Blood v. Mercedez-Benz, USA, LLC

District Court, S.D. California·Decided November 22, 2024·No. 3:23-cv-01463·Unknown

Opinion

ANIA BLOOD, Case No.: 23-cv-1463-WQH-AHG

Plaintiff, v. a Delaware Limited Liability Company; and Does 1 through 75, inclusive, Defendants. HAYES, Judge: The matter before the Court is the Motion for Attorneys’ Fees (ECF No. 15) filed by Plaintiff Ania Blood. On June 22, 2023, Plaintiff Ania Blood (“Plaintiff”) initiated this action by filing a Complaint in the Superior Court of California, County of San Diego, Case No. 37-2023- 00026775-CU-BC-CTL. (ECF No. 1-2 at 21–28, Compl.) Plaintiff asserted claims against Defendant Mercedes-Benz, USA, LLC (“MBUSA”) and Does 1–75 for violations of the Song-Beverly Consumer Warranty Act (“Song-Beverly Act”) and the Magnuson-Moss Warranty Act (“MMWA”). Specifically, Plaintiff alleged that after acquiring a 2019 Mercedes-Benz C300W that was manufactured by MBUSA, she experienced a series of issues with the vehicle. (Compl. ¶¶ 1–2, 5–6.) Plaintiff alleged that when she delivered the vehicle to MBUSA’s “authorized repair facilities for repairs for these issues” during the express warranty period, MBUSA “was unable to repair the Vehicle to conform to its warranty.” Id. ¶ 7. Plaintiff alleged that MBUSA then “refused Plaintiff’s request” to “return her money paid and owed on the Vehicle and take the Vehicle back.” Id. ¶ 8. On August 9, 2023, MBUSA removed the action to this Court under federal question jurisdiction because Plaintiff’s fifth cause of action arose under the MMWA, 15 U.S.C. § 2301 et seq., and “the amount in controversy exceed[ed] $50,000.00.” (ECF No. 1 at 2– 3.) On February 21, 2024, the parties filed a Joint Notice of Settlement. (ECF No. 10.) The same day, Plaintiff filed a signed copy of MBUSA’s F.R.C.P. Rule 68 Offer (ECF No. 11, Rule 68 Offer), indicating that she had accepted MBUSA’s offer under Federal Rule of Civil Procedure 68 to “pay the total amount of $71,500.00 … to Plaintiff and Plaintiff’s lender for the Subject Vehicle.” Id. at 1. The Rule 68 Offer provided that if Plaintiff accepted the Offer, MBUSA would “stipulate that Plaintiff is the prevailing party for purposes of any motion for attorney’s fees[.]” Id. at 3. The Rule 68 Offer also gave Plaintiff the option for MBUSA to “pay Plaintiff’s attorney’s fees, expenses and costs in the amount of $10,000.00 in full satisfaction of any attorney’s fees, expenses and costs owed to Plaintiff and/or Plaintiff’s attorneys in this action.” Id. at 2. Plaintiff instead selected the following option: “For fees, costs and expenses, I hereby elect to file a motion and/or a bill of costs pursuant to paragraph 6.” Id. at 4. On July 11, 2024, Plaintiff filed the Motion for Attorneys’ Fees. (ECF No. 15.) On July 29, 2024, MBUSA filed a Response in opposition to the Motion for Attorneys’ Fees. (ECF No. 19.) On August 5, 2024, Plaintiff filed a Reply in support of the Motion for Attorneys’ Fees. (ECF No. 23.) / / / Plaintiff contends that, as the prevailing party, she is entitled to attorneys’ fees in the amount of $27,608.00 pursuant to California Civil Code § 1794(d). (ECF No. 15-1 at 1– 3.) Plaintiff asserts that her “counsel’s hourly rates are reasonable” and “appropriate given each attorney or paralegal’s relative experience and qualifications, and have been approved in cases throughout California, and are consistent with national surveys of consumer-attorney hourly rates.” Id. at 5–7 (citing (ECF No. 15-3 ¶¶ 8–9, 18; ECF No. 15-2 at 23–217)). Plaintiff also asserts that her counsel’s hours spent “litigating this case through this fee motion” are “reasonable.” Id. at 7. Plaintiff’s counsel asserts in a declaration that, in total, five attorneys and three paralegals from his firm, Auto Fraud Legal Center LLP (“AFLC”), have billed 69 hours to litigate Plaintiff’s case. (ECF No. 15-3 ¶¶ 6–7.) Plaintiff attaches a spreadsheet documenting AFLC’s itemized billing entries for this case. (ECF No. 15-2 at 19–22.) MBUSA does not dispute that Plaintiff is the prevailing party for purposes of this motion. MBUSA contends, however, that Plaintiff’s counsel’s “hourly rates are inflated” and “Plaintiff’s counsel’s entries contain inappropriate block-billing, internal communications, and general overhead that is not recoverable,” as well as “exaggerated and duplicative entries.” (ECF No. 19 at 5.) MBUSA also contends that any time billed after the service of the Rule 68 Offer “is not recoverable.” Id. at 10. MBUSA attaches a spreadsheet detailing its specific objections to Plaintiff’s itemized billing entries. (ECF No. 20-1.) MBUSA requests that the Court “deny Plaintiff’s motion in whole or in part and/or reduce Plaintiff’s requested award to no more than $10,780.20,” which MBUSA contends reflects appropriate adjustments “to the inflated hourly rate[s] and exaggerated time entries.” (ECF No. 19 at 11.) Specifically: [MBUSA] requests the following adjustments if any fees are to be awarded:

(a) The Court should reduce/strike time billed by Plaintiff’s counsel based on Exhibit D [(ECF No. 20-1)]; (b) Plaintiff’s counsel’s rates should be reduced to a blended rate of $400/hr for attorneys, $200/hr for law clerks, and $100/hr for paralegals and office staff (to the extent any of the claimed work is recoverable); (c) If this Court finds that MBUSA’s FRCP Rule 68 Offer is more than what Plaintiff reasonably incurred at the time the offer was made, this Court should decline to award any fees and/or costs Plaintiff claims to have incurred after February 15, 2024, including all fees related to bringing this motion. Id. Under the Song-Beverly Act, a prevailing buyer: shall be allowed by the court to recover as part of the judgment a sum equal to the aggregate amount of costs and expenses, including attorney’s fees based on actual time expended, determined by the court to have been reasonably incurred by the buyer in connection with the commencement and prosecution of such action.

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Blood v. Mercedez-Benz, USA, LLC, (S.D. Cal. 2024).

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