DJCBP Corporation et al. v. City of Baldwin Park et al.

CourtDistrict Court, C.D. California
DecidedJanuary 8, 2026
Docket2:23-cv-00384
StatusUnknown

This text of DJCBP Corporation et al. v. City of Baldwin Park et al. (DJCBP Corporation et al. v. City of Baldwin Park et al.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DJCBP Corporation et al. v. City of Baldwin Park et al., (C.D. Cal. 2026).

Opinion

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘oO’ Case No. 2:23-cv-00384-CAS-PVCx Date January 8, 2026 Title DJCBP Corporation et al. v. City of Baldwin Park et al.

Present: The Honorable CHRISTINA A. SNYDER Catherine Jeang Not Present N/A Deputy Clerk Court Reporter / Recorder Tape No. Attorneys Present for Plaintiffs: Attorneys Present for Defendants: Not Present Not Present Proceedings: (IN CHAMBERS) - PLAINTIFFS’ MOTION FOR ATTORNEYS’ FEES (Dkt. 263, filed on November 17, 2025) I. INTRODUCTION & BACKGROUND On January 18, 2023, plaintiffs DJCBP Corporation d/b/a/ Tier One Consulting (“Tier One”) and David Ju (collectively, “plaintiffs”) initiated this action against defendants City of Baldwin Park (the “City”); Robert Nacionales Tafoya (“Tafoya”), former Baldwin Park City Attorney; Anthony Willoughby II (“Willoughby”’), former Baldwin Park Deputy City Attorney; Ricardo Pacheco (“Pacheco”), former Baldwin Park City Council member; Isaac Galvan (“Galvan”), former Mayor of the City of Compton; Lourdes Morales (“Morales”), former Baldwin Park Deputy City Clerk; Manuel Lozano (“Lozano”), former Baldwin Park Mayor; and Does | through 50, inclusive. Dkt. 1. On March 28, 2024, the City filed a cross-complaint against plaintiffs. Dkt. 97. On January 24, 2025, Willoughby was dismissed with prejudice pursuant to a stipulation of voluntary dismissal by plaintiffs and Willoughby. Dkt. 141. The Court dismissed several of plaintiff's claims and one of the City’s counterclaims. See e.g.. dkts. 66, 91, 121. The Court held a jury trial on the remaining claims and counterclaims beginning on September 9, 2025. See dkt. 224. Plaintiffs’ claims at trial were: (a) negligence against the City under a theory of negligent hiring, retention, and/or supervision of Tafoya as

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘oO’ Case No. 2:23-cv-00384-CAS-PVCx Date January 8, 2026 Title DJCBP Corporation et al. v. City of Baldwin Park et al. City Attorney; and (b) fraud against individual defendants Tafoya, Pacheco, and Lozano.! Id. at 5, 11. The City’s counterclaims against plaintiffs were for breach of contract, breach of covenant of good faith and fair dealing, and unjust enrichment.” Id. at 32. The alleged facts of this case are well-known to the parties and set forth in the Court’s March 15, 2024 order. Dkt. 91. No party moved for summary judgment, and there are no jointly stipulated facts in the pre-trial or trial record. The trial commenced on September 9, 2025, and thereafter trial was held on September 10, September 11, September 12, and September 16. At the close of plaintiffs’ opening statement and before the case was submitted to the jury, defendants orally moved for judgment as a matter of law on all claims pursuant to Federal Rule of Civil Procedure 50(a). See Trial Tr. (Sept. 9, 2025; Sept. 11, 2025; Sept. 16, 1025). Defendants moved for judgment as a matter of law on the same grounds as defendants’ motion for judgment on the pleadings, dkt. 219, which the Court denied as untimely, dkt. 235. See Trial Tr. (Sept. 9, 2025). The Court deemed defendants’ Rule 50(a) motion timely made and reserved judgment. Id. The jury returned a verdict finding for plaintiffs on their claims of fraud against defendants Lozano, Tafoya, and Pacheco, and awarded plaintiffs $1,600,000 in damages. Dkt. 240 (“Verdict Form”) at 2-4. The jury also found for plaintiffs on their claim of negligence against the City and awarded plaintiffs an additional $290,000 in damages. Id. at 5. The jury found for plaintiffs on the City’s counterclaim for breach of contract. Id. On October 6, 2025, defendants filed a renewed motion for judgment as a matter of law. Dkt. 253. Plaintiffs filed an opposition on October 13, 2025. Dkt. 254. Defendants filed a reply on October 20, 2025. Dkt. 258. On November 3, 2025, following a hearing, the Court granted in part and denied in part defendants’ motion for judgment as a matter of law. Dkt. 260 (“JMOL”). The Court granted judgment as a matter of law for the City on plaintiffs’ claims of negligent hiring and negligent supervision against the City. Id. at 22. The Court also granted judgment as a matter of law for defendants Lozano and 1 The Clerk entered a default as to defendant Galvan on September 10, 2025. Dkt. 227. Plaintiffs voluntarily dismissed their claim against defendant Morales during trial. See Trial Tr. (Sept. 9, 2025). ? The City voluntarily dismissed its counterclaims for breach of covenant of good faith and fair dealing and for unjust enrichment at trial. See Trial Tr. (Sept. 16, 2025).

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘oO’ Case No. 2:23-cv-00384-CAS-PVCx Date January 8, 2026 Title DJCBP Corporation et al. v. City of Baldwin Park et al. Pacheco on plaintiffs’ claims of fraud against them. Id. The Court denied defendants’ motion for judgment as a matter of law as to plaintiffs’ claim of fraud against defendant Tafoya. Id. On November 6, 2025, the Court entered final judgment in accordance with the jury’s verdict and the Court’s order on judgment as a matter of law. Dkt. 261. On November 17, 2025, plaintiffs filed a motion for attorneys’ fees. Dkt. 263 (“Mot.”). On December 1, 2025, defendants filed an opposition to plaintiffs’ motion for attorneys’ fees. Dkts. 270 (“Opp.”).? On December 8, 2025, plaintiffs filed a reply. Dkt. 275 (“Reply”). On December 22, 2025, the Court held a hearing on plaintiffs’ instant motion for attorneys’ fees and three other pending motions. The Court issued an order on the four motions, reserving judgment on plaintiffs’ motion for attorneys’ fees. Dkt. 286 (“Order”). The Court ordered plaintiffs and plaintiffs’ counsel to provide additional information regarding the structure of their fee agreement, id. at 29 n.14, and the allocation of plaintiffs’ counsel’s time spent on various claims, id. at 31. On December 31, 2025, plaintiffs filed a response answering the Court’s request for additional information. Dkt. 287 (“Response”). Having carefully considered the parties’ arguments and submissions, the Court finds and concludes as follows. Il. LEGAL STANDARD Federal Rule of Civil Procedure 54(d)(2) “creates a procedure but not a right to recover attorneys’ fees.” MRO Commce’ns, Inc. v. Am. Tel. & Tel. Co., 197 F.3d 1276, 1280 (9th Cir. 1999). Accordingly, “there must be another source of authority for such an award.” Id. at 1281 (quoting Abrams v. Lightolier, Inc., 50 F.3d 1204, 1224 (3d Cir. 1995)). “The requirement under Rule 54(d)(2) of an independent source of authority for an award of attorneys’ fees gives effect to the “American Rule’ that each party must bear its own attorneys’ fees in the absence of a rule, statute, or contract authorizing such award.” Abrams, 50 F.3d at 1224. “[T]he fee applicant bears the burden of establishing

3 On December 5, 2025, defendants filed a second opposition to plaintiffs’ motion for attorneys’ fees. Dkt. 271. This filing was late and appears to be substantially similar to defendants’ timely-filed opposition. L.R. 7-9. Accordingly, the Court does not consider the late-filed opposition. L.R. 7-12.

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘oO’ Case No. 2:23-cv-00384-CAS-PVCx Date January 8, 2026 Title DJCBP Corporation et al. v. City of Baldwin Park et al. entitlement to an award and documenting the appropriate hours expended and hourly rates.” Hensley v. Eckerhart, 461 U.S. 424, 437 (1983).

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DJCBP Corporation et al. v. City of Baldwin Park et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/djcbp-corporation-et-al-v-city-of-baldwin-park-et-al-cacd-2026.