Mountjoy v. Bank of America, N.A.

245 Cal. App. 4th 266, 199 Cal. Rptr. 3d 495, 2016 Cal. App. LEXIS 157
CourtCalifornia Court of Appeal
DecidedFebruary 29, 2016
DocketC077283
StatusPublished
Cited by23 cases

This text of 245 Cal. App. 4th 266 (Mountjoy v. Bank of America, N.A.) 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
Mountjoy v. Bank of America, N.A., 245 Cal. App. 4th 266, 199 Cal. Rptr. 3d 495, 2016 Cal. App. LEXIS 157 (Cal. Ct. App. 2016).

Opinion

*269 Opinion

ROBIE, Acting P. J.

— In seeking an attorney fee award in this wrongful foreclosure case, plaintiffs Calvin and Tracy Mountjoy sought a lodestar sum of $308,425 for 760.70 hours of attorney and law student work billed at hourly rates ranging from $450 to $200. Concluding that “well over 70% of the billing entries” submitted in support of the attorney fee request were flawed in one or more respects, the trial court reduced the number of hours claimed by 70 percent, to 228.21. Thereafter, applying a “blended” billing rate of $260 per hour to the reduced number of hours, the court awarded the Mountjoys $59,334.60 in attorney fees.

On the Mountjoys’ appeal from the fee award, we reject most of their arguments but conclude the trial court did abuse its discretion in basing the award on a 70 percent across-the-board reduction in the number of hours claimed. Even assuming the trial court was correct in finding that well over 70 percent of the time entries underlying the fee request were flawed in one manner or another, there is no reasonable basis for concluding that the time entries the court found were flawed actually included 70 percent of the total time for which the Mountjoys sought compensation. Thus, the trial court’s reduction in compensable hours was arbitrary and may have swept too broadly, denying the Mountjoys compensation for time claimed in billing entries that were not flawed. For this reason, we will reverse the order on the Mountjoys’ fee motion and remand the matter to the trial court for further consideration.

FACTUAL AND PROCEDURAL BACKGROUND

The Mountjoys owned a home in Elk Grove that was subject to a loan secured by a deed of trust. In May 2011, following a nonjudicial foreclosure sale of that property and the commencement of an unlawful detainer action against them, the Mountjoys contacted Attorney Dennise Henderson. In August 2011, Henderson filed a chapter 7 bankruptcy petition for the Mountjoys to stop the unlawful detainer action. Eventually, the bankruptcy stay was lifted, and a second unlawful detainer action was commenced in December 2011.

In January 2012, the Mountjoys commenced the present action by filing a verified complaint against various parties alleging 12 causes of action. On the Mountjoys’ motion, the second unlawful detainer action was consolidated with this action.

*270 Defendants Bank of America, N.A., Recontrust Company, N.A., Mortgage Electronic Systems, Inc. (MERS), and Federal National Mortgage Association 1 unsuccessfully demurred to the complaint and unsuccessfully moved for summary judgment. At a mandatory settlement conference in January 2014, the case settled, with the bank agreeing to pay the Mountjoys $395,000. The written stipulation for settlement provided that “[attorneys fees and costs, if not agreed, shall be determined by noticed motion.”

Following the Mountjoys’ receipt of the settlement proceeds, they filed a motion for attorney fees and costs, seeking a lodestar sum of $308,425 in fees for 760.7 hours of work by their two attorneys — Henderson and Tonya Nygren. The motion was supported by a 41-page “Billing Detail” printout showing the time entries for the services provided. The total fees were calculated based on an hourly rate of $450 for Henderson and two hourly rates for Nygren: $350 for her work as an attorney and $200 for her work prior to becoming an attorney. 2

In opposition to the fee motion, the bank contended the fee request was “not merely excessive” but “outrageous.” The bank objected to the hourly rates sought and the total hours claimed. On the latter point, the bank asserted (among other things) that excessive time was spent on routine tasks, the two attorneys billed exorbitant hours on the same tasks, and many of the billing entries were “improperly block-billed or otherwise vague.” The bank argued that the lodestar should be slashed to something more closely approaching the approximately $51,000 the bank’s attorneys billed on the case (not including the fee motion).

The trial court agreed with the bank’s arguments on the number of hours claimed and reduced those hours by 70 percent across the board, explaining as follows: “Approximately half of [the Mountjoys’] pleading amounted to unnecessary general legal argument warranting a reduction in the time it took to prepare that filing. Approximately half of [the] ‘facts’ [the Mountjoys] crafted in Opposition to the summary judgment motion . . . were improper. Perhaps most critically, well over 70% of the billing entries fall into one or more of the following categories: prohibitively vague ‘block billing,’ excessive time spent on the stated task (including but not limited to drafting the complaint and opposition to summary judgment motion and document review tasks discussed above), double billing where two attorneys completed the same task, attorney fees for non-attorney work, fees for filings that did not actually occur in this case, and fees for otherwise unreasonable tasks. [¶] In light of the foregoing and the other various reasons stated in Defendants’ *271 Opposition, the Court in its discretion reduces [the Mountjoys’] requested ‘hours worked’ by 70% ... to a more reasonable total of 228.21.” (Boldface omitted.)

The trial court also found that the Mountjoys had “not met their burden of • showing that their requested hourly rates are reasonable,” so the court applied a “blended” billing rate of $260, drawn from the rate billed by the bank’s attorney, finding that rate was “reasonable and more closely comports with those in the local community, at least in the Court’s experience.”

Multiplying the reduced hours by the reduced hourly rate, the court calculated the Mountjoys’ reasonable attorney fees as $59,334.60 and awarded them that amount. The Mountjoys timely appealed.

DISCUSSION

On appeal, the Mountjoys contend the trial court abused its discretion in awarding them only $59,334.60 of the $308,425 in attorney fees they requested. As explained more fully below, we reject most of the Mountjoys’ arguments, but we do agree the trial court abused its discretion in imposing a 70 percent across-the-board reduction of the hours claimed. Accordingly, we will reverse and remand.

I

General Principles Governing Attorney Fee Awards

“[A] court assessing attorney fees begins with a touchstone or lodestar figure, based on the ‘careful compilation of the time spent and reasonable hourly compensation of each attorney . . . involved in the presentation of the case.’ ” (Ketchum v. Moses (2001) 24 Cal.4th 1122, 1131-1132 [104 Cal.Rptr.2d 377, 17 P.3d 735].) “[T]he lodestar is the basic fee for comparable legal services in the community; it may be adjusted by the court based on factors including . . . (1) the novelty and difficulty of the questions involved, (2) the skill displayed in presenting them, (3) the extent to which the nature of the litigation precluded other employment by the attorneys, (4) the contingent nature of the fee award.

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Cite This Page — Counsel Stack

Bluebook (online)
245 Cal. App. 4th 266, 199 Cal. Rptr. 3d 495, 2016 Cal. App. LEXIS 157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mountjoy-v-bank-of-america-na-calctapp-2016.