Judge: Stephen I. Goorvitch, Case: 21STCP03332, Date: 2023-11-16 Tentative Ruling

Case Number: 21STCP03332    Hearing Date: November 16, 2023    Dept: 39

Porch.com, Inc., et al. v. Kandela, LLC

Case No. 21STCP03332

Motion for Attorney’s Fees

            Petitioners Porch.com, Inc. (“Porch”) and Matthew Ehrlichman (collectively, “Petitioners”) participated in an arbitration of claims with Respondent Kandela, LLC (“Kandela” or “Respondent”).  Kandela linked people moving to a new house with utility providers.  Porch provided similar services by linking new homeowners with various household businesses, like handymen, electricians, plumbers, etc. Porch identified Kandela as a potential merger partner.  Eventually, Porch acquired Kandela in March 2019.  The parties had issues transitioning Kandela’s business into Porch, and litigation ensued. Because the asset purchase agreement contained an arbitration clause, the parties proceeded to arbitration with JAMS Arbitration. On July 8, 2022, the arbitrator issued an award in favor of Petitioners in favor of Porch, and against Kandela, in the total amount of $1,401,814.

            Petitioners filed this action to confirm the arbitration award on on September 28, 2022.  Respondent opposed the motion and filed its own motion to vacate the arbitration award.  The Court held a hearing on October 10, 2022, following which it granted Petitioner’s motion and denied Respondent’s motion.  Petitioner also undertook efforts to satisfy the judgment.

            Now, Petitioner seeks attorney’s fees under the Asset Purchase Agreement (“APA”).  The arbitrator awarded attorney’s fees and costs for the underlying arbitration.  Therefore, the Court interprets the motion as seeking attorney’s fees relating to Petitioner’s efforts to confirm the arbitration award and satisfy the judgment.  Petitioner requests $93,8750 in attorney’s fees.  The parties’ agreement states that “Any dispute, claim or controversy arising out of, or relating to, this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be determined by binding arbitration in the city and state of the responding party before one arbitrator chosen by the responding party.”  (APA § 9.10(b).)  The agreement also states: “The arbitrator will award to the prevailing party all costs, fees and expenses related to the arbitration, including reasonable fees and expenses of attorneys, accountants and other professionals incurred by the prevailing party.”  (APA § 9.10(c).)  This is sufficient to permit Petitioner to seek attorney’s fees from this Court.  (See, e.g., Ajida Technologies, Inc. v. Roos Instruments, Inc. (2001) 87 Cal.App.4th 534, 552; California Union Square L.P. v. Saks & Company LLC (2021) 71 Cal.App.5th 136, 145.) 

            The Court grants Petitioner’s motion.  The Court finds that the billing rates are imminently reasonable.  The Court cannot conclude that any of the requested hours relate to matters concerning the arbitration, as there were prior proceedings to confirm the arbitration award, as represented by Petitioner’s counsel.  The Court considered whether to reduce the hours for any inefficiencies, but the Court notes that the billing rate is low, at least half of the prevailing market rates for attorneys like Petitioner’s attorneys.  Finally, the Court notes that Respondent “created its own problem” by litigating a (meritless) opposition to Petitioner’s motion to confirm the arbitration award and motion to vacate the arbitration award and forced Petitioner’s counsel to engage in efforts to satisfy the judgment.  Therefore, the Court applies no reduction.

            Based upon the foregoing, the Court orders as follows:

            1.         Petitioners’ motion for attorney’s fees is granted.

            2.         The Court orders Respondent to pay Petitioners, by and through counsel, attorney’s fees and costs in the amount of $93,875.50 within thirty (30) days, by and through counsel.

            3.         Petitioner’s counsel shall provide notice and file proof of such with the Court.