Judge: Thomas D. Long, Case: 20STCV13066, Date: 2023-05-09 Tentative Ruling
Case Number: 20STCV13066 Hearing Date: May 9, 2023 Dept: 48
SUPERIOR
COURT OF THE STATE OF CALIFORNIA
FOR THE
COUNTY OF LOS ANGELES - CENTRAL DISTRICT
|
HECTOR CARREON, Plaintiff, vs. U.S. FOODSERVICE, INC., et al., Defendants. |
) ) ) ) ) ) ) ) ) ) ) |
[TENTATIVE] ORDER GRANTING IN PART DEFENDANT’S
MOTION TO TAX COSTS; GRANTING IN PART PLAINTIFF’S MOTION FOR ATTORNEY FEES Dept. 48 8:30 a.m. May 9, 2023 |
On September 21, 2022, a jury
returned a verdict in favor of Plaintiff Hector Carreon and against Defendant U.S.
Foodservice, Inc. On December 2, 2022, the
Court entered judgment on the verdict.
On
December 19, 2022, Plaintiff filed a verified memorandum of costs, seeking $55,132.80
in costs. On January 5, 2023, Defendant filed
a motion to tax costs.
On
January 10, 2023, Plaintiff filed a motion for attorney fees, seeking $1,292,197.20
in attorney fees.
On
February 9, 2023, the Court granted in part Defendant’s motion for judgment notwithstanding
the verdict and ordered that the judgment be amended to remove the $1 million punitive
damages award. An amended judgment issued
on March 10, 2023.
In
a FEHA action, a prevailing plaintiff may recover reasonable attorney fees and costs,
including expert witness fees. (Gov. Code,
§ 12965, subd. (c)(6).)
DEFENDANT’S
MOTION TO TAX COSTS
“A
‘verified memorandum of costs is prima facie evidence of the propriety’ of the items
listed on it, and the burden is on the party challenging these costs to demonstrate
that they were not reasonable or necessary.”
(Adams v. Ford Motor Co. (2011) 199 Cal.App.4th 1475, 1486 (Adams).) “[I]f the correctness of the memorandum is challenged
either in whole or in part by the affidavit or other evidence of the contesting
party, the burden is then on the party claiming the costs and disbursements to show
that the items charged were for matters necessarily relevant and material to
the issues involved in the action.” (Oak
Grove School Dist. of Santa Clara County v. City Title Ins. Co. (1963) 217 Cal.App.2d
678, 699 (Oak Grove).)
In
response to Defendant’s motion to tax costs, Plaintiff’s opposition conceded numerous
costs. These concessions cast doubt on the
accuracy and propriety of the costs originally claimed, and they have caused the
Court to more carefully scrutinize the items in the Memorandum of Costs.
A. Filing and Motion Fees
Defendant
moves to strike $86.70 of Plaintiff’s filing and motion fees.
Plaintiff
identified $461.70 as the cost for filing his Complaint, but the filing fee is actually
$435.00 ($26.70 less than sought). Plaintiff
explains that the discrepancy is due to the additional fees for a messenger/attorney
service. (Opposition at p. 1.) Code of Civil Procedure section 1033.5, subdivision
(a)(14) allows “[f]ees for the electronic filing or service of documents through
an electronic filing service provider if the court requires or orders electronic
filing . . . .” The Court will therefore
allow this cost.
Plaintiff
also listed a $60.00 filing fee for a motion for leave to amend that was never filed. Plaintiff agrees to strike this cost. (Opposition at p. 1.)
The
Court therefore deducts $60.00.
B. Jury Fees
Defendant
moves to strike $3,014.36 of Plaintiff’s $4,290.91 for jury fees. Defendant argues that the parties split this cost
and Plaintiff’s claimed amount is more than the actual amount. (Motion at pp. 3-4.)
Plaintiff
agrees that he is entitled to only $1,276.55.
(Opposition at p. 1.)
The
Court therefore deducts $3,014.36.
C. Deposition Costs
Defendant
moves to strike $11,604.55 of Plaintiff’s deposition costs.
Defendant
argues that “Plaintiff’s failure to provide the underlying documentation and invoices
makes it impossible for US Foods (or the Court) to sort out how much of the costs
claimed are recoverable, necessary, or reasonable.” (Motion at p. 4.) But “[a] ‘verified memorandum of costs is prima
facie evidence of the propriety’ of the items listed on it, and the burden is on
the party challenging these costs to demonstrate that they were not reasonable or
necessary.” (Adams, supra, 199 Cal.App.4th
at p. 1486.) However, because Defendant has
now put those costs at issue, the burden is now on Plaintiff to show that the costs
were necessarily relevant and material to the issues involved in the action. (Oak Grove, supra, 217 Cal.App.2d at p.
699.)
Plaintiff
purports to provide invoices with his Opposition. (Opposition at p. 2.) The cited exhibit does not contain invoices for
the depositions of Plaintiff ($284.50 for taking and $2,127.30 for transcribing)
or Padilla ($235.05 for taking and $375.00 for transcribing). (See Lyon Decl., Ex. 2; see also Reply at p. 1.) The Court therefore deducts $3,021.85.
Defendant
argues that $469.15 for taking the depositions of Plaintiff and Timothy Lanning
is excessive and not reasonably necessary because only Defendant noticed these depositions,
and Plaintiff’s counsel conducted less than twenty minutes of cross-examination
of Plaintiff. (Motion at p. 6; see Choi Decl.
¶¶ 12-14.) Plaintiff does not address this
argument in his Opposition. The Court therefore
deducts $184.65 for the deposition of Lanning (the cost for Plaintiff was already
deducted above).
Defendant
argues that $1,602.80 in videotaping costs was unnecessary because Plaintiff did
not use all the video at trial. (Motion at
p. 5.) Although all of the deposition video
was not introduced at trial, that does not make their preparation unnecessary. The witnesses might not have been available to
testify at trial, or the videotaped depositions might have been needed for impeachment. The Court finds that videotaping the depositions
was reasonable.
Defendant
also argues that the videotaping costs are unreasonable because “staff members at
Plaintiff’s counsel’s office conducted the video recording using Zoom, which is
a no-cost feature of the communications platform and requires [only a] single mouse
click to activate the video recording function.” (Motion at p. 5; see Choi Decl., Ex. F.) Plaintiff does not address this argument or explain
why he in fact incurred this cost. The Court
therefore deducts $1,602.80 in videotaping costs.
D. Service of Process
Defendant
moves to strike $2,213.90 in service of process costs for witnesses who were Defendant’s
employees and were never deposed or called to testify at trial.
Plaintiff
explains why he believed that Felipe Osorio, Sarah Zavala, Gerard McInnis, Carlos
Zamora, and Geovanni Montes Castro were relevant witnesses. (Opposition at p. 3.) Additionally, Zamora and Castro “were difficult
to track down,” McInnis and Zavala were out of state during trial, and Osorio’s
testimony would likely be duplicative of other witnesses’ testimony. (Id. at p. 4.) The Court cannot conclude that these costs were
unreasonable, and Plaintiff can recover the amount actually incurred in effecting
service. (Code Civ. Proc., § 1033.5, subd.
(a)(4).)
The
motion is denied for these costs.
E. Expert Witness Fees
Defendant
moves to strike $7,056.25 in expert fees for Timothy Lanning.
On
August 31, 2021, Plaintiff designated Lanning as an expert “regarding economic losses
to Plaintiff caused by termination and other adverse employment actions by Defendants,
including but not limited to past and future lost wages, medical expenses and damage
to credit and related losses and the bases therefore.” (Choi Decl. ¶ 16 & Ex. G.) However, on July 27, 2021, the Court had granted
summary adjudication regarding the alleged wrongful termination, discrimination,
and retaliation. The Court also granted summary
adjudication of claims for assault, battery, and intentional infliction of emotional
distress because they were barred by the exclusive remedy provisions of the Workers’
Compensation Act and Defendant did not ratify the conduct. Therefore, there was no remaining basis for these
economic losses at the time Plaintiff designated Lanning. As the Court stated when denying Defendant’s Motion
in Limine No. 7, “Plaintiff cannot now try to turn his harassment and hostile work
environment causes of action into the already-adjudicated wrongful termination causes
of action.”
Plaintiff
also designated Lanning as an expert to testify about “the net worth, income statements,
loan applications and balance sheets, and ability to pay, of the defendant(s) for
purposes of punitive damages.” (Choi Decl.,
Ex. G.) Lanning did not testify at trial. (Choi Decl. ¶ 18.) Plaintiff notes that Justin Klinkenberg, Lanning’s
colleague at the same firm, did testify during the punitive damages phase. (See Opposition at p. 6.) However, Plaintiff did not designate Klinkenberg
as an expert, he began analyzing the information about two hours before testifying,
he testified for only about thirty minutes, and he had no information about a report
prepared by Lanning or any testimony by Lanning. (Reply at p. 4; Choi Suppl. Decl. ¶ 7 & Ex.
N.)
The
Court therefore deducts $7,056.25.
F. Court Reporter Fees and Trial Transcripts
Defendant
moves to strike $11,293.14 in costs for the court reporter and trial transcripts.
A
party may not recover costs for transcripts of court proceedings not ordered by
the court. (Code Civ. Proc., § 1033.5, subd.
(b)(5).) The Court did not order trial transcripts.
Plaintiff
argues that “the transcript was in effect ordered by the Court to be available to
the jurors” because “[t]he jury received an instruction from the Court that they
could have the reporter read back any part of the transcript,” and “the Court did
ask for some portions of the transcript to be reviewed or read back during trial
and the court used LiveNote to help review testimony and rule on objections.” (Opposition at p. 6; see also CACI Nos. 102, 5011.) This does not transform the court reporter’s record
into a court-ordered transcript.
The
Court therefore deducts $11,293.14.
G. Exhibits
Defendant
moves to strike $1,592.97 in costs for exhibits. Defendant notes that Plaintiff did not specify
the nature of the models, enlargements, and photocopies of exhibits, as required
by Item 11 of the memorandum of Costs. (Motion
at p. 9.)
In
response, Plaintiff amended his request to be $1,420.10 “[b]ased on invoices not
provided to Plaintiff at the time of filing.”
The Court questions how Plaintiff’s counsel could have initially included
these costs without having invoices and how counsel could have signed the Memorandum
of Costs asserting that “[t]o the best of my knowledge and belief this memorandum
of costs is correct and these costs were necessarily incurred in this case.”
The Court therefore deducts $172.87.
H. Counsel’s Lodging and Meals
Defendant
moves to strike $7,954.88 in costs for counsel’s lodging ($7,366.41) and meals ($588.47). These costs may be allowable in the Court’s discretion
when analogizing to recoverable travel and meal costs for out-of-town depositions. (See Doe v. Los Angeles County Dept. of Children
& Family Services (2019) 37 Cal.App.5th 675, 695.)
Plaintiff
has withdrawn his request for a $310.54 hotel cancellation fee. (Opposition at p. 8.)
To
justify the remainder of the Omni Hotel costs, Plaintiff argues that “[p]rep time
would be cut in half, by four hours per day, were plaintiff’s counsel required to
drive to and from home in Huntington Beach.
This would prevent Plaintiff’s counsel from being properly prepared at trial.” (Opposition at p. 7.) However, the Court notes that Plaintiff’s counsel’s
office is located in Long Beach, within Los Angeles County and less than 22 miles
from this courthouse. The Court therefore
finds that the lodging expenses were not “reasonably necessary to the conduct of
the litigation,” but instead were “merely convenient or beneficial to its preparation.” (Code Civ. Proc., § 1033.5, subd. (c)(2).) Additionally, Plaintiff’s only supporting evidence
is a few Chase Bank credit card charges that do not itemize the costs. (See Lyon Decl., Ex. 4.) As Defendant notes, “the Court and US Foods have
no way of testing the veracity of Plaintiff’s claims that these costs were for hotel
accommodations, as opposed to costs his attorney may have incurred for dining, room
service, alcoholic beverages at the lobby bar, mini bar charges, spa treatments,
laundry, dry cleaning, or any other amenities that the hotel offers to guests.” (Reply at p. 7.)
The
Court finds that the meal costs are not recoverable because “attorneys have to eat,
whether they are conducting litigation or not.”
(Ladas v. California State Auto. Assn. (1993) 19 Cal.App.4th 761,
774.) Plaintiff also does not provide documentation
supporting these costs after they were challenged by Defendant.
The
Court therefore deducts $7,954.88.
I. Messenger Fees
Defendant
moves to strike $1,302.20 in messenger fees.
“Messenger
fees are not expressly authorized by statute, but may be allowed in the discretion
of the court.” (Nelson v. Anderson
(1999) 72 Cal.App.4th 111, 132.) “Courier
and messenger fees are recoverable, at the discretion of the trial court, if they
are reasonably necessary to the conduct of the litigation.” (Doe v. Los Angeles County Dept. of Children
& Family Services (2019) 37 Cal.App.5th 675, 696.) Such costs may be reasonably necessary when litigation
is complex and other service options may not be appropriate due to the volume and
heavy workload involved in the litigation.
(Ibid.; Benach v. County of Los Angeles (2007) 149 Cal.App.4th
836, 858.)
Plaintiff
contends only that “[t]hese fees were necessary as Plaintiff had a variety of documents
which needed to be filed with the court, including copies of the Opposition to Motion
for Summary Judgment, Motions in Limine, and CMC Statements.” (Opposition at p. 8.) Additionally, Defendant notes that the $594.90
messenger fees on September 21, 2022 appear unnecessary because Plaintiff and his
counsel were in the courtroom on that date.
(Motion at p. 11.) The few invoices
provided by Plaintiff total only $282.95.
(See Lyon Decl., Ex. 5.) Plaintiff
did not satisfy his burden of showing that the messenger costs were reasonable or
necessary. (See Nelson v. Anderson
(1999) 72 Cal.App.4th 111, 132.)
The
Court therefore deducts $1,302.20.
J. Mock Jury/Focus Group
Defendant
moves to strike $800.00 for the costs of a mock jury/focus group.
Plaintiff’s
Opposition sets forth generalities about the benefits of mock juries, but Plaintiff
does not provide anything other than conclusory justifications for this cost. (Opposition at pp. 8-9; see Lyon Decl. ¶ 10.) The mock jurors’ insights about “evidence, themes,
frames, arguments and damages requests” and their reactions to the parties (Opposition
at pp. 8-9) are likely marginal contributions that should be within counsel’s knowledge
and expertise in this type of case. (See
Taylor-Ewing v. City of Los Angeles (C.D. Cal., Mar. 31, 2011, No. CV 07-5556-GHK
(SSX)) 2011 WL 13213579, at *2; see also Lyon Decl. in Support of Motion for Attorney
Fees ¶ 2 [counsel has over 30 years of litigation experience, including exclusive
practice of employment law since 2006].)
The
Court therefore deducts $800.00.
K. Postage
Although
not raised in the motion, the Court also deducts $1.64 for postage because that
cost is expressly disallowed by statute.
(Code Civ. Proc., § 1033.5, subd. (b)(3).)
L. Conclusion
The
motion is GRANTED IN PART. The Court strikes
$60.00 in filing fees, $3,014.36 in jury fees, $3,021.85 and $184.65 in deposition
costs, $1,602.80 in deposition videotaping costs, $7,056.25 in expert fees, $11,293.14
in court reporter/transcript costs, $172.87 for exhibits, $7,954.88 in lodging and
meal expenses, $1,302.20 in messenger fees, $800.00 for a mock jury/focus group,
and $1.64 for postage.
Plaintiff
is therefore entitled to $18,668.16 in costs ($55,132.80 minus $36,464.64).
PLAINTIFF’S
MOTION FOR ATTORNEY FEES
California
courts apply the “lodestar” approach to determine what fees are reasonable. (See, e.g., Holguin v. DISH Network LLC
(2014) 229 Cal.App.4th 1310, 1332.) This
inquiry “begins with the ‘lodestar,’ i.e., the number of hours reasonably expended
multiplied by the reasonable hourly rate.”
(PLCM Group v. Drexler (2000) 22 Cal.4th 1084, 1095.) From there, 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.” (Ibid.) Relevant factors include “(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, [and] (4) the contingent nature of the fee award.” (Ketchum v. Moses (2001) 24 Cal.4th 1122,
1132 (Ketchum).) The party seeking
fees has the burden of documenting the appropriate hours expended and hourly rates. (City of Colton v. Singletary (2012) 206
Cal.App.4th 751, 784.)
Plaintiff
seeks a total of $1,292,197.20 in attorney fees, consisting of $600,487.50 in attorney
fees (723.55 hours), $45,611.10 in legal assistant fees (506.79 hours), and $646,098.60
as a 2.0 lodestar multiplier.
A. Counsel’s Requested Hourly Rate is Unreasonable
and Unsupported.
Plaintiff’s
counsel value their time at various hourly rates: $850 for Geoffrey Lyon; $550 for
Kathleen E. Collins; $450 for Neda Farah; $350 for David Sack; and $90 for legal
assistants.
Defendant
argues that these rates are unreasonable, and Attorney Lyon’s rate should be no
more than $750. (Motion at pp. 6-7.) Plaintiff cites a few orders in other cases, issued
in 2020 and 2022, where Attorney Lyon was awarded fees at a rate of $750/hour and
other attorneys received a rate of $250-to-$550/hour. (Motion at pp. 12-13.) Attorney Lyon has extensive experience in employment
law, but there is no evidence supporting a rate of $850. The Court therefore finds that a reasonable hourly
rate for Attorney Lyon is $750.
Based
on this adjusted reasonable hourly rate, the Court reduces the base request for
attorney and legal assistant fees to $577,533.60 ($646,098.60 minus Attorney Lyon’s
reduction of $68,565.00 [685.65 hours at $100/hour]).
B. Counsel Billed an Unreasonable Amount
of Time.
Counsel
provides a copy of timesheets reflecting 685.65 hours for Attorney Lyon; 13.2 hours
for Attorney Collins; 17.8 hours for Attorney Farah; 6.9 hours for Attorney Sack;
and 506.79 hours for legal assistants. (Lyon
Decl., Ex. 2.) Plaintiff also states that
Attorney Lyon spent another 78.5 hours after filing the fee motion for opposing
Defendant’s post-judgment motions and drafting the reply to this motion. (Reply at p. 8; Lyon Reply Decl. ¶ 6.)
The
Court finds that this amount of time is excessive and unreasonable for at least
four reasons.
1. The
Requested Fees Must Be Reduced Due to Plaintiff’s Limited Success.
Defendant
argues that Plaintiff’s attorney fees should be reduced to eliminate fees for claims
where Plaintiff did not prevail. (Opposition
at p. 3.) On July 27, 2021, the Court granted
summary adjudication in favor of Defendant on the second (discrimination), third
(retaliation), and fifth through tenth (assault, sexual battery, IIED, battery,
whistleblower retaliation, and wrongful termination) causes of action. Accordingly, at trial, Plaintiff prevailed only
on his first (harassment) and fourth (failure to prevent harassment) causes of action.
“Although
fees are not reduced when a plaintiff prevails on only one of several factually
related and closely intertwined claims [citation], ‘under state law as well as federal
law, a reduced fee award is appropriate when a claimant achieves only limited success’
[citations].” (Chavez v. City of Los Angeles
(2010) 47 Cal.4th 970, 989-990.) “Where a
prevailing plaintiff succeeded on only some claims, the court should make a two-part
inquiry: ‘First, did the plaintiff fail to
prevail on claims that were unrelated to the claims on which he succeeded? Second, did the plaintiff achieve a level of success
that makes the hours reasonably expended a satisfactory basis for making a fee award?’” (Vines v. O'Reilly Auto Enterprises, LLC
(2022) 74 Cal.App.5th 174, 183, quoting Hensley v. Eckerhart (1983) 461 U.S.
424, 434 (Hensley).)
When
a plaintiff presents “distinctly different claims for relief that are based on different
facts and legal theories,” then “counsel’s work on one claim will be unrelated to
his work on another claim . . . [and] work on an unsuccessful claim cannot be deemed
to have been ‘expended in pursuit of the ultimate result achieved.’” (Hensley, supra, 461 U.S. at pp. 434-435.) On the other hand, when a plaintiff’s claims “involve
a common core of facts or will be based on related legal theories,” then “[m]uch
of counsel’s time will be devoted generally to the litigation as a whole, making
it difficult to divide the hours expended on a claim-by-claim basis.” (Id. at p. 435.) In those cases, the litigation “cannot be viewed
as a series of discrete claims,” and the court “should focus on the significance
of the overall relief obtained by the plaintiff in relation to the hours reasonably
expended on the litigation.” (Ibid.) “Where a plaintiff has obtained excellent results,
his attorney should recover a fully compensatory fee. . . . If, on the other hand,
a plaintiff has achieved only partial or limited success, the product of hours reasonably
expended on the litigation as a whole times a reasonable hourly rate may be an excessive
amount. This will be true even where the
plaintiff’s claims were interrelated, nonfrivolous, and raised in good faith. .
. . Again, the most critical factor is the degree of success obtained.” (Id. at pp. 435-436.)
Here,
Plaintiff’s claims did involve a common core of facts. Plaintiff alleged that Defendant created a hostile
work environment based on an August 29, 2019 incident, where coworker Torres “threw
Plaintiff to the ground and subsequently sexually assaulted (i.e. shoved his crotch
repeatedly into the face of) Plaintiff,” and Defendant failed to prevent this harassment. (Complaint ¶¶ 15, 23, 37.) The unsuccessful discrimination, assault, battery,
IIED, retaliation, and wrongful termination claims also arise out of these events
and Plaintiff’s reporting of the hostile work environment. (See Complaint ¶¶ 27-28, 41, 46, 54, 61, 66.) Although Defendant argues that some of the unsuccessful
claims are unrelated “because US Foods’ liability as to these claims centered around
whether US Foods ratified the August 29, 2019 incident” (Opposition at p. 4), the
factual background (as opposed to Defendant’s defense) remained the same.
Because
Plaintiff’s claims involved a common core of facts, it is difficult to divide the
attorney hours on a claim-by-claim basis.
(Hensley, supra, 461 U.S. at p. 435.) The Court must therefore focus on the significance
of Plaintiff’s relief as compared to the hours expended on the litigation. (Ibid.) Plaintiff’s limited success on two of ten causes
of action resulted in a compensatory damages award of $170,000.00 for his emotional
distress. Plaintiff did not—and could not—recover
compensatory damages for lost wages due to his termination or statutory damages/penalties
under the Labor Code. (See Complaint at p.
14.) He did, however, receive more than half
of the $300,000.00 sought for emotional distress damages.
Accordingly,
the Court will apply a slight deduction to account for Plaintiff’s degree of success
in this action as a whole.
2. The
Timesheets Show Duplicative and Excessive Work.
Defendant
argues that the use of four attorneys and five legal assistants resulted in duplicative
work and inflated hours, particularly for work opposing the motion for summary judgment. (Opposition at p. 7.) Defendant provides multiple examples of Attorney
Lyon reviewing and duplicating work that was originally done by other attorneys,
such as summaries of depositions taken by others. (Opposition at p. 8.) Two legal assistants billed 14.45 hours and 72.35
hours for selecting evidence to use in the separate statement in opposition to Defendant’s
motion for summary judgment. (Ibid.) Two other legal assistants also billed 6.3 hours
and 51.5 hours assisting with the opposing the motion for summary judgment, including
for the separate statement. (Ibid.) According to Defendant’s calculations, Plaintiff’s
counsel and legal assistants billed 189.9 hours preparing the opposition.
The
Argument section of Plaintiff’s opposition spanned about ten pages. The evidence cited in the response to the separate
statement was primarily Plaintiff’s declaration and various deposition testimony. This was not a complex case with voluminous documents
and other exhibits to sort through in order to dispute only 65 material facts—many
of which Plaintiff responded to by incorporating by reference his responses to prior
facts. This example of duplicative and unreasonable
billing requires a reduction in fees.
3. The
Timesheets Contain Block-Billed and Vague Entries.
Defendant
argues that Plaintiff’s counsel provides vague and block-billed time entries. (Opposition at p. 9.) “An attorney’s chief asset in submitting a fee
request is his or her credibility, and . . . vague, blockbilled time entries inflated
with noncompensable hours destroy an attorney’s credibility.” (Christian Research Institute v. Alnor
(2008) 165 Cal.App.4th 1315, 1325; see also ibid. [“Blockbilling, while not
objectionable per se in our view, exacerbated the vagueness of counsel’s fee request,
a risky choice since the burden of proving entitlement to fees rests on the moving
party.”].)
For
example, on August 9, 2022, Attorney Lyon billed 1.6 hours for “Confer with S. Wilson
& defense re interviewing former ees before trial; confer with S. Wilson re
demonstratives; jury questionnaire; return lanning to witness list; financial records
subpoenas for punis; confer with defense re Torres depo desigs; exhibit binders;
confer with defense re witness scheduling and whom defense is not repg; confer with
defense re exhibits; objection to adding lanning to witness list.”
On
August 11, 2022, Attorney Lyon billed 10.5 hours for “Review and Revise jury questionnaire,
verdict form, witness list, review depo desigs; jury instns, joint and objected;
Torres default packg; add objections to exhibits; finalize pre-trial; demonstratives;
Spiritt records and plaintiffs redactions; Confer with defense re jury questionnaire,
verdict form; and pre-trial list, jury instructions and exhibits; Confer with S.
Wilson re pretrial list for court’s trial binder and prepare for meet & confer
call with def, Spiritt records, Torres default; delivery of exhibits to binder-provider.”
On
September 6, 2022, Attorney Lyon billed 0.3 hours for “Task list.” On December 8, 2022, Attorney Lyon billed 0.1
hours for “Confer with def re.” On January
6, 2023, he billed 0.3 hours for “rvw.”
There is no further explanation for these incredibly vague entries.
These
and other block-billed and vague time entries do not allow the Court to determine
that all of the billed time was reasonable.
4. Counsel
Improperly Billed for Administrative Tasks and Travel Time.
Defendant
argues that Plaintiff’s counsel improperly billed for travel time and administrative
tasks. (Opposition at pp. 10-11.) The Court agrees. Here are just a few examples.
On
August 13, 2022, Attorney Lyon billed time for “Tell omni checking in tomorrow”
(14 minutes), “Print 3 copies of mil 1, order & oppn” (8 minutes), “Add demo
exhibits to binders” (16 minutes), and “Pack car” (1.5 hours). On August 14, 2022, he billed 4 hours for “Load
car with trial and hotel-office materials, travel to hotel and setup hotel office,”
and the next day, he billed 2.5 hours for “Pack up hotel-office and car and travel
home.”
On
August 26, 2022, Attorney Lyon billed 0.3 hours for “Verify venmo to Vincent Henry
was removed from account and not reversed.”
On
September 6, 2022, Attorney Lyon block-billed 8.9 hours for tasks including “travel
to court and attend trial call . . . attempt to connect to courts media system,
return to hotel and order several hdmi connectors, return to court and get computer
working through elmo connection; return to hotel and update task list.”
On
September 8, 2022, Attorney Lyon billed 2 hours for “travel to hotel and home,”
and on September 11, 2022, he billed 1.5 hours for “Travel to hotel.”
In
November and December 2022, Legal Assistant Wilson billed at least 9.7 hours for
preparing and revising time sheets. On November
25, 2022, Attorney Lyon billed 5.4 hours for “Collect all timesheets covering Carreon
case and review file to insure all documents reviewed or revised and accounted for;
prepare fee motion.” On December 22, 2022,
Attorney Lyon billed 0.4 hours for “review, modify & approve timesheets.” This additional work on preparing timesheets is
puzzling because Plaintiff’s counsel attested that the entries are accurately recorded
at the time of entry. Attorney Lyon declares
that time entries “were created in the regular course of our firm’s business, as
part of its regular business practices (including for the recovery of fees when
we prevail at trial), at or about the time the work was done, by persons with personal
knowledge of the entries – those doing the work,” and “[o]ur attorneys and legal
assistants are in the practice of recording their time throughout the day, accurately.” (Lyon Decl. ¶ 4.)
On
December 19, 2022, Attorney Lyon billed 0.2 hours for “costs rvw re hotel, jury,
meals, first legal.”
These
are just a few of many examples of improperly billed travel time and administrative
tasks.
As
discussed with the concurrent Motion to Tax Costs, the Court does not find that
Plaintiff’s counsel’s travel expenses and preparation of a “hotel-office” were necessary
expenses, rather than being merely convenient for counsel. Plaintiff cites only two cases in his reply, both
of which briefly discussed an attorney’s travel expenses as costs—not including
an attorney’s hourly fee for traveling to court. Even when construing Attorney Lyon’s travel time
as costs including attorney fees authorized by statute (Code Civ. Proc., § 1033.5,
subd. (a)(10)(B)), they are still subject to Government Code section 12965, subdivision
(c)(6)’s requirement that the fees and costs be reasonable. The Court finds that the travel time to and from
the hotel is not reasonable.
For
the administrative tasks, it is unreasonable to have those tasks performed by the
attorney with the highest billing rate. Plaintiff’s
counsel “agrees the bulk of his time consolidating time sheets could have been done
by Mr. Wilson at $90 per hour instead of $850, reducing the lodestar for Lyon’s
time by the differential of $9804. Thus,
the total cost for compiling the 800 timesheet entries was 23.3 hours at $90 per
hour, or $2097.” (Reply at p. 8.) The Court believes that more than just the timesheet
tasks could have been completed by legal assistants or staff with lower rates. Billing for clerical work (such as preparing
binders, printing, and other basic organizational tasks) at partner rates is
unreasonable and excessive. (See Save
Our Uniquely Rural Community Environment v. County of San Bernardino (2015)
235 Cal.App.4th 1179, 1186-1187.)
5. A
Reasonable Amount of Fees is $346,520.16.
Considering
the type of case, complexity of the case, relatedness of Plaintiff’s claims, Plaintiff’s
degree of success, length of litigation, billing records, and the record as a whole,
the Court concludes that a reasonable amount of attorney fees is $346,520.16, a
40% reduction from the adjusted base of $577,533.60. (See Kerkeles v. City of San Jose (2015)
243 Cal.App.4th 88, 102 [“When a ‘voluminous fee application’ is made, the court
may . . . ‘make across-the-board percentage cuts either in the number of hours claimed
or in the final lodestar figure.’”].)
C. The Court Will Not Award an Additional
Multiplier.
Plaintiff
requests a lodestar multiplier of 2.0. (Motion
at pp. 14-17.) “[F]or the most part, the
difficulty of a legal question and the quality of representation are already encompassed
in the lodestar.” (Ketchum, supra,
24 Cal.4th at p. 1138.) “[A] trial court
should award a multiplier for exceptional representation only when the quality of
representation far exceeds the quality of representation that would have been provided
by an attorney of comparable skill and experience billing at the hourly rate used
in the lodestar calculation.” (Id.
at p. 1139.)
Plaintiff
argues that the heavy expenses and protected litigation—including 1,230 hours of
attorney and legal assistant time, over $50,000.00 in costs, and extensive discovery,
spanning over three years—warrants a multiplier. (Motion at p. 15; see id. at p. 5.) The amount of time expended is compensated through
the actual billing records and number of hours, and the costs are separately accounted
for in the Memorandum of Costs.
Plaintiff
also argues that the exceptional results and quality of representation warrant a
multiplier because counsel “developed Plaintiff’s credible testimony of repeated
harassment complaints to Mgrs. Ramirez, Starke, HR Zavala, and union reps Osorio
and Methus,” including some testimony “that management almost certainly knew of
the conduct.” (Motion at pp. 15-16.) However, the Court subsequently granted in part
Defendant’s motion for judgment notwithstanding the verdict because Plaintiff failed
to introduce any evidence of ratification by an officer, director, or managing agent
of Defendant. This failure resulted in the
loss of the jury’s $1 million punitive damages award, leaving Plaintiff with only
$170,000.00 in compensatory damages for his two surviving causes of action (of the
original ten causes of action).
Considering
the totality of this litigation, the Court finds that no additional multiplier should
be awarded.
D. Conclusion
The
motion for attorney fees is GRANTED IN PART.
The Court awards Plaintiff $346,520.16 in attorney fees.
Moving
party to give notice.
Parties
who intend to submit on this tentative must send an email to the Court at SMCDEPT48@lacourt.org
indicating intention to submit. Parties intending
to appear are encouraged to appear remotely and should be prepared to comply with
Dept. 48’s new requirement that those attending court in person wear a surgical
or N95 or KN95 mask.
Dated this 9th day of May 2023
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Hon. Thomas D. Long Judge of the Superior
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