Lesevic v. Spectraforce

District Court, N.D. California·Decided April 23, 2021·No. 5:19-cv-03126·Unknown

Opinion

UNITED STATES DISTRICT COURT

PAUL LESEVIC, an individual, on behalf Case No. 19-CV-03126-LHK of himself and on behalf of all persons similarly situated, ORDER GRANTING IN PART AND DENYING IN PART MOTION FOR Plaintiff, ATTORNEYS’ FEES v. Re: Dkt. No. 77

Defendant.

Before the Court is Class Counsel’s motion for attorneys’ fees, ECF No. 77 (“Mot.”).1 The Court held a hearing on the motion on April 8, 2021. ECF No. 83. Having considered all the briefing, the oral arguments, the relevant law, and the record in this case, the Court hereby 1 Class Counsel’s motion for attorneys’ fees contains a notice of motion that is separately paginated from the memorandum of points and authorities in support of the motion. Civil Local Rule 7-2(b) provides that the notice of motion and the points and authorities in support of the motion must be contained in one document with a combined limit of 25 pages. See Civ. Loc. R. 7- 2(b). 1 Case No. 19-CV-03126-LHK GRANTS IN PART and DENIES IN PART Class Counsel’s motion for attorneys’ fees. Specifically, the Court orders that fees in the amount of $168,000 and expenses in the amount of $11,445.78 be paid to Class Counsel, and that a service award of $5,000 be paid to Class Representative Paul Lesevic. I. LEGAL STANDARD “Where a settlement produces a common fund for the benefit of the entire class, courts have discretion to employ either the lodestar method or the percentage-of-recovery method.” In re Bluetooth Headset Prods. Liab. Litig., 654 F.3d 935, 942 (9th Cir. 2011). To guard against an unreasonable result, the Ninth Circuit encourages district courts to “cross-check[] their calculations against a second method.” Id. at 944. Accordingly, the Court calculates the attorneys’ fees using the percentage-of-recovery method and then cross-checks its calculations against the lodestar method. See id. at 944–45. “Because in common fund cases the relationship between plaintiffs and their attorneys turns adversarial at the fee-setting stage, courts have stressed that when awarding attorneys’ fees from a common fund, the district court must assume the role of fiduciary for the class plaintiffs.” In re Wa. Pub. Power Supply System Sec. Litigation (WPPSS), 19 F.3d 1291, 1302 (9th Cir. 1994). Thus, “fee applications must be closely scrutinized.” Vizcaino v. Microsoft Corp., 290 F.3d 1043, 1052 (9th Cir. 2002). “Rubber-stamp approval, even in the absence of objections, is improper.” Id. Where the percentage-of-recovery method is used, it is well-established that 25% of a common fund is a presumptively reasonable amount of attorneys’ fees. In re Bluetooth, 654 F.3d at 942 (“[C]ourts typically calculate 25% of the fund as the ‘benchmark’ for a reasonable fee award . . . .”). However, the Ninth Circuit has emphasized that “[t]he 25% benchmark rate, although a starting point for analysis, may be inappropriate in some cases.” Vizcaino, 290 F.3d at 1048. “Selection of the benchmark or any other rate must be supported by findings that take into account all the circumstances of the case.” Id.; see also WPPSS, 19 F.3d at 1298 (“[C]ourts cannot 2 Case No. 19-CV-03126-LHK rationally apply any particular percentage . . . in the abstract, without reference to all the circumstances of the case.”). II. DISCUSSION Class Counsel move for an attorneys’ fees award substantially greater than the 25% benchmark rate. Specifically, Class Counsel seek 33% of the settlement fund ($200,000 of $600,000). In addition, Class Counsel seek reimbursement of $11,445.78 in expenses and a $10,000 service award to Class Representative Paul Lesevic. The Court ultimately concludes that an award between the 25% benchmark and Class Counsel’s 33% request is appropriate. Specifically, the Court awards 28% of the settlement fund, which yields fees of $168,000. As for expenses, the Court grants Class Counsel’s requested reimbursement of $11,445.78. Lastly, the Court approves a reduced service award of $5,000. Below, the Court analyzes the attorneys’ fees award, expenses, and service award in turn. A. The Court awards 28% of the settlement fund in attorneys’ fees. The Court awards 28% of the settlement fund in attorneys’ fees—a moderate increase to the 25% benchmark rate. The Court reaches this award based on consideration of the following factors: (1) the skills displayed by Class Counsel; (2) the risks taken by Class Counsel; (3) the result achieved for the class; and (4) a lodestar cross-check. See Vizcaino, 290 F.3d at 1048–49 (weighing the risks taken by counsel and the result achieved for the class); see also Serrano v. Priest, 20 Cal. 3d 25, 49 (Cal. 1977) (stating factors under California law). The Court discusses each factor in turn. 1. Class Counsel displayed skill by achieving a quick settlement. The skills displayed by Class Counsel merit a moderate upward adjustment from 25%. Class Counsel displayed skill in two ways. First, Class Counsel achieved a quick settlement for the class. Just eight months transpired between the commencement of this action on April 19, 2019, ECF No. 1, and the settlement in principle reached at the mediation on December 20, 2019, ECF 3 Case No. 19-CV-03126-LHK No. 81-1 at 37. The parties then signed a memorandum of understanding (“MOU”) on March 7, 2020, id. at 9, and executed the settlement agreement on May 18, 2020. Id. This relatively fast settlement ensures the class will timely receive compensation for the minimum wages, meal periods, and other monies that they are allegedly owed. See ECF No. 1-1 at 8–18 (overview of allegations). Second, Class Counsel prevailed in a discovery dispute before United States Magistrate Judge Nathanael M. Cousins. ECF No. 38. By prevailing, Class Counsel received “electronic time and wage records,” contact information and job descriptions of class members, and “complete substantive responses” to certain requests for production. Id. at 2. This discovery motion practice displayed Class Counsel’s skill at pursuing important documents. However, an upward adjustment to 33% is unwarranted here. To support such a large upward adjustment, Class Counsel assert without explanation that the instant case’s “area of practice is still developing as evidenced by the California Supreme Court’s ruling in Brinker Restaurant Corp. v. Superior Court, 53 Cal. 4th 1004 (2012), and the Ninth Circuit’s ruling in Sakkab v. Luxottica Retail N. Am., Inc., 803 F.3d 425 (9th Cir. 2015).” Mot. at 11 (citing Nordrehaug Decl. ¶ 6(h), ECF No. 77-1). Given that Brinker is about nine years old and Sakkab is about six years old, Class Counsel have had time to learn about this “developing” area of the law. Moreover, the instant motion and Class Counsel’s supporting declaration do not explain why these two cases justify an 8% upward departure from the Ninth Circuit’s 25% benchmark for attorneys’ fees awards. Accordingly, the skills displayed by Class Counsel support a 28% attorneys’ fees award, not a 33% attorneys’ fees award. 2. Class Counsel assumed moderate risk. The moderate risk assumed by Class Counsel also supports a moderate upward adjustment from the 25% benchmark. Defendant asserted that “any late or short meal periods were the voluntary decision of the employee, and not the result of a failure of Defendant.” Nordrehaug 4 Case No. 19-CV-03126-LHK Decl. ¶ 6(e). If Defendant prevailed on that view of the merits, the class’s recovery would have been significantly reduced. In sum, this moderate risk supports a 28% attorneys’ fees award. A greater upward adjustment is unwarranted. 3. Class Counsel achieved a reasonable monet

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