Amber MacHowski v. 333 N. Placentia Property, LLC

38 F.4th 837
CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 1, 2022
Docket21-55673
StatusPublished
Cited by5 cases

This text of 38 F.4th 837 (Amber MacHowski v. 333 N. Placentia Property, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amber MacHowski v. 333 N. Placentia Property, LLC, 38 F.4th 837 (9th Cir. 2022).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

AMBER MACHOWSKI, No. 21-55673 Plaintiff-Appellant, D.C. No. v. 8:20-cv-01935- DOC 333 N. PLACENTIA PROPERTY, LLC, a California Limited Liability Company; DOES, 1–10, OPINION Defendants-Appellees.

Appeal from the United States District Court for the Central District of California David O. Carter, District Judge, Presiding

Argued and Submitted January 12, 2022 Pasadena, California

Filed July 1, 2022

Before: A. Wallace Tashima and Milan D. Smith, Jr., Circuit Judges, and Stephen Joseph Murphy III,* District Judge.

* The Honorable Stephen Joseph Murphy III, United States District Judge for the Eastern District of Michigan, sitting by designation. 2 MACHOWSKI V. 333 N. PLACENTIA PROPERTY

Opinion by Judge Tashima; Dissent by Judge Milan D. Smith, Jr.

SUMMARY**

Attorney’s Fees

The panel vacated the district court’s award of attorney’s fees to the plaintiff, following entry of default judgment in an action under the Americans with Disabilities Act, and remanded for further proceedings.

Central District of California Local Rule 55-3, governing the award of attorney’s fees in cases of default judgment, provides that fees shall be calculated according to a fee schedule tied to the amount of the judgment, but it also states that a party “claiming a fee in excess of this schedule may file a written request at the time of entry of the default judgment to have the attorney’s fee fixed by the Court.” The panel held that where a prevailing party advises the district court that it is opting out of the fee schedule and will seek, by motion, an award of reasonable attorney’s fees, the district court abuses its discretion by disregarding the plaintiff’s choice and sua sponte awarding attorney’s fees under the fee schedule.

Dissenting, Judge M. Smith wrote that appellant never made clear that she was seeking a fee award in excess of the Central District of California’s fee schedule. He wrote that appellant failed to establish any grounds for relief on appeal

** This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. MACHOWSKI V. 333 N. PLACENTIA PROPERTY 3

because she failed to show that the district court erred by not using the lodestar approach, and did not argue on appeal that the timing of the district court’s ruling was improper.

COUNSEL

Kyle Wilson (argued) and Anoush Hakimi, Law Office of Hakimi & Shahriari, Los Angeles, California, for Plaintiff- Appellant.

No appearance for Defendants-Appellees.

OPINION

TASHIMA, Circuit Judge:

Four years after we decided Vogel v. Harbor Plaza Center, LLC, 893 F.3d 1152 (9th Cir. 2018), we once again address the application of Central District of California Local Rule 55-3 (“Rule 55-3”), which governs the award of attorney’s fees in cases of default judgment, to an award of reasonable attorney’s fees under the Americans with Disabilities Act (“ADA”), 42 U.S.C. § 12205. The rule provides that fees shall be calculated according to a fee schedule tied to the amount of the judgment, but it also states that a party “claiming a fee in excess of this schedule may file a written request at the time of entry of the default judgment to have the attorney’s fee fixed by the Court.” Rule 55-3. We hold that where, as here, a prevailing party advises the district court that it is opting out of the fee schedule and will seek, by motion, an award of reasonable attorney’s fees, the district court abuses its discretion by disregarding the 4 MACHOWSKI V. 333 N. PLACENTIA PROPERTY

plaintiff’s choice and sua sponte awarding attorney’s fees under the fee schedule. Accordingly, we vacate the district court’s fee award and remand for further proceedings.

BACKGROUND

Machowski is an individual with a disability who uses a wheelchair for mobility. Defendant 333 N. Placentia Property, LLC, is the owner of a property in Fullerton, California, on which a business establishment known as City Market Liquor II is located. The first amended complaint (“FAC”) alleges that when Machowski attempted to patronize the store, she encountered architectural barriers that prevented her from making full use and enjoyment of the premises. Machowski sued Defendant, asserting claims under the ADA, 42 U.S.C. § 12101 et seq., and the Unruh Civil Rights Act, Cal. Civ. Code §§ 51–53. The FAC sought injunctive relief, statutory damages under the Unruh Act, and reasonable attorney’s fees and costs.

After Defendant failed to respond to the complaint, Machowski applied for the entry of default judgment, seeking injunctive relief and statutory damages. Machowski’s application for default judgment did not seek an award of attorney’s fees. Instead, it advised the district court that “plaintiff will separately file a motion for her attorney fees and costs once this application is granted and judgment has been entered.” MACHOWSKI V. 333 N. PLACENTIA PROPERTY 5

The district court declined to exercise supplemental jurisdiction over Machowski’s Unruh Act claim,1 granted default judgment to Machowski on her ADA claim, ordered injunctive relief, and sua sponte awarded Machowski $1000 in attorney’s fees under Rule 55-3. In full, Rule 55-3 states:

L.R. 55-3 Default Judgment—Schedule of Attorneys’ Fees. When a promissory note, contract or applicable statute provides for the recovery of reasonable attorneys’ fees, those fees shall be calculated according to the following schedule:

Amount of Attorneys’ Fees Awards Judgment $0.01–$1,000 30% with a minimum of $250.00 $1,000.01– $300 plus 10% of the $10,000 amount over $1,000 $10,000.01– $1200 plus 6% of the $50,000 amount over $10,000 $50,000.01– $3600 plus 4% of the $100,000 amount over $50,000 Over $100,000 $5600 plus 2% of the amount over $100,000

1 On appeal, Machowski does not challenge the district court’s declination to exercise supplemental jurisdiction over the Unruh Act claim. 6 MACHOWSKI V. 333 N. PLACENTIA PROPERTY

This schedule shall be applied to the amount of the judgment exclusive of costs. An attorney claiming a fee in excess of this schedule may file a written request at the time of entry of the default judgment to have the attorney’s fee fixed by the Court. The Court shall hear the request and render judgment for such fee as the Court may deem reasonable.

C.D. Cal. R. 55-3. The district court wrote: “Pursuant to Local Rule 55-3, attorneys’ fees for a default judgment are determined pursuant to a fixed percentage schedule. C.D. Cal. L.R. 55-3. Pursuant to this rule, the Court grants $1,000 in fees.”2

Machowski timely appealed the fee award.

STANDARD OF REVIEW

“We review for abuse of discretion a district court’s award of attorney’s fees under the ADA.” Vogel, 893 F.3d at 1157. “But we review de novo questions of law that underlie a court’s fee award.” Id.

DISCUSSION

Machowski contends that the district court abused its discretion by awarding attorney’s fees based on the fee

2 Of course, awarding a fee of $1,000 for a judgment that awards $0.00 in monetary relief cannot, on the face of the rule, be “pursuant” to Rule 55-3. The rule, whose schedule starts with a judgment of $0.01, simply does not address cases in which the judgment awards only non- monetary, e.g., injunctive, relief. MACHOWSKI V. 333 N. PLACENTIA PROPERTY 7

schedule of Rule 55-3 and by failing to award fees under the lodestar method. We agree, but with a caveat.

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Bluebook (online)
38 F.4th 837, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amber-machowski-v-333-n-placentia-property-llc-ca9-2022.