Heffington v. FCA US LLC

District Court, E.D. California·Decided August 25, 2020·No. 2:17-cv-00317·Unknown

Opinion

ROBERT HEFFINGTON, No. 2:17-cv-00317-DAD-JLT Plaintiff, v. ORDER GRANTING PLAINTIFF’S MOTION FOR ATTORNEYS’ FEES AND MOTION FCA US LLC, FOR COSTS AND EXPENSES, IN PART Defendant. (Doc. Nos. 99, 100) This matter is before the court on the motion for attorneys’ fees and motion for costs and expenses filed by plaintiff Robert Heffington on May 19, 2020. (Doc. Nos. 99, 100.) Pursuant to General Order No. 617 addressing the public health emergency posed by the coronavirus pandemic, on May 21, 2020, the court took this matter under submission to be decided on the papers. (Doc. No. 104.) For the reasons explained below, the court will grant plaintiff’s motions, in part. On January 10, 2017, plaintiff commenced this action against defendant FCA US LLC (“FCA”) by filing suit in the Sacramento County Superior Court. (Doc. No. 1-1 at 2.) In his complaint, plaintiff alleged that a new 2011 Jeep Wrangler that he purchased on March 24, 2011 was delivered to him with serious defects and nonconformities to warranty. (Doc. No. 1-1 at 3, 24.) Plaintiff asserted claims for breaches of express and implied warranties in violation of the Song-Beverly Act, California Civil Code § 1790 et seq., and a claim for fraudulent inducement by concealment. (Id. at 24–26.) On February 14, 2017, defendant removed this action to this federal court. (Doc. No. 1.) Thereafter, the court set a trial date of February 12, 2019. (Doc. No. 14.) Following several continuances due to the court’s unavailability, the trial date was ultimately continued to February 19, 2020. (Doc. No. 82.) On February 4, 2020, the parties notified the court that they had reached a settlement of this action. (Doc. No. 89.) Following plaintiff’s rejection of FCA’s two prior offers of judgment under Federal Rule of Civil Procedure 68, FCA had served plaintiff with a third Rule 68 offer in the amount of $85,000.00, which plaintiff accepted. (Doc. No. 99-1 at 6, 12). The accepted offer provided that in addition to $85,000.00, FCA would pay “a sum equal to the aggregate amount of costs and expenses, including attorney’s fees based on actual time reasonably incurred in connection with the commencement and prosecution of this action pursuant to Civil Code Section 1794(d), to be determined by the court if the parties cannot agree.” (Doc. No. 99-2 at 34.) On May 19, 2020, the parties filed a stipulation that FCA shall pay $5,000.00 to plaintiff’s trial counsel Hackler, Daghigian, Martino, & Novak, P.C. (“HDMN”)1 “in full satisfaction of HDMN’s claims for attorneys’ fees in connection with this action.” (Doc. No. 97 at 2.) Accordingly, the court will give effect to the parties’ stipulation and award $5,000 in attorneys’ fees to HDMN. Apparently unable to agree on the appropriate amount of attorneys’ fees, costs, and expenses to be paid to his lead counsel Knight Law Group (“Knight Law”), on May 19, 2020, plaintiff filed the pending motion for attorneys’ fees and motion for costs and expenses. (Doc. Nos. 99, 100.) On June 2, 2020, FCA filed its oppositions to the pending motions. (Doc. Nos. 106, 107). On June 9, 2020, plaintiff filed his replies thereto. (Doc. Nos. 108, 109.) Under California’s Song-Beverly Act, “if [a] buyer prevails in an action . . ., the buyer shall be allowed by the court to recover as part of the judgment a sum equal to the aggregate 1 On October 24, 2018, the HDMN law firm associated into this matter as trial counsel in anticipation of the matter proceeding to trial. (Doc. Nos. 40; 99-1 at 7 n.1). 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 plain wording of the statute requires the trial court to base the fee award upon actual time expended on the case, as long as such fees are reasonably incurred—both from the standpoint of time spent and the amount charged.” Robertson v. Fleetwood Travel Trailers of Cal., Inc., 144 Cal. App. 4th 785, 817 (2006). It 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. These circumstances may include, but are not limited to, factors such as the complexity of the case and procedural demands, the skill exhibited and the results achieved. If the time expended or the monetary charge being made for the time expended are not reasonable under all the circumstances, then the court must take this into account and award attorney fees in a lesser amount. 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. Nightingale v. Hyundai Motor Am., 31 Cal. App. 4th 99, 104 (1994) (citation and internal quotation marks omitted); see also Goglin v. BMW of N. Am., LLC, 4 Cal. App. 5th 462, 470 (2016). Under a contingent fee arrangement, “a prevailing buyer represented by counsel is entitled to an award of reasonable attorney fees for time reasonably expended by his or her attorney.” Nightingale, 31 Cal. App. 4th at 105 n.6. “The determination of what constitutes a reasonable fee generally begins with the ‘lodestar,’ i.e., the number of hours reasonably expended multiplied by the reasonable hourly rate.” Graciano v. Robinson Ford Sales, Inc., 144 Cal. App. 4th 140, 154 (2006) (quoting PLCM Group, Inc. v. Drexler, 22 Cal. 4th 1084, 1095 (2000)). The court will apply the lodestar method to the Song-Beverly Act because “the statutory language of section 1794, subdivision (d), is reasonably compatible with a lodestar adjustment method of calculating attorney fees, including use of fee multipliers.” Robertson, 144 Cal. App. 4th at 818; see also Warren v. Kia Motors Am., Inc., 30 Cal. App. 5th 24, 35 (2018). Moreover, because “[the California] Supreme Court has held that the lodestar adjustment method is the prevailing rule for statutory attorney fee awards to be applied in the absence of clear legislative intent to the contrary, [the lodestar adjustment method] . . . is applicable to attorney fee awards under section 1794, subdivision (d).” Robertson, 144 Cal. App. 4th at 818–19 (citing Ketchum v. Moses, 24 Cal. 4th 1122, 1135–36 (2001)). As the California Supreme Court has explained: [T]he lodestar is the basic fee for comparable legal services in the community; it may be adjusted by the court based on factors including, as relevant herein, (1) the novelty and difficulty of the questions involved, (2) the skill displayed in presenting them, (3) the extent to which the nature of the litigation precluded other employment by the attorneys, (4) the contingent nature of the fee award. The purpose of such adjustment is to fix a fee at the fair market value for the particular action. In effect, the court determines, retrospectively, whether the litigation involved a contingent risk or required extraordinary legal skill justifying augmentation of the unadorned lodestar in order to approximate the fair market rate for such services. Ketchum, 24 Cal. 4th at 1132 (internal citation omitted). In addition, “[a] contingent fee contract, since it involves a gamble on the result, may properly provide for a larger compensation than would otherwise be reasonable.” Id. “Decisions by other courts regarding the reasonableness of the rate sought may also provide evidence to support a finding of reasonableness.” Hellenberg v. Ford Motor Co., No. 18-cv-2202-JM-KSC, 2020 WL 1820126, at *1 (S.D. Cal. A

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