G.P.P., Inc. v. Guardian Protection Products, Inc.

CourtDistrict Court, E.D. California
DecidedNovember 15, 2023
Docket1:15-cv-00321
StatusUnknown

This text of G.P.P., Inc. v. Guardian Protection Products, Inc. (G.P.P., Inc. v. Guardian Protection Products, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
G.P.P., Inc. v. Guardian Protection Products, Inc., (E.D. Cal. 2023).

Opinion

1 2 3 4 5 6 UNITED STATES DISTRICT COURT 7 EASTERN DISTRICT OF CALIFORNIA 8

9 G.P.P., INC. d/b/a GUARDIAN INNOVATIVE SOLUTIONS, Case No. 1:15-cv-00321-SKO 10 ORDER RE CROSS MOTIONS FOR Plaintiff, 11 ATTORNEY’S FEES

12 v. (Docs. 532 & 534)

13 GUARDIAN PROTECTION PRODUCTS, 14 INC. and RPM WOOD FINISHES GROUP, INC., 15 Defendants. 16 _____________________________________/

17 18 I. INTRODUCTION 19 Pending before the Court is Plaintiff G.P.P., Inc. d/b/a Guardian Innovative Solutions 20 (“GIS”)’s motion for attorney’s fees (Doc. 532) and Defendants Guardian Protection Products, Inc. 21 (“Guardian”) and RPM Wood Finishes Group (“RPM”) (collectively “Defendants”)’s motion for 22 attorney’s fees (Doc. 534).1 Both parties have filed briefs in opposition to each other’s motion (see 23 Docs. 538 & 540) and have filed replies in support of their own (see Docs. 541 & 42). The Court 24 reviewed the parties’ papers and all supporting material and found the matter suitable for decision 25 without oral argument. The hearing set for October 18, 2023, was therefore vacated. (Doc. 543.) 26 Having carefully considered the arguments raised by both parties and for the reasons set 27 forth below, the Court will grant GIS’s motion for attorney’s fees, and will deny Defendants’ motion 28 1 for attorney’s fees. 2 II. LEGAL STANDARD 3 “In a diversity case, the law of the state in which the district court sits determines whether a 4 party is entitled to attorney fees, and the procedure for requesting an award of attorney fees is 5 governed by federal law.” Carnes v. Zamani, 488 F.3d 1057, 1059 (9th Cir. 2007). Generally, 6 “[u]nder the American Rule, ‘the prevailing litigant ordinarily is not entitled to collect a reasonable 7 attorneys’ fee from the loser.’” Travelers Casualty & Surety Co. of Am. v. Pacific Gas & Electric 8 Co., 549 U.S. 443, 448 (2007) (quoting Alyeska Pipeline Service Co. v. Wilderness Society, 421 9 U.S. 240, 247 (1975)). However, a statute or enforceable contract allocating attorney’s fees can 10 overcome this general rule. Id. (citing Fleischmann Distilling Corp. v. Maier Brewing Co., 386 U.S. 11 714, 717 (1967)). 12 In their motions for fees, both parties invoke a provision from the nine Warehousing 13 Distributor Agreements (“WDAs”) that provides “should any action be initiated upon this contract, 14 the party prevailing in the above court of law shall be awarded its actual attorney fees, in addition 15 to any other court costs or awards by the court.”2 (See Doc. 532-1 at 6; Doc. 534-1 at 16. See also 16 Docs. 367-1–Doc. 367-3; Doc. 367-5–Doc. 367-7; Doc. 367-9–Doc. 367-11 (WDAs).) California 17 law permits parties to allocate attorney’s fees by contract. See Cal. Code Civ. Proc. § 1021 (“Except 18 as attorney’s fees are specifically provided for by statute, the measure and mode of compensation 19 of attorneys and counselors at law is left to the agreement, express or implied, of the parties . . . .”). 20 California Civil Code § 1717 (“Section 1717”) governs the recovery of attorney’s fees pursuant to 21 an underlying contract. It provides that, 22 In any action on a contract, where the contract specifically provides that attorney’s fees and costs, which are incurred to enforce that contract, shall be awarded either 23 to one of the parties or to the prevailing party, then the party who is determined to 24 be the party prevailing on the contract, whether he or she is the party specified in the contract or not, shall be entitled to reasonable attorney’s fees in addition to other 25 costs. 26 Cal. Civ. Code § 1717(a). 27

28 2 The WDAs contain a choice of law provision stating that the governing law is the “law of the State of California, 1 To recover attorney’s fees pursuant to a contractual provision under Section 1717, the 2 moving party must be able to show that: (1) the underlying contract authorizes such fees, (2) the 3 moving party is the prevailing party, and (3) the attorney’s fees incurred are reasonable. First Nat. 4 Ins. Co. of Am. v. MBA Const., No. 02:04-CV-836-GEB-JFM, 2005 WL 3406336, at *2 (E.D. Cal. 5 Dec.12, 2005); see also Baldain v. Am. Home Mortg. Servicing, Inc., No. CIV. S-09-0931 6 LKK/GGH, 2010 WL 2606666, at *5 (E.D. Cal. June 28, 2010) (stating that “to recover fees 7 incurred in connection with litigation of a claim under a fee shifting contract, a party must show that 8 the claim fell within the scope of the contract and that the party prevailed on the claim”). “The 9 California Supreme Court has emphasized that a trial court is ‘obligated to award attorney fees[ ] 10 whenever the statutory conditions have been satisfied.’” Hopkins v. Wells Fargo Bank, N.A., No. 11 2:13–444 WBS CKD, 2014 WL 2987753, at *1 (E.D. Cal. July 1, 2014) (quoting Hsu v. Abbara, 9 12 Cal. 4th 863, 872 (1995)). The trial court is given “broad authority to determine the amount of a 13 reasonable fee.” PLCM Group v. Drexler, 22 Cal. 4th 1084, 1095 (Cal. 2000). 14 III. DISCUSSION3 15 GIS seeks an award of attorney’s fees in the amount of $4,353,283, asserting that it was the 16 prevailing party on “all main legal claims under the WDAs” and that such fees are reasonable. (See 17 Doc. 532-1. See also Doc. 542-1 ¶ 6.) 18 RPM seeks an award of attorney’s fees in the amount of no less than $493,709.50, claiming 19 that it “obtained an unqualified defense victory” as to all the claims brought against it by GIS. (Doc. 20 534-1 at 8.) Guardian asserts that it is entitled to a minimum of $134,462.94 in attorney’s fees for 21 prevailing on GIS’s claim under the Ohio WDA, and that there is no prevailing party as to the other 22 eight WDAs because the results were “undeniably mixed.” (Id.) Defendants further contend that a 23 “lodestar multiplier” of two should be applied to their fee request. (Id. at 31.) 24 A. Claims That Are “On the WDAs” 25 The first step in determining whether a party is entitled to attorney’s fees under Section 1717 26 is to analyze whether the claims are within the scope of the contract containing the attorney’s fees 27

28 3 The parties are familiar with the underlying facts and procedural history and the Court will not repeat them here, except 1 provision, i.e., whether the claims are “on [the WDAs].” Cal. Civ. Code § 1717(a).4 See Johnston 2 v. Lindauer, No. 2:07-CV-01280, 2010 WL 2850767, at *4 (E.D. Cal. July 20, 2010) ) (“To 3 demonstrate its entitlement to recover attorney[‘]s fees, Value must establish for each claim that it 4 seeks to recover fees for defending against, that the claim fell within the scope of one of the fee- 5 shifting provisions in Plaintiff’s loan agreements or deeds of trust . . . . .”) (citing Baldain, 2010 WL 6 2606666, at *5). 7 “Although Section 1717 limits the court’s ability to enforce an attorneys’ fees clause to ‘any 8 action on the contract,’ California courts liberally construe ‘on a contract’ to extend to any action 9 ‘[a]s long as an action ‘involves’ a contract and one of the parties would be entitled to recover 10 attorney fees under the contract if that party prevails in its lawsuit . . . .’” In re Baroff, 105 F.3d 11 439, 442–43 (9th Cir. 1997) (quoting Milman v. Shukhat, 22 Cal. App. 4th 538, 544–45 (1994)); see 12 Barrientos v. 1801–1825 Morton LLC, 583 F.3d 1197, 1216 (9th Cir.

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G.P.P., Inc. v. Guardian Protection Products, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/gpp-inc-v-guardian-protection-products-inc-caed-2023.