JHB Trucking, Inc. v. MST Insurance Services, Inc.

CourtDistrict Court, E.D. California
DecidedJanuary 29, 2026
Docket2:21-cv-01285
StatusUnknown

This text of JHB Trucking, Inc. v. MST Insurance Services, Inc. (JHB Trucking, Inc. v. MST Insurance Services, 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
JHB Trucking, Inc. v. MST Insurance Services, Inc., (E.D. Cal. 2026).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 JHB TRUCKING, INC., No. 2:21-cv-01285-DJC-JDP 12 Plaintiff, 13 v. ORDER 14 MST INSURANCE SERVICES, INC., 15 Defendant. 16 17 18 In May 2025, Plaintiff Valley National Bank obtained a judgment against 19 Defendant JHB Trucking, Inc., for breach of contract of an underlying finance 20 agreement. Plaintiff now moves for attorney’s fees and costs pursuant to Federal Rule 21 of Civil Procedure 54(d)(2). (Mot. (ECF No. 65).) As explained below, the Motion is 22 GRANTED in part and DENIED in part. 23 //// 24 //// 25 //// 26 //// 27 //// 28 //// 1 BACKGROUND 2 Plaintiff Valley National Bank (“Plaintiff”), a provider of insurance premium 3 financing, initiated this action against Defendant JHB Trucking, Inc. (“Defendant”) on 4 July 21, 2021, alleging breach of contract and breach of implied-in-fact contract. (See 5 generally Compl. (ECF No. 1).) According to the Complaint, the parties signed a 6 finance agreement in which Plaintiff agreed to provide premium financing in 7 exchange for Defendant’s timely payments on the loan. (See generally id.) 8 Subsequently, Plaintiff moved for summary judgment, which the Court granted as to 9 the breach of contract claim. (MSJ Order (ECF No. 50).) Pursuant to Plaintiff’s request, 10 the Court dismissed the remaining implied-in-fact contract claim. (Id. at 8.) On 11 May 23, 2025, judgment was entered against Defendant in the amount of 12 $317,553.69. (Judgment (ECF No. 62).) 13 Plaintiff now moves for attorney’s fees and costs pursuant to Federal Rule of 14 Civil Procedure 54(d)(2). (Mot. (ECF No. 65.) Defendant filed an Opposition and 15 Plaintiff filed a Reply. (Opp’n (ECF No. 75); Reply (ECF No. 76).) On December 1, 16 2025, the Court granted Defendant leave to file an optional Sur-Reply. (ECF No. 77.) 17 Defendant filed a Sur-Reply on December 8, 2025. (Sur-Reply (ECF No. 78).) Briefing 18 is now complete. The Court took the matter under submission pursuant to Local Rule 19 230(g). (ECF No. 77.) 20 LEGAL STANDARD 21 Federal district courts sitting in diversity apply the substantive law of the state in 22 which the court is located. See First Intercontinental Bank v. Ahn, 798 F.3d 1149, 1153 23 (9th Cir. 2015). Here, California substantive law governs as this matter involves 24 contract law. 25 In California, “[u]nder the American rule, each party to a lawsuit ordinarily pays 26 its own attorney fees.” Mountain Air Enters. LLC v. Sundowner Towers, LLC, 3 Cal. 5th 27 744, 751 (2017). Parties can contract out of this general rule and agree that if litigation 28 ensues, the prevailing party will be awarded attorneys’ fees. Id. (citing Cal. Civ. Proc. 1 Code § 1021). Thus, when presented with a motion for attorneys’ fees, the court must 2 determine whether the parties made such an agreement. R.W.L. Enters. v. Oldcastle, 3 Inc., 17 Cal. App. 5th 1019, 1025 (2017) (citing Mountain Air, 3 Cal. 5th at 752). 4 If the court finds such an agreement, it must determine the appropriate amount 5 of attorneys’ fees to award the prevailing party. In performing this task, California 6 courts use the lodestar approach: multiplying the number of hours reasonably 7 expended by a reasonable hourly rate. Ketchum v. Moses, 24 Cal. 4th 1122, 1132 8 (2001). To determine whether the number of hours is reasonable, the court considers 9 a number of factors, including “the nature of the litigation, its difficulty, the amount 10 involved, the skill required in its handling, the skill employed, the attention given, the 11 success or failure, and other circumstances in the case.” PLCM Grp. v. Drexler, 22 Cal. 12 4th 1084, 1096 (2000) (citations omitted). A reasonable hourly rate is “that prevailing 13 in the community for similar work.” Id. at 1095. Generally, the relevant community is 14 the one “in which the district court sits.” Schwarz v. Sec’y of Health & Human Servs., 73 15 F.3d 895, 906 (9th Cir. 1995) (citation omitted). The court may also adjust the lodestar 16 rate upward or downward to account for the unique circumstances of the case, such 17 as novel and difficult questions or counsel’s skill. See Ketchum, 24 Cal. 4th at 1132. 18 DISCUSSION 19 Plaintiff seeks $49,086.50 in attorney’s fees and $1,409.80 in costs. (Mot. at 3.) 20 Plaintiff also seeks $1,494.00 in fees for three hours spent on preparing the instant 21 Motion for a total of $51,990.30 in fees and costs. (Id. at 5.) 22 In connection with the Motion, Plaintiff provides the declaration of its counsel 23 (Norris Decl. (ECF No. 65-1)), a copy of the premium financing agreement (PFA (ECF 24 No. 65-1)), a copy of its records reflecting attorney time billed with all narratives 25 redacted, and an unredacted copy of the costs incurred (Costs (ECF No. 65-1)). 26 Defendant provides the declaration of its counsel (Barella Decl. (ECF No. 75-2) in 27 support of its Opposition. Defendant contends that the Motion should be denied in 28 its entirety or reduced because Plaintiff provided billing records with the narratives 1 redacted. (Opp’n at 1.) Defendant also contends that Plaintiff’s litigation tactics 2 unreasonably prolonged the litigation. (Opp’n at 5.) Last, Defendant contends that 3 some of Plaintiff’s requested costs should be stricken because they exceed those 4 permitted by statute. (Id. at 6.) With its Reply, Plaintiff provides the declaration of its 5 counsel (Norris Reply Decl. (ECF No. 76-1).) and a mostly unredacted copy of its 6 records reflecting attorney time billed for the matter (Invoice (ECF No. 76-1)). Turning 7 to the Sur-Reply, Defendant provides the declaration of counsel (Barella Sur-Reply 8 Decl. (ECF No. 78)) and a notated copy of Plaintiff’s billing records (Ex. A (ECF 9 No. 78)). 10 I. Attorneys’ Fees Provision 11 As described above, the Court must determine whether the parties’ contract 12 included the attorneys’ fees provision, and if so, whether the requested fee is 13 reasonable. Under California Code of Civil Procedure section 1033.5(a)(10), 14 attorneys’ fees, when authorized by contract or statute, are allowable as costs. Active 15 Props., LLC v. Cabrera, 6 Cal. App. 5th Supp. 6, 14 (2016) (citation omitted). As 16 explained below, there is no meaningful dispute that Plaintiff’s attorneys’ fees are 17 impliedly authorized by contract, pursuant to paragraph 8 of the premium financing 18 agreement. That provision provides in relevant part:

19 8. Default. Default occurs when: (i) Insured does not pay an installment when it is due . . . 20 . . . . 21 In the event of default Agile Premium Finance can demand 22 agreement be paid in full regardless of whether unearned premium has been refunded. Agile Premium Finance may 23 take any action, not prohibited by law, to collect payment of any unpaid amounts due. Insured agrees to pay all 24 applicable cancellation charges, interest charges, collection costs and expenses incurred by Agile Premium 25 Finance as a result of or in connection with enforcing its rights under this Agreement. 26 27 28 1 (PFA ¶ 8.)1 As Plaintiff has secured a judgment against Defendant in connection with 2 Defendant’s breach of contract of the premium financing agreement, it is the 3 prevailing party within the meaning of California Civil Code section 1717, which 4 provides, in part: “In any action on a contract, where the contract specifically provides 5 that attorney’s fees and costs, which are incurred to enforce that contract, shall be 6 awarded either to one of the parties or to the prevailing party, then the party who is 7 determined to be the party prevailing on the contract, whether he or she is the party 8 specified in the contract or not, shall be entitled to reasonable attorney’s fees in 9 addition to other costs.” Cal. Civ. Code ¶ 1717(a). The question is whether the PFA 10 specifically provides for attorneys’ fees.

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JHB Trucking, Inc. v. MST Insurance Services, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/jhb-trucking-inc-v-mst-insurance-services-inc-caed-2026.