Judge: Ralph C. Hofer, Case: 20GDCV00473, Date: 2024-11-15 Tentative Ruling
Case Number: 20GDCV00473 Hearing Date: November 15, 2024 Dept: D
TENTATIVE RULING
Calendar: 3
Date: 11/15/2024
Case
No: 20
GDCV00473
Case Name: Haas,
et al. v. Murphy, et al.
MOTION FOR ATTORNEY’S FEES
Moving Party:
Defendant Terri
Murphy and Michael Murphy
Responding Party: Plaintiffs
Birgit Haas and Scott Haas
RELIEF REQUESTED:
Award of
attorney’s fees in favor of defendants Terri Murphy and Michael Murphy and
against plaintiffs Birgit Haas and Scott Haas in the amount of $163,620.00
FACTUAL AND PROCEDURAL BACKGROUND:
Plaintiffs Birgit Haas and Scott
Haas brought this action alleging that they are the owners of real property
located in Sierra Madre, and that defendants Terri Murphy and Michael Murphy
are the owners of real property adjacent to plaintiffs’ property (the Murphy
property), which sits at a lower elevation than plaintiffs’ property and a
slope sits on the north side of the Murphy property increasing in elevation up
to plaintiffs’ property.
Plaintiffs allege that both
properties are subject to Covenants and Restrictions (CC&Rs) recorded on
the lots included in the subject tract, which include conditions that prohibit
erecting or maintaining buildings other than one private one family residence
not exceeding one story in height, together with customary out buildings,
including a private garage for not more than three cars, and conditions
requiring that each grantee permit free access by owners of adjacent or
adjoining lots to slopes or drainageways located on the property which affect
adjoining lots when such access is essential to for the maintenance or
permanent stabilization on slopes or for the protection of use of property
other than the lot on which the slope or drainageway is located. An additional condition includes that each
grantee of a lot in the tract agrees that he will not interfere with
established drainage over his lot, defined as the drainage which occurred at
the time the overall grading of the tract was completed.
The SAC alleges that all conditions
under the CC&Rs were to run with the land and be binding on persons
claiming under them until January 1, 1988, at which time the CC&Rs are to
be automatically extended for successive periods of ten years, unless changed
by vote, and are to operate as covenants running with the land, with breaches
subject to injunction or abatement.
Plaintiffs allege that since May of
2016, plaintiffs have also been the record owners of a recorded drainage
easement over the northerly 16 feet of the Murphy property, recorded July 9,
1962, which easement benefits plaintiffs’ property by directing water away from
the property and to the street, limiting saturation of the slope, which slope
plaintiffs believe supports the foundation of their property.
Plaintiffs allege that defendants
claim some right, title or interest in the drainage easement adverse to
plaintiffs’ title, and their claims constitute a cloud on plaintiffs’
title. The complaint alleges that defendants
have caused to be constructed a building, a fence, and other encroachments on
the Murphy property over and across the drainage easement, obstructing the flow
of water through the drainage easement as well as plaintiffs’ ability to
maintain the drainage easement.
The SAC alleges that in October of
2019, plaintiffs commenced maintenance on the drainage easement, but shortly
thereafter defendant demanded that the maintenance stop and refused access to
the drainage easement or the slope for maintenance. Plaintiffs allege that defendants continue to
refuse access to the drainage easement, and have threatened to call the police,
constructed a fence, filed a lawsuit to prevent access to the drainage
easement, and have sent a letter to counsel for plaintiffs disclaiming plaintiffs’
right to the drainage easement and accusing plaintiffs of trespass.
Defendants the Murphys, as Trustees
of the Murphy Family Trust, filed a
cross-complaint, alleging that in June of 2004, the Murphys had received fee
title to the Murphy property, having purchased it from their predecessor, and
that they thereafter transferred legal title to themselves in their capacity as
Trustees of The Murphy Family Trust.
Defendants allege that the June 18, 2004 grant deed from the predecessor
conveys the entire fee interest of the entirety of the real property, without
any exception and without the real property being burdened in any way by any
easement in favor of any property to the north. Cross-complainants allege that the tract map
of the Murphy property shows only a utility easement across the east side of
the property.
The cross-complaint alleges that from 1961
through May of 2016, Gordon Hawkins owned and occupied the real property
directly to the north of and adjacent to the Murphy property, and that at the
time cross-complainants acquired the property, there were several block walls
constructed on the Murphy property, less than sixteen feet from the boundary
line, which area was also planted with maturing trees, bushes and other
vegetation.
Cross-complainants allege that
beginning in about 2013 and continuing into about 2014, they began the process
of planning and seeking approval of the City of Sierra Madre to relocate a
portion of one of the block walls, include in the relocation new drainage
systems, and construct a two-story pool house that would be about ten feet from
the boundary line. The plans were reviewed with Hawkins, who did not voice any
objection or concern about drainage or any drainage easement, and after
receiving Hawkins’ consent, cross-complainants submitted their plans to the
City, and applied for the necessary permits.
After receiving approval and the necessary permits, cross-complainants
undertook the work, which was completed in 2015, and received final approval
from the City. At no time since the work
was completed has there been any problem with the drainage of the surface water
flowing naturally from the Hawkins’ property.
The cross-complaint alleges that in
2016, cross-defendants Birgit Haas and Scott Haas entered the Hawkins property,
observed the Murphy property, including the relocated block wall, drainage
systems, pool house, and vegetation that were within 16 feet of the boundary
line between the properties, and were provided with documents showing Hawkins
and his deceased wife had received, as their personal right, an easement for
drainage purposes only over the northern sixteen feet of the Murphy property. Cross-complaint alleges that cross-defendants
had the right to inquire about the improvements on the Murphy property at that
time, which they either exercised or knowingly waived, but that on May 25,
2016, after having observed, examined, and investigated, cross-defendants chose
to go forward with their acquisition of the Hawkins’ property.
The cross-complaint further alleges
that beginning in October of 2019, cross-defendants intentionally entered the
Murphy property, without permission, and intentionally cut down trees, bushes
and vegetation on the property, and have done so on several occasions,
including an occasion after cross-complainants had hired a surveyor to mark the
property line, cross-complainants had installed a wooden fence in compliance
with the applicable municipal code, and
installed a “No Trespassing” sign, and informed everyone on the other side,
including cross-defendants, that they had no right or permission to enter the
real property. The cross-complaint
alleges that cross-complainants have been damaged by the loss of the trees, bushes
and vegetation which have been removed, and also by the circumstance that the
integrity of the slope and ability to handle normal surface water flows and
water flows during rainy seasons has been put at risk.
The cross-complaint alleges causes
of action for trespass to real property and trespass to timber.
On July 15, 2022, the court heard
motions for summary judgment or summary adjudication brought by plaintiffs and
by the Murphy defendants. The motion for
summary adjudication brought by the Murphy defendants was granted as to the fifth
cause of action of the SAC for permanent injunction and damages—violation of
CC&Rs, and the sixth cause of action for declaratory relief re CC&Rs, on
the ground defendants had submitted undisputed evidence showing that the
property now owned by plaintiffs was conveyed to their predecessors in
interest, Gordon Hawkins and Jeanne Hawkins, prior to the effective date and
date of recording of the CC&Rs plaintiffs were attempting to enforce.
Two of the remaining causes of
action of the SAC and the cross-action based on the SACC went to a court trial
in October of 2022 and August of 2023.
In February of 2024, the court entered it final statement of decision
and a correction to that final statement of decision. On April 24, 2024, at a Status Conference re
Trial, plaintiffs made an oral motion to the court for dismissal without
prejudice of the second cause of action for private nuisance, and for permanent
injunction and damages—interference with easement, which had been reserved to
be tried in a second phase of the trial.
On September 3, 2024, judgment was
entered in the matter.
Judgment as to the SAC was for
defendants and against plaintiffs the Haas parties on the first cause of action
for quiet title to express easement, the fourth cause of action for declaratory
relief re easement, and the fifth and sixth causes of action based on the
CC&Rs (as determined on the motion for summary adjudication discussed above).
Judgment as to the SACC was for
cross-defendants the Haas parties and against cross-complainants the Murphys as
trustees of the family trust on the first cause of action for trespass to real
property and the second cause of action for trespass to timber. Judgment as to the SACC was for
cross-complainants the Murphys as trustees and against cross-defendants the
Haas parties on the third cause of action for declaratory relief and the fourth
cause of action for quiet title.
Judgment was declared that the
express easement that was the subject of this case was extinguished by adverse
possession, extinguishment of the servitude, and/or abandoned by plaintiffs’
predecessors in interest. Judgment was
also declared that title to the Murphy property is free and clear of the
Easement for Drainage Purposes Only recorded on July 9, 1962, and no other
person or entity claiming any right, estate, or interest in the property
adverse to the Murphys’ interest has any interest in the property.
The judgment states, “Costs and
attorney’s fees, if any, to the prevailing party to be determined by a post
judgment memorandum of costs and motion for attorney’s fees.” [Judgment, p. 4:1-2].
ANALYSIS:
Defendants
Terri Murphy and Michael Murphy bring this motion seeking an award of
attorney’s fees in their favor and against plaintiffs, the Haas parties, for
the work performed in connection with defendants’ defense against the Haas
parties’ claims and causes of action for enforcement of the CC&Rs.
In general, under CCP § 1021
“Except as attorney’s fees are specifically
provided for by statute, the measure and mode of compensation of attorneys and
counselors at law is left to the agreement, express or implied, of the
parties...”
Under CCP § 1032(b), “a prevailing
party is entitled as a matter of right to recover costs in any action or
proceeding.” Section 1033.5 (a) provides
that an allowable cost under §1032 includes:
“(10) Attorney’s fees, when
authorized by any of the following:
(A) Contract.
(B) Statute.
(C) Law.”
The Murphys seek fees under
statute, specifically, Civil Code § 5975, arguing that this statute provides
for the Murphy parties’ recovery of attorney’s fees with respect to the causes
of action to enforce the CC&Rs.
Civil Code §5975 states:
“(a) The
covenants and restrictions in the declaration shall be enforceable equitable
servitudes, unless unreasonable, and shall inure to the benefit of and bind all
owners of separate interests in the development. Unless the declaration states
otherwise, these servitudes may be enforced by any owner of a separate interest
or by the association, or by both.
(b) A governing document other than the declaration may be enforced
by the association against an owner of a separate interest or by an owner of a
separate interest against the association.
(c) In an action to enforce the governing
documents, the prevailing party shall be awarded reasonable attorney's fees and
costs.”
Defendants
argue that the California Supreme Court has held that this statute, like other
attorney fees statutes, such as Civil Code section 1717, provides for a full
mutual remedy to a defendant who prevails in defending an action to enforce
CC&Rs, even to a defendant who prevails on the ground that plaintiff was
not successful in establishing that the documents relied upon were governing
documents.
Defendants rely on Tract 19051
Homeowners’ Assn. v. Kemp (2015) 60 Cal.4th 1135, 1149, in which
the Court, in construing the predecessor statute to Civil Code section 5975,
Civil Code section 1354 (c), which has not changed with respect to the
attorney’s fees clause, held that defendants in that matter, a homeowner and
subsequent purchaser of property being sued for alleged violations of
restrictions by ongoing remodeling of the property, were entitled to an award
of attorney’s fees under the statute.
The Court found an award of attorney’s fees was proper under the
statute, even though defendants had prevailed in the action because plaintiffs
had failed to establish that plaintiff Tract 19051 Homeowners’ Association
constituted a “common interest development” within the meaning of the Common
Interest Development Act, so had failed to establish that the restrictions in
the governing documents applied to defendants’ property. Tract 19051, at 1138-1139.
The Court evaluated the attorney’s fees
provision of the statute, and observed:
“When a lawsuit is brought to
enforce what the complaint expressly alleges are the governing documents of a
common interest development, the action would ordinarily be understood to be
“an action to enforce the governing documents [of a common interest development]”
as that clause is used in former section 1354(c). Whether or not the plaintiff
in the action is ultimately successful in establishing that the documents
relied upon are in fact the governing documents of a common interest
development would not affect the character or type of action that has been
brought.”
Tract 19051, at 1144.
The Court expressly concluded that
reciprocity applied to the attorney’s fees provision before it:
“[W]e conclude that the
Court of Appeal erred in reversing the attorney fee award in favor of
defendants. First, the trial court's award of attorney fees is supported by the
language of the statute: Plaintiffs' underlying lawsuit was an action to
enforce the governing documents of a common interest development, and
defendants were the prevailing party in the action. Second, because plaintiffs
clearly would have been entitled to an award under the statute had they
prevailed in the action, denying defendants an award under the statute
when they were the prevailing party would unquestionably violate the
reciprocal nature of the statute and thus defeat the evident legislative intent
underlying the statute. As we shall explain, prior California decisions,
interpreting and applying comparable statutory attorney fee provisions that
mandate an award of attorney fees to the prevailing party, directly support
this interpretation of former section 1354(c).”
Tract
19051, at 1139, italics in the original.
Defendants
argue that under this holding, it follows that the Murphys are entitled to an
award of attorney’s fees for having been prevailing defendants in an action by
the Haas parties to enforce the CC&Rs, and that this is true notwithstanding
that the Murphys prevailed on the grounds that the Haas property was not part
of the common interest development and the CC&Rs were not recorded against
the Haas property.
Defendants
here prevailed on the causes of action to enforce the CC&Rs pursuant to
their successful motion for summary adjudication of the fifth and sixth causes
of action of the operative complaint, in which the court determined:
“Defendants have shown that at the
time the Grant Deed conveyed the property to Gordon and Jeanne Hawkins, there
were not yet any CC&Rs entered into or recorded in connection with the
subject property, as the CC&Rs were not executed or recorded until after
the date of conveyance.
In Citizens for Covenant
Compliance v. Anderson (1995) 12 Cal.4th 345, the California Supreme Court
recognized that CC&Rs recorded prior to the conveyance by deed of a lot
within a subdivision were properly applied to the lot in question. In this
case, however, the CC&Rs were indisputably not recorded prior to the actual
conveyance by grant deed of the lot to plaintiffs’ predecessors in interest, so
that the party granting the rights pursuant to the CC&Rs no longer held any
interest in the subject lot and could not convey the rights contained in the
CC&Rs,which, as to plaintiffs’ lot, were void. The subsequent recordation
of those void CC&Rs could not make the CC&Rs enforceable by the Hawkins
parties or their successors in interest. See Taormina Theosophical
Community, Inc. v. Silver (1983, 2nd Dist.) 140 Cal.App.3d 964, 970-971.
Plaintiffs in opposition do not
dispute the timing of these conveyances, and plaintiffs have failed to attempt
to raise triable issues of material fact on this issue. Plaintiffs have also
failed to submit a separate statement of material facts which responds to, or
cites to evidence to respond to, the critical facts in this matter that the
CC&Rs were not recorded until after the property had been conveyed to
Gordon Hawkins and Jeanne Hawkins. [See UMF Nos. 1-5, and evidence cited]. CCP
§ 437c(b)(3); CRC Rule 3.1350 (f). The opposition also fails to discuss the
legal authorities cited or provide citation to authority under which the
CC&Rs would apply to plaintiffs’ property here or provide grounds for
plaintiffs’ personal enforcement of any provisions included in the CC&Rs.
Accordingly, no triable issues of
fact remain with respect to the applicability of the CC&Rs to the Haas
property and summary adjudication is granted on the ground that plaintiffs will
be unable to establish the essential element of these two causes of action,
that the CC&Rs sought to be enforced apply to the subject property and
convey upon plaintiffs the rights they seek to enforce.”
[Miller Decl., para. 9, Ex. F, Minute Order 07/15/2022, p. 35
of 41].
This conclusion is sufficient to
show that in this “action to enforce the governing
documents” by the Haas parties, defendants were the “prevailing” parties, and
so are entitled to “be awarded reasonable attorney’s fees and costs” under Civil
Code §5975 (c) in connection with the defense against the claims brought
under the CC&Rs.
The opposition argues that
plaintiffs’ lawsuit was not an action to enforce the governing documents of a
common interest development, but concedes that plaintiffs pursued the CC&Rs
as an “independent basis to enjoin the Murphy’s activities,” and amended the
complaint to do so. [Opposition, p.
5:20-21]. Plaintiffs also concede that
they sought attorney’s fees in their pleadings, so that the reciprocity would
apply. Plaintiffs rely on the following
language from LNSU #1, LLC v. Alta Del Mar Coastal Collection Community
Association (2023) 94 Cal.App.5th
1050:
“To determine whether appellants
sought by their action to enforce the Association's governing documents, and
therefore were liable for attorney fees because they failed to do so, we
examine the allegations of their complaint. (See Gause v. Pacific Gas &
Electric Co. (1923) 60 Cal.App. 360, 367, 212 P. 922 [“the nature of the
action must be determined from the allegations of the complaint”]; Vera v.
REL-BC, LLC (2021) 66 Cal.App.5th 57, 65-66, 281 Cal.Rptr.3d 45 [reviewing
allegations of complaint to determine nature of action for limitations
purposes].) …. The complaint nowhere mentions section 5975; the charging
allegations neither cite nor quote any provision of any governing document; the
prayer for relief does not ask the court to enforce any provision of the
governing documents; and no governing document or part thereof is attached to
the complaint. We would expect to find such content in the complaint had
appellants sought enforcement of the Association's governing documents under
section 5975.”
LNSU #1, LLC, at 1082-1083.
This outcome is on its face is in
clear contrast to the current action, where plaintiffs sought leave to amend the complaint
and were permitted to do so, to add allegations that each property is bound and
burdened by recorded CC&Rs. The
pleading quotes conditions from the CC&Rs, and clearly seeks to enforce
them. [See Motion, Ex. E, Motion for
Leave to File Verified First Amended Complaint, Ryan Decl. paras. 8, 9; FAC,
paras. 3-10; SAC paras. 3-9, 50-54, 56-60].
A copy of the CC&Rs is attached to the SAC. [SAC, para. 3, Ex. 1]. The SAC expressly seeks attorney’s fees in
connection with the claim under the CC&Rs:
“As a proximate result of
DEFENDANTS’ violation of the CC&Rs, PLAINTIFFS have been required to, and
have incurred, attorney's fees and costs and the PLAINTIFFS are entitled to
recover those attorney fees and costs in an amount to be proven at trial.”
[SAC, para. 54].
This outcome is in clear contrast
to the concerns raised in LNSU #1.
The statute applies here. Plaintiffs
do not dispute that defendants were the prevailing parties on the CC&R
issues.
Court’s Determination of Reasonableness of Fees
The California Supreme Court in PLCM
Group, Inc. v. Drexler (2000) 22 Cal.4th 1084 established the standard for
evaluating the appropriate amount of attorney’s fees to be awarded:
“the
fee setting inquiry in California ordinarily begins with the “lodestar,” i.e.,
the number of hours reasonably expended multiplied by the reasonable hourly
rate. “California courts have consistently held that a computation of time
spent on a case and the reasonable value of that time is fundamental to a
determination of an appropriate attorneys' fee award.” (Margolin v.
Regional Planning Com. (1982) 134 Cal.App.3d 999, 1004-1005 [185
Cal.Rptr. 145].) The reasonable hourly rate is that prevailing in
the community for similar work. (Id.
at p. 1004; Shaffer v.
Superior Court (1995) 33 Cal.App.4th 993, 1002 [39
Cal.Rptr.2d 506].) The lodestar figure may then be adjusted, based
on consideration of factors specific to the case, in order to fix the fee at
the fair market value for the legal services provided. (Serrano v.
Priest, supra, 20 Cal.3d at p. 49.) Such an approach anchors
the trial court's analysis to an objective determination of the value of the
attorney's services, ensuring that the amount awarded is not arbitrary. (Id.
at p. 48, fn. 23.)
Thus,
applying the lodestar approach to the determination of an award under Civil Code
section 1717, the Court of Appeal in Sternwest
Corp. v. Ash (1986) 183 Cal.App.3d 74, 77 [227
Cal.Rptr. 804] explained: “Section 1717
provides for the payment of a 'reasonable' fee. After the trial court has performed
the calculations [of the lodestar], it shall consider whether the total award
so calculated under all of the circumstances of the case is more than a
reasonable amount and, if so, shall reduce the section 1717
award so that it is a reasonable figure.”
“It
is well established that the determination of what constitutes reasonable
attorney fees is committed to the discretion of the trial court ....
[Citations.] The value of legal services performed in a case is a matter in
which the trial court has its own expertise. [Citation.] The trial court may
make its own determination of the value of the services contrary to, or without
the necessity for, expert testimony. [Citations.] The trial court makes its
determination after consideration of a number of factors, including the nature of the litigation, its difficulty, the amount
involved, the skill required in its handling, the skill employed, the attention
given, the success or failure, and other circumstances in the case.” (Melnyk v.
Robledo (1976) 64 Cal.App.3d 618, 623-624 [134
Cal.Rptr. 602].)
PLCM, at 1095-1096. (Bold print added).
The Court also held that the
standard of review with respect to this determination is abuse of discretion:
“The ‘experienced trial judge is
the best judge of the value of professional services rendered in his court, and
while his judgment is of course subject to review, it will not be disturbed
unless the appellate court is convinced that it is clearly wrong”-- meaning
that it abused its discretion.”
PLCM at 1094, quoting Serrano v. Priest (1977)
20 Cal.3d 25, 49.
Defendants seem
to argue that they are entitled to the reasonable fees to defend this action in
its entirety until the first day of trial, because plaintiffs had taken the
position in seeking leave to amend the their original pleading to add the fifth
and sixth causes of action that the original four causes of action had been
based on the CC&Rs, but amendment was sought to clarify the claims with
respect to the CC&Rs. Defendants
also argue that the Haas parties insisted in keeping enforcement of the
CC&Rs in the initially alleged four causes of action notwithstanding this
court’s summary adjudication of the fifth and sixth causes of action against
the Haas parties, so that the work of the Murphys’ lawyers in defending against
enforcement of the CC&Rs continued until the first day of trial, when this
court asked the attorneys for the Haas parties to stipulate that the CC&Rs
were not part of the initially pleaded four causes of action.
The total
amount sought by defendants is $163,620.00.
Defendants have submitted a
declaration of attorney Katharine Miller describing the work performed for
which fees are sought, which does not attach actual billing statements. The declaration indicates that time expended
in working on other aspects of the case that did not involve defense of
enforcement of the CC&Rs is not included in the chart of time
provided. It is difficult to confirm
from the declaration how this allocation was made. [See Miller Decl., para.
13]. Plaintiffs in opposition argues
that the evidence submitted in support of the hours spent is insufficient and
does not appear to reflect a sufficient record of contemporaneous billing
entries.
It is also not clearly established
what billing rates were actually charged by the attorneys here, Miller, and her
law partner David King. The declaration
states that the attorneys are civil litigators, representing clients in real
estate and business disputes, and that “Given the years of experience we have,
the reasonable rate for each of us is now in excess of $600 per hour.” [Miller Decl., para. 13]. The declaration appears to then apply a $600
billing rate for each attorney. This
approach is a very vague way of establishing the reasonableness of the $600
billing rate. This method seems
particularly improper as the billing documents are not submitted for the court
to confirm what rates were actually charged, and the time entries included in
the declaration begin in 2020 and extend through 2024 with the same billing
rate to be applied throughout.
The declaration indicates that in preparing the chart of time claimed,
counsel has taken out time spent defending non-CC&Rs enforcement claims or
theories, time associated with the cross-complaint, the parts of the summary
adjudication motion which was not addressed to the CC&Rs, and time dealing
with experts which did not address the claims under the CC&Rs. [Miller Decl., para. 13]. Again, it is not
explained how this allocation was made. It appears that counsel’s position is
that this court should simply take counsel’s word that allocation was made, even
though defendants also appear to be taking the position that all six causes of
action pursued by plaintiffs implicated the CC&Rs. Hence, the defendants
argue, that time spent defending the complaint was connected to the CC&Rs
until just before trial when it was confirmed that the CC&R enforcement
would not be pursued further.
The attorney declaration also does
not provide a clear overall statement of the hours spent, to which plaintiffs
have objected. Hence, the court was required to cull through the declaration to
find the figures and then total them.
The chart represents without details that certain other hours were spent,
but defendant is not claiming them in connection with this motion.
The figures the court has been able
to summarize from the chart are as follows:
For
this period, the time not requested is 92.5
hours, making the total time spent (and presumably billed to the client) 136.9 hours.
For this period, the time not requested
is 312.5 hours, making the total time spent 519.2 hours.
For the period from 10/06/2022 through 09/03/2024, 3.8 hours are
being claimed at $600 per hour =$2,280.00 in fees claimed.
For this period, time not requested is not specified, so the total time
spent cannot be calculated. [Miller
Decl., para. 13]
Defendants also seek fees for
preparing the motion to recover fees, seeking:
12.8 hours preparing motion
3 hours reviewing opposition and
drafting reply
2 hours preparing for and attending
hearing.
This totals 17.8 hours at $600 per hour, for fees of $10,680.
[Miller Decl.,
para. 14].
Total hours prior to this motion
= (44.4 hours, plus 206.7 hours, plus 3.8 hours) 254.9 hours (at $600 per hour
$152,940)
Hours for the fees motion = 17.8 hours
(at $600 per hour $10,680.00)
Grand total = (254.9 hours plus 17.8
hours) 272.7 hours (at $600 per hour $163,620.00)
Total not sought= (92.5 hours
plus 312.5 hours) 497 hours (at $600 per
hour $298,200.00)
Total overall sum presumably billed
to client= (Total sought here, 272.7 hours, plus total not sought 497 hours) 769.7
hours (at $600 per hour $461,820.00).
The fees sought here accordingly are
approximately one third of the total fees purportedly spent in this matter.
The court has reviewed the chart of hours
submitted, and is very familiar with the
entire course of this litigation and the issues presented, having presided over
the action since its inception, including providing a detailed ruling on the
motion for summary judgment/adjudication.
The court also presided at the trial, drafted a detailed statement of
decision, and participated in the post-trial proceedings to ensure the entry of
an appropriate judgment in this case.
The opposition argues that the
billing rate of $600 per hour is unreasonable and not supported by sufficient
evidence, as there is no information provided regarding the actual rates of the
attorneys, or market rates during the time period services were performed. The court shares these concerns, but is
familiar with the fees customarily claimed by attorneys at the experience level
of the attorneys here, and despite the incomplete showing, the court will apply
a $600 per hour billing rate.
With respect to the hours claimed,
the court is of the view that the defense against the efforts by plaintiffs to
enforce the CC&Rs was a minor and secondary issue in this case. This matter instead mainly concerned the
alleged existence of, and alleged encroachment of, a drainage easement, the alleged
improper design and placement of a wall, and the alleged consequent resulting
instability of a hillside. These other issues
were complicated, time-consuming, and required expert evidence. The great bulk of discovery, pretrial preparation,
the motions for summary judgment/adjudication, and the trial concerned these
issues and the various interactions between the parties concerning these
issues.
The defense against the enforcement of the CC&Rs was based on
recorded documents, publicly available, and within the possession of
defendants, and on timelines established by such documents, so that discovery
in support of the defense was not difficult or protracted. The chart of time spent concedes as much,
seeking time in connection with reviewing the initial complaint listing that counsel
conducted, “analysis of client documents including re recorded property
records.” [Miller Decl., para. 13, beginning
07/01/20].
The opposition argues that the defense to the CC&Rs claims was one
of standing and was determinable based on judicially noticeable documents,
which should have been pursued with appropriate diligence and disposed of
earlier in the litigation.
The court agrees that the proof in connection with the CC&R claims
was easily discoverable, and finds that the discovery necessary to defend
against the CC&R claims reasonably totaled one hour.
The court notes that the research necessary to challenge the CC&R enforcement
claims was performed partly in connection with pursuing discovery and that
there was some time spent in connection with an opposition to a motion for
leave to amend the complaint to add stand- alone causes of action for relief
under the CC&Rs, and a demurrer to the FAC, which argued in part that the
claims for violations of the CC&Rs were not sufficiently alleged, and were time
barred. Specifically, defendants claim
when the parties were in the midst of exchanging discovery to have spent 1.7
hours performing “Legal research and analysis re law and defense to Haas’s
enforcement claims, theories…” [Miller
Decl., para. 13, 11/19/20]. The time
spent opposing the motion for leave to file a FAC includes time for legal
research and is claimed in the sum of 8.4 hours [Miller Decl., para. 13,
beginning 07/19/21], plus .8 hours in an ex parte appearance. [Miller Decl., para. 13, 07/26/21], and then
another 8.4 hours drafting the opposition.
[Miller Decl., para. 13, beginning 08/19/21. This second entry for 8.4 hours appears
duplicative of the July charges, and is in any case excessive, and is not
awarded. The chart also includes 1 hour
preparing for the hearing on the motion for leave to amend, and another 1.2
hours reviewing the tentative ruling, and preparing for the hearing, as well as
attending the hearing. [Miller Decl.,
para. 13, beginning 09/15/21, and 09/17/21].
This claim appears duplicative and is reduced to 1.5 hours total in
connection with the hearing. While the
opposition argues that only time spent pursuing the successful standing claim should
be awarded, direct work to defeat the CC&Rs claim, which was not so
misguided as to appear unreasonable, is recoverable by the prevailing
party.
The total time awarded for this preliminary research will be 1.7 hours
and for opposing the motion for leave to amend will be 10.7 hours.
With respect to the demurrer, the chart includes 2.7 hours analyzing
the CC&R fact allegations and strategizing regarding a demurrer [Miller
Decl., para. 13, beginning 07/27/21]. The time claimed to draft the demurrer is 10.4
hours, which includes time dealing with legal research on “CC&Rs not on
title at time developer/declarant deeded Haas’s lot” [Miller Decl., para. 13, beginning
10/06/21]. The time to draft the motion
to strike is claimed at 9.1 hours [Miller Decl., para. 13, beginning
10/11/21]. The drafting of the replies
is claimed at 13.9 hours, including “further research” with “particular focus
upon issues on face due to CC&Rs and not of record when Haas’s lot deeded
by developer.” [Miller Decl., beginning
12/06/21]. Further time for research
regarding the governing documents is claimed in a chart entry which includes
many other tasks, and totals 8.6 hours, which seems excessive, particularly at
a $600 per hour billing rate, and is not allowed. [Miller Decl., para. 13, beginning
12/28/21]. The hearing on the demurrer and motion to strike is billed at 2.3
hours, which obviously encompasses the time spent for the entirety of the
hearing on the demurrer and motion to strike, which was not entirely addressed
to the CC&Rs. [Miller Decl., para. 13, beginning 12/17/21]. The total hours claimed which the court finds
applicable from the chart is 38.4 hours.
The court notes that the demurrer was directed not only at the
CC&Rs, but included arguments that each of the causes of action were barred
by the various applicable statutes of limitations. The court finds that approximately one-third
of the time devoted to the demurrer and motion to strike was not time directed
to defeating enforcement of the CC&Rs, so the court awards two-thirds of the time claimed, and the
total time awarded for the demurrer and motion to strike is 25.6 hours.
The court finds that the issue of enforcement of the CC&Rs was
successfully resolved in favor of defendants through that portion of the motion
for summary adjudication filed by defendants pertaining to the fifth and sixth
causes of action. As set forth above,
the motion as to those causes of action was granted. Also evident from the court’s minute order is
that the motion for summary adjudication of those causes of action was a small
portion of defendants’ overall motion for summary judgment, which was addressed
to each of six causes of action of the SAC, with arguments as to most causes of
action involving more than one issue, including the issues raised as to the
fifth and sixth causes of action, which included an argument that summary
adjudication was warranted because the claims were time barred, which was not
the basis for the court granting summary adjudication on the CC&R’s. Defendants’ motion was denied as to the bulk
of the motion, as to four of six causes of action and nine of the thirteen
stated issues, so that defendants only prevailed in the motion on two-thirteenth
of the issues addressed. Again, the more
complex and time-consuming issues were those other than the issues concerning
the CC&Rs.
Moreover, a review of the minute order addressing the motion for
summary adjudication, some of which is quoted above, shows that the motion by
defendants as to the fifth and sixth causes of action was not rigorously
challenged by plaintiffs in opposition to that motion. [Miller Decl., Ex. F, pp. 22, 35].
The court is also concerned that the research regarding the CC&R
issues had already been performed and billed in connection with the opposition
to the motion for leave to amend and the demurrer and motion to strike, so the
time necessary to prepare the motion for summary adjudication on the narrow
issue concerning the applicability of the CC&Rs to the Haas property should
have been greatly reduced.
The hours sought from the chart which the court identifies as
pertaining to the preparation of the motion for summary adjudication include
very early research and drafting of 4.9 hours (Miller Decl. para. 13, beginning
04/27/21) and 2.6 hours. [Miller Decl.,
para. 13, beginning 06/21/21]. In March
of 2022, defendants spent 24.3 hours preparing the motion. [Miller Decl., para. 13, beginning 03/03/22]. An additional 5.6 hours are claimed for
reviewing opposition and drafting reply papers.
[Miller Decl., para. 13, beginning 6/10/22]. Defendants claim time for opposing
plaintiffs’ motion for summary judgment/adjudication (although they also claim
in the chart that they are not seeking any time in connection with the
cross-claims), when only one issue pertaining to the first cause of action was
implicated in connection with that motion, with the opposition on the issue
essentially duplicating the arguments in defendants’ motion already
awarded. The court awards 1 hour of
additional time for the opposition to plaintiffs’ motion on this issue.
Defendants claim 1.3 hours for the court appearance and oral argument
on the motions for summary judgment/adjudication, and conference with the
client regarding the outcome, and 2.1 hours and then an additional 1.3 hours
preparing the proposed order on the motion.
[Miller Decl., para. 13, 07/15/22 and beginning 7/25/22 and
08/05/22]. The court finds that the fees
to prepare the order are unreasonably high given the specificity of the court’s
minute order, and the fact that only 4, possibly 5, issues out of thirteen
pertain to the CC&Rs arguments. The
court awards only one hour of time for preparing the order. The total time claimed as summarized above
would total 4.9 hours, plus 2.6 hours, plus 24.3 hours, plus 5.6 hours, plus
one hour to oppose plaintiffs’ motion, plus one hour to prepare the order, for
a total of 39.4 hours the court finds were reasonably spent on the motions for
summary judgment/adjudication pertaining to the CC&Rs. At the $600 billing rate, this totals $23,640.00. While the court has some doubts with respect
to defendants’ claim to have apportioned the fees sought between the CC&R
claims and the other claims, and with respect to whether the research necessary
to prevail on the claims governed by the fees statute had been performed previously
and accounted for in the fees awarded on the motion for leave to amend and
demurrer and motion to strike, above, the court awards the summary adjudication
fees as adjusted above in full.
Defendants also claim time for having prepared a proposed judgment in
this matter. The court recalls the process which was required to produce a
satisfactory judgment in this matter, which, as discussed above, involved many
complex issues, and the crafting of a clear and concise judgment for
declaratory relief and quiet title. The judgment
as to the fifth and sixth causes of action includes a single narrative
paragraph, and two simple phrases that judgment as to the SAC is for defendants
as to each of the fifth and sixth causes of action. [Judgment, pp. 1, 2]. The court finds that the time reasonably
spent on post-judgment matters by defendants in connection with the CC&Rs issues
was .5 hours.
Defendants also seek 17.8 hours to pursue this motion for fees. [Miller Decl, para. 14]. The court has reviewed the moving papers,
which involve the straightforward application of Civil Code section 5975, and
finds that the reasonable time to prepare such a motion and a reply is 10 hours
of time at a $600 per hour billing rate, and that since the parties may appear
remotely, the time to attend the hearing should not exceed one hour. An additional 11 hours accordingly is
awarded.
The total fees which the court finds
are to be awarded as the reasonable fees in the portion of this action
involving enforcement of the governing documents in which defendants prevailed
under Civil Code §5975 (c) are 1.7 hours in
preliminary research, 1.0 hour in discovery, 10.7 hours opposing the motion for
leave to amend, 25.6 hours in connection with the demurrer and motion to
strike, 39.4 hours in connection with the motions for summary
judgment/adjudication, .5 hours in post-trial legal services, and 11.0 hours in
pursuing the motion for fees.
This amount
totals 89.9 hours. At the reasonable
billing rate of $600 per hour, the total fee award is $53,940.00, which is to
be awarded to defendants and against plaintiffs pursuant to Civil Code §5975.
RULING:
Defendants Terry Murphy’s and Michael Murphy’s Motion for
Attorney’s Fees is GRANTED.
The Court finds that
defendants Terri Murphy and Michael Murphy were the prevailing parties in the
portion of this action which was brought to enforce the governing documents of
a common interest development, and are entitled to reasonable fees to prevail
on those claims. The court finds that
reasonable attorney’s fees are $53,940.00 [$163,620.00 sought] which are to be
awarded to defendants Terri Murphy and Michael Murphy against plaintiffs Birgit
Haas and Scott Haas payable within 60 days of the entry of an attorney fee
award order.
DEPARTMENT D IS CONTINUING
TO CONDUCT AND ENCOURAGE
AUDIO OR VIDEO APPEARANCES
Please make arrangement in advance if you wish to appear via
LACourtConnect by visiting www.lacourt.org to schedule a remote appearance.
Please note that LACourtConnect offers free audio and video appearances. However, ADVANCE REGISTRATION IS REQUIRED.
If no appearance is set up through LACourtConnect, or no appearance is
otherwise made, then the Court will assume the parties are submitting on the
tentative.