Gerber v. FCA US LLC

District Court, S.D. California·Decided October 26, 2020·No. 3:17-cv-00518·Unknown

Opinion

MICHAEL GERBER, Case No.: 17-cv-00518-AJB-BGS Plaintiff, ORDER GRANTING IN PART AND v. DENYING IN PART: FCA US LLC, Defendant. (1) PLAINTIFF’S MOTION FOR ATTORNEYS’ FEES, COSTS, AND EXPENSES, (Doc. No. 80); AND

(2) PLAINTIFF’S MOTION TO RE- TAX COSTS, (Doc. No. 95) Before the Court is Plaintiff Michael Gerber’s (“Plaintiff”) (1) motion for attorneys’ fees, costs, and expenses, (Doc. No. 80), and (2) motion to re-tax costs, (Doc. No. 95). Defendant FCA US LLC (“FCA”) opposed both motions. (Doc. Nos. 88, 97.) For the reasons stated herein, the Court GRANTS IN PART AND DENIES IN PART both motions, with the appropriate reduction of fees and costs as set forth below. This case arose out of the purchase of a new 2012 Jeep Grand Cherokee (“the Vehicle”) for a total price of $49,000.00. The Vehicle was manufactured and distributed by Defendant FCA US LLC. FCA provided a written warranty with the Vehicle. Within the applicable warranty period, the Vehicle exhibited issues relating to transmission function, engine no-starts, vehicle stalls, steering malfunctions, recalls, and other defects. Plaintiff first presented the Vehicle to an FCA-authorized repair facility on August 1, 2013 when the transmission was shifting. Thereafter, Plaintiff returned to FCA’s repair facility on seven separate occasions for various other issues. Plaintiff filed his Complaint in this action in San Diego Superior Court on June 30, 2016, alleging violations of the Song- Beverly Act and fraudulent concealment. The action was removed to this Court on March 16, 2017. On May 8, 2019, the parties filed a notice of settlement. (Doc. No. 73.) Plaintiff filed his motion for attorneys’ fees, costs, and expenses, (Doc. No. 80), and to re-tax costs, (Doc. No. 95). FCA opposed both motions. (Doc. Nos. 88, 97.) This order follows. “In a diversity case, the law of the state in which the district court sits determines whether a party is entitled to attorney fees, and the procedure for requesting an award of attorney fees is governed by federal law.” Carnes v. Zamani, 488 F.3d 1057, 1059 (9th Cir. 2007); see also Mangold v. Cal. Public Utilities Comm’n, 67 F.3d 1470, 1478 (9th Cir. 1995) (noting that in a diversity action, the Ninth Circuit “applied state law in determining not only the right to fees, but also in the method of calculating the fees”). As explained by the Supreme Court, “[u]nder the American Rule, ‘the prevailing litigant ordinarily is not entitled to collect a reasonable attorneys’ fee from the loser.’” Travelers Casualty & Surety Co. of Am. v. Pacific Gas & Electric Co., 549 U.S. 443, 448 (2007) (quoting Alyeska Pipeline Service Co. v. Wilderness Society, 421 U.S. 240, 247 (1975)). However, a statute allocating fees to a prevailing party can overcome this general rule. Id. (citing Fleischmann Distilling Corp. v. Maier Brewing Co., 386 U.S. 714, 717 (1967)). Under California’s Song-Beverly Act, a prevailing buyer is entitled “to recover as part of the judgment a sum equal to the aggregate amount of costs and expenses, including attorney’s 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 action.” Cal. Civ. Code § 1794(d). The Song-Beverly Act “requires the trial court to make an initial determination of the actual time expended; and then to ascertain whether under all the circumstances of the case the amount of actual time expended, and the monetary charge being made for the time expended are reasonable.” Nightingale v. Hyundai Motor America, 31 Cal. App. 4th 99, 104 (1994). The court may consider “factors such as the complexity of the case and procedural demands, the skill exhibited, and the results achieved.” Id. If the court finds the time expended or fee request “is not reasonable under all the circumstances, then the court must take this into account and award attorney fees in a lesser amount.” Id. “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.’” Id. (quoting Levy v. Toyota Motor Sales, U.S.A., Inc., 4 Cal. App. 4th 807, 816 (1992)); see also Goglin v. BMW of North America, LLC, 4 Cal. App. 5th 462, 470 (2016) (same). If a fee request is opposed, “[g]eneral arguments that fees claimed are excessive, duplicative, or unrelated do not suffice.” Premier Med. Mgmt. Sys. v. Cal. Ins. Guarantee Assoc., 163 Cal. App. 4th 550, 564 (2008). Rather, the opposing party has the burden to demonstrate the hours spent are duplicative or excessive. Id. at 562, 564; see also 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”). As a prevailing buyer, Plaintiff is entitled to an award of fees and costs under the Song-Beverly Act. See Cal. Civ. Code § 1794(d); see also Goglin, 4 Cal. App. 5th at 470. Here, Plaintiff seeks: (1) for an award of attorneys’ fees pursuant to Civil Code section 1794(d) under the “lodestar” method in the amount of $39,766.25, (2) for a “lodestar” modifier of 0.5 under California law, in the amount of $19,883.13, and (3) to award actual costs and expenses incurred in the amount of $20,483.81. (Doc. No. 80-1 at 8.) Plaintiff requests a total of $80,133.19 in attorney’s fees, costs, and expenses. (Id.) FCA acknowledges Plaintiff is entitled to recover attorney’s fees, costs, and expenses, but argues the amount requested is unreasonable and should be reduced. (Doc. No. 88 at 6.) // A. Plaintiff’s Attorneys’ Fee Request First, Plaintiff seeks $25,442.50 for work completed by Knight Law Group (“KLG”) and $14,323.75 for work completed by co-counsel, Hackler Daghighian Martino & Novak, P.C. (“HDMN”). (Doc. No. 80-1 at 14.) KLG associated with HDMN to have HDMN serve as trial specialists. For both law firms, the attorneys’ fees requested totals $39,766.25. 1. Hours Worked By Counsel A fee applicant must provide time records documenting the tasks completed and the amount of time spent. See Hensley v. Eckerhart, 461 U.S. 424, 424 (1983); Welch v. Metropolitan Life Ins. Co., 480 F.3d 942, 945–46 (9th Cir. 2007). Under California law, a court “must carefully review attorney documentation of hours expended” to determine whether the time reported was reasonable. Ketchum v. Moses, 24 Cal. 4th 1122, 1132 (2001) (quoting Serrano v. Priest, 20 Cal.3d 25, 48 (1977)). Thus, evidence provided by the fee applicant “should allow the court to consider whether the case was overstaffed, how much time the attorneys spent on particular claims, and whether the hours were reasonably expended.” Christian Research Inst. v. Alnor, 165 Cal.

Free access — add to your briefcase to read the full text and ask questions with AI

Gerber v. FCA US LLC, (S.D. Cal. 2020).

Gerber v. FCA US LLC (Gerber v. FCA US LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Chesapeake & Ohio Railway Co. v. Kelly
241 U.S. 485 (Supreme Court, 1916)
Fleischmann Distilling Corp. v. Maier Brewing Co.
386 U.S. 714 (Supreme Court, 1967)
Alyeska Pipeline Service Co. v. Wilderness Society
421 U.S. 240 (Supreme Court, 1975)
Hensley v. Eckerhart
461 U.S. 424 (Supreme Court, 1983)
Welch v. Metropolitan Life Ins. Co.
480 F.3d 942 (Ninth Circuit, 2007)
Serrano v. Priest
569 P.2d 1303 (California Supreme Court, 1977)
Steel v. General Motors Corp.
912 F. Supp. 724 (D. New Jersey, 1995)
Clement v. Smith
16 Cal. App. 4th 39 (California Court of Appeal, 1993)
Jensen v. BMW of North America, Inc.
35 Cal. App. 4th 112 (California Court of Appeal, 1995)
Nightingale v. Hyundai Motor America
31 Cal. App. 4th 99 (California Court of Appeal, 1999)
Christian Research Institute v. Alnor
165 Cal. App. 4th 1315 (California Court of Appeal, 2008)
Graciano v. Robinson Ford Sales, Inc.
50 Cal. Rptr. 3d 273 (California Court of Appeal, 2006)
Levy v. Toyota Motor Sales, U.S.A., Inc.
4 Cal. App. 4th 807 (California Court of Appeal, 1992)
Ketchum v. Moses
17 P.3d 735 (California Supreme Court, 2001)
Laffitte v. Robert Half International Inc.
376 P.3d 672 (California Supreme Court, 2016)
Goglin v. BMW of North America, LLC
4 Cal. App. 5th 462 (California Court of Appeal, 2016)