Corrales-Gonzalez v. Speed Auto Wholesalers LLC

District Court, D. Arizona·Decided June 13, 2023·No. 2:20-cv-02023·Unknown

Opinion

WO

Carmen Corrales-Gonzalez, ) No. CV-20-02023-PHX-SPL ) ) Plaintiff, ) ORDER vs. ) ) ) Speed Auto Wholesalers LLC, et al., ) ) Defendants. ) ) )

Before the Court are Defendants’ Renewed Motion for Judgment as a Matter of Law/Request for New Trial (Doc. 117) and Plaintiff’s Motion for Award of Attorney’s Fees (Doc. 114). Both Motions are fully briefed and ready for review. (Docs. 117 & 119; Docs. 113, 114, 116 & 118). The Court’s ruling is as follows.1 On October 21, 2020, Plaintiff Carmen Corrales-Gonzalez (“Plaintiff”) filed a Complaint against Defendants Speed Auto Wholesalers LLC (“Speed Auto”) and DP Corporation (d/b/a “Lifted Trucks”).2 (Doc. 1 at 1–3). The Complaint sought damages for Defendants’ violation of the federal Odometer Fraud Act (the “Odometer Act”), 49 U.S.C.

1 Because it would not assist in resolution of the instant issues, the Court finds the pending motions are suitable for decision without oral argument. See LRCiv. 7.2(f); Fed. R. Civ. P. 78(b); Partridge v. Reich, 141 F.3d 920, 926 (9th Cir. 1998).

2 Plaintiff also named two other Defendants—Maira Perez and Raul Quintero. Ms. Perez was dismissed. (Doc. 16). Mr. Quintero failed to appear, leading the Court to enter default judgment against him. (Doc. 93). § 32701, et seq., after Plaintiff purchased a used vehicle from Defendant Speed Auto— which had itself obtained the vehicle from Defendant Lifted Trucks—and later learned that the vehicle’s odometer was inaccurate. (Id. at 1–2). On September 21, 2022, following a jury trial, judgment was entered in favor of Plaintiff. (Doc. 112). The jury verdict found that Defendants violated the Odometer Act with intent to defraud and awarded Plaintiff damages in the amount of $32,136.00 against Defendant Speed Auto and $33,000.00 against Defendant Lifted Trucks. (Doc. 110 at 1–2). On October 5, 2022, Plaintiff filed the present Motion for Award of Attorney’s Fees (Doc. 114). Plaintiff’s counsel, Floyd W. Bybee (“Mr. Bybee”), requests an award of $94,572.50 in attorney’s fees, which represents 199.1 hours of attorney time at $475 per hour. (Id. at 1). On October 19, 2022, Defendants filed a Response brief opposing Plaintiff’s request and arguing that a $25,000 award would be appropriate. (Doc. 116 at 8). On October 26, 2022, Plaintiff filed a Reply. (Doc. 118). On October 19, 2022, Defendants filed a Renewed Motion for Judgment as a Matter of Law (“JMOL”) or New Trial (Doc. 117). On November 2, 2022, Plaintiff filed a Response. (Doc. 119). Defendants did not file a Reply brief. A. Rule 50 and 59 Motions A party may renew a motion for JMOL no later than 28 days after the entry of judgment in a jury trial.3 Fed. R. Civ. P. 50(b). “The test [on a Rule 50(b) motion] is whether the evidence, construed in the light most favorable to the nonmoving party, permits only one reasonable conclusion, and that conclusion is contrary to that of the jury.” Est. of Diaz v. City of Anaheim, 840 F.3d 592, 604 (9th Cir. 2016) (quotations and citation omitted). Mere disagreement with the jury’s outcome is insufficient, as JMOL is appropriate only if a “reasonable jury would not have a legally sufficient evidentiary basis to find for the party on that issue.” Fed. R. Civ. P. 50(a). Where there is sufficient 3 Here, Defendants’ Motion is timely. Judgment was entered on September 21, 2022 (Doc. 112), and Defendants filed their Motion on October 19, 2022 (Doc. 117). conflicting evidence, or if reasonable minds could differ over the verdict, JMOL is improper. Harper v. City of L.A., 533 F.3d 1010, 1021–22 (9th Cir. 2008). Rule 59 permits the Court to grant a motion for a new trial “only if the verdict is contrary to the clear weight of the evidence or ‘it is quite clear that the jury has reached a seriously erroneous result.’” Madsen v. City of Phx., No. CV-19-03182-PHX-GMS, 2023 WL 2042254 (D. Ariz. Feb. 16, 2023) (quoting Venegas v. Wagner, 831 F.2d 1514, 1519 (9th Cir. 1987)). Pursuant to a Rule 59 motion, “the district court can weigh the evidence, make credibility determinations, and grant a new trial for any reason necessary to prevent a miscarriage of justice.” Experience Hendrix L.L.C. v. Hendrixlicensing.com Ltd., 762 F.3d 829, 841 (9th Cir. 2014). “Unlike with a Rule 50 determination, the district court, in considering a Rule 59 motion for a new trial, is not required to view the trial evidence in the light most favorable to the verdict.” Id. “A court may also grant a new trial based on the failure to give adequate jury instructions, erroneous jury instructions, or attorney misconduct.” Madsen, 2023 WL 2042254, at *1 (citing Murphy v. City of Long Beach, 914 F.2d 183, 187 (9th Cir. 1990) and Bird v. Glacier Elec. Coop., Inc., 255 F.3d 1136, 1145 (9th Cir. 2001)). B. Motion for Attorney’s Fees Rule 54(d) provides that any “claim for attorneys’ fees and related nontaxable expenses must be made by motion.” Fed. R. Civ. P. 54(d)(2). “Unless a statute or a court order provides otherwise, the motion must: (i) be filed no later than 14 days after the entry of judgment; (ii) specify the judgment and the statute, rule, or other grounds entitling the movant to the award; (iii) state the amount sought or provide a fair estimate of it; and (iv) disclose, if the court so orders, the terms of any agreement about fees for the services for which the claim is made. Id. Rule 54(d) also provides that courts may establish their own local rules to resolve fee- related issues. Fed. R. Civ. P. 54(d)(2)(D). In the District of Arizona, Local Rule of Civil Procedure (“LRCiv”) 54.2 applies to requests for fees and related non-taxable expenses. Two Motions are at issue in this Order. The Court will first address Defendants’ Motion (Doc. 117) requesting JMOL, pursuant to Rule 50, or alternatively a new trial, pursuant to Rule 59. The Court will then turn to Plaintiff’s Motion for Award of Attorney’s Fees (Doc. 114) in which Mr. Bybee requests an award of $94,572.50 in attorney’s fees from Defendants for the fees incurred during this litigation. A. Defendants’ Motion for JMOL/New Trial Defendants request JMOL or alternatively a new trial because (i) the jury overlooked the “uncontested” testimony of Defendants’ expert, Dave Warkentin, and (ii) the Court incorrectly instructed the jury which led this case to be treated as a strict liability case. (Doc. 117 at 2). Having reviewed Defendants’ arguments—as well as the entire record in this matter—the Court finds that Defendants have failed to demonstrate that JMOL or a new trial is appropriate for either reason. With respect to the first issue, Mr. Warkentin testified that industry standards did not require Defendant Speed Auto to change the status of the Jeep’s title—that is, check either of the boxes on the Secure Odometer Disclosure indicating an odometer mechanical failure or discrepancy—based solely upon the Carfax Report because Carfax reports are not always accurate.4 He further testified that Defendant Speed Auto’s actions—having Plaintiff sign the Carfax Report and the Buyer’s Order, each of which noted the odometer discrepancy—was consistent with what he teaches dealers to do. Defendants argue that this testimony was

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Corrales-Gonzalez v. Speed Auto Wholesalers LLC, (D. Ariz. 2023).

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