Cianchetta v. BMW of North America, LLC

District Court, E.D. California·Decided June 15, 2022·No. 2:20-cv-00241·Unknown

Opinion

Peter L. Cianchetta, et al., No. 2:20-cv-00241-KJM-JDP Plaintiffs, ORDER v. BMW of North America, LLC, et al., 1S Defendants. This matter is before the court on plaintiffs’ motion to determine reasonable attorneys’ fees, costs, and expenses to be paid by BMW of North America, LLC. For the reasons below, the court grants plaintiffs’ motion in part. I. BACKGROUND Plaintiffs filed suit against defendant BMW in Sacramento County Superior Court on August 21, 2019, alleging violations of the Song-Beverly Consumer Warranty Act and the California Unfair Competition Law. See generally Compl., Not. of Removal Ex. A, ECF No. 1-1. Defendant removed the action to this court on January 31, 2020. See Not. of Removal at 1,1 ECF No.1. The parties engaged in written discovery, one deposition, a vehicle inspection, and briefing related to defendant’s Motion to Compel Arbitration. See Opp’n at 5, ECF No. 40.

' To avoid confusion, pages cited here are those printed on the top right page of the document by the CM/ECF system.

Plaintiffs successfully opposed defendant’s Motion to Compel Arbitration, see Order, ECF No.

18, and the parties filed their notice of settlement on June 29, 2021, see ECF No. 33. On August

3, 2021, the parties stipulated that plaintiffs are entitled to reasonable attorneys’ fees, costs, and

expenses as the prevailing party under the Song-Beverly Act. See generally Joint Stip., ECF No.

37.

Because the parties could not agree on an amount of reasonable attorneys’ fees, plaintiffs

filed the instant motion on November 10, 2021. See Mot., ECF No. 39-1. Defendant opposes,

see ECF No. 40, and plaintiff has replied, see ECF No. 41. The court submitted the motion

without a hearing and resolves it here.

Under the Song-Beverly Act, a prevailing party may recover “a sum equal to the

aggregate amount of costs and expenses, including attorneys’ 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 a ction.” Cal. Civ. Code § 1794(d). “The plain wording of the statute requires the trial court to base the fee award upon actual time expended on the case, as long as such fees are reasonably incurred—both from the standpoint of time spent and the amount charged.” Robertson v. Fleetwood Travel Trailers of Cal., Inc., 144 Cal. App. 4th 785, 817 (2006). “A prevailing buyer has the burden of showing that the fees incurred were ‘allowable,’ were ‘reasonably necessary to the conduct of the litigation,’ and were ‘reasonable in amount.’” Durham v. FCA US LLC, No. 17-00596, 2020 WL 243115, at *3 (E.D. Cal. Jan. 16, 2020) (citation omitted); Goglin v. BMW of N. Am., LLC, 4 Cal. App. 5th 462, 470 (2016). Under a contingent fee arrangement, “a prevailing buyer represented by counsel is entitled to an award of reasonable attorney fees for time reasonably expended by his or her attorney.” Nightingale v. Hyundai Motor Am., 31 Cal. App. 4th 99, 105 n.6 (1994). For a party opposing a fee request, “[g]eneral arguments that fees claimed are excessive, duplicative, or unrelated do not suffice.” Durham, 2020 WL 243115, at *3 (citation omitted). “Rather, the opposing party has the burden to demonstrate the hours spent are duplicative or excessive.” Id. (citation omitted); Gorman v. Tassajara Dev. Corp., 178 Cal. App. 4th 44, 101

(2009) (“[T]he party opposing the fee award can be expected to identify the particular charges it

considers objectionable”).

“The determination of what constitutes a reasonable fee generally begins with the

lodestar[.]” Graciano v. Robinson Ford Sales, Inc., 144 Cal. App. 4th 140, 154 (2006) (internal

quotation marks omitted). “To calculate the ‘lodestar,’ the Court must multiply the number of

hours the attorneys reasonably spent on the litigation by the reasonable hourly rate in the

community for similar work.” Arias v. Ford Motor Co., No. 18-1928, 2020 WL 1940843, at *3

(C.D. Cal. Jan. 27, 2020) (citing McElwaine v. U.S. West, Inc., 176 F.3d 1167, 1173 (9th Cir.

1999)); Martinez v. Ford Motor Co., No. 118-01607, 2021 WL 3129601, at *3–9 (E.D. Cal. July

23, 2021) (applying lodestar method to Song-Beverly Act case).

Plaintiffs seek recovery of attorney fees of $48,140.50 for work performed prior to

preparing the motion at issue here. They i nclude a detailed billing record showing how they reach this amount. See generally Billing Records, Jacobs Decl. Ex. 1, ECF No. 39-4. Specifically, plaintiffs propose the following hourly rate and number of hours: Hours Billing Rate Lodestar Jon Jacobs, partner 1.6 $550 $880 Terry Baker, attorney 1.9 $650 $1,235 Chad David,2 attorney 50 $350 $17,500 Chad David, attorney 1.5 $300 $450 Chad David, Law Clerk 4.1 $175 $717.50 Rene Dupart, attorney 28.4 $495 $14,058

2 Mr. David’s three entries account for his time first as a law clerk, his initial hourly rate as an attorney, and his increased hourly rate with some experience as of January 2021. See David Decl. ¶¶ 9–10, ECF No. 39-3. Nicolas Dillavou,3 attorney 2.6 $350 $910

Nicolas Dillavou, attorney 0.6 $300 $180

Paralegals 81.4 $150 $12,210

172.10 TOTAL $48,140.50

Mot. at 7–8.

In addition to the $48,140.50, plaintiffs request $5,000.00 for work related to plaintiffs’

attorneys’ fees motion and additional work needed to “wrap[] up this case.” David Decl. ¶ 13,

ECF No. 39-3. The total amount of fees they seek then is $53,140.50. Plaintiffs also request a

“lodestar enhancement” multiplier of 1.5, for a total of $79,710.75. Mot. at 14. Finally, plaintiffs

seek to recoup $4,924.51 in total costs and expenses. Id. All told, plaintiffs request $84,635.26.

Defendant argues plaintiffs’ requests are “unreasonable” and “excessive.” Opp’n at 9.

Specifically, defendant challenges the (1) reasonableness of hours spent, (2) attorneys’ rates, and

(3) requested lodestar multiplier. See generally Opp’n. The court addresses these arguments in

turn. A. Reasonableness of Hours Spent Using the lodestar method, “a district court must start by determining how many hours were reasonably expended on the litigation, and then multiply those hours by the prevailing local rate for an attorney of the skill required to perform the litigation.” Moreno v. City of Sacramento, 534 F.3d 1106, 1111 (9th Cir. 2008). In determining an appropriate fee award, “the district court should exclude hours that are excessive, redundant, or otherwise unnecessary.” McCown v. City of Fontana, 565 F.3d 1097, 1102 (9th Cir. 2009) (internal quotation marks and citation omitted). The court has discretion to reduce the fee award where fees were not reasonably incurred. See Ketchum v. Moses, 24 Cal. 4th 1122, 1132 (2001) (“‘[P]adding’ in the form of inefficient or duplicative efforts is not subject to compensation.”). However, as a general rule, “the court should defer to the winning lawyer’s professional judgment as to how much time he was required

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