Gramajo v. Joe's Pizza on Sunset, Inc.

CourtCalifornia Court of Appeal
DecidedMarch 25, 2024
DocketB322697
StatusPublished

This text of Gramajo v. Joe's Pizza on Sunset, Inc. (Gramajo v. Joe's Pizza on Sunset, 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
Gramajo v. Joe's Pizza on Sunset, Inc., (Cal. Ct. App. 2024).

Opinion

Filed 3/25/24 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION EIGHT

ELINTON GRAMAJO, B322697, B323024

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. BC694779) v.

JOE’S PIZZA ON SUNSET, INC., et al.,

Defendants and Respondents.

APPEALS from orders of the Superior Court of Los Angeles County. Jon R. Takasugi, Judge. Reversed and remanded. Law Office of Alfredo Nava Jr. and Alfredo Nava for Plaintiff and Appellant. The Linde Law Firm and Douglas A. Linde for Defendants and Respondents. _________________________________ INTRODUCTION Plaintiff and Appellant Elinton Gramajo sued Defendants and Respondents Joe’s Pizza on Sunset, Inc.; Joe’s Pizza on Sunset, LLC; and Giuseppe Vitale (together, Joe’s Pizza) for Labor Code violations in connection with Gramajo’s work as a pizza delivery driver. Gramajo recovered $7,659.93 after a jury trial. Gramajo requested attorney fees in the amount of $296,920 and costs in the amount of $26,932.84 under Labor Code section 1194, subdivision (a), which entitles prevailing employees to their reasonable litigation costs, including attorney fees. The trial court denied Gramajo’s requests for fees and costs in their entirety, finding Gramajo’s counsel severely over-litigated the case, and the requested fees and costs were grossly disproportional to Gramajo’s limited trial success. The trial court relied on Code of Civil Procedure section 1033, subdivision (a), which gives trial courts discretion to deny prevailing plaintiffs their litigation costs when plaintiffs file their case as an unlimited civil proceeding but only recover an amount available in a limited civil case. On appeal, Gramajo argues the trial court should have awarded him reasonable litigation costs under Labor Code section 1194, subdivision (a), and abused its discretion by applying Code of Civil Procedure section 1033, subdivision (a), to deny those costs in their entirety. We agree with Gramajo. We hold employees who prevail in actions to recover unpaid minimum and overtime wages are entitled to their reasonable litigation costs under Labor Code section 1194, subdivision (a), irrespective of the amount recovered. We express no opinion on the reasonableness of Gramajo’s requests for litigation costs. Accordingly, we reverse

2 and remand the matter for the trial court to determine a reasonable fee and cost award. FACTUAL AND PROCEDURAL BACKGROUND Gramajo worked as a delivery driver for Joe’s Pizza from February 2014 to June 2015. In February 2018, Gramajo sued Joe’s Pizza for failure to pay minimum and overtime wages (Lab. Code, §§ 510, 558, 1194), failure to provide rest and meal periods (Lab. Code, §§ 512, 226.7), failure to pay wages due at time of termination (Lab. Code, §§ 201, 202, 203), failure to reimburse for business expenses (Lab. Code, § 2802), and unfair business practices (Bus. & Prof. Code, § 17200). Gramajo also sought declaratory and injunctive relief. After nearly four years of litigation and extensive discovery, the matter was set for trial in October 2021. Gramajo sought $26,159.33 in unpaid minimum and overtime wages, missed meal and rest breaks, waiting time penalties, and unreimbursed expenses. After a seven-day trial, the jury found in favor of Gramajo on his minimum wage and overtime causes of action. The jury awarded Gramajo $2.17 in unpaid minimum wages and $3,340 in unpaid overtime wages. In total, Gramajo recovered $7,659.63, consisting of the unpaid minimum and overtime wages; $2,115.59 in statutory interest; $2,100 in waiting time penalties calculated at the daily wage rate of $70 per day for thirty days per Labor Code section 203; $2.17 in liquidated damages; and $100 in statutory penalties. Gramajo moved for attorney fees totaling $296,920 for 228.4 hours billed at $650 per hour and applying a multiplier of two. Gramajo also requested $26,932.84 in costs. Joe’s Pizza

3 opposed the fee request and moved to tax Gramajo’s costs in their entirety. The trial court denied Gramajo’s fee request and granted Joe’s Pizza’s motion to tax costs, ultimately awarding Gramajo nothing. The trial court found Gramajo acted in bad faith by artificially inflating his damages figure and including equity claims he never intended to pursue to justify filing the case as an unlimited civil proceeding. The trial court noted Gramajo sought $26,159.33 at trial, just over the jurisdictional amount, which included $10,822.16 in unreimbursed expenses. In trial, however, Gramajo never introduced any evidence to support his expense claim. Similarly, Gramajo never pursued injunctive or declaratory relief at trial despite requesting that relief in his complaint. The trial court also found the case was severely over litigated, noting Gramajo had propounded 15 sets of written discovery requests and noticed 14 depositions despite only admitting 12 exhibits at trial. In denying Gramajo’s request for litigation costs, the trial court stated: “Plaintiff’s case clearly should have been brought in limited jurisdiction, was extremely straightforward, and demanded very little skill. Despite this, Plaintiff’s counsel repeatedly engaged in conduct which evinced a prioritization of gamesmanship over professionalism and which bore no proportional relationship to the work actually required to litigate the underlying claims. . . . [¶] . . . In light of the fact that this case should never have been filed in this jurisdiction, the gross disproportionality in the hours billed-for and the success obtained, and Plaintiff’s counsel bad faith tactics, the [c]ourt finds the fee request to be so unreasonably inflated as to justify zero attorney fees recovered.” The trial court denied Gramajo’s costs on the same grounds.

4 Gramajo separately appealed the trial court’s orders denying his fees and granting Joe’s Pizza’s motion to tax costs. We consolidated the appeals for purposes of opinion and oral argument. DISCUSSION On appeal, Gramajo argues he is entitled to his reasonable litigation costs under Labor Code section 1194, subdivision (a), and that the trial court abused its discretion by relying on Code of Civil Procedure section 1033, subdivision (a), to deny his litigation costs in their entirety. Without expressing any opinion on the reasonableness of Gramajo’s requests or whether the case should have been filed in limited jurisdiction, we hold Gramajo was entitled to an award of his reasonable litigation costs under Labor Code section 1194, subdivision (a), and the trial court erred when it relied on Code of Civil Procedure section 1033, subdivision (a), to deny those costs in their entirety. I. Standard of review and rules of statutory interpretation Generally, we review a trial court’s award of fees and costs for abuse of discretion. (Frei v. Davey (2004) 124 Cal.App.4th 1506, 1512.) However, when the determination of whether a party was entitled to its attorney fees and costs is a matter of statutory construction and presents a question of law, our review is de novo. (Carver v. Chevron U.S.A., Inc. (2002) 97 Cal.App.4th 132, 142.) “Where, as here, we are called upon to interpret two seemingly inconsistent statutes to determine which applies under a particular set of facts, our goal is to harmonize the law [citation] and avoid an interpretation that requires one statute to

5 be ignored.” (Chatsky & Associates v. Superior Court (2004) 117 Cal.App.4th 873, 876.) “Moreover, in looking at the relationship between two statutes, ‘[l]iteral construction should not prevail if it is contrary to the legislative intent apparent in the statute. The intent prevails over the letter, and the letter will, if possible, be so read as to conform to the spirit of the act. [Citations.] An interpretation that renders related provisions nugatory must be avoided. [Citation.] . . .

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Gramajo v. Joe's Pizza on Sunset, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/gramajo-v-joes-pizza-on-sunset-inc-calctapp-2024.