Elizondo v. Dept. of Transportation CA3

CourtCalifornia Court of Appeal
DecidedJuly 22, 2022
DocketC088987
StatusUnpublished

This text of Elizondo v. Dept. of Transportation CA3 (Elizondo v. Dept. of Transportation CA3) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elizondo v. Dept. of Transportation CA3, (Cal. Ct. App. 2022).

Opinion

Filed 7/22/22 Elizondo v. Dept. of Transportation CA3 NOT TO BE PUBLISHED California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA THIRD APPELLATE DISTRICT (San Joaquin) ----

RACHEL A. ELIZONDO, C088987

Plaintiff and Appellant, (Super. Ct. No. STK-CV- UOE-2013-0006188) v.

DEPARTMENT OF TRANSPORTATION,

Defendant and Respondent.

Plaintiff Rachel A. Elizondo won a jury verdict of $605,000 on her employment discrimination and retaliation claims against defendant Department of Transportation. Because plaintiff was the prevailing party in the case, the trial court awarded over $700,000 in attorney fees for her counsel, John A. Shepardson, and over $117,000 in costs. Plaintiff contends the trial court abused its discretion in making that award.

1 Regarding attorney fees, we agree with plaintiff that the trial court abused its discretion by calculating Shepardson’s fees based on a local hourly rate, rather than an out-of-town rate. We reject plaintiff’s other challenges to the attorney fee award, including her challenge to the number of reasonable hours Shepardson spent on the case and the lodestar multiplier of 1.2. Regarding costs, we affirm in all respects, except for the trial court’s articulation of the sum of the costs awarded. 1 Accordingly, we will reverse in part the order on appeal and remand the matter to the trial court for further consideration. BACKGROUND In 2009, plaintiff was working in Stockton for defendant when she saw e-mails intended for some of her male coworkers that contained sexually explicit content. Believing it was her “responsibility to report something like that,” plaintiff told her supervisor. In June 2013, plaintiff filed a civil complaint alleging defendant harassed, and discriminated and retaliated against her because of the 2009 e-mail incident. In May 2017, plaintiff filed a second amended complaint containing five causes of action against defendant: (1) violation of the California Whistleblower Protection Act (Gov. Code, § 8547; hereafter WPA); (2) retaliation in violation of title 42 United States Code section 2000e-3(a) (Title VII); (3) retaliation in violation of the California Fair Employment and Housing Act (Gov. Code, § 12940, subd. (h); hereafter FEHA); (4) failure to prevent retaliation in violation of the FEHA (Gov. Code, § 12940, subd. (k)); and (5) wrongful termination in violation of Labor Code sections 98.6 and 1102.5.

1 This matter was assigned to the panel as presently constituted in June 2022.

2 In November 2017, after a 26-day jury trial, the jury found defendant violated plaintiff’s rights under Title VII and the FEHA (the second, third, and fourth causes of action) and awarded $605,000 in damages. Pleadings on Attorney Fees and Costs In March 2018, invoking the FEHA’s attorney fee provisions2 (and other statutes), plaintiff sought attorney fees and costs as the prevailing party in her case. Plaintiff asked for over $4,000,000 in fees for her attorney John A. Shepardson.3 Shepardson filed a supporting declaration, explaining that: (i) he was “past president of the Santa Clara County Trial Lawyers Association,” and his office was in Los Gatos, California; (ii) he represented plaintiff pursuant to an “extremely high risk” fee agreement, wherein plaintiff agreed to pay him “$125/hr. . . . and a 22.5% contingency fee,” even though his “usual hourly rate” was “between $250 to $350”; (iii) the “Bay Area market rate for the services [he] rendered” was “$825/hour”;4 (iv) the case presented a “number of novel and/or difficult issues”; (v) he was “precluded from working on other cases that could have generated substantially more than rates” he charged plaintiff; and (vi) the case benefitted the public interest, as it “exposed systemic government corruption.” Plaintiff’s first declaration in support of attorney fees and costs detailed her efforts to obtain counsel. She explained: (1) she “first contacted local trial lawyer Charles Pacheco,” but he “declined to take the case based on lack of evidence”; (2) Attorney David Rishwain “declined to take the case because employment law was not his area of

2 Government Code section 12965, subdivision (c)(6), provides in relevant part: “In civil actions brought under this section, the court, in its discretion, may award to the prevailing party . . . reasonable attorney’s fees and costs, including expert witness fees . . . .” 3 Over 2,000 hours of work at $825 an hour, with a multiplier of 2.5. 4 Attached as exhibits to this declaration were declarations from Bay Area employment law attorneys that addressed the market rates for their work.

3 expertise”; (3) “local attorney Gary Davenport” “did not do employment law,” and “recommended [plaintiff] hire a Bay Area employment lawyer.” After two attorneys in the San Francisco Bay Area declined to represent plaintiff, she hired Shepardson. In an April 2018 opposition, defendant challenged plaintiff’s claimed hourly rate, because “it ignore[d] plaintiff’s counsel’s normal and customary hourly rate of $250- $350 per hour.” The “claimed rate” of “$825 per hour” was “wholly unsupported and without foundation.” Further, an analysis of “the prevailing Bay Area legal rates” was “irrelevant” and “not implicated,” since it was “know[n] with precision what . . . Shepardson’s normal customary market rate [was] . . . .” Defendant also argued that plaintiff “fail[ed] to show any serious good faith effort to secure local counsel,” as she “apparently contacted three attorneys in San Joaquin County who all informed her that they do not practice in employment law. This level of inquiry is not exhaustive and fails to show that plaintiff was precluded from retaining local counsel.” Regarding the number of attorney hours, defendant argued the “hours claimed by plaintiff’s counsel [we]re inflated . . . .” Defendant asserted the “reasonable hours necessarily expended” in the case (about 250 fewer hours than Shepardson claimed) multiplied by Shepardson’s hourly rate of $250, lead to a “just and reasonable” attorney fee award of around $400,000. A declaration of a senior legal analyst, filed in support of the opposition, disputed the “reasonable amount of attorney fee hours” and identified over $118,000 in “improper” costs. Plaintiff filed a reply memorandum, reply declarations, and objections to the declaration that supported defendant’s opposition. April 2018 Hearing At an April 2018 hearing, the trial court asked plaintiff’s counsel to produce “if it’s feasible, a type of a spreadsheet.” The trial court explained that “in light of the

4 voluminous items . . . [it] need[ed] to rule on, . . . if [it was] going to deny a particular item, then [it] need to state . . . reason[s] . . . for that,” because “the [a]ppellate [c]ourt wants to see [the] reason[s].” A spreadsheet could facilitate the trial court’s analysis of plaintiff’s requests for fees and costs, the trial court explained, because the document would have separate columns for plaintiff’s counsel work, defendant’s objections to a particular item, and the trial court’s ruling on each item. Regarding the question of the relevant hourly rate, the trial court told the parties: “[T]here are some cases that . . . would support a rate by somebody outside the county or some other declarations as to whether there’s anybody in the county that can do that work at a different rate. “And I -- I probably would like more guidance. I mean, I did read Mr. Shepardson’s declaration with regard to what his expert has said would be relevant rates, but . . . [that] dealt with rates that were awarded out of this county. . . .

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Elizondo v. Dept. of Transportation CA3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elizondo-v-dept-of-transportation-ca3-calctapp-2022.