Judge: James C. Chalfant, Case: 21STCP00834, Date: 2023-02-09 Tentative Ruling
Case Number: 21STCP00834 Hearing Date: February 9, 2023 Dept: 85
Communities for a
Better Environment and Ramona Quezada v. Huntington Park, City Council, and
Ricardo Reyes, 21STCP00834
Tentative decision on motion
for attorney’s fees: granted in part
Petitioners
Communities for a Better Environment (“CBE”) and Ramona Quezada (“Quezada”)
move for an award of attorney’s fees from Respondents City of Huntington Park (“City”), the Huntington Park
City Council (“Council”), and Ricardo Reyes in his capacity as City Manager of
Huntington Park (collectively, “City”).
The
court has read and considered the moving papers, opposition, and reply,[1] and
renders the following tentative decision.
A. Statement of the Case
1. Petition
On
March 15, 2021, Petitioners filed a Petition for writ of mandate and Complaint
for declaratory and injunctive relief (“Petition”). The Petition alleged in pertinent part as
follows.
Huntington
Park is a densely populated city of no more than three square miles with a
97.1% Latino population. Vacancy rates in
the City have decreased significantly and continue to decrease, with 20% of all
renters living in severely overcrowded conditions and 23.6% of the population
living below the poverty threshold. These
facts combined with high housing costs have created severe housing burdens. The City has no homeless shelter despite an
increasing homeless population.
The
City has spurned proposals to build affordable multi-family rental housing and
insists that it needs to increase the level of homeownership. As the City receives funds from a federal community
development block grant, it must create a consolidated plan addressing the
housing issue. Its draft plan for
2020-2024 favors a first-time homebuyer program despite the fact that the
renter population faces severe overcrowding and affordability issues.
The
low-income and racial minority communities in the City bear a disproportionate
burden of pollution and associated health risks. The City is adjacent to an industrial city,
Vernon, and faces exposure to bio-persistent toxic emissions from its
factories. There also are emissions from
heavy truck traffic passing on the I-710 freeway. When combined with the high rates of asthma
and cardiovascular disease of its residents, the City has a high CalEnviroScore
reflecting a vulnerable population. The
lack of new, affordable, safer multi-family housing is an environmental
injustice impacting the community.
The
City missed its October 15, 2013 deadline to adopt its 2013-2021 Housing
Element. When it finally did adopt a Housing
Element on May 29, 2019, it did so without soliciting public input or
submitting a draft to the state Department of Housing and Community Development
(“HCD”). In December 2019, HCD replied
that the City’s Housing Element (1) lacked a site-specific inventory of land to
accommodate the City’s Regional Housing Needs Allocation (“RHNA”), (2) did not
report and analyze implementation of the Cycle Housing Element programs, (3) did
not evaluate employment trends or quantify the need for affordable housing, (4)
inadequately analyzed various constraints on housing developments, (5)
inadequately analyzed special housing needs in the City, (6) inadequately
provided for programs to remove constraints on housing development, (7) did not
establish a program to make sites available to accommodate the RHNA, (8) permitted
manufactured housing in the same areas as conventional housing, (9) did not
promote or further fair housing, (10) did not describe specific public
participation efforts regarding the Housing Element, and (11) quantified the
number of units to construct and conserve over the planning period. The Housing Element had deadlines that
already had passed by the time the City adopted it. The City also has failed to
provide mandatory Annual Progress Reports since 2014 or to implement some of the
programs in the Housing Element.
The
City’s general plan does not have an environmental justice element, which has
been required since 2018. The land use element
does not include a mandatory analysis of the needs of a fringe community within
its sphere of influence.
Finally,
the City has discriminated against the disabled and communities of color
through implementation of housing and land use policies. City leaders have expressed hostility and
perpetuated stereotypes about these communities when discussing proposals for
affordable housing. The City has added
an array of requirements for emergency shelters, making them difficult to
build.
Petitioners
seek a writ of mandate compelling Respondents to (a) adopt a Housing Element that complies with state law, (b)
implement programs 2, 10, and 13 in the 2019 adopted Housing Element, (c) allow
supportive housing by right where multifamily and mixed-use developments are
allowed, (d) prepare and submit a 2019 Annual Progress Report, (e) cease
discrimination against disability and low-income housing, (f) affirmatively
further fair housing, (g) amend the City’s land use element to include the
analysis required by Government Code section 65302.10, and (h) amend the City’s
general plan to include an environmental justice element or integrate
environmental justice objectives. Petitioners
further seek injunctive relief enjoining Respondents from taking any action
that illegally discriminates against those in need of affordable housing and seek
declaratory relief that the City and its May 2019 Housing Element do not comply
with state law.
2. Course of
Proceedings
On
March 18, 2021, Petitioners served Respondents with the Summons and Petition.
On
April 15, 2021, Respondents filed an Answer.
On
May 2, 2022, Respondents filed a proposed confession of judgment agreeing to
(1) meaningfully engage with Petitioners throughout the process of developing
an updated Housing Element and an environmental justice element, and (2) file
supplemental briefing with the court regarding the date of execution, return,
and Petitioner’s request for injunctive relief.
On
May 24, 2022, Petitioners filed a request for dismissal of the fourth, seventh,
and tenth causes of action without prejudice.
On
June 7, 2022, the court considered cross-briefs on proposed timelines for
compliance with Govt. Code sections 65008 and 8899.50 and rendered a decision
as to the final timeline.
On
July 7, 2022, the court ordered that any proposed judgment include good cause
extension prospects and be approved as to form by opposing counsel. The court signed an orally modified version
of proposed judgment at an Order to Show Cause Re: Judgment hearing on July 14,
2022.
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.¿
C. Statement of Facts
1. Petitioners’
Evidence
a. Public
Interest Law Project
PILP is a non-profit that focuses
on affordable
housing and public benefits, does not charge clients, and relies solely on
attorney fees awards for funding. Feldman
Decl., ¶12. Because of this, any fees
granted through this motion will inure to PILP to support other advocacy
cases. Feldman Decl., ¶24.
Valerie Feldman, Esq.
(“Feldman”) was admitted to the bar in 2000.
Feldman Decl., ¶3. Since she became
a Public
Interest Law Project (“PILP”) staff attorney in January 2016, she has been lead
counsel on multiple affordable housing and land use cases. Feldman Decl., ¶5.
Melissa Morris, Esq.
(“Morris”) has practiced housing law since 2004 and developed expertise
therein. Feldman Decl., ¶25. She joined PILP in January 2018, where she
litigates in state and federal court and advocacy training on affordable
housing, fair housing, renters’ rights, California public benefits programs,
disability rights, and civil rights of people experiencing homelessness. Feldman Decl., ¶¶ 25-26.
b. CBE
CBE is a non-profit environmental
health and justice organization that has fought to address environmental
justice issues for 40 years. Ganata
Decl., ¶2. The organization has 6,000
members across the state, many of whom in Los Angeles County. Ganata Decl., ¶16.
CBE does not charge clients
for fees and depends on fee awards to continue serving clients. Ganata Decl., ¶17. As far as CBE knows, this is the first case
that challenges the Govt. Code compliance of a jurisdiction’s environmental
justice element. Ganata Decl., ¶19. This case required CBE to research laws
related to the City’s general plan and legal obligations to develop a Housing
Element and environmental justice element.
Ganata Decl., ¶19.
Jennifer Ganata, Esq. (“Ganata”)
has been an attorney since 2010 and a CBE Senior Staff Attorney since September
2018. Ganata Decl., ¶¶ 2, 5, Ex. C. She has litigated under the California
Environmental Quality Act (“CEQA”) and Housing Element Law to
protect the health of both low-income communities and their surrounding environment. Ganata Decl., ¶6.
Idalmis Vaquero, Esq. (“Vaquero”) graduated
from the University of California at Los Angeles School of Law in May 2021,
joined CBE in September 2021, and joined the state bar in December 2021. Vaquero Decl., ¶¶ 9-10.
Jamie Hearn (“Hearn”) is currently
the Superfund Program Manager at the Duwamish River Coalition based in Seattle,
Washington. Ganata Decl., ¶12. She was a CBE legal clerk from May 2021 to
December 2021 before she graduated from law school in May 2022. Ganata Decl., ¶¶ 12-13, Ex. H. As a CBE clerk, she helped research and write
memoranda on environmental law and land uses critical to drafting the documents
in this case. Ganata Decl., ¶14.
c. Disability Rights
California
Disability Rights California (“DRC”)
is a non-profit that has spent 40 years advocating for the rights of those with
disabilities and provides free legal services to their families. Grewal Decl., ¶¶ 2-3. This involves crossover with many areas of
law, including education and housing.
Grewal Decl., ¶4. DRC was counsel for Quezada in this
case. Grewal Decl., ¶¶ 11, 13. Because
DRC does
not charge clients, any fees awarded will inure to DRC to support other
advocacy cases. Grewal Decl.,
¶12.
Navneet Grewal, Esq. (“Grewal”) is
DRC’s litigation counsel and leads its impact litigation casework. Grewal Decl., ¶2. She graduated from New York University School
of Law in 2007. Grewal Decl., ¶6, Ex.
A. She has extensive expertise in housing
litigation and advocacy. Grewal
Decl., ¶¶ 7-8.
Lucia Choi, Esq. (“Choi”) is a seventh-year
attorney with extensive housing experience, including unlawful detainer
actions, administrative hearings, and writs of mandate proceedings. Grewal Decl., ¶13, Ex. D.
Natasha Reyes, Esq. (“Reyes”) was a DRC
staff attorney from October 2016 through February 2021. Grewal Decl., ¶14. She has experience advocating for municipal
zoning reforms to reduce barriers to affordable housing. Grewal Decl., ¶14, Ex. F.
Heidi Joya, Esq. (“Joya”) was a DRC staff
attorney from June 2018 through February 2021 who specialized in California
Public Records Act (“CPRA”) requests.
Grewel Decl., ¶15, Ex. H.
2. Merits
The City is 6.5 miles south of
downtown Los Angeles and adjacent to the industrial City of Vernon and other
sources of pollution. Ganata Decl., ¶4. Most of the housing is old enough that the
City struggles with high lead contamination rates. Ganata
Decl., ¶4.
The City is a priority area for
CBE. Ganata Decl., ¶4. Ganata learned that the City has a non-compliant
Housing Element when she joined CBE in 2018.
Ganata Decl., ¶20. She soon after
learned that it also had no environmental justice element. Ganata Decl., ¶20. She asked City staff for information on the
City’s plans as to both general plan elements via demand letter but received no
response. Ganata Decl., ¶20.
On September 23, 2020, the City sent
a letter responding to HCD’s concerned about the City’s non-compliance for its Fifth
Cycle Housing Element. Feldman Decl.,
¶34, Ex. F. The City explained that its
high density leads to several challenges and constraints. Feldman Decl., ¶34, Ex. F. The decisions that former leadership made
over the last 20 years created several problems, and the COVID-19 pandemic
added to it. Feldman Decl., ¶34, Ex.
F. Despite this, the City has a rich
history of supporting affordable housing development, including 14 projects
with 557 affordable units during those 20 years. Feldman Decl., ¶34, Ex. F. The City did not want to focus on the non-compliant
Housing Element before it took time to address the additional challenges and
burdens it faced. Feldman Decl., ¶34,
Ex. F. It therefore asked for four
months to address the Housing Element as its Ad Hoc Housing Committee worked to
address current issues. Feldman Decl.,
¶34, Ex. F.
In March 2021, the Attorney General
notified the City by letter that it had failed to comply with Govt. Code
section 65302 by failing to adopt a compliant environmental justice element
with revisions to its general plan.
Feldman Decl., ¶35, Ex G. The
Attorney General had warned the City multiple times, but the City had not taken
any steps towards compliance. Feldman
Decl., ¶35, Ex G. The letter urged the
City to take immediate steps to comply and to discuss the matter with the Attorney
General if it so chose. Feldman Decl.,
¶35, Ex G.
Throughout 2021 and 2022, the City
struggled to get people to attend meetings to discuss development of the environmental
justice element. Feldman Decl.,
¶21. Its outreach efforts were
insufficient to garner public participation, and it adopted the environmental
justice element on November 15, 2022 in a City Council meeting without any
public comment. Feldman Decl.,
¶21.
CBE’s success in this case will have
a positive impact on the City and other communities in the state. Eng Decl., ¶12. An environmental justice element will compel
the City to develop policies, programs, and goals that reduce exposure to
harmful pollution, increase access to parks, and improve access to healthy food
options. Eng Decl., ¶13. This will reduce the disproportionate
environmental burdens of communities.
Eng Decl., ¶13. This case has
created precedent about the nexus between housing and environmental justice. Eng Decl., ¶17.
c. Course of Proceedings and Work
Product
When PILP first worked on this case,
Morris was the lead attorney until Feldman joined the team in 2020. Feldman Decl., ¶13. Petitioners’ counsel drafted a Petition with ten
causes of action, a 25-page opening brief addressing seven of them, and a request
for judicial notice. Feldman Decl., ¶21.
This required review of 5000 pages of
evidence. Feldman Decl., ¶21.
In early stages, DRC staff focused
on edits to demand letters and the Petition.
Grewal Decl., ¶11. DRC drafted
sections of the opening brief connected to the City’s reasonable accommodation
ordinance and permanent supportive housing, as well as the duty to
affirmatively further fair housing and land use discrimination. Grewal Decl., ¶11. Choi drafted sections of the briefs that
discussed emergency shelters and transitional housing. Grewal Decl., ¶13.
As to efforts to garner public
participation in the development of an environmental justice element, CBE continuously
reminded the City that it needed to provide public information materials in
Spanish. Ganata Decl., ¶22. CBE counsel would also communicate with opposing
counsel and the Attorney General to gather and disseminate information about public
meetings and deadlines. Ganata Decl.,
¶23. Ganata also participated in public
meetings and provided the Attorney General with updates on the litigation. Ganata Decl., ¶23. Vaquero drafted comprehensive comments about
the City’s public outreach efforts and early drafts of the element. Ganata
Decl., ¶23.
In October 2021, the City proposed a
stay to explore a resolution to the claims.
Feldman Decl., ¶17. Petitioners
agreed to two extensions to the City’s deadline to file its opposition before
they agreed on what topics and policies would be part of the negotiations. Feldman Decl., ¶17. Feldman drafted several Memoranda
of Understanding (“MOU”) throughout this process. Feldman Decl., ¶17. The last, on December 17, 2021, included
settlement terms with a deadline of January 6, 2022.
Feldman Decl., ¶18. Because the
City did not respond, Feldman sent a reminder email on January 3, 2022. Feldman Decl., ¶19. Although the parties had a settlement call
sometime after, the MOU expired. Feldman
Decl., ¶19.
Feldman helped edit the City’s confession
of judgment to reflect all the writ claims in this action. Feldman Decl., ¶20. She helped draft the supplemental
brief about the judgment, the proposed judgment, and writ of mandate. Feldman Decl., ¶20. Feldman also attended status conferences on April
7 and 21, 2021, June 7, 2021, and July 7 and 14, 2022. Feldman Decl., ¶20.
On June 14, 2022, Petitioners sent
the City a proposed judgment and writ of mandate. Feldman June 30, 2022 Decl., ¶4. On June 27, 2022, counsel for City indicated
via email that it would respond by the end of that day. Feldman June 30, 2022 Decl., ¶5. Feldman replied that the City should notify
whether it had any objections to the proposed writ by day’s end; it did not do
so. Feldman June 30, 2022 Decl., ¶¶
5-6.
On July 11, 2022, after the court
ordered Petitioners to amend the proposed judgment to include a good faith
exception, the City sent proposed revisions.
Feldman July 12, 2022 Decl., ¶8.
Counsel for Petitioners felt the revisions to the timeline for escalating
injunctive relief were too extensive and Petitioners made additional revisions
accepting some but not all of the City’s revisions. Feldman July 12, 2022 Decl., ¶12. The City replied that it did not agree with Petitioners’
proposed amendments. Feldman July 12,
2022 Decl., ¶13. Because Petitioners
felt that further negotiation on the injunctive relief schedule would lead to
delay, it filed an amended proposed judgment and writ of mandate. Feldman July 12, 2022 Decl., ¶14. On July 14, 2022, the court signed
Petitioners’ proposed judgment and deleted the good cause exemption language. Id.
2. The City’s
Evidence[2]
On February 20, 2013,
the Los Angeles Metropolitan Transportation Authority awarded the City a
Transit Oriented Development Grant for the preparation of the focused General
Plan Update. Infanzon Decl., ¶3. The City released a Request for Proposal to
qualified firms to assist the City in preparing the General Plan Update. Infanzon Decl., ¶4.
On February 17, 2015,
the City entered into an agreement with Tierra West Advisors, Inc. (“Tierra
West”) to engage in the focused General Plan update. Almazan Decl., ¶10; Infanzon Decl., ¶5. In October 2015, the City agreed to move
forward with a plan from Tierra West.
Infanzon Decl., ¶6. The City
thereafter never stopped working on the development of the draft General Plan
Update or with it the Fifth Cycle of the Housing Element; there are hundreds of
City documents to that effect. Infanzon
Decl., ¶¶ 20-21.
Hundreds of documents
corroborate and support the work done in the community, the partnership with
CBE, and its involvement during the process to develop the draft general plan
update that included the Housing Element.
Infanzon Decl., ¶14.
On March 7, 2019, the
City provided a copy of the City’s draft Housing Element to HCD via Melinda Coy
(“Coy”). Infanzon Decl., ¶27. She replied via voicemail on April 4 with
next steps and a checklist for evaluating the element. Infanzon Decl., ¶¶ 28-29. On May
13, 2019, City staff had an in-person meeting with Coy. Infanzon Decl., ¶30. She remained in contact thereafter to
identify steps for the City to comply.
Infanzon Decl., ¶31; Almazan Decl., ¶12.
On May 29, 2019, the
City adopted its Fifth Cycle Housing Element.
Almazan Decl., ¶6.
On June 26, 2019, the
City provided CBE a copy of the General Plan Update with the Fifth Cycle
Housing Element. Infanzon Decl.,
¶32. On July 9, 2019, City staff met
with Ganata to discuss CBE’s concerns.
Infanzon Decl., ¶33. After this
meeting, CBE only sent three letters to City staff, two of them during the
COVID-19 pandemic. Infanzon Decl., ¶¶
35-38. The City remained open to meeting
CBE to address its concerns. Infanzon
Decl., ¶39.
On September 11, 2019,
the City sent the draft Fifth Cycle Housing Element to the HCD for an informal
review. Almazan Decl., ¶6. Compliance with state law thereafter became a
challenge due to the COVID-19 pandemic.
Almazan Decl., ¶7.
In 2020, the City and
HCD agreed to 13 Housing Element milestones.
Almazan Decl., ¶8. On March 16,
2021, the City secured funding and entered an agreement with JHD Planning, LLC
(“JHD Planning”) to prepare the City’s Housing Element and any related actions
as may be necessary. Almazan Decl., ¶13.
On February 9, 2021,
the City had its first biweekly check-in meeting with HCD to discuss the status
and progress of the City’s Housing and Environmental Justice Elements. Almazan Decl., ¶19. There began a series of bi-weekly calls
between City staff, the City’s counsel, HCD, and two Attorney General divisions. Almazan Decl., ¶9.
The City submitted a
draft Housing Element to HCD on August 6, 2021 to ensure that it received HCD’s
comments by October 5, 2021. Almazan
Decl., ¶22.
On October 25, 2021, without
warning, JHD Planning sent the City a Notice of Termination wherein it
exercised an option to terminate their agreement. Almazan Decl., ¶14.
On November 5, 2021,
the parties in this action executed an MOU for negotiating a settlement
agreement. Almazan Decl., ¶20, Ex. F.[3] The City entered into other MOUs with (1) HCD
on November 8, 2021; and (2) the Attorney General on December 3, 2021. Almazan Decl., ¶21, Exs. G-H.
On November 16, 2021,
the City entered into a one-year agreement with Rincon Consultants, Inc.
(“Rincon”) to develop an Environmental Justice Element and ensure the City’s
compliance with Senate Bill 1000.
Almazan Decl., ¶15. One day
before it expired, the City held a public hearing to receive public testimony
and vote on whether to adopt the Environmental Justice Element Rincon had
developed. Almazan Decl., ¶15, Ex.
E. The City Council voted to adopt
it. Almazan Decl., ¶15.
On February 25, 2022
Rincon provided an initial assessment memorandum with steps to address HCD’s
comments. Almazan Decl., ¶17. Rincon provided a proposal for professional
services to the City on April 8, 2022.
Almazan Decl., ¶18.
As of February 14,
2022, none of the 27 member cities that are part of the Gateway Cities Council
of Governments (“GCCOG”) had a compliant Housing Element certified by HCD. Almazan Decl., ¶29. As of February 17, 2022, only three of the 200
cities in the Southern California Association of Governments (“SCAG”) had
adopted fully compliant Housing Elements, and 122 had not adopted any Housing
Element at all. Almazan Decl., ¶29.
Throughout 2022 and
2023, City Community Development Director
Steve Forster (“Forster”) had multiple written and phone communications with
various members of CBE counsel, HCD, and the Attorney General’s office. Forster Decl., ¶¶ 2-5.
3. Reply
Evidence
As with other cities,
Feldman spoke with Coy as the reviewer of the City’s proposed Housing Element several
times to voice concerns. Feldman Supp. Decl.,
¶8. Coy never mentioned HCD’s
interactions with the City. Feldman
Supp. Decl., ¶8.
On November 7, 2019, CBE
submitted comments to HCD regarding the City’s Housing Element and the City’s
failure to meet public participation requirements or provide required details. Ganata September 1, 2022 Decl., ¶17. On February 24, 2020, CBE wrote to the City’s
General Manager to ask about next steps for the Housing Element but never
received a response. Ganata September 1,
2022 Decl., ¶18. Demand letters on
November 11 and December 16, 2020 also received no response. Ganata September 1, 2022 Decl., ¶¶ 19-20.
On February 18, 2022,
CBE sent the City a letter via email regarding concerns with the public
participation in the development of the Environmental Justice Element. Ganata Supp. Decl., ¶6. On July 1, 2022, CBE sent another email about
the City’s technical report prepared in anticipation for the development of the
Environmental Justice Element. Ganata
Supp. Decl., ¶6. On July 18, 2022, the
City sent an email with the first draft of the Environmental Justice Element. Ganata Supp. Decl., ¶7. On July 26, Ganata asked for a version in
Spanish, which the City published two days later. Ganata Supp. Decl., ¶8.
On
August 13, 2022, CBE sent the City a comment letter as to the initial draft of
the City’s Environmental Justice
Element. Ganata
Supp. Decl., ¶9. On September 30, 2022,
the City sent a second draft Environmental Justice Element that did not
incorporate CBE’s comments. Ganata Supp.
Decl., ¶10. Similarly, when the CBE sent
another letter about revisions that this draft needed, the City adopted the
element on November
15, 2022 without any of the recommended revisions. Ganata
Supp. Decl., ¶11.
There were limited
circumstances in this case in which more than one law firm edited a document
before filing. Feldman Supp. Decl.,
¶9. Multiple attorneys reviewed Ganata’s
declaration in support of the opening brief because it had everyone’s
evidentiary exhibits. Feldman Supp.
Decl., ¶9. The opening brief also
required numerous hours because it covered seven causes of action in 25 pages. Feldman Supp. Decl., ¶10.
After judgment was
entered in this case, Petitioners’ counsel asked the City to stipulate to an
extension of time to file a motion for attorney’s fees to try and reach a
settlement and the City agreed. Feldman
Supp. Decl., ¶¶ 11-12. Petitioners’ counsel
worked together to review time records and develop an offer for settling
attorney’s fees with an analysis of why Petitioners were entitled to them. Feldman Supp. Decl., ¶13. This analysis was sent to the City on
September 9, 2022. Feldman Supp. Decl.,
¶13. The City asked for more details
about time spent on this case. Feldman
Supp. Decl., ¶14. Although Petitioners’
counsel sent the additional detail on October 6, 2022, the City never responded. Feldman Supp. Decl., ¶¶ 15-16.
As of the reply, the
hours spent on this fee motion include: (1) 16.1 hours by Ganata (Ganata Supp.
Decl., ¶4, Ex. A); (2) 14.8 hours by Vaquero (Ganata Supp. Decl., ¶4, Ex. B); (3)
25.6 hours by Grewal (Grewal Supp. Decl., ¶3, Ex. A); (4) 16.5 hours by Choi
(Grewal Supp. Decl., ¶4, Ex. B); and (5) 53.6 hours by Feldman (Feldman Supp.
Decl., ¶4, Ex. A). This includes 1.9
hours from Vaquero, 0.2 from Ganata, and one from Feldman to respond to the
request from City’s counsel to categorize time records by major task. Ganata Supp. Decl., ¶12; Feldman Supp. Decl.,
¶¶ 14-15.
Vaquero’s hourly rate
before she passed the bar in December 2021 reflects the market rate for
non-attorney duties. Ganata Supp. Decl.,
¶3.
D. Analysis
Petitioners
seek attorneys’ fees based on (1) a $563,184 lodestar, (2) a 1.25 multiplier
for the $563,184 lodestar; and (3) $83,609.50 for the fee motion. Reply at 13.
1.
Entitlement
a. 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 v.
DaimlerChrysler Corp., (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, (“Tipton-Whittingham”) (2004) 34 Cal.4th
604, 610.¿ A prevailing party who qualifies for an award under section 1021.5
is entitled to compensation for all hours reasonably spent by their counsel.¿ Serrano
v. Unruh, (1982) 32 Cal.3d 621, 632–33.¿
The City alleges that it has tried to pass compliant Housing
and Environmental Justice Elements since 2015.
Stripped of inadmissible evidence, the City shows as follows.
(1) Pre-Lawsuit
Conduct
The City received a grant to prepare a General Plan Update in February 2013. Infanzon Decl., ¶3. In February 2015, the City entered into an
agreement with Tierra West to engage in the focused General Plan update. Almazan Decl., ¶10; Infanzon Decl., ¶5. In October 2015, the City agreed to move
forward with a plan from Tierra West. Infanzon
Decl., ¶6. The City thereafter never
stopped working on the development of the draft General Plan Update or the
Fifth Cycle of the Housing Element; there are hundreds of City documents to
that effect. Infanzon Decl., ¶¶ 14, 20-21.
On March 7, 2019, the
City provided HCD with a copy of the City’s draft Housing Element. Infanzon Decl., ¶27. On May 13, 2019, City staff had an in-person meeting with HCD’s Coy. Infanzon Decl., ¶30.
On May 29,
2019, the City adopted its Fifth Cycle Housing Element. Almazan Decl., ¶6. On June 26, 2019, the City provided CBE a
copy of the General Plan Update with the Fifth Cycle Housing Element. Infanzon Decl., ¶32. On July 9, 2019, City staff met with Ganata
to discuss CBE’s concerns. Infanzon
Decl., ¶33. After this meeting, CBE only
sent three letters to City staff, two of them during the COVID-19
pandemic. Infanzon Decl., ¶¶ 35-38.
On September 11, 2019,
the City sent the Fifth Cycle Housing Element to HCD for an informal review. Almazan Decl., ¶6. Compliance with state law thereafter became a
challenge due to the COVID-19 pandemic.
Almazan Decl., ¶7.
In 2020, the City and
HCD agreed to 13 Housing Element milestones.
Almazan Decl., ¶8. On March 16,
2021, the City entered an agreement with JHD Planning to prepare the City’s
Housing Element and any related actions necessary. Almazan Decl., ¶13.
On February 9, 2021,
the City had its first biweekly check-in meeting with HCD to discuss the status
and progress of the City’s Housing and Environmental Justice Elements. Almazan Decl., ¶19. There began a series of bi-weekly calls
between City staff, the City’s counsel, HCD, and two Attorney General
divisions. Almazan Decl., ¶9.
(2) Post-Lawsuit Filing Conduct
Petitioners filed this
lawsuit on March 14, 2021. The City
submitted a draft Housing Element to HCD on August 6, 2021 to ensure that it
received HCD’s comments by October 5, 2021.
Almazan Decl., ¶22. On October
25, 2021, JHD Planning terminated its contract with the City. Almazan Decl., ¶14.
On November 5, 2021,
the parties in this case executed an MOU for negotiating a settlement
agreement. Almazan Decl., ¶20, Ex.
F. The City entered into other MOUs with
(1) HCD on November 8, 2021 and (2) the Attorney General on December 3, 2021. Almazan Decl., ¶21, Exs. G-H.
On November 16, 2021,
the City entered into a one-year agreement with Rincon to develop an
Environmental Justice Element and ensure the City’s compliance with Senate Bill
1000. Almazan Decl., ¶15. One day before it expired, the City held a
public hearing and adopted the Environmental Justice Element developed by Rincon. Almazan Decl., ¶15, Ex. E.
On February 25, 2022
Rincon provided an initial assessment memorandum with steps to address HCD’s
comments. Almazan Decl., ¶17. Rincon provided a proposal for professional
services to the City on April 8, 2022.
Almazan Decl., ¶18. Throughout
2022 and 2023, City Community Development Director
Forster had multiple written and phone communications with various members of
CBE counsel, HCD, and the Attorney General’s office. Forster Decl., ¶¶ 2-5.
(3) Analysis
The “catalyst theory” permits an
award of attorneys’ fees even when the litigation does not result in a judicial
resolution if the defendant changes its behavior substantially because of, and
in the manner sought by, the litigation.
A plaintiff must establish that (1) the lawsuit was a catalyst
motivating the defendants to provide the primary relief sought; (2) the lawsuit
had merit and achieved its catalytic effect by threat of victory, not by dint
of nuisance and threat of expense; and (3) the plaintiffs reasonably attempted
to settle the litigation prior to filing the lawsuit. Tipton-Whittingham,
supra 34 Cal. 4th at 608.
The City argues that the Petition
did not motivate or expedite adoption of a compliant Housing Element. The City formally submitted the adopted
Housing Element to HCD in May 2019. City
staff and HCD already had identified 13 Housing Element compliance milestones
before the Petition was filed, and bi-weekly calls between the City and HCD
were ongoing. Opp. at 9.
Petitioners correctly argue that it
need not rely on a catalyst theory because the court entered judgment in their
favor. Reply at 6. When a party receives a final judgment with
all the relief sought, it is the prevailing party for purposes of section
1021.5 attorney’s fees. On May 2, 2022,
Respondents filed a proposed confession of judgment agreeing to (1)
meaningfully engage with Petitioners throughout the process of developing an
updated Housing Element and Environmental Justice Element, and (2) file
supplemental briefing with the court regarding the date of execution, return,
and Petitioner’s request for injunctive relief.
Petitioners then filed a request for dismissal of the fourth, seventh,
and tenth causes of action without prejudice.
After that, the court addressed the final timeline for compliance and
entered judgment in Petitioners’ favor. Petitioners are a successful party for
purposes of section 1021.5 attorney’s fees.
Even if the catalyst theory applied,
the City’s conduct before the March 15, 2021 filing of the Petition shows that
Petitioners catalyzed the Housing and Environmental Justice Elements. The City relies on its communications with
HCD, but Petitioners point out that the City did not have a legally compliant Housing
Element and that HCD knew as much since at least 2019. Yet, no public agency, including HCD, was
enforcing the law. Reply at 9.
In a letter dated September 23,
2020, the City admitted that the challenges it inherited from 20 years of poor
management and difficulties from the COVID-19 pandemic caused it to wait before
addressing the Housing Element issues. Feldman
Decl., ¶34, Ex. F. In March 2021, the
month of the Petition was filed, the Attorney General’s office sent notice that
the City had not complied. Feldman
Decl., ¶35, Ex. G. Without Petitioners’
lawsuit, the City’s compliance with general plan law would have remained unresolved
until a time convenient to it.
In opposing the catalyst theory, the
City points out that the California Supreme Court held in Tipton-Whittingham
that attorney’s fees may not generally be awarded where a petitioner merely
causes the acceleration of the issuance of government regulations or remedial
measures when the process of issuing or undertaking them was ongoing at the
time the litigation was filed. 34 Cal.
4th at 609. Opp. at 11-12.
True, but in Tipton-Whittingham
there was a policy concern at issue. If the
government agency has discretion on a number of courses of action available to
it, awarding catalyst attorney’s fees could be counterproductive by causing the
agency not to adopt any remedy. 34 Cal.4th
at 609. Here, it is undisputed that the law
required the City to have Housing and Environmental Justice Elements in place
and it failed to adopt compliant versions of both. The court need not address the catalyst
theory, however, because Tipton-Whittingham also indicates that a
judicially recognized change in the parties’ relationship – i.e., a
judgment – will suffice. See id.
at 608.
Petitioners are a successful party
for purposes of section 1021.5 attorney’s fees.
b. Enforcement
of an Important Right Affecting the Public Interest
The
first prong of the section 1021.5 test — whether a petitioner’s action has
resulted in the enforcement of an important right affecting the public interest
— requires a determination of the strength or societal importance of the right
involved. Roybal v. Governing Bd. of
Salinas City Elementary School Dist., (2008) 159 Cal.App.4th 1143,
1148. The right, whether constitutional
or statutory, must be an important right affecting the public interest, not
something involving trivial or peripheral public policies. Ibid.
The societal importance of a right generally is determined by
realistically assessing the significance of that right in terms of its
relationship to the achievement of fundamental legislative goals. Robinson v. City of Chowchilla, (2011)
202 Cal.App.4th 382, 394.
The City asserts that no important
right was at issue because the City adopted its draft Housing Element in May
2019 and submitted it to HCD in September 2019.
Opp. at 9. As Petitioners point
out, the 2019 Housing Element was deficient and there was no Environmental
Justice Element at all. The Legislature
has identified the availability of housing – more accurately low-cost housing
-- as an ongoing crisis. Govt. Code §§
65580(a), 65589.5(a)(2)(J). The
compelled compliance with statutory law for Housing and Environmental Justice Elements
in the City’s General Plan implicates important rights affecting the public interest.
c. Significant
Benefit Conferred on the General Public
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, (“Woodland Hills”) (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 939–40.¿
The second prong of the section 1021.5 test is whether
plaintiff’s action has conferred a significant benefit, whether pecuniary or
nonpecuniary, on the general public or a large class of persons. The trial court is required to determine the
significance of the benefit as well as the size of the group favorably impacted
by making a realistic assessment, in light of all the circumstances, of the
gains which have resulted in a particular case. Bui v. Nguyen, (2014)
230 Cal.App.4th 1357, 1366.
The City is 6.5 miles south of
downtown Los Angeles and adjacent to the industrial City of Vernon and other
sources of pollution. Ganata Decl.,
¶4. Most of the housing is old enough
that the City struggles with high lead contamination rates. Ganata Decl., ¶4. Because the judgment compels the City to act
more promptly to pass compliant Housing and Environmental Justice Element, it
helps secure housing, safety, and public health for the citizens of the City
and to some extent neighboring cities.
This is a large group receiving at least a potential significant
benefit, which is all that is required.
d. Necessity and
Financial Burden of Private Enforcement
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.¿ “The necessity of private enforcement looks to the
adequacy of public enforcement and seeks economic equalization of
representation in cases where private enforcement is necessary.” In re Conservatorship of Whitley, (“Whitley”)
(2010) 50 Cal.4th 1206, 1214-15 (internal quotations omitted). In determining the financial burden on the
petitioner, courts have focused not only on the costs of the litigation but
also any offsetting financial benefits that the litigation yields or reasonably
could have been expected to yield.” Whitley,
supra, 50 Cal.4th at 1215. This
prong evaluates “incentives rather than outcomes.” See id. at 1220. The party
seeking attorneys’ 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.
This
prong encompasses two issues: (1) whether private enforcement was necessary and
(2) whether the financial burden of private enforcement warrants subsidizing
the successful party’s attorneys. Lyons
v. Chinese Hospital Assn., (2006) 136 Cal.App.4th 1331, 1348. The necessity of private enforcement becomes
clear when the action proceeds against only the governmental agencies that bear
responsibility for the alleged violations.
Id.; see Woodland Hills, supra, 23 Cal.3d at 941. The financial burden of private
enforcement is met when the cost of the claimant’s legal victory transcends his
personal financial interest. Id. at 941.
Non-financial motivations are irrelevant. Whitley, supra, 50 Cal.4th at 1216-17.
As
to the first issue, the City asserts that HCD could have brought an action but
chose not to do so because it and the City were in constant communication. For example, just before the City complied
with an October 15, 2021 deadline, the Attorney General compelled the City to
enter into an MOU or risk legal action if the Housing Element later proved
deficient. Almazan Decl., ¶¶ 22-24. The City claims that Petitioners’ private
enforcement was unnecessary where the public agency that could enforce the
statute chose not to do so. Opp. at 10.
Petitioners
reply that the Attorney General’s threat occurred after the Petition was filed.
Reply at 8-9. More importantly, Surfrider
Foundation v. Martins Beach 1, LLC, (“Surfrider”), (2017) 14 Cal.
App. 5th 238, 279, held that when a government agency chooses not to initiate
any serious enforcement action and instead only sends letters urging voluntary
compliance, the government action is not serious and private enforcement may be
necessary. The Attorney General’s threat
is similar to the urgings in Surfrider.
As
to the second issue, the City asserts that Petitioners’ counsel had an incentive
to bring suit to obtain attorney’s fees.
Opp. at 10-11. Petitioners correctly
respond that the City conflates Petitioners’ financial interest with the financial
interests of their counsel. Reply at
9. The necessity and financial burden of
private enforcement merit an award of fees.
It is undisputed that Petitioners have no financial interest at issue in
this case.
e.
Conclusion
Petitioners
are entitled to fees under section 1021.5.
2. Reasonableness
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 (“Martino”) (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. “‘The reasonable market
value of the attorney's services is the measure of a reasonable hourly
rate. This standard applies regardless of whether the attorneys claiming fees charge nothing for
their services, charge at below-market or discounted rates, represent the
client on a straight contingent fee basis, or are in-house counsel.’” Center
For Biological Diversity v. County of San Bernardino, (“Center for
Biological Diversity”) (2010) 188 Cal.App.4th 603, 619 (citations omitted).
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.
In
determining whether the requested attorney’s fees are reasonable, the court’s
“first step involves the lodestar figure—a calculation based on the number of
hours reasonably expended multiplied by the lawyer’s hourly rate. The
lodestar figure may then be adjusted, based on consideration of facts specific
to the case, in order to fix the fee at the fair market value for the legal
services provided.” Gorman v. Tassajara Development Corp., (2008)
162 Cal.App.4th 770, 774. In adjusting the lodestar figure, the court may
consider the nature and difficulty of the litigation, the amount of money
involved, the skill required and employed to handle the case, the attention
given, the success or failure, and other circumstances in the case. EnPalm LLC v. Teitler, (2008) 162 Cal.App.4th 770, 774; see also PLCM
Group, Inc. v. Drexler, (2000) 22 Cal.4th 1084, 1095.
a.
Hourly Rates
Petitioners
assert hourly rates of $775 for Morris, $800 for Feldman, $640 for Ganata, $350
for Vaquero, $250 for Hearn, $680 for Grewal, $475 for Choi, $475 for Reyes,
and $450 for Joya. Ganata Decl., ¶¶
26-27; Grewal Decl., ¶¶ 6, 13-15. The
City asserts that Petitioners provide insufficient evidence of the market
rate. Opp. at 13.
(1)
Morris
In
2017, two different courts granted motions for attorney’s fees at a rate of
$635 per hour for Morris. Feldman Decl.,
¶¶ 28-29. This is less than the $775
rate requested in this motion. Opp. at
13. Petitioners assert that while past
fee rates may be useful to show a floor below which fee calculations should not
drop, but they do not support the conclusion that a court should reduce the
fees to the rates awarded in the past.
Reply at 12; Charlebois v. Angels Baseball LP (2012), 993 F.
Supp. 2d 1109, 1122. While true,
Petitioners still must justify whatever rate counsel claims.
None
of the cases cited in the moving papers are for as high a rate as what Morris
requests. Morris’s hourly rate is
reduced to $635.
(2)
Feldman
Past
attorney fee awards for Feldman include $560 per hour in 2014, $450 per hour in
2019, and $450 per hour in San Mateo, supra, 59 Cal. App. 5th 166. Feldman Decl., ¶¶7, 9. As with Morris, this does not preclude a
higher rate but Petitioners provide no evidence to justify a higher rate. Because
the awards of $450 per hour are recent, they are a more accurate indicator of
the reasonable hourly rate here.
In reply, Feldman asserts that the
$450 per hour award in San Mateo reflects the lower rates in Sacramento. Feldman Supp. Decl., ¶¶ 17-18. This may be true, but the court exercises its
discretion to apply the same rate in Los Angeles. Feldman’s hourly rate is reduced to $450.
(3)
Ganata
CBE
attorney Ganata does not provide any past awards to justify her request for $640 per hour. Opp. at 13; Ganata Decl., ¶¶ 26-27. She does claim that CBE counsel bills $250 to
$780 per hour. Ganata Decl., ¶26.
Morris and
Feldman are the most senior attorneys, each with over five years’ more
experience than Ganata. Opp. at 13;
Feldman Decl., ¶¶ 4, 25. As the most
senior member of CBE, Ganata cannot claim a higher hourly rate than Feldman’s
rate of $450. Ganata’s hourly rate is
reduced to $450.
(4) Vaquero
Vaquero
graduated from the UCLA law school in May 2021, joined CBE in September 2021,
and became a member of the California bar in December 2021. Vaquero Decl., ¶¶
9-10. She was not a member of the bar
when she began this case. Ganata Decl.,
¶¶ 15, 25, Exs. D-E.
The City asserts
that because she incurred a third of her hours before she became an attorney,
an hourly rate of $350 is excessive.
Opp. at 13-14. Ganata asserts
that Vaquero’s rate before passing the bar are in line with non-attorney
time. Ganata Supp. Decl., ¶3. Yet, she fails to explain wny Vaquero should
receive the same rate before and after she passed the bar.
Vaquero’s
hourly rate is reduced to $250 per hour through November 2021. The hourly rate for December 2021 and
afterwards is reduced to $300 per hour.
(5) Hearn
Hearn was
a CBE legal clerk from May 2021 to December 2021 before she graduated from law
school in May 2022. Ganata Decl., ¶¶
12-13, Ex. H. The City asserts that a
$250 rate for a legal clerk or intern is excessive. Opp. at 14.
As a CBE clerk, Hearn helped research and write memoranda on
environmental law and land uses critical to drafting the documents in this
case. Ganata Decl., ¶14. Further, an
hourly fee of $250 is consistent with a Vaquero’s pre-bar admission rate. Hearn’s requested rate of $250 is reasonable.
(6) Grewal
Grewal is
DRC’s litigation counsel. Grewal Decl.,
¶2. As with Ganata, Grewal provides no reason to give her a
higher rate than Feldman. Grewal’s hourly rate is reduced to $450.
(7) Choi
Choi is a seventh-year
attorney. Grewal Decl., ¶13, Ex. D. She provides no specific reason for a rate of
$475 per hour (Opp. at 13), which is higher than the approved
rates for attorneys with more experience.
Choi’s hourly rate is reduced to $400.
(8) Reyes
Reyes was
a staff attorney from October 2016 through February 2021. Grewal Decl., ¶14. She
provides no specific reason for a rate of $475 per hour (Opp.
at 13), and her experience is roughly akin to that of Choi. Reyes’s hourly rate is reduced to $400.
(9) Joya
Joya was a
staff attorney from June 2018 through February 2021 who specialized in CPRA
requests. Grewel Decl., ¶15, Ex. H. Of the attorneys involved, her area of
expertise is least relevant to this action.
Joya’s hourly rate is reduced to $300.
(10)
Conclusion
The
approved hourly rates are $635, $450, $450, $300, $250, $450, $400, $400, and
$300. Although Grewal and Feldman worked
the most hours, there is no reason to use a higher rate than the average to
calculate the reasonable fees. The average
hourly rate is $400, and the court will use this blended rate.
b.
Reasonable Hours
To
avoid duplication of work, counsel divided responsibility for tasks based on
area of expertise. Feldman Decl.,
¶16. All firms still reviewed hours and
deleted any hours they thought may be duplicative. Feldman Decl., ¶14; Grewal Decl., ¶10; Ganata
Decl., ¶24. DRC did not count any
paralegal time. Feldman Decl., ¶14. Only one person per firm can claim time
editing each pleading or attending conference calls that involved Petitioners’
entire legal team to discuss strategy.
Feldman Decl., ¶14.
Petitioners claim (1) Feldman spent
223 hours, (2) Morris spent 71.3 hours, (3) Ganata spent 178.7 billable hours,
(4) Vaquero spent 49.5 hours, (5) Hearn spent 43.7 hours, (6) Grewal
spent 210.7 hours, (7) Choi spent 63.6 hours on the merits, (8) Reyes
spent 68.3 hours, and (9) Joya spent 24.6 hours. The total is 932.70 hours. Feldman Decl., ¶¶ 14, 31, Exs. A, C; Ganata
Decl., ¶¶ 15, 25, Exs. A, D, G; Grewal Decl., ¶¶ 10, 13-15, Exs. B, E, G-H.
The
City asserts that the level of detail on the logs is insufficient because the
description of each task is vague. Opp.
at 14. The City also alleges that it has
identified several instances of double-billing, which include (1) one hour for
both Ganata and Reyes for a conference call on December 9, 2020 (Ganata Decl.,
¶15, Ex. A; Grewal Decl., ¶14, Ex. G); (2) one hour for both Ganata and Grewal
for a housing workshop on April 20, 2021 (Ganata Decl., ¶15, Ex. A; Grewal
Decl., ¶10, Ex. B); (3) time from both Ganata and Reyes for a discussion about
the Environmental Justice element on August 24, 2021 (Ganata Decl., ¶15, Ex. A;
Grewal Decl., ¶14, Ex. G); (4) 0.6 hours Feldman billed for a team call on
August 30, 2021, for which Ganata billed one hour (Ganata Decl., ¶15, Ex. A; Feldman
Decl., ¶14, Ex. A); (5) one hour by Ganata, Feldman, and Grewal for the same settlement
phone call with the City on January 13, 2022 (Ganata Decl., ¶15, Ex. A; Feldman
Decl., ¶14, Ex. A; Grewal Decl., ¶10, Ex. B); and (6) time generally spent by
all counsel on the opening brief and Ganata’s declaration. Opp. at 14.
Petitioners
note that there were two Petitioners.
CBE represented itself, while DRC attorneys – Grewal, Choi, Reyes, and
Joya – represented Quesada. Grewal
Decl., ¶¶ 11, 13. While a single
Petition was appropriate, there are still situations where their interests may not
align. It is logical to have counsel for
both clients at certain events. Petitioners
also note that some duplication among attorneys is reasonable. Horsford v. Board of Trustees, (2005)
132 Cal. 4th 359, 396-397 identified three reasons that billing may reflect
reasonable duplicate hours. Reply at
10-11.
The court need not address the City’s
issues because it is obvious that the hours expended by Petitioners’ counsel is
grossly excessive.
The
court need not address the City’s particularized issues because the 932.70
hours requested for nine attorneys is grossly excessive.
First, Petitioners
billed for activities not part of the lawsuit, including (1) general advocacy
as to the Housing and Environmental Justice Elements, (3) participation in
public workshops, (4) making CPRA requests, and (5) excessive hours of
co-counsel communication. Petitioners
are not entitled to charge the City for actions related to the Housing and
Environmental Justice Elements that were not part of prosecuting the
lawsuit.
Second, and
more important, Petitioners simply cannot obtain a fee award for the work of
nine attorneys. Petitioners are entitled
to hire the lawyers they want to work on the case. They are free to hire nine lawyers from three
different non-profit entities to work on the matter if they choose to do
so. But they cannot expect a fee award
against the City for the work of nine lawyers from three entities. This case would reasonably have been staffed
by one senior attorney and one or two junior associates.
Additionally,
the work on the case was not extensive or particularly complex. As Petitioners note (Mot. at 9-12), the case
involved the research and preparation of a demand letter and the Petition, an ex
parte hearing for an oversized brief, Petitioners’ 25-page opening brief,
an MOU for settlement that fell through, the City’s confession to judgment, and
supplemental briefing and court appearances before the final judgment was entered. There was no trial and no reply brief
prepared.
The court
has no doubt that the nine attorneys actually worked the collective 932.70
hours. But that does not make the hours
reasonable. The court has reviewed the
logs and limits recovery to 316.1 reasonable hours.
(2)
Hours on Motion for Fees
As
of the reply, Petitioners claim for the fee motion (1) 16.1 hours by Ganata
(Ganata Supp. Decl., ¶4, Ex. A); (2) 14.8 hours by Vaquero (Ganata Supp. Decl.,
¶4, Ex. B); (3) 25.6 hours by Grewal (Grewal Supp. Decl., ¶3, Ex. A); (4) 16.5
hours by Choi (Grewal Supp. Decl., ¶4, Ex. B); and (5) 53.6 hours by Feldman
(Feldman Supp. Decl., ¶4, Ex. A). Petitioners
claim that part of their counsel’s effort on the fee motion is time spent to
respond to the request from City’s counsel to categorize time records by major
task. Ganata Supp. Decl., ¶12; Feldman
Supp. Decl., ¶¶ 14-15. The City does not
raise any arguments as to hours claimed for work on this motion. See Opp. at 14.
The
fee motion again reflects the unreasonableness of the hours. Five attorneys spent 126.6 hours on a single,
relatively simple motion for which they seek $83,609.50 in fees. The
hours for the fee motion are limited to 62.7 hours.
3. Multiplier
“[T]he unadorned
lodestar figure reflects the general local hourly rate for a fee bearing case;
it does not include any compensation for contingent risk, extraordinary skill,
or any other factors a trial court may consider under Serrano III.” Ketchum
v. Moses, (“Ketchum”) (2001) 24 Cal.4th 1122, 1138. The
factors to consider for adjustment to the lodestar include the novelty and
difficulty of the litigation, the extent to which the litigation precluded
other employment by the attorneys, the contingent nature of the fee award, the
fact that an award against the state would ultimately fall on the taxpayers,
the fact that the attorneys received public and charitable funding for the
purpose of bringing lawsuits of the character involved, and the fact that the moneys
awarded would inure not to the benefit of the individual lawyers but the
organizations employing them. Ramos v. Countrywide Home Loans, Inc.,
(“Ramos”) (2000) 82 Cal.App.4th 615, 622-23.
“[T]he unadorned lodestar
figure reflects the general local hourly rate for a fee-bearing case; it does
not include any compensation for contingent risk, extraordinary skill, or any
other factors a trial court may consider under Serrano III.” Ketchum,
supra, 24 Cal.4th at 1138. “The adjustment to the lodestar figure,
e.g., to provide a fee enhancement reflecting the risk that the attorney will
not succeed, constitutes earned compensation; unlike a windfall, it is neither
unexpected nor fortuitous.” Id. “Rather, it is unintended to
approximate market level compensation for such services, which typically
includes a premium for the risk of non-payment or delay in payment of attorney
fees.” Id.
The
factors to consider for a multiplier include the novelty and difficulty of the
litigation, the extent to which the litigation precluded other employment by
the attorneys, the contingent nature of the fee award, the fact that an award
against the state would ultimately fall on the taxpayers, the fact that the attorneys
received public and charitable funding for the purpose of bringing lawsuits of
the character involved, and the fact that the monies awarded would inure not to
the benefit of the individual lawyers but the organizations employing
them. Ramos, supra, 82 Cal.App.4th 615, 622-23.
Petitioners
seek a multiplier of 1.25 for the lodestar. City requests a negative multiplier,
but it relies on several arguments it repeated in challenging the lodestar like
duplicative hours and inflated rates.
a. Novelty
and Complexity
CBE suggests
that this is the first case that challenges the compliance of a jurisdiction’s
Environmental Justice Element with the Govt. Code. Ganata Decl., ¶19. CBE was required to research laws related to a
city’s general plan and legal obligation to develop a Housing Element and
Environmental Justice Element. Ganata
Decl., ¶19.
This case
is the opposite of a novel and complex case and was more like shooting fish in
a barrel. Petitioners engaged in work
that had no risk because of statutory entitlement to the relief sought. It was clear from the beginning that the City
had to adopt a Housing Element and Environmental Justice Element compliant with
the law. The court has had at least four
other cases involving Housing Element compliance and all settled because the
city had no defense. Similarly, the City
in this case filed a proposed confession, demonstrating that it had no defense
and that the only real dispute was for the compliance timeline. This factor works strongly against a
multiplier.
b. Contingency Risk and Benefit
to the Organization
None of the three non-profit
entities bill their clients; all rely on attorney’s fees awards to finance
future litigation. Feldman Decl., ¶¶ 12,
24; Ganata Decl., ¶17; Grewal Decl., ¶12.
There was no contingent risk for their attorneys. On the other hand, fee awards finance future
advocacy cases and inure to the benefit of the non-profits. The latter factor supports a multiplier.
c. Preclusion of Other
Employment
Petitioners claim that their counsel
had to forego other meritorious litigation to spend time on this action. Mot. at 20-21. Petitioners present no specific evidence of a
lawsuit that was not filed due to this case.
In any event, Petitioners’ attorneys all work for non-profit entities and
lost work does not affect them financially.
This factor does not favor a multiplier.
d. Other Factors
Although
neither party discusses taxpayer burden, any attorney’s fee would fall on the
taxpayer because the City will pay an award.
This factor disfavors a multiplier.
e. Conclusion
No multiplier
is awarded.
E. Conclusion
Multiplying the reasonable hours for the merits and the fee motion by
the blended hourly rate of $400 yields $151,520 ($400 per hour x (316.1 hours +
62.7 hours). The motion
for attorney’s fees is granted in the amount of $151,520.
[1] Respondents
failed to lodge a courtesy copy of their opposition in violation of the
Presiding Judge’s First Amended General Order Re: Mandatory Electronic
Filing. Their counsel is admonished to
provide courtesy copies in all future filings.
[2] The
court has ruled on Petitioners’ written objections to the City’s evidence. The clerk is directed to scan and
electronically file the court’s rulings.