Graciano v. Robinson Ford Sales, Inc.

50 Cal. Rptr. 3d 273, 144 Cal. App. 4th 140, 2006 Daily Journal DAR 14207, 2006 Cal. Daily Op. Serv. 9990, 2006 Cal. App. LEXIS 1659
CourtCalifornia Court of Appeal
DecidedOctober 26, 2006
DocketD047369
StatusPublished
Cited by177 cases

This text of 50 Cal. Rptr. 3d 273 (Graciano v. Robinson Ford Sales, Inc.) 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
Graciano v. Robinson Ford Sales, Inc., 50 Cal. Rptr. 3d 273, 144 Cal. App. 4th 140, 2006 Daily Journal DAR 14207, 2006 Cal. Daily Op. Serv. 9990, 2006 Cal. App. LEXIS 1659 (Cal. Ct. App. 2006).

Opinion

*145 Opinion

O’ROURKE, J.

Plaintiff Alba Graciano appeals from an order awarding her attorney fees following her post-liability-verdict settlement with defendant Robinson Ford Sales, Inc. (Robinson), arising out of claims she made after she purchased an automobile from that dealership. Graciano sued Robinson for damages and injunctive relief alleging 10 causes of action, and proceeded to trial on causes of action for violations of Civil Code section 1632, 1 the Automobile Sales Finance Act (ASFA, § 2981 et seq.), the Consumers Legal Remedies Act (CLRA, § 1750 et seq.), and the unfair competition law (UCL, Bus. & Prof. Code, § 17200 et seq.). After the jury made findings in Graciano’s favor on those causes of action and found Robinson violated the CLRA with malice, fraud and oppression, the parties entered into a settlement and Graciano moved for recovery of approximately $235,000 in attorney fees under the CLRA and ASFA. The trial court awarded Graciano attorney fees, but reduced her request to $27,570 for, among other things, Graciano’s and Robinson’s status as “equally prevailing parties,” its determination of a reasonable hourly rate for Graciano’s counsel, and its application of a 1.3 negative multiplier.

Graciano appeals, contending the trial court erred in its attorney fee ruling by (1) capping the attorney fee award to a percentage of Graciano’s settlement recovery; (2) finding Robinson had equally prevailed in the litigation, thus justifying application of a negative multiplier; (3) using a negative multiplier in the absence of unusual or special circumstances justifying such a reduction; and (4) imposing a single hourly rate for all of Graciano’s attorneys with minimal positive multipliers for her success at trial. Because Graciano’s contentions have merit, we reverse the order and remand the matter for redetermination of a reasonable attorney fee award in accordance with the principles stated in this opinion.

FACTUAL AND PROCEDURAL BACKGROUND

In October 2001, Graciano, a non-English-speaking resident of Calexico, purchased a Ford Focus from Robinson after a salesman offered her a 0 percent annual percentage rate deal and quoted her a sales price of approximately $12,000. Although all negotiations and discussions were conducted in Spanish, the salesman presented Graciano with a purchase contract in English. Graciano signed the contract, reminding the salesman she did not speak English and telling him she trusted he would protect her. The purchase price *146 listed on the sales contract, however, was $17,865, which included over $2,800 in undisclosed “negative equity” from another vehicle Graciano traded in at the time of her purchase. Negative equity refers to a situation when a person owes more on a vehicle than the vehicle is actually worth: the loan value exceeds the value of the vehicle.

In May 2003, Graciano sued Robinson and Ford Motor Company (Ford). As against Robinson, Graciano’s complaint asserted causes of action for violation of section 1632, requiring delivery of an unexecuted Spanish translation of a contract negotiated in Spanish (first cause of action); violations of the ASFA, CLRA, and UCL (second, third and fourth causes of action); declaratory and injunctive relief (fifth cause of action); negligent misrepresentation (sixth cause of action); negligent repair (eighth cause of action); rescission (ninth cause of action); and entitlement to punitive damages (10th cause of action). As against both Ford and Robinson, Graciano alleged a violation of section 1790 et seq., the Song-Beverly Consumer Warranty Act (Song-Beverly) (seventh cause of action). Graciano settled her Song-Beverly claim against Ford in November 2003.

In March 2004, after unsuccessfully seeking leave to file a class action complaint, Graciano filed a first amended complaint in which she reasserted the same causes of action but added a claim for damages under the CLRA. 2

The matter was initially set for trial on May 26, 2004. Thereafter the trial date was rescheduled twice. On November 8, 2004, the court set trial for April 20, 2005. On the day of trial, Graciano filed a request for dismissal without prejudice of her fifth, sixth, ninth and tenth causes of action. 3 The matter proceeded to trial on Graciano’s causes of action under section 1632, the ASFA, the CLRA and the UCL. The court was to determine Graciano’s claims under section 1632 and the UCL with the assistance of advisory findings from the jury.

*147 The jury returned verdicts in Graciano’s favor on her claims under the ASEA and CLRA, and also found that Robinson violated the CLRA by engaging in conduct with malice, oppression and fraud for purposes of punitive damages. It awarded Graciano $11,191.40 for Robinson’s ASEA and CLRA violations. The jury also rendered numerous advisory findings for purposes of Graciano’s claims under section 1632 and the UCL, including that Robinson had failed to provide a Spanish language translation of the purchase contract before Graciano signed the English language contract, and that Robinson’s conduct in that regard was “unlawful.”

On the day the jury was to begin deliberating the issue of the amount of punitive damages, the parties reached a settlement in which Robinson agreed to pay Graciano $45,000 in exchange for Graciano’s dismissal with prejudice of all claims. The settlement agreement provided that Graciano would seek recovery of her attorney fees and costs by motion.

Asking the court to deem her the prevailing party, Graciano thereafter moved for costs and $249,365.36 in attorney fees expended in the litigation (as well as an additional amount for fees incurred on the attorney fee motion) under the attorney fee provisions of the ASEA and CLRA. Specifically, Graciano argued she was entitled to a lodestar of $109,468.50 multiplied by 2.0 for the contingent nature of the representation, the delay in payment to counsel, the results achieved, and complexity of the issues. Robinson opposed the motion, arguing (1) the attorney fee award was discretionary given the amount of the jury award; (2) Robinson was the prevailing party on all but two of Graciano’s causes of action; and (3) the requested fees and costs were not reasonable. Robinson’s counsel objected to an attached declaration of Graciano’s counsel, Hallen Rosner, as hearsay and also challenged counsel’s fees expended in traveling to San Francisco to research issues relating to negative equity, and to the superior court in El Centro for hearings.

After obtaining supplemental briefing on various issues, including the applicable hourly rate, the court issued a written order awarding Graciano $27,570 in attorney fees.

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50 Cal. Rptr. 3d 273, 144 Cal. App. 4th 140, 2006 Daily Journal DAR 14207, 2006 Cal. Daily Op. Serv. 9990, 2006 Cal. App. LEXIS 1659, Counsel Stack Legal Research, https://law.counselstack.com/opinion/graciano-v-robinson-ford-sales-inc-calctapp-2006.