Heffington v. FCA US LLC

CourtDistrict Court, E.D. California
DecidedAugust 25, 2020
Docket2:17-cv-00317
StatusUnknown

This text of Heffington v. FCA US LLC (Heffington v. FCA US LLC) 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
Heffington v. FCA US LLC, (E.D. Cal. 2020).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 ROBERT HEFFINGTON, No. 2:17-cv-00317-DAD-JLT 12 Plaintiff, 13 v. ORDER GRANTING PLAINTIFF’S MOTION FOR ATTORNEYS’ FEES AND MOTION 14 FCA US LLC, FOR COSTS AND EXPENSES, IN PART 15 Defendant. (Doc. Nos. 99, 100) 16 17 This matter is before the court on the motion for attorneys’ fees and motion for costs and 18 expenses filed by plaintiff Robert Heffington on May 19, 2020. (Doc. Nos. 99, 100.) Pursuant to 19 General Order No. 617 addressing the public health emergency posed by the coronavirus 20 pandemic, on May 21, 2020, the court took this matter under submission to be decided on the 21 papers. (Doc. No. 104.) For the reasons explained below, the court will grant plaintiff’s motions, 22 in part. 23 BACKGROUND 24 On January 10, 2017, plaintiff commenced this action against defendant FCA US LLC 25 (“FCA”) by filing suit in the Sacramento County Superior Court. (Doc. No. 1-1 at 2.) In his 26 complaint, plaintiff alleged that a new 2011 Jeep Wrangler that he purchased on March 24, 2011 27 was delivered to him with serious defects and nonconformities to warranty. (Doc. No. 1-1 at 3, 28 24.) Plaintiff asserted claims for breaches of express and implied warranties in violation of the 1 Song-Beverly Act, California Civil Code § 1790 et seq., and a claim for fraudulent inducement by 2 concealment. (Id. at 24–26.) On February 14, 2017, defendant removed this action to this federal 3 court. (Doc. No. 1.) Thereafter, the court set a trial date of February 12, 2019. (Doc. No. 14.) 4 Following several continuances due to the court’s unavailability, the trial date was ultimately 5 continued to February 19, 2020. (Doc. No. 82.) 6 On February 4, 2020, the parties notified the court that they had reached a settlement of 7 this action. (Doc. No. 89.) Following plaintiff’s rejection of FCA’s two prior offers of judgment 8 under Federal Rule of Civil Procedure 68, FCA had served plaintiff with a third Rule 68 offer in 9 the amount of $85,000.00, which plaintiff accepted. (Doc. No. 99-1 at 6, 12). The accepted offer 10 provided that in addition to $85,000.00, FCA would pay “a sum equal to the aggregate amount of 11 costs and expenses, including attorney’s fees based on actual time reasonably incurred in 12 connection with the commencement and prosecution of this action pursuant to Civil Code Section 13 1794(d), to be determined by the court if the parties cannot agree.” (Doc. No. 99-2 at 34.) 14 On May 19, 2020, the parties filed a stipulation that FCA shall pay $5,000.00 to plaintiff’s 15 trial counsel Hackler, Daghigian, Martino, & Novak, P.C. (“HDMN”)1 “in full satisfaction of 16 HDMN’s claims for attorneys’ fees in connection with this action.” (Doc. No. 97 at 2.) 17 Accordingly, the court will give effect to the parties’ stipulation and award $5,000 in attorneys’ 18 fees to HDMN. 19 Apparently unable to agree on the appropriate amount of attorneys’ fees, costs, and 20 expenses to be paid to his lead counsel Knight Law Group (“Knight Law”), on May 19, 2020, 21 plaintiff filed the pending motion for attorneys’ fees and motion for costs and expenses. (Doc. 22 Nos. 99, 100.) On June 2, 2020, FCA filed its oppositions to the pending motions. (Doc. Nos. 23 106, 107). On June 9, 2020, plaintiff filed his replies thereto. (Doc. Nos. 108, 109.) 24 LEGAL STANDARD 25 Under California’s Song-Beverly Act, “if [a] buyer prevails in an action . . ., the buyer 26 shall be allowed by the court to recover as part of the judgment a sum equal to the aggregate 27 1 On October 24, 2018, the HDMN law firm associated into this matter as trial counsel in 28 anticipation of the matter proceeding to trial. (Doc. Nos. 40; 99-1 at 7 n.1). 1 amount of costs and expenses, including attorney’s fees based on actual time expended, 2 determined by the court to have been reasonably incurred by the buyer in connection with the 3 commencement and prosecution of such action.” Cal. Civ. Code. § 1794(d). “The plain wording 4 of the statute requires the trial court to base the fee award upon actual time expended on the case, 5 as long as such fees are reasonably incurred—both from the standpoint of time spent and the 6 amount charged.” Robertson v. Fleetwood Travel Trailers of Cal., Inc., 144 Cal. App. 4th 785, 7 817 (2006). 8 It requires the trial court to make an initial determination of the actual time expended; and then to ascertain whether under all the 9 circumstances of the case the amount of actual time expended and the monetary charge being made for the time expended are 10 reasonable. These circumstances may include, but are not limited to, factors such as the complexity of the case and procedural 11 demands, the skill exhibited and the results achieved. If the time expended or the monetary charge being made for the time expended 12 are not reasonable under all the circumstances, then the court must take this into account and award attorney fees in a lesser amount. A 13 prevailing buyer has the burden of showing that the fees incurred were allowable, were reasonably necessary to the conduct of the 14 litigation, and were reasonable in amount. 15 Nightingale v. Hyundai Motor Am., 31 Cal. App. 4th 99, 104 (1994) (citation and internal 16 quotation marks omitted); see also Goglin v. BMW of N. Am., LLC, 4 Cal. App. 5th 462, 470 17 (2016). Under a contingent fee arrangement, “a prevailing buyer represented by counsel is 18 entitled to an award of reasonable attorney fees for time reasonably expended by his or her 19 attorney.” Nightingale, 31 Cal. App. 4th at 105 n.6. 20 “The determination of what constitutes a reasonable fee generally begins with the 21 ‘lodestar,’ i.e., the number of hours reasonably expended multiplied by the reasonable hourly 22 rate.” Graciano v. Robinson Ford Sales, Inc., 144 Cal. App. 4th 140, 154 (2006) (quoting PLCM 23 Group, Inc. v. Drexler, 22 Cal. 4th 1084, 1095 (2000)). The court will apply the lodestar method 24 to the Song-Beverly Act because “the statutory language of section 1794, subdivision (d), is 25 reasonably compatible with a lodestar adjustment method of calculating attorney fees, including 26 use of fee multipliers.” Robertson, 144 Cal. App. 4th at 818; see also Warren v. Kia Motors Am., 27 Inc., 30 Cal. App. 5th 24, 35 (2018). Moreover, because “[the California] Supreme Court has 28 held that the lodestar adjustment method is the prevailing rule for statutory attorney fee awards to 1 be applied in the absence of clear legislative intent to the contrary, [the lodestar adjustment 2 method] . . . is applicable to attorney fee awards under section 1794, subdivision (d).” Robertson, 3 144 Cal. App. 4th at 818–19 (citing Ketchum v. Moses, 24 Cal. 4th 1122, 1135–36 (2001)). As 4 the California Supreme Court has explained: 5 [T]he lodestar is the basic fee for comparable legal services in the 6 community; it may be adjusted by the court based on factors including, as relevant herein, (1) the novelty and difficulty of the 7 questions involved, (2) the skill displayed in presenting them, (3) the extent to which the nature of the litigation precluded other 8 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 9 market value for the particular action. In effect, the court determines, retrospectively, whether the litigation involved a 10 contingent risk or required extraordinary legal skill justifying augmentation of the unadorned lodestar in order to approximate the 11 fair market rate for such services. 12 Ketchum, 24 Cal. 4th at 1132 (internal citation omitted).

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Bluebook (online)
Heffington v. FCA US LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heffington-v-fca-us-llc-caed-2020.