Nguyen v. BMW of North America, LLC.

District Court, S.D. California·Decided January 12, 2023·No. 3:20-cv-02432·Unknown

Opinion

HA NGUYEN, Case No.: 3:20-CV-2432 JLS (BLM)

ORDER GRANTING IN PART Plaintiff, PLAINTIFF’S MOTION FOR v. ATTORNEYS’ FEES AND COSTS BMW OF NORTH AMERICA, LLC; and DOES 1 through 10, inclusive, (ECF No. 40) Defendants.

Presently before the Court is Plaintiff Ha Nguyen’s Motion for Attorneys’ Fees and Costs (“Mot.,” ECF No. 40). Also before the Court are Defendant BMW of North America’s Opposition to (“Opp’n,” ECF No. 43) and Plaintiff’s Reply in support of (“Reply,” ECF No. 44) the Motion. The Court found this matter appropriately decided on the papers without oral argument pursuant to Civil Local Rule 7.1(d)(1). See ECF No. 167. Having considered the Parties’ arguments and the law, the Court GRANTS IN PART Plaintiff’s Motion and AWARDS Plaintiff attorneys’ fees in the amount of $33,852.60 plus costs in the amount of $466.81, for a total award of $34,319.41. / / / / / / In 2017, Plaintiff purchased a 2014 BMW 435i Convertible (the “Vehicle”), warranted by Defendant. See generally Complaint (“Compl.,” ECF No. 1). Plaintiff alleges the Vehicle began to suffer from serious defects shortly after it was purchased. See Declaration of Jeffrey O. Moses (“Moses Decl.,” ECF No. 40-1) ¶ 5. On October 1, 2020, Plaintiff filed a Complaint in state court, alleging three claims under California’s Song- Beverly Consumer Warranty Act and violations of California Business and Professions Code § 17200. See generally Compl. In May 2022, the Parties executed a Settlement Agreement. See ECF No. 40-1 at 20–25. The agreement provided that Plaintiff would surrender the vehicle and dismiss the action with prejudice. Id. at 20. In exchange, Defendant would pay $42,206.71 in satisfaction of Plaintiff’s claims, relieve Plaintiff of any remaining obligations on the vehicle, and, relevant here, “pay Plaintiff’s attorneys’ fees, costs, and expenses . . . in the amount of $15,000, or alternatively, in an amount to be determined by the Court by way of timely noticed motion.” Id. 21–22. Plaintiff chose the latter option and submitted the instant Motion, seeking attorneys’ fees and costs totaling $52,667.58. See ECF No. 40. “District courts follow the forum state’s law for awarding attorney’s fees when exercising their diversity jurisdiction over state-law claims.” Siafarikas v. Mercedes-Benz USA, LLC, No. 2:20-CV-01784-JAM-AC, 2022 WL 16926265, at *1 (E.D. Cal. Nov. 14, 2022). Under § 1794(d) of California’s Song-Beverly Act, the prevailing party shall be allowed to recover attorneys’ fees “based on actual time expended, determined by the court to have been reasonably incurred by the buyer in connection with the commencement and prosecution of such action.” Cal. Civ. Code § 1794(d). “A prevailing buyer has the burden of showing that the fees incurred were allowable, were reasonably necessary to the conduct of the litigation, and were reasonable in amount.” Nightingale v. Hyundai Motor Am., 31 Cal. App. 4th 99, 104 (1994) (internal quotations omitted). “To challenge attorneys’ fees as excessive, the challenging party must point to the specific items challenged, with a sufficient argument and citations to the evidence.” Nai Hung Li v. FCA US LLC, No. 2:17- CV-06290-R-JEM, 2019 WL 6317769, at *1 (C.D. Cal. July 1, 2019) (internal quotations omitted). “The California Court of Appeal has expressly held that the lodestar method applies to determining attorneys’ fees under the Song-Beverly Act.” Nai Hung Li, 2019 WL 6317769, at *1 (citing Ketchum v. Moses, 24 Cal. 4th 1122, 1137–39 (2001)). The lodestar method consists of two steps. “First, the court must calculate the ‘lodestar figure’ by taking the number of hours reasonably expended on the litigation and multiplying it by a reasonable hourly rate.” Id. (citing Hensley v. Eckerhart, 461 U.S. 424, 433 (1983)). “Second, the court must decide whether to enhance or reduce the lodestar figure based on an evaluation of the Kerr [v. Screen Extras Guild, Inc., 526 F.2d 67 (9th Cir. 1975), abrogated on other grounds by City of Burlington v. Dague, 505 U.S. 557 (1992),] factors that are not already subsumed in the initial lodestar calculation.” Fischer v. SJB-P.D. Inc., 214 F.3d 1115, 1119 (9th Cir. 2000) (citing Van Gerwen v. Guarantee Mut. Life Co., 214 F.3d 1041, 1045 (9th Cir. 2000); Morales v. City of San Rafael, 96 F.3d 359, 363–64 (9th Cir. 1996)). Plaintiff seeks to recover a total of $52,667.58, comprised of the following: $43,419.50 in attorneys’ fees; a lodestar multiplier enhancement of $8,683.90; an additional $4,000 for fees related to this motion; and $564.18 in costs. Mot. at 23.1 Defendant challenges Plaintiff’s fee submission on the grounds that the proposed hourly rates are unreasonable, the hours logged are excessive, and the lodestar multiplier is not warranted since this matter was straightforward. Opp’n at 2–3. Based on these objections, Defendant requests that the fees and costs be reduced to an amount no more than $15,000. See id. at 3.

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