Judge: James C. Chalfant, Case: 21STCP02300, Date: 2022-09-20 Tentative Ruling
Case Number: 21STCP02300 Hearing Date: September 20, 2022 Dept: 85
Farhad Nowzari, M.D. v.
Torrance Memorial Medical Center Health Care Foundation, et al., 21STCP02300
Tentative decision on motion for attorney’s fees: granted
Respondents
Torrance Memorial Medical Center (“Torrance”), erroneously sued as Board of
Trustees of Torrance (“Board”); and its Medical Staff, erroneously sued as the
Medical Executive Committee of the Medical Staff of Hospital (“MEC”)[1] move for a $71,270.50 award of attorneys’ fees from Petitioner
Farhad Nowzari (“Nowzari”).
The
court has read and considered the moving papers, opposition,[2]
and reply, and renders the following tentative decision.
A. Statement of the Case
1.
Petition
Petitioner
Nowzari commenced this proceeding on July 16, 2021, alleging causes of action
for traditional and administrative mandamus and seeking injunctive relief
against Board, MEC, Torrance Health Care Foundation (“Hospital”), and Torrance
Memorial Integrated Physicians, LLC (“Integrated Physicians”). The verified Petition alleges in pertinent
part as follows.
Hospital’s
medical staff referred three cases of patient deaths following surgery for peer
review to Nowzari’s former partner Dr. Garrett Matsunaga (“Matsunaga”). Matsunaga was the Hospital’s Chief of Urology. Although Matsunaga recognized the appearance
of impropriety in reviewing his former partner’s work, he insisted on doing it
anyway. Matsunaga reviewed the three
cases, consisting of 3000 pages, in only 1.5 hours and concluded that the
deaths were due to Nowzari’s negligence and poor judgment. According to Matsunaga, Nowzari suddenly had become
a danger to patient safety if allowed to remain on staff.
To
avoid the appearance of bias, Matsunaga then selected Dr. Stratton to serve as pro
tempore chair of the Urology Surgery Subcommittee (“Urology Subcommittee”,
sometimes “Subcommittee”). Timothy Lesser,
M.D. (“Lesser”), a doctor who reported Nowzari, and Matsunaga were present at
the Urology subcommittee meeting, and they led the interrogation of Nowzari about
the three cases without advising him of the issues or giving him an opportunity
to prepare.
The
medical staff’s lawyer, John Harwell, Esq. (“Harwell”), selected a reviewer,
Thomas Rosenthal, M.D. (“Rosenthal”), and informed him of the opinion reached
by the Urology subcommittee and its characterization of Nowzari as reckless and
dangerous. Rosenthal was provided a
select set of records to review, which he used to recommend that the Hospital medical
staff suspend Nowzari’s privileges.
The
MEC considered the matter on August 22, 2018.
At this point, Nowzari hired legal counsel and obtained an outside
review from urologist Soroush Ramin, M.D. (“Ramin”) who could not find a
credible basis for the criticisms. The MEC
withdrew the summary suspension and proposed a complete competency evaluation
done by the Physician Assessment and Clinical Education (“PACE”) program at the
University of California, San Diego.
Nowzari could only assist in surgeries, and hospital consultations would
require another practitioner as the primary physician.
On
August 24, 2018, the MEC modified the summary suspension of Nowzari’s
privileges. MEC restricted Nowzari’s
clinical privileges to assisting in surgery and providing inpatient consultations,
both of which would require co-management by another urologist. Nowzari was recommended to the PACE program
for assessment of competency.
On
September 19, 2018, Nowzari demanded a hearing from the MEC decision. James Lahana, Esq. (“Lahana”) was selected as
the neutral arbitrator but made no disclosures regarding any past dealings or
connections that may invoke a perception of partiality. Lahana’s decision is tainted with the
appearance of impropriety.
On
February 20, 2019, PACE issued its report to the MEC and not Nowzari, even
though he paid half the costs. PACE
concluded that Nowzari is competent but observed that Nowzari’s performance on
Microcog cognitive screening evaluation indicated a need for further
psychological evaluation. PACE issued a category 3 classification of
competency.
On
March 29, 2019, the MEC accepted PACE’s recommendations. On May 16, 2019, PACE issued an amended
report stating that Nowzari met the criteria for a higher competency
classification of 2.
In
December 2019, Nowzari turned in a neurocognitive/fitness-for-duty assessment from
his own professional which stated that he is a competent, skillful, and
well-qualified urologist fit to practice his profession. Respondents refused to accept the report.
On
March 2, 2021, Lahana issued his decision and found that the MEC’s actions were
warranted and necessary. The decision
largely adopted the MEC’s position without addressing many of the factual
issues or evidence to the contrary.
Nowzari
appealed the decision to the Hospital’s Board.
On June 16, 2021, the Board issued its decision finding substantial
evidence supported the arbitrator’s determination. The decision marginalizes or ignores the
compelling facts, evidence, and injustice.
2. Course of Proceedings
On July 21, 2021,
Nowzari served the Petition, summons, and moving papers on Respondent
Integrated Physicians by substitute service.
He served Respondent Hospital by substitute service on July 26, 2021 and
Respondents MEC and Board by substitute service on July 28, 2021.
On September 10, 2021,
Respondents Board and MEC filed an Answer.
They filed another Answer on November 29, 2021.
On September 30, 2021, Respondents
Hospital and Integrated Physicians filed a demurrer with a motion to strike. Respondents Hospital and Integrated Physicians
subsequently withdrew the demurrer. On December 9, 2021, Nowzari filed a request
for dismissal without prejudice as to Hospital and Integrated Physicians. The court entered dismissal on December 13,
2021.
On May 26, 2022, the
court denied the Petition. Judgement was
entered on June 10, 2022.
On June 22, 2022,
Nowzari filed notice of an appeal of the court’s decision.
B. Applicable Law
“[A]s a
general rule, attorney fees are not recoverable as costs unless they are
authorized by statute or agreement.” People ex rel. Dept. of
Corporations v. Speedee Oil Change Systems, Inc., (2007) 147 Cal.App.4th
424, 429.
Per
Business and Professions Code (“B&P Code”) section 805(b)(2) and (b)(3), the
chief of staff of a medical or professional staff or other chief executive
officer, medical director, or administrator of any peer review body and the
chief executive officer or administrator of any licensed health care facility
or clinic shall file a report (“805 report”) with the relevant agency within 15
days after the effective date of (1) the termination or revocation of a
licentiate’s membership, staff privileges, or employment; or (2) any new restrictions
on staff privileges, membership, or employment for a cumulative total of 30
days or more for any 12-month period, for a medical disciplinary cause or
reason. B&P Code §§ 805(b)(2),
805(b)(3).
In
any suit brought to challenge an action thereby taken or a restriction thereby imposed,
the court shall award to a substantially prevailing party the cost of the suit,
including a reasonable attorney’s fee, if the other party’s conduct in
bringing, defending, or litigating the suit was frivolous, unreasonable,
without foundation, or in bad faith.
B&P Code §809.9. A defendant
has not substantially prevailed if the plaintiff obtains an award for damages
or permanent injunctive or declaratory relief.
Id. A plaintiff has not
substantially prevailed if the plaintiff does not obtain such an award. Id.
The use of the word “shall” indicates that the award is mandatory. Smith v. Selma Comm. Hosp. (“Smith”)
(2010) 188 Cal.App.4th 1, 7, 26.
“Frivolous,”
“unreasonable,” “without foundation,” and “bad faith” are separate grounds for
an award of fees. Id. at 29-30. There is partial overlap between the terms “without
foundation” and “unreasonable” such that a party's litigation conduct may
qualify as both. Id. at 33.
“Without
foundation” means “baseless, groundless, or without support.” Id. at 30-31. The foundation for an assertion of fact is
evidence, whereas the foundation for a contention of law is legal authority. Id. at 31. The record of the proceeding will contain a
party's (1) factual assertions and references to the evidence that supports
those assertions and (2) legal positions and the authority cited to support
those positions. Id. at 31. Based on the nature of the inquiry and the
record available, the existence of supporting evidence and authority can be
determined as a matter of objective fact.
Id. at 31.
To
determine if a plaintiff’s conduct was “reasonable” under B&P Code section
809.9, the court should ask whether any reasonable attorney would have thought
the claim tenable based on the facts the plaintiff knew when they filed or
maintained the action. Id. at
32-33. Whether a party’s conduct in
litigating the suit is reasonable depends in part on the positions it took
during the litigation. Id. at
26. “[C]onduct in litigating the suit”
includes acts taken on specific issues and motions. Id. at 29.
The prevailing party 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. “‘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,
(2010) 188 Cal.App.4th 603, 619 (citations omitted).
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 (“Gorman”).
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.
C. Statement of Facts
1.
MEC’s Evidence[3]
On September 19, 2018, Nowzari
requested a fair hearing from the MEC’s decision. Davenport Decl., ¶2, Ex. A. The parties agreed to arbitration in lieu of
a judicial review committee, and the parties exchanged arbitrator
candidates. Davenport Decl., ¶2, Ex. A. Nowzari’s attorney, Joel Bryce Douglas, Esq.
(“Douglas”), knew Lahana (“Arbitrator”) had served as an arbitrator previously and
said that he would be comfortable with him as the Arbitrator. Davenport Decl., ¶2, Ex. A.
During the arbitration hearing on
various days from November to December 2020, Douglas observed that Harwell and the
Arbitrator’s mouths moved in tandem with each other while both of their
microphones were off, as if having a conversation. Davenport Decl., ¶2, Ex. A. He then asserted that this had happened
several times earlier when Harwell was off.
Davenport Decl., ¶2, Ex. A.
Harwell responded that his mouth was not moving except to eat an M&M
and that he turned his camera off to look at something else while listening to
Nowzari’s answers. Davenport Decl., ¶2,
Ex. A. Harwell remarked that Douglas had
“a wonderful ability to be casually offensive to suggest that Mr. Lahana and I
were talking to each other.” Davenport
Decl., ¶2, Ex. A.
On March 3, 2021, Lahana found that
the MEC satisfied its burden of proof that Nowzari’s initial summary suspension
and subsequent restrictions, including the neuropsychiatric evaluation which he
still had not undergone, were reasonable and warranted. Davenport Decl., ¶2, Ex. A.
On March 11, 2021, Nowzari appealed
Lahana’s decision to the Board.
Davenport Decl., ¶2, Ex. A. Douglas
asserted that he had discovered two cases in which Lahana and Harwell had both
been involved, including one that was ongoing when Lahana accepted the present
assignment. Davenport Decl., ¶2, Ex. A. He also reiterated the allegations of ex
parte communication between Lahana and Harwell during the hearing. Davenport Decl., ¶2, Ex. A.
During the appeal hearing, Harwell
admitted that he and the Arbitrator have been adversarial or as an advocate and
hearing officer four to five times in the last 25 years. Davenport Decl., ¶2, Ex. A. As for the two cases Douglas cited, Lahana
had recused himself from one, and the courts had intervened in the other when
Lahana and Harwell had agreed to dismiss the case per the hospital’s
bylaws. Davenport Decl., ¶2, Ex. A.
On June 16, 2021, the Board issued a
decision upholding Lahana’s decision.
Davenport Decl., ¶2, Ex. A. As to
allegations of bias, it found that California law requires a showing of actual
bias and Nowzari never presented evidence that Lahana would be unfair. Davenport Decl., ¶2, Ex. A. The contractual arbitration law cited by
Nowzari does not apply to the hospital peer review process, which has its own
set of fair procedure laws. Davenport
Decl., ¶2, Ex. A. Because any evidence
of the professional history between Lahana and Harwell was publicly available
before the hearing, Nowzari could not raise the objection on appeal after he
failed to seek the information before the hearing. Davenport Decl., ¶2, Ex. A. The Board also found no evidence
in the record that Lahana and Harwell engaged in ex parte communications. Davenport Decl., ¶2, Ex. A.
b.
Course of Proceedings
On
July 26, 2021, Nowzari filed the Petition.
Pedroza Decl., ¶3. The MEC’s counsel, Kenneth Pedroza, Esq. (“Pedroza”),
warned Douglas that Integrated Physicians and the Hospital were not proper
Respondents. Pedroza Decl., ¶3. When Nowzari refused to dismiss them, Pedroza
was compelled to file a demurrer on September 30, 2021. Pedroza Decl., ¶3.
During a case management conference on October
21, 2021, the court ordered that the parties meet and confer as to the proper
entities to the suit. Pedroza Decl.,
¶4. Nowzari did not dismiss the Petition
against Integrated Physicians and the Hospital until after Torrance and the MEC
filed an Answer on November 29, 2021. The
demurrer remained on calendar until then.
Pedroza Decl., ¶5.
In his briefs, Nowzari asserted that
(1)
he did not receive a fair hearing because the Arbitrator failed to make
mandatory arbitrator disclosures and had a symbiotic relationship with Harwell,
(2) the Arbitrator had improper ex parte contacts with Harwell during
the testimony, and (3) the Board’s and the Arbitrator’s decisions were not
supported by substantial evidence. Davenport
Decl., ¶2, Ex. A.
On
May 26, 2022, the court held the trial on the Petition. Pedroza Decl., ¶9; Davenport Decl., ¶3, Ex.
B. The court adopted its tentative
decision. Davenport Decl., ¶3, Ex. B. On June 10, 2022, the court entered the
judgment. Pedroza Decl., ¶9; Davenport
Decl., ¶2, Ex. A.
c.
Attorney’s Fees
Cassidy
Davenport, Esq. (“Davenport”) has been an appellate specialist since 2014. Davenport Decl., ¶4; Pedroza Decl., ¶13. She billed a reduced rate of $325 per hour
for this case. Davenport Decl., ¶4;
Pedroza Decl., ¶13.
Pedroza
has been an appellate specialist for the past 15 years and has worked on over
100 cases. Pedroza Decl., ¶12. He billed a reduced rate of $360 per hour for
this case. Pedroza Decl., ¶12.
Scott
Klausner, Esq. (“Klausner”) is an associate that has handled a variety of
matters before various courts. Pedroza
Decl., ¶14. He billed a reduced rate of
$285 per hour for this case. Pedroza
Decl., ¶14.
Paralegal
Isabel Betran (“Betran”) worked on this case at a reduced rate of $130 per
hour. Pedroza Decl., ¶15.
The
MEC’s counsel kept daily time records of tasks performed in this case and the
time expended thereon to the nearest tenth of an hour, from which the firm
prepares monthly billing statements.
Davenport Decl., ¶5; Pedroza Decl., ¶¶ 17-19. Counsel has compiled the information from
these statements into a single summary table identifying the hours spent on
each type of task – 242.7 hours across six categories. Davenport Decl., ¶5; Pedroza Decl., ¶¶ 21-22,
Ex. C. Counsel has also calculated the
total number of hours each attorney and paralegal spent, which includes: (1)
56.5 hours by Pedroza for a total bill of $20,340; (2) 132.2 hours by Davenport
for a total bill of $42,965; (3) 6.1 hours by Klausner for a total bill of
$1,738.50; and (4) 47.9 hours by Beltran for a total of $6,227. Pedroza Decl., ¶23, Ex. C. This total fees are $71,270.50. Pedroza Decl., ¶23, Ex. C. The tasks performed, time spent, and hourly
rates were reasonable and necessary.
Pedroza Decl., ¶25.
2.
Nowzari’s Evidence
When
Douglas and Harwell first agreed to an arbitration hearing, Douglas had his
concerns about Harwell. Douglas Decl.,
p. 1.[4] He therefore rejected one of Harwell’s
recommendations for arbitrator because she has a close working relationship
with Harwell. Douglas Decl., p. 1. In contrast, Douglas had worked with the
Arbitrator before, found him fair, and did not know he had any ties to
Harwell. Douglas Decl., p. 1. Harwell told Douglas that the Arbitrator was
serving as a hearing officer in a non-peer review matter at the time, but
neither Harwell nor the Arbitrator disclosed any past relationship. Douglas Decl., p. 1.
Although
the Arbitrator allowed Harwell to delay various proceedings and resist
discovery during the two years that followed, he was polite and professional; Douglas
assumed that he just wanted to foster cooperation between parties. Douglas Decl., p. 1. During the hearing, however, the Arbitrator
appeared to help a witness avoid the questions Douglas asked during
cross-examination. Douglas Decl., p.
2. The Arbitrator and Harwell made a
joke about fairness not being the concern of the hearing, which disturbed
Nowzari. Douglas Decl., p. 2.
Douglas
then noticed multiple instances of Harwell and the Arbitrator looking at each
other on mute and appearing to have ex parte communication, which became
the basis for the arguments made in the Petition. Douglas Decl., p. 2. Douglas confronted them, and it stopped. Douglas Decl., p. 2.
After
the Arbitrator issued a decision against Nowzari and refused to disclose past relationships,
Douglas decided to research the Arbitrator and Harwell. Douglas Decl., p. 2. He discovered the cases he brought to the
Board’s attention. Douglas Decl., p. 2.
Nowzari
and Douglas advanced all arguments made in their briefs on the Petition with a
good faith belief in their merit.
Douglas Decl., p. 1.
D. Analysis
Respondent MEC moves for an award of $71,270.50 award of attorneys’ fees
from Petitioner Nowzari under B&P Code section 809.9.
a.
Duty to Plead Allege Attorney’s Fees
Nowzari
notes that the answer to a complaint shall contain a statement of any new
matter constituting a defense to provide fair notice to the plaintiff. CCP §431.30(b). He asserts that the MEC was required to assert
its right to attorney’s fees under B&P Code section 809.9 in their Answer
and their failure to do so waives an award of attorney’s fees. Opp. at 14.
As
the MEC notes (Reply at 7), statutory attorney’s fees need not be pleaded or proved
at trial and may properly be awarded after entry of judgment. Faton v. Ahmedo (“Faton”)
(2015) 236 Cal. App. 4th 1160, 1169. Because
statutory attorney’s fees are a separate issue for which Nowzari did not need notice
in the Answer, the MEC did not waive their right to pursue attorney’s fees.
b.
The Appeal
Nowzari
asserts that because the court’s decision did not address attorney’s fees and
Nowzari has appealed the decision, the court cannot consider the motion for attorney’s
fees. Opp. at 14-16.
The general rule is that once a judgment has been entered,
the trial court loses its unrestricted power to change that judgment. Craven v. Crout, (1985) 163 Cal. App.
3d 779, 782. The court retains power to
correct clerical errors in a judgment which has been entered, but it may not
amend such a judgment to substantially modify it or materially alter the rights
of the parties under its authority to correct clerical error. Id. at 782. Additionally, the perfecting of an appeal
stays trial court proceedings upon the judgment or order appealed from or upon
the matters embraced therein or affected thereby, including enforcement of the
judgment or order. CCP §916(a). However, the trial court may proceed upon any
other matter embraced in the action and not affected by the judgment or order. Id. CCP §916(a).
As the MEC notes (Reply at 5), it is well established that
the superior court retains jurisdiction to award attorneys’ fees despite the
existence of an appeal. Domestic
Linen Supply Co., Inc. v. L J T Flowers Inc. (2020) 58 Cal.App.5th 180,
187. The MEC’s motion for attorney’s
fees is not affected by Nowzari’s appeal.
c.
Entitlement
The MEC
seeks attorney’s fees on the ground that Nowzari’s conduct in litigating the
mandamus action was unreasonable and without foundation under B&P section 809.9. The MEC notes that Nowzari raised three
issues at trial: (1) he did not receive a fair hearing because the Arbitrator
failed to make mandatory arbitrator disclosures and had a symbiotic
relationship with the MEC’s counsel; (2) the Arbitrator had improper ex
parte contacts with the MEC’s counsel during Nowzari’s testimony; and (3)
the Board’s appeal decision was not supported by substantial evidence. Mot. at 7-8.
“Without
foundation” means “baseless, groundless, or without support.” Smith, supra, 188 Cal.App.4th
at 30-31. The foundation for an
assertion of fact is evidence, whereas the foundation for a contention of law
is legal authority. Id. at
31. The record of the proceeding will
contain a party's (1) factual assertions and references to the evidence that
supports those assertions and (2) legal positions and the authority cited to
support those positions. Id. at 31.
The existence of supporting evidence and authority can be determined as
a matter of objective fact. Smith,
supra, 188 Cal.App.4th at 31.
To
determine if a plaintiff’s conduct was “reasonable” under B&P Code section
809.9, courts ask whether any reasonable attorney would have thought the claim
tenable based on the facts the plaintiff knew when they filed or maintained the
action. Id. at 32-33. This depends in part on the positions it took
during the litigation. Id. at
26. “[C]onduct in litigating the suit”
includes acts taken on specific issues. Id.
at 29.
The
court found that Nowzari only presented CCP section 1286.2(a)(6)(A) for the
first time in reply and utterly failed to analyze the mandatory disclosure
issue. Dec. at 18. Moreover, the California Arbitration Act (“CAA”)
applies to private arbitration and its disclosure requirements do not apply to
a peer review arbitrator. Dec. at
19-20. Nowzari presented no legal basis
to support his contention that disclosures were required. As a result, this argument lacked legal
foundation.
Both the Board and the court found that that California law
requires a showing of actual bias and Nowzari failed to present any evidence of
actual bias. Dec. at 23. In fact, Nowzari admitted in reply that he
had not shown actual bias. Dec. at
23-24. The issue of actual bias lacked
factual foundation.
Nowzari’s supporting attorney declaration alleged that the
Arbitrator and Harwell communicated ex parte during the hearing. Nowzari argued that the reporter's transcript
documents the Arbitrator’s and Harwell’s disturbing behavior of talking to each
other off video and that they did not directly deny doing so when they were
confronted.
The court found this to be a scurrilous and unsupported
accusation. Nowzari’s attorney may have
had the right to question what the Arbitrator and Harwell were doing during the
hearing, but his argument that there was an ex parte communication
between the two is based on conjecture and speculation without supporting
evidence. Both the Arbitrator and
Harwell denied that they were talking to each other. At the Board appeal hearing, Harwell provided
further explanation. Contrary to
Nowzari’s contention, Harwell did not admit that he and the Arbitrator may have
been talking and nowhere on the cited page did he so state. Nowzari’s accusation against Harwell and the
Arbitrator was for serious misconduct and Nowzari had no business making the
accusation without a good faith basis and his attorney’s observations on the
Zoom video were insufficient to constitute a good faith basis. Whatever his suspicions, they had no business
in a brief. Dec. at 26. The claim of ex parte communication
completely lacked factual foundation.
Finally, Nowzari’s opening brief argued that the Board’s
decision was not supported by substantial evidence in only two sentences. As Nowzari failed to explain what evidence he
presented, what evidence the MEC presented, and why his evidence was more
substantial, the issue was waived. In
any event, the Board’s decision was based on substantial evidence. Dec. at 27.
The claim that the Board’s decision lacked substantial evidence lacked
legal and factual foundation. All of
these claims also were unreasonable because no reasonable attorney would have
thought the claims tenable based on the facts known to Nowzari when he filed or
maintained the action.
In
opposition, Nowzari asserts that the court ignored most of the evidence of the
Arbitrator’s partiality in rendering its decision, including his decision to
not disclose past dealings with Harwell, his tolerance of Harwell’s attempts to
delay proceedings, interference with Douglas’s cross-examination of witnesses,
alleged ex parte communication, frustration at Nowzari and Douglas for
highlighting it in his decision, and a decision that was overall
one-sided. Opp. at 17-18.
Nowzari
asserts that there was strong legal basis for the argument that this rendered
his hearing unfair. There is no
authority that the affirmative duty of a neutral arbitrator under the CAA to
voluntarily disclose any history or matter could entertain doubt that he could
be impartial in the case does not apply to a neutral arbitrator in a hospital
fair hearing. In the absence of
precedent, the logical interpretation is that the purpose of such rules is to allow
the parties to make an informed decision about the prospective neutral and these
disclosures are required. Opp. at 18.
Nowzari
alleges that his attorney’s observations during the arbitration hearing had to mean
there was some form of ex parte communication between the Arbitrator and
Harwell. Opp. at 19; Douglas Decl., p.
2. Finally, the only reason Nowzari
cannot show that substantial evidence does not support the Board’s decision is that
the Arbitrator ignored all the evidence in Nowzari’s defense. Opp. at 19-20.
These
arguments were addressed by the court in its decision. Nowzari not only failed to show that the CAA
applies to a neutral arbitrator in a hospital privileges hearing, he failed to
even show that the CAA disclosure requirements would have required a disclosure. Actual bias of the Arbitrator must be shown,
and Nowzari admitted that he had no evidence of actual bias. Nowzari’s arguments about ex parte
communication were fully addressed in the court’s decision; it is one thing to suspect
such a communication and another to allege such misconduct without adequate
evidence. Finally, Nowzari misstates the
substantial evidence issue; it is not what the Arbitrator allegedly ignored
that was important but rather what evidence was in the record.
The
MEC is entitled to its attorney’s fees because Nowzari’s arguments lacked legal
or factual foundation and were unreasonable.
d.
Reasonableness of Fees
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. 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, (2014) 230 Cal.App.4th 459, 488.
Nowzari
asserts that the block billing of 242.70 hours does not provide evidentiary support
for the claimed fees. Opp. at 21; see
Pedroza Decl., ¶¶ 21-22, Ex. C. He
further asserts that if the Petition was baseless, the MEC’s counsel would not
have done as much work as claimed. Opp.
at 21.
The MEC’s
counsel’s block billing summary breaks down the hours claimed into six tasks,
and it shows the total amount of work that each attorney or paralegal
performed. Pedroza Decl., ¶¶ 21-22, Ex.
C. While the MEC could have been more
specific, there is nothing wrong with block billing per se. Nowzari does not dispute the number of hours spent
on a specific task, the hourly rate for any attorney, or number of hours worked
per attorney.
Given
the issues of disclosure, bias, and ex parte communication raised by
Nowzari, the hours are reasonable. The MEC also points out that Nowzari refused
to dismiss the Petition against the wrong parties which forced them to file a
demurrer until Nowzari agreed to dismiss the Petition two months later. Pedroza Decl., ¶¶ 3, 5.
The attorney’s
fees of $71,270.50 are reasonable.
E.
Conclusion
The
motion for an award of attorneys’ fees of $71,270.50 against
Nowzari under B&P Code section 809.9 is granted.
[1] As
the court consistently has referred to the Medical Staff as the MEC, it will
continued to do so herein.
[2]
Petitioner Nowzari failed to file a courtesy copy of his opposition in
violation of the Presiding Judge’s First Amended General Order Re: Mandatory
Electronic Filing.