Celestine v. FCA US LLC

District Court, E.D. California·Decided September 10, 2019·No. 2:17-cv-00597·Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10

11 LARRY CELESTINE, ) Case No.: 2:17-cv-0597 - JLT ) 12 Plaintiff, ) ORDER GRANTING IN PART PLAINTIFF’S ) MOTION FOR ATTORNEY FEES AND COSTS 13 v. ) ) (Doc. 101) 14 FCA US LLC, et al., ) 15 Defendants. ) ) 16 )

17 Larry Celestine asserts that FCA US LLC is liable for violations of the Song-Beverly act and 18 fraudulent inducement under California law. The parties settled the underlying claims, and Plaintiff 19 now seeks an award of attorney fees and costs. (Doc. 101) For the reasons set forth below, Plaintiff’s 20 motion is GRANTED in part, in the modified amount of $22,585.35. 21 I. Background 22 Plaintiff purchased a new 2012 Dodge Durango on April 12, 2012. (Doc. 1-1 at 4, ¶ 9) 23 According to Plaintiff, the vehicle “was delivered to [him] with serious defects and nonconformities to 24 warranty[,] and developed other serious defects and nonconformities to warrant including, but not 25 limited to a defective [Totally Integrated Power Module].” (Id. at 23, ¶ 130) 26 Plaintiff reports his vehicle “was factory-equipped” by Defendant with the Totally Integrated 27 Power Module (“TIPM”), which “is the chief component in the … power distribution systems and 28 consists of a computer, relays, fuses, and controls.” (Doc. 1-1 at 4, ¶¶ 12-13) According to Plaintiff, 1 “The TIPM provides the primary means of voltage distribution and protection for the entire vehicle...” 2 (Id., ¶ 13) Electrical systems receiving power from the TIPM included the vehicle’s “safety systems, 3 security system, ignition system, fuel system, electrical powertrain, and … comfort and convenience 4 systems.” (Id., ¶ 14) 5 Plaintiff contends the TIPM installed in his vehicle was faulty and failed “to reliably control and 6 distribute power to various vehicle electrical systems and component parts,” which caused the “check 7 engine line [to] come[] on frequently” and “[i]rregular coolant loss.” (Doc. 1-1 at 4-5, ¶¶ 15-16) In 8 addition, Plaintiff alleges the TIPM “is likely to cause a variety of electrical issues such as a loss of 9 headlight function, and unexpected distractions, such as the vehicle’s horn or alarm sounding while on 10 a roadway, which may increase the risk of injury for the driver, passengers, or others on the roadway.” 11 (Id. at 5, ¶ 17) 12 According to Plaintiff, “FCA US LLC had superior and exclusive knowledge of the TIPM 13 defects, and knew or should have known that the defects were not known by or reasonably discovered 14 by Plaintiff before [he] purchased or leased the Vehicle.” (Doc. 1-1 at 5, ¶ 19) Plaintiff reports: “FCA 15 US LLC vehicles have been plagued with severe TIPM problems for the last decade. As a result, FCA 16 US LLC has initiated multiple TIPM-related recalls to address safety or emissions concerns.” (Id., ¶ 21) 17 Further, Plaintiff asserts the TIPM “defect is so widespread that… replacement parts have often been on 18 national backorder, with drivers reporting from 2011 to 2014 that they had to wait weeks or months of 19 have their TIPMs replaced.” (Id. at 6, ¶ 23) She alleges FCA UC LLC dealers and auto-technicians 20 “advis[ed] many drivers to not drive their vehicles until the TIPM [was] replaced, due to safety risks.” 21 (Id.) However, Defendant did not disclose the defect “prior to the sale of the Subject Vehicle to 22 Plaintiff.” (Id. at 19, ¶ 106) 23 In October 2015, “Plaintiff received a letter in the mail from the settlement administrator in a 24 class action lawsuit informing Plaintiff that [he] was a member of a class of individuals for which a 25 ‘class action settlement involving the Totally Integrated Power Module (TIPM)’ had been reached.” 26 (Doc. 1-1 at 18, ¶ 106) The letter informed him that the plaintiff in Velasco, et al. v. Chrysler Group 27 LLC, Case No. 2:13-cv-08080-DDP-VBK (C.D. Cal) claimed the TIPM “installed in model-years 28 2011, 2012, and 2013 Dodge Durango and Jeep Grand Cherokee vehicles is defective and poses a 1 safety hazard.” (Id. at 18-19, ¶ 106) Plaintiff contends “[t]his was the earliest date that FCA US LLC 2 made any attempt to notify [him] of any of the known defects in the TIPM7.” (Id. at 19, ¶ 106) 3 Plaintiff “opted out of the class action settlement in Velasco and filed the instant action to pursue his 4 individual rights.” (Id. at 22, ¶ 125) 5 On November 22, 2016, Plaintiff filed a complaint in San Joaquin County Superior Court, Case 6 Number STR-CV-IBC-2016-11864. (See Doc. 1-1 at 2) Plaintiff identified the following causes of 7 action in his complaint: (1) breach of an express warranty pursuant to the Song-Beverly Act, (2) breach 8 of an implied warranty pursuant to the Song-Beverly Act, and (3) fraudulent inducement. (Id. at 2, 23- 9 28) Plaintiff’s prayer for relief included, but was not limited to: general, special and actual damages; 10 “recession of the purchase contract and restitution of all monies expended;” diminution in value; civil 11 penalties totaling two times his actual damages, and reasonable attorney fees and costs. (See id. at 28) 12 Defendant filed its answer on December 29, 2016. (Doc. 1-4) 13 On March 30, 2017, Defendant filed a Notice of Removal pursuant to 28 U.S.C. §§ 1332, 14 1441(a) and 1446(a), thereby initiating the matter with this court. (Doc. 1) Plaintiff filed a motion to 15 remand the action to the state court on June 5, 2017. (Doc. 5) The Court determined it had diversity 16 jurisdiction over the action and denied the motion to remand on August 4, 2017. (Doc. 15) 17 The Court held a status conference to set a trial date with the parties on December 11, 2018. 18 (Doc. 48) The pretrial conference was set for May 28, 2019, and the jury trial was set for July 15, 2019. 19 (Doc. 49) 20 On May 28, 2019, the Court held the pretrial conference. (Doc. 54) The Court ordered the 21 parties to file any motions in limine no later than June 14, 2019; and to submit any trial exhibits no later 22 than July 12, 2019. (Id. at 1) In addition, the jury trial was confirmed for July 15, 2019. (Id.) 23 Pursuant to the deadlines ordered, the parties filed motions in limine on June 14, 2019, which the Court 24 addressed by written order on June 26, 2019. (Doc. 78) On July 2, 2019, the Court issued an order on 25 courtroom decorum while in trial. (Doc. 79) 26 On July 15, 2019, the parties failed to appear for the scheduled jury trial. Only after the Court 27 placed a phone call to Plaintiff’s counsel was the Court advised for the first time that the case settled on 28 July 1, 2019. Therefore, the Court thanked and discharged the entire panel of potential jurors that had 1 appeared for service. The same date, the Court issued an order to all counsel of record and the parties 2 to appear and show cause why sanctions should not be imposed “for the fees and expenses of 3 summoning a jury, for the costs and expenses of extra court staff being on hand for the jury trial of this 4 action, for the waste of judicial resources this conduct imposed and for their failure to comply with the 5 Court’s Local Rules.” (Doc. 81 at 2) 6 The parties filed a response to the order to show cause on July 19, 2019, again indicating the 7 action had settled on July 1, 2019.1 (Doc. 83 at 2) According to the parties, “Plaintiff emailed a draft 8 joint notice of settlement for Defendant’s review and signature prior to filing with the Court” on July 9 12, 2019, but “[t]rial counsels for Defendants, Jeanette C. Suarez and Jeffery Fadeff, were not included 10 in the July 12, 2019 email.” (Id.) 11 The Court held its hearing to show cause on August 2, 2019. (Doc. 96) Plaintiff’s counsel 12 Larry Castruita, Daniel Kalinowski and Maite Colon appeared. Defendant’s counsel Jeanette Suarez, 13 Kristi Livedalen, Jeffery Fadeff, Scott Shepardson, and Jennifer Kuenster and Tina Dietrich were also 14 present.

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