569 East County Boulevard LLC v. Backcountry Against the Dump CA4/1

California Court of Appeal·Decided May 18, 2016·No. D068538·Unpublished

Opinion

Filed 5/18/16 569 East County Boulevard LLC v. Backcountry Against the Dump CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

COURT OF APPEAL, FOURTH APPELLATE DISTRICT DIVISION ONE

STATE OF CALIFORNIA

569 EAST COUNTY BOULEVARD LLC et D068538 al.,

Plaintiffs and Respondents, (Super. Ct. No.

v. 37-2014-00025797-CU-MC-CTL)

BACKCOUNTRY AGAINST THE DUMP, INC.,

Defendant and Appellant.

APPEAL from an order of the Superior Court of San Diego County, John S.

Meyer, Judge. Affirmed.

Law Offices of Stephan C. Volker, Stephan C. Volker, Daniel Garrett-Steinman and Jamey M.B. Volker for Defendant and Appellant.

Mark M. Clairmont and Paul W. Pitingaro for Plaintiffs and Respondents.

Plaintiff 569 East County Boulevard, LLC, and others (plaintiffs) filed an action against numerous entities and individuals. Plaintiffs' complaint named Backcountry Against the Dump, Inc. (BAD) as a defendant and alleged a single cause of action against

BAD for unlawful interference with prospective economic advantage. BAD moved to strike the action pursuant to Code of Civil Procedure section 425.16,1 commonly referred to as the anti-SLAPP (strategic lawsuit against public participation) statute. (Equilon Enterprises v. Consumer Cause, Inc. (2002) 29 Cal.4th 53, 57.) After BAD's anti-SLAPP motion was granted, it sought attorney fees and costs in a total amount of $152,529.15 pursuant to section 425.16, subdivision (c)(1). Plaintiffs did not contest defendant's entitlement to a fees and costs award, but argued the amount sought was exorbitant. The court found BAD was entitled to attorney fees and costs incurred for the successful anti- SLAPP motion, but awarded a reduced amount of $30,752.86. BAD appeals from that order, arguing the reduced award was an abuse of discretion.

I

BACKGROUND

A. The Underlying Action and Anti-SLAPP Motion Plaintiffs' First Amended Complaint alleged a single cause of action against BAD for unlawful interference with prospective economic advantage.2 BAD moved to strike the action under the anti-SLAPP statute, arguing the action sought damages from BAD caused by BAD's petitioning activity, and plaintiffs could not demonstrate probable

1 All statutory references are to the Code of Civil Procedure unless otherwise specified.

2 Plaintiffs' complaint apparently alleged numerous claims against entities and individuals other than BAD, but BAD has elected to omit a copy of the operative pleading from the appellant's appendix. (See fn. 7, post.)

success on the merits.3 The court granted the motion to strike plaintiffs' cause of action against BAD alleging unlawful interference with prospective economic advantage.4 B. The Attorney Fees and Costs Motion BAD sought attorney fees and costs as the prevailing party, pursuant to section 425.16, subdivision (c)(1), and requested a total amount of $152,529.15. The request was supported by a declaration from BAD's counsel, Mr. S. Volker, arguing the appropriate hourly rate for his time (as lead attorney) was $750 per hour for himself as lead attorney, and the appropriate hourly rate for three fifth-year associates was $350 per hour. He asserted he spent over 170 hours on the merits of the work necessary to the anti-SLAPP motion, and that his associates spent over 40 additional hours on the merits of the work necessary to the anti-SLAPP motion. He also asserted he spent another 9.4 hours on the fee motion itself.

3 BAD also demurred to other causes of action asserted in the complaint, including nine causes of action not directed at BAD. Although some of those claims may have been directed at Donna Tisdale (see fn. 7, post), it appears the substantive basis for BAD's demurrer was largely based on defenses available to her in her capacity as an elected official (rather than in her other capacities as an private citizen or as an officer of BAD), because the demurrer raised such issues as the statute of limitations under Government Code section 65009, subdivisions (c) and (d), the official and legislative immunities protections enjoyed by elected officials (Gov. Code, §§ 820.9, 822.2), and the bars of the Government Claims Act (Gov. Code, § 905 et seq.) and exhaustion of remedies requirements (Gov. Code, § 91007).

4 That ruling was apparently based on the conclusion BAD had met its threshold burden under the anti-SLAPP statute and thereby shifted to plaintiffs the burden to show likely success on the merits (Zamos v. Stroud (2004) 32 Cal.4th 958, 965; Stewart v. Rolling Stone LLC (2010) 181 Cal.App.4th 664, 679), and plaintiffs had not shown any economic relationship had been disrupted.

Plaintiffs raised numerous objections to the amount of the request, asserting (1)

the hourly rate charged by BAD's attorneys was excessive for the nature of the case, (2) BAD's fee request included billings for work unrelated to the anti-SLAPP motion, or unnecessary, or administrative in nature or duplicative or padded, and (3) BAD's fee request included fees premised on vague time entries or "block-billed" time. For all of these reasons, plaintiffs argued, the amount of the fee and cost award requested by BAD was unreasonable.

The court first determined a reasonable hourly rate for BAD's attorneys was $275 dollars per hour.5 The court then turned to the question of the reasonable hours expended on the anti-SLAPP motion. After noting it had "culled through the billing statement" submitted by BAD in support of its fee request, the court observed that many of the hours listed in that statement encompassed work "on the demurrer, coordinating with other counsel, work related to the [case management conference], and duplicative time with

5 The court premised its hourly rate determination on its earlier determination concerning the reasonable hourly rate for the work performed by the attorney who separately represented Ms. Tisdale in her anti-SLAPP motion directed at the same pleadings. The attorney separately representing Ms. Tisdale had 27 years of experience practicing in San Diego and charged $275 per hour, and the court determined there was "no reason to deviate from this determination" for BAD's counsel, who was "equally qualified" as Tisdale's counsel. The court, after granting Tisdale's anti-SLAPP motion, ultimately awarded her counsel $71,485 as reasonable attorney fees. In the same proceeding, the court also considered the proper fee award to the attorneys for numerous other parties to this action (i.e. Endangered Habitat League, Inc., Endangered Habitats Conservancy, Inc., Protect Our Communities Foundation, Inc., and Michael Beck) who occupied a similar position as BAD: plaintiffs asserted a single cause of action against them, and they successfully moved to dismiss that claim under the anti-SLAPP statute. The court awarded attorney fees of less than $30,000 to these defendants.

[cocounsel]." The court also observed that, although BAD's counsel "express[ed] confusion with the pleadings, there was only one cause of action that was the subject of the anti-SLAPP motion and the issues were not especially novel or complex." The court ruled 103.6 hours was a reasonable amount of time spent on the anti-SLAPP motion and the fee motion, and awarded $28,290 as fees.

II

ANALYSIS

BAD asserts the court erred in calculating the fee award in two respects. First, BAD argues the court erred when it selected $275 as the reasonable hourly rate to be applied to hours worked in connection with the anti-SLAPP motion. Second, BAD argues it was error to reduce the hours worked in connection with the anti-SLAPP motion below the number of hours it claimed in its fee motion.

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