Judge: Mark E. Windham, Case: 22STLC00458, Date: 2023-05-18 Tentative Ruling

Case Number: 22STLC00458    Hearing Date: May 18, 2023    Dept: 26

Pegasus Investments Real Estate Advisory, Inc. v. ADP TotalSource, Inc., et al.

MOTION FOR ATTORNEY FEES

(CCP §§ 1032, 1033.5; Civil Code § 1717)

TENTATIVE RULING:

Plaintiffs Pegasus Investments Real Estate Advisory, Inc. and Pegasus Asset Management, Inc.’s Motion for Attorney Fees is GRANTED IN THE AMOUNT OF $25,372.50.00

ANALYSIS:

On January 24, 2022, Plaintiff Pegasus Investments Real Estate Advisory, Inc. (“Plaintiff Pegasus Investments”) filed this action against Defendant ADP TotalSource, Inc. (“Defendant”). The First Amended Complaint was filed on July 22, 2022 and added “Pegasus Asset Management, Inc.” (“Plaintiff Pegasus Asset”) as a plaintiff. Defendant filed an answer to the First Amended Complaint on August 22, 2022.

On September 26, 2022, Defendant filed two statutory offers to compromise pursuant to Code of Civil Procedure section 998. The statutory offers were subsequently rejected. Plaintiff filed a Memorandum of Costs on September 27, 2022. Defendant filed the first Motion to Tax Costs on October 14, 2022, which was eventually placed off calendar. (Minute Order 02/06/23.)

On March 9, 2023, Defendant filed two Statutory Offers to Compromise pursuant to Code of Civil Procedure section 998 signed by both Plaintiffs. Plaintiffs filed a Memorandum of Costs on March 21, 2023. On March 22, 2023, Plaintiffs filed the instant Motion for Attorney Fees. Defendant filed an opposition on May 5, 2023. The Court ruled on Defendant’s Motion to Tax Costs on May 11, 2023 and ordered judgment to be entered on behalf of Plaintiffs on the same date. (Minute Order, 05/11/23.)

Discussion

Entitlement to Attorney’s Fees

A prevailing party in entitled to recover costs, including attorneys’ fees when authorized by contract, law or statute. (Code Civ. Proc., § 1032, subd. (a)(4); § 1033.5, subd. (a)(10).) Plaintiffs move for fees under Code of Civil Procedure sections 1032 and 1033.5. Plaintiffs are the prevailing party pursuant to the settlement agreements as “the party with a net monetary recovery.” (See Code Civ. Proc., § 1032, subd. (a)(4).)

A motion for attorneys’ fees must be filed and served with the time for filing a notice of appeal under Cal. Rules of Court Rule 8.822. (Cal. Rules of Court Rule 3.1702(a).) Cal. Rules of Court Rule 8.822 states that an attorneys’ fees motion must be filed within either (1) 30 days after the trial court clerk served the party filing the motion with notice of entry of judgment; or (2) 90 days after entry of judgment. (Cal. Rules of Court 8.822(1).) Here, judgment was entered on May 11, 2023, making the instant motion timely.

Calculation of Attorney’s Fees

The Court’s objective is to award attorney fees at the fair market value based on the particular action.  (Ketchum v. Moses (2001) 24 Cal.4th 1122, 1132.) “‘[T]he fee setting inquiry in California ordinarily begins with the ‘lodestar,’ i.e., the number of hours reasonably expended multiplied by the reasonable hourly rate . . . .’” (Ketchum v. Moses (2001) 24 Cal.4th 1122, 1134.) “The reasonable hourly rate is that prevailing in the community for similar work.” (PLCM Group v. Drexler (2000) 22 Cal.4th 1084, 1095.) Plaintiffs’ counsel has more than ten years of experience practicing law and reasonably charges $425.00 per hour for their time. (Motion, Ackerman Decl., ¶14 and Exh. A.)

Regarding the number of hours expended, the lodestar method looks to factors relevant to the particular case: “(1) the novelty and difficulty of the questions involved, (2) the skill displayed in presenting them, (3) the extent to which the nature of the litigation precluded other employment by the attorneys, (4) the contingent nature of the fee award.”  (Ketchum, supra, 24 Cal.4th at 1132.) The Court agrees with Defendant that the Motion does not support the full number of hours billed on the matter, as follows. Plaintiffs seek $36,476.40 in fees based on 72.7 hours of time, plus eight hours for time spent on this Motion. (Motion, Ackerman Decl., ¶¶16-17.) As noted in the ruling on Defendant’s Motion to Tax Costs, Plaintiffs filed an unnecessary motion to compel responses and deposition, which involved at least 13 hours of attorney time. (Ibid.) Eight hours to prepare the form complaint is excessive, given the additional time spent by Plaintiffs’ counsel prior to filing the case. Also, time spent amending the Complaint was unreasonable given that Plaintiffs’ names should have been alleged correctly from the start. The time spent on the Complaint and First Amended should be reduced by 5.5 hours. Finally, time spent on the instant Motion for Attorney Fees, which involves no unusual issues is high and shall be reduced by 2 hours.

Based on the foregoing lodestar calculation, Plaintiffs are awarded attorney’s fees based on 59.7 hours of time billed at $425.00 per hour, in the total amount of $25,372.5.

Conclusion

Plaintiffs Pegasus Investments Real Estate Advisory, Inc. and Pegasus Asset Management, Inc.’s Motion for Attorney Fees is GRANTED IN THE AMOUNT OF $25,372.50.00

Moving party to give notice.