Melendres v. City of Los Angeles

45 Cal. App. 3d 267, 119 Cal. Rptr. 713, 1975 Cal. App. LEXIS 1684
CourtCalifornia Court of Appeal
DecidedFebruary 11, 1975
DocketCiv. 42870
StatusPublished
Cited by7 cases

This text of 45 Cal. App. 3d 267 (Melendres v. City of Los Angeles) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Melendres v. City of Los Angeles, 45 Cal. App. 3d 267, 119 Cal. Rptr. 713, 1975 Cal. App. LEXIS 1684 (Cal. Ct. App. 1975).

Opinion

Opinion

HASTINGS, J.

Statement of Facts

Adolph B. Melendres (Melendres), 1 respondent, was a police investigator employed by the Police Department of the City of Los Angeles. The Los Angeles Fire & Police Protective League (League), appellant, in 1971 had a membership of approximately 9,000 regular firemen and sworn policemen who were employed by the City of Los Angeles. 2 The total employment by the city of regular firemen and sworn policemen in that year was approximately 10,000.

In June of 1971, as a result of certain action taken by the Los Angeles City Council, the firemen and policemen of the City of Los Angeles were denied a 7.837 percent salary increase to which they would have been entitled if the council had implemented a salary formula contained in the Los Angeles Administrative Code. Melendres, on July 6, 1971, filed a class action on behalf of all the firemen and policemen employed by the *271 City of Los Angeles in the superior court (No. C 6702), seeking a determination that said employees were entitled to a retroactive pay increase. Subsequent thereto, on July 19, 1971, the League filed its action on behalf of all the employed firemen and policemen and its members in the same court (No. C 7663), seeking similar relief. The two cases were consolidated and judgment was entered in favor of the entire class of policemen and firemen. An appeal filed in that case, No. 2d Civil 41931, was decided and filed by Division Four of this court on July 18, 1974. 3 That decision, however, does not affect this appeal.

Melendres and the League had separate attorneys. The League had a written fee agreement with its attorneys. In substance, it provided that counsel would be paid $50 an hour for their services plus costs. Further, the attorneys were permitted by the agreement to petition the court for salvage fees from any common fund that had been created and reserved for benefits that might be conferred, such fee to be limited to 5 percent of the fund. From such attorney’s fees that might be awarded, the League was to be reimbursed for legal fees and costs advanced. Melendres had no contract for fees with his attorneys; except it was agreed that, if they were successful, they would accept fees awarded by the court from the common fund.

The trial court held that the Melendres action and the League’s action were proper class action suits. That, by reason of the consolidation, they were treated as one suit and that the attorneys for Melendres and the attorneys for the League were in fact representing all of the firemen and policemen in the class. Attorney’s fees were requested by counsel of both parties, which fees were granted. The court made findings in connection therewith as follows: “The Court having considered the declarations on file and other documents in support of and in opposition to said Order, having heard the arguments of counsel and being fully advised in the premises, finds and orders as follows:

“1.A common fund of retroactive salary and wage increases having been created and a substantial benefit having been conferred upon the class or classes of regular firemen and sworn policemen whether active or retired, by the skill and endeavors of legal counsel representing said class or classes, the Court exercising its’ [szc] equitable powers to award to counsel, who have conferred benefits upon said class or classes which but for their efforts would probably have been lost and this being a proper. *272 case for surcharging a common fund with the expenses of its recovery, Respondents are hereby ordered to deduct and pay over to the law firm of Kurlander, Solomon & Hart and Lemaire & Faunce seven point five (7.5) percent of all gross funds paid to regular firemen and sworn policemen under the judgment herein.
“2. To the law firm of Mohi, Morales, Dumas & Glasman two point five (2.5) percent of all gross funds paid to regular firemen and sworn policemen under the judgment herein.”

It is from the award of attorneys fees that the League has appealed.

Issues

(1) In a “class action” seeking the recovery of a “common fund,” must a vast majority of the class who have retained attorneys of their own choice, pursuant to an express contract, be surcharged for attorneys’ fees incurred by a slim minority of the class?

(2) May the trial court ignore an express contract under which the parties (attorney/client) have agreed upon the compensation for services rendered to the client?

Discussion

It is now generally accepted that the attorney whose client is the plaintiff in a class action suit is entitled to attorneys’ fees from all members of the class benefited if a fund is obtained or protected and brought into court. (38 A.L.R.3d 1384, 1390.)

California is in accord. In Bank of America v. West End etc. Co., 37 Cal.App.2d 685, 696 [100 P.2d 318], the court recognizes the rule that in equity where the parties prosecuting the action recover, protect, preserve or increase a fund for the benefit of themselves and others, attorneys’ fees are permitted out of such fund. See also Estate of Reade, 31 Cal.2d 669, 671-672 [191 P.2d 745]; Winslow v. Harold G. Ferguson Corp., 25 Cal.2d 274, 277 [153 P.2d 714].

“The bases of the equitable rule which permit surcharging a common fund with the expenses of its protection or recovery, including counsel fees, appear to be these: fairness to the successful litigant, who might otherwise receive no benefit because his recovery might be consumed by *273 the expenses; correlative prevention of an unfair advantage to the others who are entitled to share in the fund and who should bear their share of the burden of its recovery; encouragement of the attorney for the successful litigant, who will be more willing to undertake and diligently prosecute proper litigation for the protection or recovery of the fund if he is assured that he will be promptly and directly compensated should his efforts be successful.” (Estate of Stauffer, 53 Cal.2d 124, 132 [346 P.2d 748].) In Sanders v. City of Los Angeles, 3 Cal.3d 252 [90 Cal.Rptr. 169, 475 P.2d 201], the trial court allowed attorneys fees after awarding retroactive wage increases. The Supreme Court allowed the award to stand, and stated that any objection to the fees could only be made by the members of the class affected.

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Bluebook (online)
45 Cal. App. 3d 267, 119 Cal. Rptr. 713, 1975 Cal. App. LEXIS 1684, Counsel Stack Legal Research, https://law.counselstack.com/opinion/melendres-v-city-of-los-angeles-calctapp-1975.