d at 941.
Although cases refer to this requirement as the “financial burden” criterion,
nothing in the language of CCP section 1021.5 limits the consideration of the
necessity and financial burden clause to solely financial interests. Hammond
v. Agran, (2002) 99 Cal.App.4th 115, 125. “The idea is that the
litigation for which fees are claimed must transcend one's interests, whether
pecuniary or not.” Id. at 127. The question is whether
advancement of the public interest was merely coincidental to the attainment of
the party’s personal goals. Bowman v. City of¿Berkeley (“Bowman”)
(2005) 131 Cal.App.4th 173, 181. The party seeking attorney’s fees bears
the burden of establishing that its litigation costs transcend its personal
interests. Save Open Space Santa Monica Mountains v. Superior Court,
(“Save Open Space”) (2000) 84 Cal.App.4th 235, 247. The trial
court's application of the financial burden criterion involves a “realistic and
practical comparison of the litigant's personal interest with the cost of
suit.” Families Unafraid to Uphold Rural El Dorado County v. Bd. of
Supervisors (“Families Unafraid”), (2000) 79 Cal.App.4th 505, 515.
C.
Statement of Facts[4]
1.
Kennedy’s Evidence
On
October 26, 2021, this court awarded Kennedy $143,554.69 in attorneys’ fees (“2021 Order”). RJN Ex. 6, p. 31. It also ordered the City and Kennedy to meet
and confer regarding the correct amount.
RJN Ex. 6, p. 31. On November 3,
2021, the court amended the awarded amount to $144,004.69. RJN Ex. 6, p. 31.
a.
Course of Proceedings
On
March 9, 2022, the City filed a Notice of Appeal from this court’s award of
attorney’s fees to Kennedy under section 1021.5. RJN Ex. 1.
On March 28, 2022, Kennedy filed a Notice of Cross-Appeal. RJN Ex. 1.
On
April 8, 2022, Kennedy emailed the City’s counsel, proposing that they file a joint
appendix. Reisman Decl., ¶36, Ex. 13. This would ensure the record contained only
the documents the appellate court will need to decide the Appeal. Reisman Decl., ¶36, Ex. 13. On April 11, 2022, the City rejected the
offer because it believed a complete record would be useful. Reisman Decl., ¶36, Ex. 13.
On
May 6, 2022, the City designated the record on appeal. Reisman Decl., ¶37. The 290-page clerk’s transcript did not
include this court’s rulings or the parties’ briefings on either the merits of
the SAP or the motion for attorney’s fees.
Reisman Decl., ¶37.
b.
The City’s Appellate Briefs
On
August 18, 2022, the City filed a motion to augment the record with 4,478 additional
pages. Reisman Decl., ¶37. The motion was unopposed, and the appellate
court granted it. RJN Ex. 1.
The
City filed its opening brief and a motion to take judicial notice on August 18,
2022. RJN Exs. 1-3. The motion to take judicial notice sought to
introduce the City’s opening brief in another case concerning an award of
attorneys fees for Kennedy, Kennedy Commission v. City, (“Kennedy”),
Case No. E078403 and the docket for that case.
RJN Ex. 3. pp. 2, 19.
The
City’s brief on the merits argued that this court (1) erroneously found Kennedy
was an intervenor, (2) erroneously found it was entitled to attorney’s fees
even when the named defendant was not, (3) erroneously found it met the
requirements of section 1021.5, and (4) applied the wrong legal standard and
abuse its discretion in awarding attorney’s fees based on falsified
billing. RJN Ex. 2, pp. 23-24.
The
City argued Kennedy was an amicus, not an intervenor, because it lacked a
direct interest in the lawsuit and it improperly broadened the scope of
litigation. RJN Ex. 2, pp. 25, 27, 31. Kennedy also never properly intervened
because it never filed an Answer. RJN
Ex. 2, pp. 32-33. The City had opposed the
motions to intervene by Kennedy, CCRH, and Housing based on their failure to
meet the requirements of CCP section 387.
RJN Ex. 2, p. 17.
The
City then argued Kennedy was limited to the same relief as the State, which
cannot seek or be awarded attorney fees under the law. RJN Ex. 2, p. 33. Holding otherwise would encourage any public
interest group to “ride the coattails” of the State to seek attorney fees, which
several authorities refute. RJN Ex. 2, pp.
33, 35.
The
City also challenged this court’s findings as to elements of section
1021.5. RJN Ex. 2, pp. 36, 37-38, 40. The court’s finding of widespread impact
contradicted its earlier statement that any finding in this case was limited to
this City. RJN Ex. 2, p. 38. Private enforcement was not necessary because
the Attorney General defended the case.
RJN Ex. 2, p. 39. Kennedy did not
raise an argument that the State did not cover itself. RJN Ex. 2, p. 40.
As
to reasonableness of fees, the City argued this court’s decision erroneously
required the City to demonstrate the deficiencies of billing records. RJN Ex. 2, p. 44. The court should have denied the motion for
fees outright so as not to reward Kennedy for fraudulent billing practices. RJN Ex. 2, p. 44. Cases have held that awarding reasonable fees
based on outrageously unreasonable demands encourages such demands and a
“severer reaction” is necessary. RJN Ex.
2, p. 47. The City outlined specific
entries and tasks for which it argued Kennedy had inflated the hours
spent. RJN Ex. 2, pp. 47-49.
(3)
Kennedy’s Briefs
On
August 26, 2022, Kennedy filed a request for dismissal of its cross-appeal and
it was dismissed by the appellate court the same day. RJN Ex. 1. The appellate court noted that the remainder
of the appeal would be unaffected by this dismissal. RJN Ex. 1.
Kennedy remained a respondent to the City’s appeal. RJN Ex. 1.
On
September 2, 2022, Kennedy filed an opposition to the City’s motion to take
judicial notice. RJN Exs. 1, 4. The names of counsel on the caption page
included Terra Castillo Laughton, Esq. (“Laughton”). RJN Ex. 4, p. 1. Kennedy argued that the City sought to
judicially notice the facts within the attached exhibits rather than the
existence of the documents themselves.
RJN Ex. 4, pp. 11-12. It also
argued the City had not presented these documents to the trial court and failed
to demonstrate exceptional circumstances that warranted judicial notice on
appeal. RJN Ex. 4, pp. 14-16. On September 6, 2022, the appellate court stated
that it would decide the judicial notice issue with the decision on
appeal. RJN Ex. 1.
On
October 4, 2022, Kennedy filed its opposition on the merits. RJN Exs. 1, 6. The names of counsel on the caption page
included Laughton. RJN Ex. 6, p. 1.
Kennedy
noted that the appellate court should uphold the award of attorney’s fees under
section 1021.5 unless the trial court had abused its discretion. RJN Ex. 6, p. 36. Any factual findings were subject to
substantial evidence review, not de novo review. RJN Ex. 6, p. 38, n. 6.
The
City’s challenge to the trial court decision permitting Kennedy to intervene
was not timely appealed. RJN Ex. 6, p.
39. The City also failed to make the
arguments it now makes in its opposition to the motion to intervene. RJN Ex. 6, p. 42. Although it did oppose the motion in the
trial court, the City only made three narrow arguments against
intervention. RJN Ex. 6, p. 43. In any case, Kennedy had a direct interest in
the action, its intervention was procedurally proper, and it did not broaden
the scope of litigation. RJN Ex. 6, pp.
46, 51. The court’s decision to grant
intervention was well within its discretion.
RJN Ex. 6, p. 44.
Kennedy
then asserted the City had misconstrued case law that an intervenor may recover
fees “on equal terms with the original parties.” RJN Ex. 6, p. 56. This language does not limit intervenors to
the relief the original parties obtain; it allows intervenors to move for
attorney’s fees based on the same showing it would need to make if it were an
original party. RJN Ex. 6, p. 56.
Kennedy
outlined why it met the requirements of section 1021.5. The lawsuit did confer a significant benefit
on the public because the judgment applies to 121 charter cities. RJN Ex. 6, p. 64. Case law also expressly allows private
parties litigating alongside government parties to seek attorney’s fees under
section 1021.5. RJN Ex. 6, pp. 68-69. Kennedy contributed unique and valuable
services in opposition to the writ. RJN
Ex. 6, p. 72. Although the City asserted
that Kennedy did not make any arguments the State did not also make, the trial court
was in the best position to say whose brief it relied on. RJN Ex. 6, pp. 73-74.
As
for the reasonableness of fees, the trial court did not abuse its discretion in
issuing the fee award. RJN Ex. 6, p.
76. It cut the requested fees by 75% to
reach what it determined was a reasonable amount, even after Kennedy had made
reductions on its own. RJN Ex. 6, pp. 76-78. The City asserted that Kennedy’s fees were
drastically unreasonable and the trial court should have denied them in
full. RJN Ex. 6, p. 81. Although the City cited cases hold that such a
special circumstance can merit a complete denial of the award, those cases affirmed
reduced fee awards as still within the court’s discretion. RJN Ex. 6, pp. 81-82. The appellate court cannot make its own
reasonableness assessment because its role is not to second-guess the trial
court. RJN Ex. 6, pp. 82-83.
On
November 2, 2022, the City filed its reply brief in support of the motion for
judicial notice and the next day City filed its reply brief on the merits. RJN Ex. 1.
(3)
The Appeal Decision
The
appellate court heard oral argument on March 22, 2023. RJN Ex. 1.
On June 14, 2023, the appellate court issued its opinion, affirming the
trial court’s judgment without ruling on the judicial notice motion. RJN Exs. 1, 7. The court held that the City should have
filed an appeal from the trial court’s grant of Kennedy’s’ intervention if it
wanted to contest that issue. RJN Ex. 7,
pp. 5-6.
The
court agreed with Kennedy that it should review an award of attorney’s fees
under section 1021.5 for abuse of discretion.
RJN Ex. 7, p. 5. It then found
the court had not abused its discretion and had correctly decided the issues of
law now on appeal. RJN Ex. 7, p. 2.
The
decision also rejected the argument that an intervenor is limited to the same
attorney’s fees as an original party to the action. RJN Ex. 7, pp. 6-9. The City cited no cases discussing whether
attorney fees could be awarded under section 1021.5 to a private litigant
co-litigating with the State. RJN Ex. 7,
p. 6. To hold otherwise would discourage
anyone from joining with the Attorney General in public interest litigation. RJN
Ex. 7, pp. 8-9. The trial court found
that Kennedy advanced significant legal theories and non-duplicative evidence that
contributed to the judgment. RJN Ex. 7,
p. 7.
For
the elements of section 1021.5, the trial court did not abuse its discretion in
finding the enforcement of housing laws to address a low-cost housing crisis
was an important right affecting the public interest with widespread
impact. RJN Ex. 7, p. 10. The City argued that the trial court
previously said the lawsuit would have “no impact”, but this statement was made
in response to Housing’s motion to intervene, and the court stated a ruling in
the City’s favor would have no impact outside the City unless it was appealed. RJN Ex. 7, pp. 10-11. As a result, the City’s residents were the
“public” receiving significant benefit under section 1021.5. RJN Ex. 7, p. 11.
The
City also misquoted the trial court as saying at the motion to intervene hearing
that the State was “fully capable of defending itself.” RJN Ex. 7, p. 11, n. 9. The court had only said that to justify
denying Housing’s motion to intervene after it had granted Kennedy’s
motion. RJN Ex. 7, p. 11, n. 9.
The
trial court did not abuse its discretion when it held Kennedy’s efforts were
not unnecessary and duplicative of the State’s.
RJN Ex. 7, pp. 10-11. It was in
the best position to know as much. RJN
Ex. 7, p. 11. In that regard, the
appellate court trusted the City would not call this court a liar as quickly as
it called Kennedy’s attorneys liars. RJN
Ex. 7, p. 11.
On
the reasonableness of the fees, the City’s argument as to burden of proof
revealed its misunderstanding as to how fee motions work. RJN Ex. 7, p. 12. Billing statements create a prima facie
case for reasonableness of the fees therein.
RJN Ex. 7, p. 12. If the opposing
party objects, it must identify the specific items to discount and explain
why. RJN Ex. 7, p. 12. The City did not dispute before the trial court
the same items it disputed on appeal.
RJN Ex. 7, p. 13, n.1. Although
the trial court had the discretion to deny fees outright for excessive billing,
it was not required to do so. RJN Ex. 7,
p. 12.
As
to CCRH’s cross-appeal, the appellate court affirmed the ruling that it was
ineligible for attorney fees under section 1021.5. RJN Ex. 7, pp. 13, 17.
The
appellate court affirmed the trial court concluded that Kennedy was to recover
its costs of the City’s appeal. RJN Ex.
7, p. 18.
On
August 16, 2023, the appellate court issued the remittitur. RJN Ex. 1.
b.
Reasonable Fees
All
firms have audited their timesheets with considerable billing judgment to
remove hours. Darmer Decl., ¶14; Rawson
Decl., ¶25.
(1).
Jones Day
Roman
Darmer, Esq. (“Darmer”) graduated from Yale Law School in May 1987 and clerked for the U.S Court of Appeals
for the Ninth Circuit. Darmer Decl.,
¶2. He has been a partner at Jones Day
since 2010 and its Irvine Pro Bono Coordinator since 2012. Darmer Decl., ¶7, Ex. 8.
Darmer was the primary attorney at Jones
Day for Kennedy in this matter. Darmer
Decl., ¶10. Aside from him, Jones Day
only seeks recovery for fees incurred by associates Debbie Chen, Esq. (“Chen”)
and JoeAL Akobian Esq. (“Akobian”).
Darmer Decl., ¶¶ 10, 15, Ex. 9. Its
billing sheet only reflects hours incurred during the Appeal, not the motion
for attorney’s fees. Darmer Decl., Ex.
10.
Darmer spent 9.5 hours in 2022 and 0.5
hours in 2023 for the Appeal, and 7.5 hours for the fee motion. Darmer Decl., ¶15, Ex. 10. This includes one hour in 2022 to review the draft
opposition to the City’s motion for judicial notice, 0.5 hours of follow-up
regarding this opposition, and 0.25 hours to review the court’s order regarding
the motion. Darmer Decl., ¶15, Ex.
10. Darmer’s other hours generally involve
either emails with co-counsel or reviewing or commenting on some document. Darmer Decl., ¶15, Ex. 10.
Darmer asserts an hourly rate of
$1,150 for 2021, $1,175 for 2022, and $1,225 for 2023. Darmer Decl., ¶12. His lodestar equals ($1,175 x 9.5) + ($1,225
x 8) = $11,162.50 + $9,800 = $20,962.50.
Darmer Decl., ¶15.
Chen spent 0.25 hours in March 2022 reviewing
a notice of default entry and 1 hour in August 2022 in a conference call with
co-counsel regarding motions and strategy.
Darmer Decl., ¶15, Ex. 10. Her
hourly rate was $625 that year, and her lodestar is $625 x 1.25 = $781.25.
Darmer Decl., ¶15.
Although Akobian has not billed any
hours for the Appeal (Darmer Decl., Ex. 10), he expended six hours in 2023 on the
fee motion. Darmer Decl., ¶15. Because his rate is $600 per hour, his
lodestar totals $3,600. Darmer Decl., ¶¶
12, 15.
(2). Public
Interest Law Project
Michael Rawson, Esq. (“Rawson”) has practiced
affordable housing, land use, and fair housing law for 42 years. Rawson Decl., ¶2, Ex. 11. Craig Castellanet, Esq. (“Castellanet”) has
concentrated on affordable housing litigation and advocacy for 25 years. Rawson Decl., ¶16. These are the only two attorneys for whom the
Public Interest Law Project (“PILP”) requests attorney’s fees. Rawson Decl., ¶25.
Castellanet expended 86.1 hours. Rawson Decl., ¶25, Ex. 12. This includes 2.2 hours before August 18,
2022, the day the City filed its first appellate briefs. Rawson Decl., ¶25, Ex. 12. Of those 2.2 hours, Castellanet spent 0.3
hours drafting notes, 0.1 hours reviewing a civil information sheet, and 0.6
drafting memos. Rawson Decl., ¶25, Ex.
12.
Castellanet spent 12 hours after
August 18, 2022 for drafting memos. Rawson
Decl., ¶25, Ex. 12. On October 4, 2022,
Castellanet billed 0.9 hours for checking final revisions to Kennedy’s
appellate brief and sending memos about the changes. Rawson Decl., ¶25, Ex. 12.
At Castallanet’s claimed hourly rate
of $850, his total lodestar is $850 x 86.1 = $73,185. Rawson Decl., ¶¶ 24-25.
Rawson expended 27.90 hours. Rawson Decl., ¶25, Ex. 12. Every entry related to either review,
research, or meeting with co-counsel.
Rawson Decl., ¶25, Ex. 12. At
Rawson’s claimed rate of $960, this his total lodestar is $960 x 27.90 =
$26,784. Rawson Decl., ¶25.
(3). Community Legal Aid SoCal
Community Legal Aid SoCal (“CLA
SoCal”) is a non-profit legal services organization seeking to provide free,
high-quality legal services and to advocate on behalf of low-income individuals. Reisman Decl., ¶4. CLA SoCal has not received, and does not
expect to receive, compensation from Kennedy for this case. Reisman Decl., ¶5. Any fees awarded to its attorneys will inure
to the benefit of the organization so that it may continue to provide legal services to low-income individuals
in Orange County and Los Angeles County.
Reisman Decl., ¶6.
Sara Reisman, Esq. (“Reisman”) is
the Directing Attorney of Advocacy & Litigation. Reisman Decl., ¶8. She graduated from Vanderbilt University Law
School and passed the New York bar exam in 2006. Reisman Decl., ¶¶ 21-22. She represented a variety of clients in
complex civil litigation and government investigations through 2012. Reisman Decl., ¶23. She became a member of the State Bar of
California in 2013. Reisman Decl.,
¶24. She has since worked for Los
Angeles Center for Law and Justice and CLA SoCal in a variety of cases. Reisman Decl., ¶¶ 25-26. Reisman was the primary researcher and
drafter of the opposition for the Appeal, led the defensive strategy, and made
the oral argument for Kennedy at the appellate court. Reisman Decl., ¶28.
Staff Attorney Laughton worked for
CLA SoCal from September 2021 to December 2022.
Reisman Decl., ¶16.
CLA SoCal seeks a $705 hourly rate
for Reisman and a $500 hourly rate for both Laughton and Staff Attorney Katelyn
Rowe, Esq. (“Rowe”). Reisman Decl., ¶8. These hourly rates are slightly higher than
the rates the trial court awarded, but only to reflect inflation and the
attorney’s increased experience. Reisman
Decl., ¶12. The attorneys working on
this matter kept detailed and contemporaneous records of the work performed in
six-minute increments. Reisman Decl.,
¶29.
Reisman spent 136.3 hours on the
Appeal, plus 7.5 to work on the fee motion.
Reisman Decl., ¶¶ 39, 48. Ex. 15.
3.1 of those hours on August 15, 2022 were to review trial court
pleadings in advance of the City’s appellate brief. Reisman Decl., ¶39, Ex. 15. On August 19, she spent two hours in various
meetings, including one to discuss “next steps” and division of labor with
co-counsel. Reisman Decl., ¶39, Ex.
15. Various other entries refer to
conferences with “TCL,” or Laughton, and PILP mixed with other tasks. Reisman Decl., ¶39, Ex. 15.
To prepare for the oral argument, Reisman
reviewed the merits briefing, analyzed the key case authority cited therein,
drafted opening remarks, participated in moot court with co-counsel, and
observed appellate arguments. Reisman
Decl., ¶33. 20.3 hours were related to
moot court from March 14 to 21, 2023. Reisman
Decl., ¶39, Ex. 15. The same entries
also involve general preparation for oral argument, research on the panel
members, and team strategy discussions.
Reisman Decl., ¶39, Ex. 15. Other
entries totaling at least 14.1 hours describe preparation for oral argument
without moot court. Reisman Decl., ¶39,
Ex. 15.
Reisman spent 17.7 hours for Kennedy’s
opposition to the City’s motion for judicial notice. Reisman Decl., ¶39, Ex. 15. On March 22, 2023, Reisman spent 4.5 hours to
travel to and attend oral argument in the appellate court and to update
co-counsel afterwards. Reisman Decl.,
¶39, Ex. 15. On September 6, 2023,
Reisman spent 1.5 hours drafting a memorandum for this motion for attorney’s
fees. Reisman Decl., ¶39, Ex. 15. She spent 1.6 hours on September 13, 2023 to
discuss “next steps” with her team.
Reisman Decl., ¶39, Ex. 15.
Reisman’s lodestar is $705 x (136.3
+ 7.5) = $96,091.50 + $5,287.50 = $101,379.
Reisman Decl., ¶48.
Laughton spent 109.6 hours for a
total lodestar of $500 x 109.6 = $54,800.
Reisman Decl., ¶48. Some of her
entries for preparing the appellate opposition brief are on the same day as
similar entries for Reisman. Reisman
Decl., ¶48, Ex. 15. For example, on
September 28, 2022, Reisman spent 6.3 hours on the brief while Laughton spent
5.4. Reisman Decl., ¶48, Ex. 15. On September 29, Reisman spent 6.6 hours while
Laughton spent 5.2. Reisman Decl., ¶48,
Ex. 15. On September 30, Reisman spent
5.2 hours while Laughton spent 4.8.
Reisman Decl., ¶48, Ex. 15. On
October 3, Reisman spent 7.6 hours while Laughton spent 6.3. Reisman Decl., ¶48, Ex. 15.
Laughton and Reisman researched and
drafted different sections of the brief, provided feedback to each other, and
integrated the sections written by co-counsel.
Reisman Decl., ¶32. The number of
arguments the City raised on appeal, some of which it had already forfeited,
increased the number of hours Kennedy’s attorneys spent on the opposition. Reisman Decl., ¶32.
11.6 of Laughton’s hours pertain to
work on the City’s motion for judicial notice.
Reisman Decl., ¶48, Ex. 15. Her
last three entries total 3.9 hours in November 2022 for analyzing the City’s reply
briefs and drafting a summary. Reisman
Decl., ¶48, Ex. 15.
Rowe’s 25.2 hours and $500 x 25.2 =
$12,600 lodestar are solely for work on the motion for attorney’s fees. Reisman Decl., ¶48, Ex. 15. Aside from a 0.2-hour strategy meeting with co-counsel
on July 27, 2023, Rowe’s hours begin on September 7, 2023, the day after
Reisman spent 1.5 hours to draft a memorandum for the fee motion. Reisman Decl., ¶48, Ex. 15. This included 3.3 more hours of strategizing,
meeting with others, and reviewing drafts with the team. Reisman Decl., ¶48, Ex. 15.
2. The City’s Evidence
The
City had no choice but to appeal, file its opening brief, and file its unopposed
motion to augment. Said Decl., ¶¶ 2-3. The City provided all the exhibits to keep
Kennedy from seeking more costs and fees against the City. Said Decl., ¶3. That would take away funds that could be used
for public services during a time of high taxes in California. Said Decl., ¶3.
On
September 7, 2023, Reisman personally picked up a $150,000 check to CLA SoCal
for this case and a $3,681,000 check for a different case. Said Decl., ¶5, Ex. 1.
3.
Reply Evidence
On
August 26, 2022, the appellate court dismissed Kennedy’s cross-appeal at
Kennedy’s request. Reisman Supp. Decl.,
¶¶ 5-6, Ex. 1. The appellate court’s dismissal
order stated that the City’s appeal was unaffected by the dismissal. Reisman Supp. Decl., ¶6, Ex. 1. Kennedy remained a respondent to the City’s
appeal. Reisman Supp. Decl., ¶6, Ex.
1.
The
City has objected to Darmer’s May 4, 2022 billing of 0.5 hours as impossible
because it was before the City filed its opening brief. Darmer Supp. Decl., ¶4. This entry was for a different case, and
Darmer has now removed that entry.
Darmer Supp. Decl., ¶4. This
reduces his hours in 2022 from 9.5 to 9.
Darmer Supp. Decl., ¶4.
Akobian
has spent another 8 hours on the reply brief for this motion for attorney’s
fees. Darmer Supp. Decl., ¶4. He spent a total of 14 hours on the fee
motion and his lodestar is $600 x 14 = $8,400.
Darmer Supp. Decl., ¶4.
Reisman
spent another 5 hours on the reply brief for the motion for attorney’s
fees. Reisman Supp. Decl., ¶¶ 11-12, Ex.
2. This increases her lodestar to $705 x
(136.3 + 7.5 + 5) = $705 x 148.8 = $104,904.
Reisman Supp. Decl., ¶14.
Rowe
spent another 25.3 hours on the reply brief for the motion for attorney’s
fees. Reisman Supp. Decl., ¶¶ 11-12, Ex.
2. This increases her lodestar to $500 x
(25.2 + 25.3) = $500 x 50.5 = $25,250.
Reisman Supp. Decl., ¶14.
D. Analysis
Intervenor Kennedy moves
for attorney’s fees. The proposed
lodestar is $262,892.25 and $51,650 for the fee motion, a total of $314,479.25.
1. Successful Party
Courts take a “broad, pragmatic view of what constitutes a
‘successful party’” in order to effectuate the policy underlying section
1021.5. Graham, supra, 34 Cal.4th at 565. A
successful party under section 1021.5 is the party that succeeds on “any
significant issue in litigation which achieves some of the benefit the parties
sought in bringing suit.” Maria P. v. Riles, supra, 43
Cal.3d at 1292.
The City asserts that Kennedy is not
the prevailing party because of its failed cross-appeal. Since Kennedy was unsuccessful in setting
aside the award of attorney fees, it is not the prevailing party. Opp. at 5.
The
City fails to distinguish between its appeal and the cross-appeal. The appellate court emphasized that Kennedy’s
dismissal of the cross-appeal had no bearing on the City’s ongoing appeal. Reisman Supp. Decl., ¶6, Ex. 1. The City’s appeal challenged this court’s award
of attorney’s fees, and the City lost. RJN
Ex. 2. Kennedy is the prevailing party
on the City’s appeal.
The
City also asserts that it prevailed against CCRH and Housing because both were
deemed amicus and ineligible for attorney’s fees under section 1021.5. Opp. at 5-6.
This is irrelevant to Kennedy’s right to attorney’s fees. Kennedy is a prevailing party for the
purposes of section 1021.5 attorney fees on appeal.
2.
Entitlement
Section 1021.5 permits a trial court to award fees to a
successful party in any action that: “has resulted in the enforcement of an
important right affecting the public interest if (a) a significant benefit has
been conferred on the general public or a large class of persons, (b) the
necessity and financial burden of private enforcement are such as to make the
award appropriate, and (c) such fees should not in the interest of justice be
paid out of the recovery. The issue is committed to the trial court’s discretion.
Flannery, supra, 61 Cal.App.4th at 634.
The
City asserts that Kennedy cannot show that an unpublished decision affirming an
award of attorney’s fees meets the elements of section 1021.5. Opp. at 7-9.
The court need not discuss the elements of section 1021.5
because Kennedy’s motion does not rely on those elements. Instead, Kennedy relies on Serrano, supra, 32 Cal. 3d at 637, 639, which held that the
hours reasonably expended on litigation under section 1021.5 include fees necessary
to establish and defend the fee claim.
Mot. at 11. This court already awarded
Kennedy its attorney fees under section 1021.5, and the appellate court
affirmed it. RJN Ex. 7. That entitlement extends to the fees incurred
defending that holding on appeal. Reply
at 3.
The City cites Estate
of Cirone, (“Cirone”) (1987) 189 Cal.App.3d 1280, 1293, which holds
a party who obtains attorney fee awards pursuant to section 1021.5 is not entitled
to further attorney fees for efforts to collect a final fee award. The respondents sought to collect the
attorney fee award via a claim for $18,000 to the State Board of Control. Id. at 1284. At issue was a $500 supplementary attorney's
fee awarded by the trial court for the enforcement effort of filing this
claim. Id. at 1284-85. Opp. at 6.
Cirone
is distinguishable as a case concerning
attorney fees incurred in attempts to collect the previously awarded fee. Cirone acknowledged that courts have consistently
stated that parties entitled to attorney fees under section 1021.5 are also
entitled to fees for services on appeal.
189 Cal.App.3d at 1293.
Kennedy’s entitlement to
attorney fees under section 1021.5 extends to fees incurred when defending the
award on appeal.
3. Reasonableness
The court employs the lodestar analysis when
looking to determine the reasonableness of an attorney’s fee award. The lodestar figure is calculated by
multiplying the number of hours reasonably spent by the reasonable market
billing rate. Serrano v. Priest,
(1977) 20 Cal.3d 25, 48.
a. Hourly Rate
Generally, the reasonable
hourly rate used for the lodestar calculation is the rate prevailing in the
community for similar work. Center, supra,
188 Cal.App.4th at 616. In making its
calculation, the court may rely on its own knowledge and familiarity with the
legal market, as well as the experience, skill, and reputation of the attorney
requesting fees, the difficulty or complexity of the litigation to which that
skill was applied, and affidavits from other attorneys regarding prevailing
fees in the community and rate determinations in other cases. 569 East County Boulevard LLC v.
Backcountry Against the Dump, Inc., (“569 East”) (2016) 6
Cal.App.5th 426, 437.
(1).
Reisman
Reisman
seeks a $705 hourly rate based on her years of experience. Opp. at 11; Reisman Decl., ¶¶ 8, 21-24. This court awarded her a slightly lower rate
of $680 in its original ruling on a motion for attorney’s fees. Reply at 10.
Kennedy asserts her rate only increased to adjust for her extra years of
experience and inflation. Reisman Decl.,
¶12. This modest increase is acceptable.
The
court affirms Reisman’s $705 hourly rate.
(2).
Other Attorneys
Kennedy interprets the
City’s failure to explicitly request an adjustment of any other attorney’s
hourly rate as an admission that those rates are reasonable. Reply at 9.
The court agrees that
the hourly rates for Laughton and Rowe of $500, for Chen of $625, and for Akobian
of $600, are reasonable. Darmer Decl., ¶¶
12, 15; Reisman Decl., ¶8.
The same is not true for
Darmer, Castellanet, and Rawson. Darmer asserts
an hourly rate of $1,150 for 2021, $1,175 for 2022, and $1,225 for 2023. Darmer Decl., ¶12. Castallanet’s claimed hourly rate is $850,
and Rawson’s is $960. Rawson Decl., ¶¶
24-25. The City notes the court’s 2021 award
was based on hourly rates of $750 for Darmer, $600 for Castellanet, and $680
for Rawson. Opp. at 14-15.
Darmer’s approved hourly
rate for this motion is $850 for each year.
The approved rate for Castellanet is $650, and the rate for Rawson is $700.
(3) Blended Rates
The court will use a
blended rate to calculate reasonable fees for each firm based on the approved
hourly rate of the principal attorney therein.
The blended rate for CLA
SoCal is ($705 + $500 + $500)/3 = $1,705/3 = $568.33.
Because Chen only billed
1.25 hours before any are disallowed (see post), Jones Day’s blended
rate does not reflect her hourly rate. Based
on Darmer and Akobian, the blended rate for Jones Day is ($850 + $600)/2 =
$1,450/2 = $725.
The blended rate for PILP
is ($650 + $700)/2 = $1,350/2 = $675.
b. Reasonable Hours
The petitioner bears the burden of
proof as to the reasonableness of any fee claim. CCP §1033.5(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 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, (“Lunada”)
(2014) 230 Cal.App.4th 459, 488; Premier Medical Management Systems, Inc. v.
California Ins. Guarantee Assn., (“Premier”) (2008) 163 Cal. App.
4th 550, 564.
None of the City’s
arguments for disallowing hours (Opp. at 10-15) cite to legal authority. Kennedy suggests this alone means the City
has failed to provide sufficient analysis as to what makes the hours in dispute
unreasonable. Kennedy cites Avikian
v. WTC Financial Corp. (“Avikian”), (2002) 98 Cal.App.4th 1108, 1119,
as holding that the non-prevailing party cannot simply point to some examples
of what they contend are excessive amounts of time on discrete tasks. Reply at 5.
Avikian’s statement
that the appellants’ one page of examples do not justify a conclusion that the
fees were excessive as a matter of law does not intrude on the trial court’s
discretion. Avkian expressly held
that it must defer to the judgment of the trial court as to reasonable hours in
the absence of a clear abuse of discretion.
Id. at 1119. An experienced
trial judge is the best judge of the value of professional services rendered in
his court, and an appellate court will not disturb such judgment unless
convinced it was clearly wrong. Id. Id.
As Avikian
acknowledged, the trial court is not required to rely on the opposition’s
specific showing of unreasonableness in awarding fees. As with the underlying case on the merits, Kennedy’s attorneys have
expended a grossly excessive number of hours on what was a relatively simple
appeal of an award of attorney fees. The
$314,479.25 in fees it seeks for
the Appeal and the fee motion is more than double the $143,554.69 in
attorney fees awarded to Kennedy for the merits of the case. As
with the merits award, Kennedy’s excessive request is due to “overstaffing,
duplication, and unwarranted inefficiencies”.
In awarding fees in
2021, the court found
that Kennedy had overstaffed the case. A
single client had retained ten attorneys for the limited purposes of a motion
to intervene, a joint opposition on the merits, attendance at a hearing, and
attendance at a hearing. 2021 Order at
p. 14. The sheer number of hours they spent
performing the same research was unreasonable.
Id. Kennedy could not
expect the City to pay for the internal communications, conferences, and
inefficiencies this caused. Id.
The current
circumstances are not so different.
Kennedy seeks attorney’s fees for eight attorneys across three firms for
two filings and oral argument in appellate court, generating memoranda to each
other on a straightforward attorney fee appeal.
RJN Exs. 4, 6. The court has no doubt that Kennedy’s
attorney expended the hours they claim.
But that does not make those hours reasonable or mean that the City
should have to pay for them. This was an
appeal from an attorney fee award and the elements of section 1021.5 were
already established at the trial court level.
The City made several additional arguments in the Appeal, and there also
was an unopposed motion to augment and an opposed motion for judicial notice
that was unimportant to the outcome. But
there was no reason for seven attorneys to work on it or for them to spend
$262,892.25 and 370.65 hours on the Appeal.
Nor was there reason for Kennedy to spend $51,650 and 84.5 hours on the fee motion. The hours will be reduced to
reasonable levels.
(1). Changes to the Hours on Reply
Kennedy’s moving papers
claimed total hours as follows: 17.5 hours for Darmer, 1.25 hours for Chen, 6
hours for Akobian, 86.1 hours for Castellanet, 27.90 hours for Rawson, 143.8
hours for Reisman, 109.6 hours for Laughton, and 25.2 for Rowe. Darmer Decl., ¶15, Ex. 10; Rawson Decl., ¶¶
24-25, Ex. 12; Reisman Decl., ¶¶ 39, 48, Ex. 15.
In Kennedy’s reply,
Darmer acknowledged 0.5 of these hours were in error and reduced his total to
17 hours. Darmer Supp. Decl., ¶4. To prepare the reply brief, Akobian incurred
8 more hours, increasing his total to 14.
Darmer Supp. Decl., ¶4. Reisman
spent another 5 hours on the reply, a total of 148.8. Reisman Supp. Decl., ¶¶ 11-12, 14, Ex. 2. Rowe spent another 25.3 hours on the reply, a
total of 50.5. Reisman Supp. Decl., ¶¶
11-12, 14, Ex. 2.
Rowe and Akobian’s hours
were incurred solely to prepare the motion for attorney fees. Reisman Decl., ¶¶ 39, 48, Ex. 15; Darmer
Decl., ¶15, Ex. 10; Darmer Supp. Decl., ¶4; Reisman Supp. Decl., ¶¶ 11-12, 14,
Ex. 2. 7.5 of Darmer’s pre-reply hours,
7.5 of Reisman’s pre-reply hours, and her 5 added hours on reply were also
spent on the fee motion. Darmer Decl.,
¶15, Ex. 10; Reisman Supp. Decl., ¶¶ 11-12, 14, Ex. 2.
(2). CLA SoCal
(a) Reisman
Reisman spent 136.3 hours on the
Appeal, 7.5 to work on the moving papers for the fee motion, and 5 hours on the reply.
Reisman Decl., ¶¶ 39, 48. Ex. 15; Reisman Supp. Decl., ¶¶ 11-12, 14, Ex. 2.
Reisman’s billings
include 20.3 hours related to a moot court from March 14 to 21, 2023. Reisman Decl., ¶39, Ex. 15. The City asserts that moot court is more
appropriate for inexperienced attorneys, often current law students. Id.; Opp. at 12. The court agrees. The City argues that these entries include
other forms of trial preparation. Reply
at 8; Reisman Decl., ¶33. The hours of
preparation in entries that do not include moot court are sufficient. Reisman Decl., ¶39, Ex. 15. The 20.3 hours are disallowed.
Reisman spent two hours
on August 19, 2022 to discuss “next steps” with co-counsel. Opp. at 11; Reisman Decl., ¶39, Ex. 15. The City alleges Reisman spent another 33.1
hours talking to her office colleagues. Opp.
at 11. Although the City does not cite
entries, numerous entries do involve discussions with Laughton alongside other
tasks. Reisman Decl., ¶39, Ex. 15.
The City requests the
court to disallow hours for interoffice communication based on its award
order. Opp. at 11. Such communication was a byproduct of
overstaffing. The request to disallow
35.1 hours for attorney communication is granted.
On March 22, 2023,
Reisman billed 4.5 hours to travel to and attend oral argument in appellate
court and to update co-counsel afterwards.
Reisman Decl., ¶39, Ex. 15. The
City argues Reisman’s offices are only 13 minutes from the appellate
courthouse, and the hearing was 55 minutes long. Even with a wait time of 30 minutes on either
side of the hearing, this entry appears to seek two hours for discussion with co-counsel. Opp. at 12.
Kennedy cites Roe v.
Halbig (2018) 29 Cal. App. 5th 286, 313, that attorney’s fees for travel
hours may be awarded if the court determines they were reasonably incurred and the
City cites no authority that travel time must be based on distance from
counsel’s office to the courthouse.
Reply at 8-9. Kennedy does not
explain how travel hours can be reasonable if the location of counsel’s office
suggests that they are not. The two
hours are disallowed.
The City asks the court
to disallow 25.3 hours from Reisman and Laughton’s billings, 12.9[5]
of those from Laughton, based on time spent on the motion for judicial notice. Opp. at 11, 13. This would mean Reisman purportedly spent
12.4 hours on the motion for judicial notice, but the court has identified 17.7
hours related to this motion. Reisman
Decl., ¶39, Ex. 15.
The parties dispute
whether Kennedy prevailed on the motion when the appellate court did not rule
on it. Opp. at 11; Reply at 6-7. The relevant question is whether opposing the
motion was a reasonable step. The City
does not dispute that it was.
The City then argues
the hours billed for preparing the opposition are excessive given that the motion
for judicial notice concerned the addition of only an appellate brief and
appellate docket. Opp. at 10-11; RJN Ex.
3. Kennedy responds that the City sought
to improperly have the appellate court judicially notice the City’s own
assertions in past proceedings as true.
Reply at 7; RJN Ex. 4, pp. 11-12.
This does not explain
why it took Kennedy so many hours to oppose.
Judicial notice is a simpler concept, and the arguments Kennedy made are
not complicated. 5.4 hours for Reisman are
disallowed as excessive.
The City argues 75.5
hours of Laughton and Reisman’s work on the appellate opposition brief was
duplicative. Opp. at 12-13. For example, on four separate days, Reisman
billed between 5 and 7.6 hours working on the brief while Laughton spent
another 4.8 to 6.3. Reisman Decl., ¶48, Ex. 15.
Kennedy explains these hours were
not incurred on the same issues. Opp. at
12. CLA SoCal attorneys would research
and draft different sections of the brief, provide feedback and edits to each
other, and collect and integrate the sections written by co-counsel. Reisman Decl., ¶32. This does not make their work
duplicative.
Kennedy also argues that the City
made the appeal complicated when it made a variety of arguments about whether
Kennedy was a proper intervenor (RJN Ex. 2, pp. 25, 27, 31-33), whether it
could obtain a form of relief when the State could not (RJN Ex. 2, pp. 33, 35),
whether it met the requirements of section 1021.5 (RJN Ex. 2, pp. 36, 37-38,
40), and whether the asserted attorney’s fees were reasonable (RJN Ex. 2, pp.
47-49). The appellate court held the
City had abandoned arguments as to intervention and challenges to specific items
on billing statements. RJN Ex. 7, pp.
5-6, 13, n. 1. Because the City included
them and made gross misstatements of fact and law, Kennedy had to take
painstaking efforts to respond. Reply at
4.
Multiple attorneys working on different
sections of the same brief does not mean the work was duplicative. However, the number of hours asserted by
those attorneys was excessive. Reisman,
Laughton, and three other attorneys (see post) all bill for an
opposition brief to an appeal
from an attorney fee award where the elements of section 1021.5 were
established in Kennedy’s favor. 10 of
Reisman’s hours for the Appeal are disallowed as excessive.
For the attorney fee
motion, Reisman spent 1.5 hours drafting the memorandum on September 6, 2023. Reisman Decl., ¶39, Ex. 15. The City argues this is duplicative because
Rowe also spent 23.6 hours drafting it.
Opp. at 12. A modest amount of
time spent by the supervising attorney at the beginning of the drafting process
seems reasonable. The 1.5 hours are not
disallowed.
Reisman’s reasonable
hours spent on Appeal are reduced to 136.3 –
20.3 – 35.1 – 2 – 5.4 – 10 = 63.5. Reisman’s
12.5 hours spent on the fee motion are not reduced.
(b). Laughton
Laughton spent 109.6 hours on the Appeal. Reisman Decl., ¶¶ 39, 48, Ex. 15.
The City asserts none
of Laughton’s hours are credible because she is not the attorney of record and
is not listed on appellate court documents.
Opp. at 13. However, Laughton is
listed on both the opposition to the motion for judicial notice and the
opposition on the merits of the appeal.
Reply at 7; RJN Ex. 4, p. 1; RJN Ex. 6, p. 1. More important, the City cites no authority
suggesting that an attorney need be an attorney of record for their fees to be
awarded. Reply at 7.
The City then asserts
none of Laughton’s time was verified in any declaration. Opp. at 13.
Laughton no longer works at CLA SoCal, and Reisman does not have
personal knowledge of Laughton’s work. Id.;
Reisman Decl., ¶16. The City cites Ajaxo
Inc. v. E*Trade Group Inc. (“Ajaxo”) (2005) 135 Cal.App.4th 21, 65,
as concluding that a declaration from a current attorney insufficient to
demonstrate the reasonableness of hours billed by a former attorney. Opp. at 10.
In Ajaxo, the
appellant’s former counsel did not submit declarations indicating the work it had
done to support an attorney fee. 135
Cal.App.4th at 65. Ajaxo had the general
burden of introducing evidence to prove that the fees it sought for its prior
counsel's work were reasonable. Id. Ajaxo only submitted a declaration
with conclusions about the attorneys, their rates and hours, and resulting
fees. Id. It failed to submit any evidence detailing
the services each of these attorneys provided and the trial court did not abuse
its discretion in declining to award fees for Ajaxo’s prior counsel. Id.
In contrast,
CLA SoCal explained that it generated Laughton’s proposed hours (Reisman Decl.,
Ex. 15) based on contemporaneous records of the work attorneys performed in
six-minute increments. Reisman Decl.,
¶29. This is sufficient evidence.
The City reiterates
its request for the court to disallow the 12.9 hours spent on the opposition to
the motion for judicial notice. Opp. at
12. The court has identified only 11.6
of Laughton’s hours related to such activities.
Reisman Decl., ¶¶ 39, 48, Ex. 15.
As discussed above, the simplicity of the motion renders most of these
hours for Reisman and Laughton excessive.
9.6 of Laughton’s hours are disallowed.
Most of Laughton’s
other hours pertain to work on the opposition brief for the Appeal. Reisman Decl., ¶48, Ex. 15. The City asks how an experienced attorney
would need 64.3 hours reviewing and revising this brief after Reisman worked on
it. Opp. at 13. As discussed above, five attorneys working on
the brief is inherently excessive and the number of hours they have billed also
is excessive is given the Appeal’s simplicity.
55 of these hours are disallowed.
The City also
disputes the reasonableness of Laughton’s final entries in November 2022 for
analyzing reply briefs and drafting a summary.
Reisman Decl., ¶48, Ex. 15. The 3.9
hours she spent in this effort could not help Kennedy because she left CLA
SoCal before oral arguments began. Opp.
at 13. This argument assumes another
attorney could not have used her notes.
These hours are not disallowed.
Laughton’s hours are
reduced to 109.6 – 9.6 – 55 = 45
hours.
(c). Rowe
Rowe spent 25.2 hours on the motion for attorney fees
and another 25.3 hours on the reply, a total of 50.5 hours. Reisman Decl., ¶¶ 39, 48, Ex. 15; Reisman
Supp. Decl., ¶¶ 11-12, 14, Ex. 2.
The City asks the court
to cut Rowe’s time by 15 hours, reducing it to 10.2 hours. Opp. at 13-14. The City asserts that Rowe spent 3.9 hours in
meetings to strategize about the motion.
Opp. at 13. The court only
identified a 0.2-hour meeting on July 27, 2023, and 3.3 more hours of meetings
after September 7, 2023. Reisman Decl.,
¶48, Ex. 15. These 3.5 hours are
disallowed. This reduces the number of
hours to 25.2 – 3.5 = 21.7.
The City then asks why
Rowe spent 23.6 hours drafting the fee motion after Reisman spent 1.5 hours
drafting it. Opp. at 13. Although the precise number is not correct,
the question is valid. Kennedy did not
need to spend as much time on an entitlement argument because it was based on
this court’s previous finding of entitlement.
Reisman’s 1.5 hours likely were not enough to prepare the complete draft,
but Rowe’s 21.7 hours were excessive. The
court disallows 10.5 hours, which reduces the pre-reply hours to 10.2.
The City never had an
opportunity to dispute Rowe’s 25.3 hours spent on reply. Reisman Supp. Decl., ¶¶ 11-12, 14, Ex. 2. They are also excessive and should not be greater
than or even equal to the hours spent on the moving papers. These reply hours are reduced to 5.2 hours.
Rowe’s reasonable hours
total 10.2 + 5.2 = 15.4.
(d). CLA SoCal’s Lodestar
The hours CLA SoCal
spent on the Appeal total 63.5 + 45 = 108.5.
Based on the blended rate of $568.33, CLA SoCal’s lodestar equals $568.33 x 108.5 = $61,663.81.
CLA SoCal spent 12.5 + 15.4
= 27.9 hours on the motion for attorney fees.
The recoverable fees for this motion total 27.9 x $568.33 = $15,856.41.
(3). Jones Day
Akobian’s 14 hours on
the motion for attorney fees are not in dispute. Darmer Supp. Decl., ¶4.
(a). Darmer
After conceding 0.5 of
his originally asserted hours were improper, Darmer spent 9.5 hours on the Appeal and 7.5 on the fee
motion. Darmer Supp. Decl., ¶4.
Darmer spent one hour
drafting the opposition to the motion for judicial notice, plus 0.75 hours on
follow-up activities. Darmer Decl., ¶15,
Ex. 10. The City asks the court to
disallow the one-hour entry. Opp. at 14. The hours billed on the opposition to the motion
for judicial notice are excessive due to its simplicity. With four hours between Reisman and Laughton
allowed as reasonable, Darmer’s hour is disallowed.
Darmer’s other hours on
the Appeal involve either emails with co-counsel or reviewing or commenting on a
document. Opp. at 14; Darmer Decl., ¶15,
Ex. 10. Both activities emphasize the
duplicative nature of the hours Darmer, Reisman, Laughton, Rawson, and Castellanet
accrued by all working on the opposition brief.
Opp. at 14. “Reviewing and
commenting” suggests that Darmer’s hours are not particularly relevant to the
merits of the opposition, and these hours are disallowed. Only 0.75 of the hours Darmer spent on Appeal
are reasonable.
The City did not
challenge the 7.5 hours Darmer spent on the fee motion, except to the extent
that it asks for elimination of all his hours.
Opp. at 14. Between Rowe’s 20.4
approved hours and Akobian’s undisputed hours, Darmer’s work on the fee motion was
unnecessary. His 7.5 hours are
disallowed.
(b). Chen
Chen spent 1.25
hours. Darmer Decl., ¶15, Ex. 10.
Chen spent 0.25 hours
in March 2022 reviewing a notice of default entry and 1 hour in August 2022 in
a conference call with co-counsel regarding motions and strategy. Darmer Decl., ¶15, Ex. 10. The City asks why Chen’s conference call was necessary
when she did no other work on the Appeal.
Opp. at 14. The court agrees. The one hour Chen spent in a conference call
is disallowed. Chen’s hours are reduced
to 0.25.
(c). Conclusion
The hours Jones Day
spent on the Appeal total 0.75 +
0.25 = 1. Its lodestar totals $725 x 1 =
$725. Akobian’s work on the motion for
attorney’s fees incurred fees of $725 x 14 = $10,150.
(4). PILP
(a). Castellanet
Castellanet spent 86.1 hours. Rawson Decl., ¶25, Ex. 12.
The City asserts
Castellanet billed 3.5 hours before a briefing schedule was assigned and any
briefs were filed. Opp. at 14. It argues that he was “preparing, drafting,
and doing nothing” during that time.
Opp. at 14-15.
Castellanet only billed
2.2 hours, not 3.5 hours, before
August 18, 2022, which was the day the City filed its first appellate
briefs. Rawson Decl., ¶25, Ex. 12; RJN
Exs. 1-2. Kennedy does not explain why
these hours represent billable work before there was any briefing on the
merits. These 2.2 hours are disallowed.
The City asserts that Castellanet
spent 6.6 hours writing memos between lawyers.
Opp. at 15. The court has
identified 12 hours after August 18, 2022 for drafting memos. Rawson Decl., ¶25, Ex. 12. The requested 6.6 hours of interoffice
communication are disallowed.
The City also
asks why Castellanet spent 0.9 hours sending memos about Kennedy’s opposition
brief on October 4, 2022, the day it filed the brief. Opp. at 15; Rawson Decl., ¶25, Ex. 12. The intercommunication between attorneys
reflects the duplicative nature of retaining excessive counsel. The 0.9 hours are disallowed.
The City notes that Castellanet’s
remaining hours were spent drafting and reviewing the same opposition brief that
Laughton and Reisman worked on. Opp. at
15; Rawson Decl., ¶25, Ex. 12. As discussed above, the nature of the Appeal
and the number of attorneys and hours supports the inference that some of these
hours are duplicative. 20 of these hours
are disallowed.
Castellanet’s reasonable hours total
86.1 – 2.2 – 6.6 – 0.9 – 20 = 56.4 hours.
(b). Rawson
Rawson spent 27.90
hours. Rawson Decl., ¶25, Ex. 12. Every entry related to either review,
research, or meeting with co-counsel. Opp.
at 15; Rawson Decl., ¶25, Ex. 12. The
City requests that all Rawson’s hours be disallowed. Opp. at 15.
As discussed above, interoffice
communications are disallowed as part of the duplicative nature of hiring
multiple firms. Further, because this
court has allowed hours from three other attorneys for preparing the opposition
brief for the Appeal, any more would be duplicative. The request to disallow all of Rawson’s hours
is granted.
(c). Conclusion
PILP’s lodestar is $675 x 56.4 = $38,070.
c. Conclusion
The lodestar from all
three firms totals $61,663.81 + $725 + $38,070 = $100,458.81. Attorney fees for preparing this motion total
$15,856.41 + $10,150 = $26,006.41.
E.
Conclusion
Kennedy’s
motion for attorney fees is granted in the amount of $100,458.81 + $26,006.41 = $126,465.22.
[1] All
further statutory references are to the Government Code unless otherwise
stated.
[2] Although
the laws at issue govern zoning by other local government agencies, the court
shall refer to cities for convenience.
[3] RHNA is the statutory
process to identify the total number of housing units (by affordability)
allocated to each jurisdiction for planning purposes. As part of this process,
the California Department of Housing and Community Development (“HCD”), through its
regional sub-agencies, identifies the total housing need allocated to each city
for an eight-year period.
[4] The
court has ruled on the parties’ written evidentiary objections, sometimes
overruling an objection under Fibreboard Paper Products Corp. v. East Bay
Union of Machinists, Local 1304, Seelworkers of America, AFL-CIO, (1964)
227 Cal.App.2d 675, 712 (court may overruled objection if any portion of
objected to material is admissible). The
clerk is directed to electronically scan and file the court’s rulings.
Kennedy requests judicial notice of (1) the Registrar
of Actions for the California Court of Appeal case City of Huntington Beach
v. The State of California et al., (“Appeal”) Case No. G061184 (RJN Ex. 1);
(2) the City’s opening brief in the Appeal, filed on August 18, 2022 (RJN Ex.
2); (3) City’s Motion to Take Judicial Notice in the Appeal, filed on August
18, 2022 (RJN Ex. 3); (4) Kennedy’s opposition to that motion, filed on
September 2, 2022 (RJN Ex. 4); (5) a letter from the State of California,
Governor Gavin Newsom and Attorney General Rob Bonta filed in the Appeal on
September 12, 2022 (RJN Ex. 5); (6) Kennedy’s opposition for the Appeal, filed
on October 4, 2022 (RJN Ex. 6); and (7) the unpublished opinion for the Appeal,
issued June 14, 2023 (RJN Ex. 7).
The City objects that the court cannot judicially notice
allegations in affidavits, declarations, briefings because such matters are
reasonably subject to dispute. RJN Opp.
at 3-5, 6-7. Kennedy does not seek judicial
notice of the facts in the appellate briefings, only that the issues and
alleged facts were presented on appeal.
RJN Reply at 3. The court may take judicial notice of the existence of a
court document, but not its truth. Sosinsky
v. Grant, (1992) 6 Cal.App.4th 1548, 1551.
The City also asserts that the Registrar of Actions (RJN
Ex. 1) cannot be judicially noticed because it is not an actual court
filing. RJN Obj. at 4-5. Not so.
The court can judicially notice a Registrar of Actions under Evid. Code
section 452(d). RGC Gaslamp, LLC v.
Ehmcke Sheet Metal Co. (2020) 56 Cal.App.5th 413, n. 2. RJN Reply at 1-2.
The City argues the court should not judicially notice
the September 12, 2022 letter (RJN Ex. 5) because it contains hearsay and lacks
foundation. RJN Opp. at 6. It admits this letter was filed in the
Appeal. While the court can judicially notice the existence of this court document,
it is offered for its truth. Kennedy has
offered to withdraw this request for judicial notice and it is withdrawn. See RJN Reply at 4.
The City argues that it is unnecessary to judicially notice
the appellate court’s opinion (RJN Ex. 7).
RJN Opp. at 5-6. Whatever the
reason, the court can judicially notice an unpublished appellate opinion. Gilbert v. Master Washer & Stamping Co.
(2001) 87 Cal.App.4th 212, 217, n. 14.
RJN Reply at 2.
The requests to judicially notice Exhibit Nos. 1-4 and
6-7 are granted. Evid. Code §452(d).