Au v. Funding Group, Inc.

933 F. Supp. 2d 1264, 2013 U.S. Dist. LEXIS 39411, 2013 WL 1187919
CourtDistrict Court, D. Hawaii
DecidedMarch 21, 2013
DocketNo. CV 11-00541 SOM-KSC
StatusPublished
Cited by2 cases

This text of 933 F. Supp. 2d 1264 (Au v. Funding Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Hawaii primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Au v. Funding Group, Inc., 933 F. Supp. 2d 1264, 2013 U.S. Dist. LEXIS 39411, 2013 WL 1187919 (D. Haw. 2013).

Opinion

ORDER ADOPTING MAGISTRATE JUDGE’S FINDINGS AND RECOMMENDATION

SUSAN OKI MOLLWAY, Chief Judge.

Findings and Recommendation having been filed and served on all parties on February 20, 2013, and no objections having been filed by any party,

IT IS HEREBY ORDERED AND ADJUDGED that, pursuant to Title 28, United States Code, Section 636(b)(1)(C) and Local Rule 74.2, the “Findings and Recommendation to Grant in Part and Deny in Part Defendant Homeward Residential, Inc., formerly known as American Home Mortgage Servicing, Ine.’s Motion for Attorneys’ Fees and Costs” are adopted as the opinion and order of this Court.

APPROVED AND SO ORDERED.

FINDINGS AND RECOMMENDATION TO GRANT IN PART AND DENY IN PART DEFENDANT HOMEWARD RESIDENTIAL, INC., FORMERLY KNOWN AS AMERICAN HOME MORTGAGE SERVICING, INC. ’S MOTION FOR ATTORNEYS’ FEES AND COSTS

KEVIN S.C. CHANG, United States Magistrate Judge.

Before the Court is Defendant Homeward Residential, Inc., formerly known as American Home Mortgage Servicing, Inc.’s (“Defendant”) Motion for Attorneys’ Fees and Costs (“Motion”),1 filed December 21, 2012. On January 2, 2013, SCC filed a Statement of No Position. On January 4, 2013, Defendant filed a Statement of Consultation (“SOC”). Plaintiff Ronald Au (“Plaintiff’) filed an Opposition on February 1, 2013.2 Defendant filed a Reply on February 15, 2013.

The Court finds this matter suitable for disposition without a hearing pursuant to Rule 7.2(d) of the Local Rules of Practice of the United States District Court for the District of Hawaii (“Local Rules”). After reviewing the Motion, the supporting and opposing memoranda, and the relevant case law, the Court FINDS and RECOMMENDS that the Motion be GRANTED IN PART and DENIED IN PART, and that. Defendant be awarded $16,560.39 in attorneys’ fees and $14.10 in costs for the reasons set forth below.

BACKGROUND

As the Court and the parties are familiar with the history of this case, the Court includes only those facts relevant to the instant Motion.

On August 11, 2011, Plaintiff commenced the instant action, pleading the following causes of action: 1) breach of contract; 2) breach of promissory estoppel; 3) violation of the Real Estate Settlement and Procedures Act (“RESPA”), federal statutes, Hawaii Revised Statutes (“HRS”) 454 and 454F as amended; 4) intentional or negligent misrepresentation and fraud; and 5) unfair and deceptive practices, HRS Chapter 454f as amended, HRS 480.

On September 6, 2011, SCC filed a Notice of Removal.

[1269]*1269On September 22, 2011, Defendant filed a Motion to Dismiss. SCC joined in the motion. On January 17, 2012, Chief U.S. District Judge Susan Oki Mollway granted the motion to dismiss and granted Plaintiff leave to file' a motion to amend by February 17, 2012. Doc. No. 38.

Plaintiff timely filed a motion to file first amended complaint, which this Court denied without prejudice. Doc. No. 45. This Court granted Plaintiff another opportunity to file a motion to amend his complaint by May 25, 2012. Id.. On May 24, 2012, Plaintiff filed a motion to file second amended complaint. On July 31, 2012, this Court issued an Order Denying Plaintiffs Motion to File Second Amended Complaint (“Order”). Doc. No. 58.

On August 9, 2012, Plaintiff sought reconsideration of the Order. This Court issued an Order Denying Plaintiff Ronald Au’s Motion to Reconsider Motion to File Second Amended Complaint and in the Alternative, Motion to File Renewed First Amended Complaint (“Reconsideration Order”). Doc. No. 61. Plaintiff appealed both the Order and the Reconsideration Order on August 23, 2012. On August 24, 2012, 2012 WL 3686893, Chief Judge Moll-way affirmed both orders. Doc. No. 64.

On December 11, 2012, Chief Judge Mollway directed that judgment enter in Defendants’ favor. Doc. No. 75. The Clerk entered judgment that same day. Doc. No. 76.

The present Motion followed.

DISCUSSION

I. Attorneys’ Fees

A. Entitlement to Attorneys’ Fees

Defendant argues that as the prevailing party in this action in the nature of assumpsit and/or one on a promissory note or contract in writing that expressly provides for the recovery of an attorney’s fee, it is entitled to $25,453.84 in attorneys’ fees pursuant to HRS § 607-14. Plaintiff contends that this action is not in the nature of assumpsit and there is no provision authorizing the award of fees.

A federal court sitting in diversity must apply state law in determining whether the prevailing party is entitled to attorneys’ fees. See Farmers Ins. Exch. v. Law Offices of Conrado Joe Sayas, Jr., 250 F.3d 1234, 1236 (9th Cir.2001). Under Hawaii law, “[ojrdinarily, attorneys’ fees cannot be awarded as damages or costs unless so provided by statute, stipulation, or agreement.” Stanford Carr Dev. Corp. v. Unity House, Inc., 111 Hawai’i 286, 305, 141 P.3d 459, 478 (2006) (citation and quotation marks omitted); DFS Group, L.P. v. Paiea Props., 110 Hawai’i 217, 219, 131 P.3d 500, 502 (2006) (quoting TSA Int'l, Ltd. v. Shimizu Corp., 92 Hawai’i 243, 263, 990 P.2d 713, 733 (1999) (“Generally, under the ‘American Rule,’ each party is responsible for . paying his or her own litigation expenses. A notable exception to the ‘American Rule,’ however, is the rule that attorneys’ fees may be awarded to the prevailing party where such an award is provided for by statute, stipulation, or agreement.”)).

HRS § 607-14 is a statutory exception to the American Rule. DFS, 110 Hawai’i at 219, 131 P.3d at 502. It mandates the recovery of fees when a promissory note or contract provides for the same, in writing, or 'when an action is in the nature of assumpsit, and states, in pertinent part:

In all the courts, in all actions in the nature of assumpsit and in all actions on a promissory note or other contract in writing that provides for an attorney’s fee, there shall be taxed as attorneys’ fees, to be paid by the losing party and to be included in the sum for which execution may issue, a fee that the court determines to be reasonable; pro[1270]*1270vided that the attorney representing the prevailing party shall submit to the court an affidavit stating the amount of time the attorney spent on the action and the amount of time the attorney is likely to spend to obtain a final written judgment, or, if the fee is not based on an hourly rate, the amount of the agreed upon fee. The court shall then tax attorneys’ fees, which the court determines to be reasonable, to be paid by the losing party; provided that this amount shall not exceed twenty-five per cent of the judgment.
Where the note or other contract in writing provides for a fee of twenty-five per cent or more, or provides for a reasonable attorney’s fee, not more than twenty-five per cent shall be allowed ...

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933 F. Supp. 2d 1264, 2013 U.S. Dist. LEXIS 39411, 2013 WL 1187919, Counsel Stack Legal Research, https://law.counselstack.com/opinion/au-v-funding-group-inc-hid-2013.