Lizarraga v. Growers' Choice, Inc.

CourtDistrict Court, E.D. California
DecidedApril 18, 2023
Docket2:19-cv-00526
StatusUnknown

This text of Lizarraga v. Growers' Choice, Inc. (Lizarraga v. Growers' Choice, 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
Lizarraga v. Growers' Choice, Inc., (E.D. Cal. 2023).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10 11 RAMON LIZARRAGA, et al., No. 2:19-cv-00526-TLN-DB 12 Plaintiffs, 13 v. ORDER 14 GROWERS’ CHOICE, INC., et al., 15 Defendants. 16 17 This matter is before the Court on Plaintiffs Ramon Lizarraga and Jaime Cardenas’s 18 (collectively, “Plaintiffs”) Motion for Attorneys’ Fees. (ECF No. 35.) Defendants Growers’ 19 Choice, Inc., and Robert Longstreth (collectively, “Defendants”) filed an opposition. (ECF No. 20 37.) Plaintiffs filed a reply. (ECF No. 39.) For the reasons set forth below, the Court GRANTS 21 in part and DENIES in part Plaintiffs’ motion. 22 /// 23 /// 24 /// 25 /// 26 /// 27 /// 28 /// 1 I. FACTUAL AND PROCEDURAL BACKGROUND 2 On March 25, 2019, Plaintiffs filed this class action lawsuit alleging Defendants violated 3 various state and federal labor laws. (ECF No. 35-1 at 7.) On August 11, 2020, the parties 4 participated in mediation and reached a settlement. (Id. at 9.) The parties were unable to agree to 5 attorneys’ fees as part of the settlement, and Plaintiffs filed the instant motion for attorneys’ fees 6 on September 2, 2021. (ECF No. 35.) The Court granted final approval of the settlement on 7 February 1, 2022 and took the motion for attorneys’ fees under submission. (ECF No. 38.) 8 II. STANDARD OF LAW 9 In the Ninth Circuit, the starting point for determining reasonable attorneys’ fees is the 10 “lodestar” calculation, which is obtained by multiplying the number of hours reasonably 11 expended on litigation by a reasonable hourly rate. See Jordan v. Multnomah Cnty., 815 F.2d 12 1258, 1262 (9th Cir. 1987) (citing Hensley v. Eckerhart, 461 U.S. 424 (1983)). In determining a 13 reasonable number of hours, the Court reviews detailed time records to determine whether the 14 hours claimed are adequately documented and whether any of the hours were unnecessary, 15 duplicative, or excessive. Chalmers v. City of L.A., 796 F.2d 1205, 1210 (9th Cir. 1986), reh’g 16 denied, amended on other grounds, 808 F.2d 1373 (9th Cir. 1987). In determining a reasonable 17 rate for each attorney, the Court must look to the rate prevailing in the community for similar 18 work performed by attorneys of comparable skill, experience, and reputation. Id. at 1210–11. 19 In calculating the lodestar, the Court considers any relevant factors listed in Kerr v. Screen 20 Extras Guild, Inc., 526 F.2d 67 (9th Cir. 1975), cert. denied 425 U.S. 951 (1976). Jordan, 815 21 F.2d at 1264 n.11 (noting the Ninth Circuit no longer requires a court to address every factor 22 listed in Kerr). The Kerr court looked to the following factors: (1) the time and labor required; 23 (2) the novelty and difficulty of the questions involved; (3) the skilled requisite to perform the 24 legal service properly; (4) the preclusion of other employment by the attorney due to acceptance 25 of the case; (5) the customary fee; (6) whether the fee is fixed or contingent; (7) time limitations 26 imposed by the client or the circumstances; (8) the amount involved and the results obtained; (9) 27 the experience, reputation, and ability of the attorneys; (10) the “undesirability” of the case; (11) 28 the nature and length of the professional relationship with the client; and (12) awards in similar 1 cases. Kerr, 526 F.2d at 70. To the extent the Kerr factors are not addressed in the calculation of 2 the lodestar, they may be considered in determining whether the fee award should be adjusted 3 upward or downward once the lodestar has been calculated. Chalmers, 796 F.2d at 1212. 4 However, there is a strong presumption that the lodestar figure represents a reasonable fee 5 award. Jordan, 815 F.2d at 1262. An upward adjustment of the lodestar is appropriate only in 6 extraordinary cases, such as when an attorney faced exceptional risks of not prevailing or not 7 recovering any fees. Chalmers, 796 F.2d at 1212. 8 III. ANALYSIS 9 Plaintiffs seek attorneys’ fees in the amount of $279,786.56 ($223,829.25 x a 1.25 10 multiplier) and costs in the amount of $8,859.37. (ECF No. 35-1 at 26.) In opposition, 11 Defendants argue Plaintiffs’ motion should be denied in its entirety because the requested fees are 12 not authorized by the settlement agreement. (ECF No. 37 at 16.) Alternatively, Defendants argue 13 the fees should be reduced to $96,186.25. (Id.) 14 At the outset, the Court rejects Defendants’ argument that Plaintiffs’ motion should be 15 denied in its entirety. Defendants argue the settlement agreement requires the parties to “engage 16 in good faith efforts to negotiate . . . attorneys’ fees” and Plaintiffs did not act in good faith 17 because they refused to provide counteroffers and refused to provide documentation of their 18 requested fees and costs. (ECF No. 37 at 8–9.) Defendants do not cite any authority to support 19 their argument. (See id.) In response, Plaintiffs argue they acted in good faith, as they sent 20 complete billing reports to Defendants on May 28, 2021 and significantly reduced their fee 21 request to address at least some of Defendants’ concerns following meet and confer efforts. (ECF 22 No. 39 at 3.) In the absence of case law to the contrary, the Court finds Plaintiffs acted in good 23 faith based on their representations that their counsel communicated with defense counsel, sent 24 billing records, and significantly reduced their fee request during negotiations. (ECF No. 35-2 at 25 5–6.) Moreover, Defendants fail to persuade the Court that a lack of good faith effort on 26 Plaintiffs’ part would warrant outright denial of Plaintiffs’ motion, especially considering the 27 settlement agreement contemplates Plaintiffs bringing a motion for attorneys’ fees “[i]n the event 28 that an agreement cannot be reached.” (ECF No. 37 at 5.) 1 Having found Plaintiffs acted in good faith, the Court now examines the hourly rates, 2 hours expended, and request for a multiplier in turn. 3 A. Hourly Rates 4 In determining the reasonableness of hourly rates, the Court refers to the prevailing rate in 5 the community for similar work performed by attorneys of comparable skill, experience, and 6 reputation. Ingram v. Oroudjian, 647 F.3d 925, 928 (9th Cir. 2011). “The fee applicant has the 7 burden of producing satisfactory evidence, in addition to the affidavits of its counsel, that the 8 requested rates are in line with those prevailing in the community for similar services of lawyers 9 of reasonably comparable skill and reputation.” Jordan, 814 F.2d at 1263. “Though affidavits 10 provide satisfactory evidence of the prevailing market rate, they are not conclusive. Camacho v. 11 Bridgeport Fin., Inc., 523 F.3d 973, 980 (9th Cir. 2008). Courts rely on their own familiarity 12 with the market in the district where the court sits. Ingram, 647 F.3d at 928; see also Gonzalez v. 13 City of Maywood, 729 F.3d 1196, 1205 (9th Cir. 2013) (“Generally, when determining a 14 reasonable hourly rate, the relevant community is the forum in which the district court 15 sits.”) (quoting Prison Legal News v. Schwarzenegger, 608 F.3d 446, 454 (9th Cir. 2010)). 16 In the instant case, Plaintiffs propose rates ranging from $320 to $650 per hour for 17 attorneys based on their experience and $100 to $125 for legal clerks and legal assistants. (ECF 18 No.

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Lizarraga v. Growers' Choice, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/lizarraga-v-growers-choice-inc-caed-2023.