Chin v. DaimlerChrysler Corp.

520 F. Supp. 2d 589, 2007 U.S. Dist. LEXIS 35335, 2007 WL 1437705
CourtDistrict Court, D. New Jersey
DecidedMay 15, 2007
DocketCivil Action 95-5569(JCL)
StatusPublished
Cited by3 cases

This text of 520 F. Supp. 2d 589 (Chin v. DaimlerChrysler Corp.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chin v. DaimlerChrysler Corp., 520 F. Supp. 2d 589, 2007 U.S. Dist. LEXIS 35335, 2007 WL 1437705 (D.N.J. 2007).

Opinion

OPINION

LIFLAND, District Judge.

I. Background

On November 8, 2006, the Court ruled that the 25 California-citizen Plaintiffs in this action are entitled to attorneys’ fees under California Code of Civil Procedure § 1021.5 from Defendant DaimlerChrysler Corporation (“Chrysler”). See Chin v. Daimler Chrysler Corp., No. 95-5569, slip op. at 7, 43-44 (D.N.J. Nov. 8, 2006). The factual and procedural history of the case is detailed in that opinion, and will not be recounted here. See id. at 1-7.

Now before the Court is Plaintiffs’ application for fees under section 1021.5. Plaintiffs, represented by the law firms of Lite DePalma Greenberg & Rivas, LLC (“Lite DePalma”), Pomerantz Haudek Block Grossman & Gross, LLP (“Pomerantz”), the Law Offices of James V. Bashi *595 an, PC (“Bashian”), and Gruhin & Gruhin, PA (“Gruhin”), seek $11,465,020.26 in fees and expenses. Plaintiffs arrive at that number as follows:

Requested Attorneys’ Fees

Hours Billed Firm Ave. Hourly Rate Lodestar

4008.6 Pomerantz $541.17 $ 2,169,351.00

2037.3 Lite DePalma $455.87 $ 928,755.00

194.5 Bashian $438.68 $ 85,325.00

112.0 Gruhin $375.00 $ 42,000.00

6,352.4 Totals: $507.74 $ 3,225,431.00

Proposed Multiplier: x 3.5

Total Attorney Fee Request: $ 11,289,008.50

Requested Expenses

Firm Expenses

Pomerantz $ 137,406.62

Lite DePalma $ 38,517.20

Bashian $ 87.94

Gruhin $ 0

Total Expenses: $ 176,011.76

Grand Total Fee & Expense Request: $ 11,465,020.26

Chrysler replies that this figure is unreasonably excessive, and asserts that $95,389.23 would be a proper award of fees and expenses. For the reasons that follow, the Court will grant Plaintiffs attorneys’ fees and expenses in the total amount of $4,654,433.14. 1

II. Discussion

A. Attorneys’Fees

To determine the proper amount of a statutory fee award under section 1021.5, California courts apply the so-called “lodestar adjustment method.” See Ketchum v. Moses, 24 Cal.4th 1122, 104 Cal.Rptr.2d 377, 17 P.3d 735, 741-42 (2001) (citing Serrano v. Unruh, 32 Cal.3d 621, 186 Cal. Rptr. 754, 652 P.2d 985, 987-88 (1982) (“Serrano IV”)). Under this method, the Court must first set a lodestar figure that represents the product of the “ ‘time spent and reasonable hourly compensation of each attorney ... involved in the presentation of the case.’ ” Id. at 741 (quoting Serrano v. Priest, 20 Cal.3d 25, 141 Cal. Rptr. 315, 569 P.2d 1303, 1316 (1977) (“Serrano III”)). Then, the lodestar figure may be adjusted with a multiplier based on certain factors in order to fix the basic “fee at the fair market value for the particular action.” Id.

The lodestar adjustment method serves to “ ‘anchor[ ] the trial court’s analysis to an objective determination of the value of the attorney’s services, ensuring that the amount awarded is not arbitrary.’ ” Id. at *596 743 (quoting PLCM Group, Inc. v. Drexler, 22 Cal.4th 1084, 95 Cal.Rptr.2d 198, 997 P.2d 511, 518 (2000)). The goal of the method is to arrive at a fee award that is “fully compensatory.” Id. at 742.

1. Lodestar

The lodestar equals (1) “the reasonable hours spent,” (2) “multiplied by the hourly prevailing rate for private attorneys in the community conducting non-contingent litigation of the same type.” Id. (citing Serrano TV, 652 P.3d at 986-87). The verified time records submitted by Plaintiffs’ attorneys will provide the starting point for the Court’s lodestar determination. See Horsford v. Bd. of Trustees, 132 Cal.App.4th 359, 33 Cal.Rptr.3d 644, 673 (2005). The “verified time statements of the attorneys, as officers of the court, are entitled to credence in the absence of a clear indication the records are erroneous.” Id.

a. Reasonable Hours Spent

The California Supreme Court has explained that “absent circumstances rendering the award unjust, fees recoverable under section 1021.5 ordinarily include compensation for all hours reasonably spent, including those necessary to establish and defend the fee claim.” Serrano IV, 186 Cal.Rptr. 754, 652 P.2d at 997 (emphasis added). Lite DePalma, Pomerantz, Bashian, and Gruhin have submitted affidavits and a declaration detailing the 6,352.40 hours they allege were spent representing Plaintiffs from October 8, 1995 to the present. 2 Chrysler contends that, for numerous reasons, a large number of these hours were not reasonably spent. These objections can be categorized into two groups. First, Chrysler argues that hours spent on activities that did not specifically help achieve the recalls are not compensable. Second, Chrysler contends that a number of claimed hours are “not subject to compensation” because they represent “ ‘padding’ in the form of inefficient or duplicative efforts.” See Ketchum, 104 Cal.Rptr.2d 377, 17 P.3d at 741.

(1) Hours Allegedly Not Spent to Obtain the Sought After Relief

“Attorney time spent on services which produce no tangible benefit for the client is not time ‘reasonably spent.’ ” Meister v. The Regents of the Univ. of Cal., 67 Cal.App.4th 437, 78 Cal.Rptr.2d 913, 923 (1998). The Court has the discretion to “ ‘reduce the amount of the attorney fees to be awarded where a prevailing party plaintiff is actually unsuccessful with regard to certain objectives of its lawsuit.’ ” Olson v. Auto. Club of So. Cal., 139 Cal.App.4th 552, 44 Cal.Rptr.3d 1, 7 (2006) (quoting Sokolow v. County of San Mateo, 213 Cal.App.3d 231, 261 Cal.Rptr. 520, 530 (1989)). In doing so, the “ ‘court may attempt to identify specific hours that should be eliminated, or it may simply reduce the award to account for the limited success.’ ” Id. (quoting Sokolow, 261 Cal.Rptr. at 530).

(a) Plaintiffs’ Opposition to Chrysler’s Notice of Recall

Chrysler argues that Plaintiffs’ attorneys spent 188.01 hours seeking to “prevent the notice of the recall” Chrysler initiated for its vehicles with the Bendix 10 *597

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520 F. Supp. 2d 589, 2007 U.S. Dist. LEXIS 35335, 2007 WL 1437705, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chin-v-daimlerchrysler-corp-njd-2007.