Obrien v. FCA US LLC

District Court, N.D. California·Decided October 18, 2019·No. 3:17-cv-04042·Unknown

Opinion

KRISTI M. OBRIEN, et al., Case No. 17-cv-04042-JCS Plaintiffs, v. ORDER GRANTING IN PART AND DENYING IN PART MOTION FOR FCA US LLC, ATTORNEYS' FEES, COSTS AND Defendant. Re: Dkt. No. 86

Plaintiffs Kristi M. O’Brien and John D. O’Brien filed this action in Santa Clara Superior Court, asserting claims against Defendant FCA U.S. LLC (“FCA”) under the Song-Beverly Consumer Warranty Act (“Song-Beverly Act”), Cal. Civ. Code section 1790, et seq. FCA removed the action to this Court on the basis of diversity jurisdiction and the parties eventually entered into a settlement agreement. Plaintiffs now bring a Motion for Attorneys’ Fees, Costs and Expenses (“Motion”) as the prevailing parties under California Civil Code section 1794(d). A hearing on the Motion was conducted on Friday, August 30, 2019 at 9:30 a.m. Plaintiffs submitted additional material in support of the Motion on September 27, 2019. For the reasons stated below, the Motion is GRANTED in part and DENIED in part.1 Plaintiffs purchased a 2012 Jeep Grand Cherokee on January 29, 2012 for a total purchase price of $53,825.90. O’Brien Complaint ¶ 8; Mikhov Decl. ¶ 3 & Ex. C. According to Plaintiffs’ counsel, “within the applicable express warranty period, the vehicle began exhibiting serious transmission and electrical issues due to the vehicle’s power distribution component, the Totally Integrated Power Module (‘TIPM’).” Mikhov Decl. ¶ 4. He says that Plaintiffs took their vehicle to FCA’s repair facility on seven separate occasions related to the transmission and at least seven occasions for “serious electrical concerns related to the TIPM” but FCA was “never able to fix the issues.” Id. ¶ 5. On June 30, 2016, Plaintiffs filed this action, retaining Knight Law Group (“Knight Law”) to represent them on a contingent basis. Id. ¶¶ 8-9. On August 1, 2016, FCA offered to repurchase the vehicle for $57,000. ¶ 10 & Ex. D. According to Plaintiffs’ counsel, the offer was “fatally vague, ambiguous and failed to account for its willful violation of the Song-Beverly Act.” Id. ¶ 10. Therefore, Plaintiffs rejected the offer. Id. After an unsuccessful mediation on August 23, 2016, the parties engaged in discovery. Id. ¶¶ 11-13. On January 29, 2018, the law firm of Hackler Daghighian Marino & Novack P.C. (“HDMN”) associated in to the case to assist Knight Law with trial preparation; attorney Sepehr Daghighian was to act as lead trial counsel in the case. Daghighian Decl. ¶¶ 10-11. On May 4, 2018, FCA made Plaintiffs a “reasonable settlement offer that accounted for FCA’s egregious actions under the Song-Beverly Act.” Mikhov Decl. ¶ 17 & Ex. E (“Rule 68 Offer”). Under the Rule 68 Offer, FCA offered to pay Plaintiffs $152,000 plus reasonable attorneys’ fees and costs. Id. Plaintiffs initially rejected the offer, but at a settlement conference on April 5, 2019, soon after the Court granted summary judgment in favor of FCA on Plaintiffs’ claim for punitive damages, they accepted the Rule 68 Offer. Id. ¶ 20. In the meantime, between the time the offer was first made and its acceptance, Plaintiffs’ counsel took the deposition of FCA’s person most knowledgeable, defended a deposition of their expert, drafted an opposition to Defendant’s motion to exclude Plaintiffs’ experts, and travelled to appear at the motion hearing on Defendant’s motion for summary judgment. Id. ¶¶ 18-19. In the Motion, Plaintiffs ask the Court to award attorneys’ fees in the amount of $107,718.75, that is, a lodestar amount of $71,812.50 plus a .5 multiplier of $35,906.25, and costs in the amount of $15,953.16. The lodestar amount consists of fees incurred by Knight Law in the 2 & Ex. A (Knight Law time sheets); Daghighian Decl. ¶ 8 & Ex. A (HDMN time sheets). Plaintiffs’ costs are set forth in their Bill of Costs. See Docket No. 85. FCA challenges the amounts Plaintiffs request in the Motion. FCA contends the rates requested are unreasonable, the time billed is excessive, and that no multiplier should be awarded. In particular, it argues that fees incurred after the Rule 68 offer was made did not advance Plaintiffs’ interests and therefore were excessive, that fees associated with travel were excessive because Plaintiffs could have retained counsel that was local, that the staffing of the case was inefficient and the association of a second law firm resulted in duplicative billing, that HDMN’s time should be reduced because it billed using 15-minute increments, and that time that is “anticipated” in connection with HDMN’s Reply on the instant motion and travelling to and attending the hearing on the fee motion should not be awarded. FCA also identifies certain specific billing entries it contends are unreasonable. FCA argues that no multiplier should be awarded because Plaintiffs’ counsel did not take on significant risk in representing Plaintiffs on a contingent basis. FCA also filed objections to Plaintiffs’ Bill of Costs, as set forth below. A. Legal Standard In diversity actions, federal courts look to state law in determining whether a party has a right to attorneys’ fees and how to calculate those fees. Mangold v. Cal. Pub. Util. Comm’n, 67 F.3d 1470, 1478 (9th Cir. 1995). Under California law, buyers who prevail in an action under the Song-Beverly Act are entitled to “the aggregate amount of costs and expenses, including attorney’s 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 section 1794(d). A party is a prevailing party if the court, guided by equitable principles, decides that the party has achieved its “main litigation objective.” Graciano v. Robinson Ford Sales, Inc., 144 Cal.App.4th 140, 150–51 (2006); see also Wohlgemuth v. Caterpillar Inc., 207 Cal. App. 4th 1252, 1262 (2012) (holding that “consumers who successfully achieve the goals of their litigation through a compromise agreement” may recover attorneys’ fees California courts have found that in awarding fees under the Song-Beverly Act, the trial court must “make an initial determination of the actual time expended; and then [must] ascertain whether under all the circumstances of the case the amount of actual time expended and the monetary charge being made for the time expended are reasonable.” Nightingale v. Hyundai Motor Am., 31 Cal. App. 4th 99, 104 (1994). In evaluating the reasonableness of counsel’s charges, the court may consider “factors such as the complexity of the case and procedural demands, the skill exhibited and the results achieved.” Id. The prevailing party has the burden of showing that the attorneys’ fees it requests are reasonable. Id. California courts have further held that the Song-Beverly Act permits the trial court to award a multiplier where it deems appropriate under the lodestar adjustment method. Robertson v. Fleetwood Travel Trailers of California, Inc., 144 Cal. App. 4th 785, 819 (2006) (citing Ketchum v. Moses, 24 Cal. 4th 1122, 1132 (2001)). In Ketchum, the California Supreme Court explained: [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, as relevant herein, (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. . . . The purpose of such adjustment is to fix a fee at the fair market value for the particular action. In effect, the court determines, retrospectively, whether the litigation involved a contingent risk or required extraordinary legal skill justifying augmentation of the unadorned lodestar in order to approximate the fair mar

Free access — add to your briefcase to read the full text and ask questions with AI

Obrien v. FCA US LLC, (N.D. Cal. 2019).

Obrien v. FCA US LLC (Obrien v. FCA US LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Ingram v. Oroudjian
647 F.3d 925 (Ninth Circuit, 2011)
Mamikon Karapetian v. Kia Motors America, Inc.
539 F. App'x 814 (Ninth Circuit, 2013)
Serrano v. Priest
569 P.2d 1303 (California Supreme Court, 1977)
Nightingale v. Hyundai Motor America
31 Cal. App. 4th 99 (California Court of Appeal, 1999)
Robertson v. Fleetwood Travel Trailers of California, Inc.
50 Cal. Rptr. 3d 731 (California Court of Appeal, 2006)
Graciano v. Robinson Ford Sales, Inc.
50 Cal. Rptr. 3d 273 (California Court of Appeal, 2006)
Ketchum v. Moses
17 P.3d 735 (California Supreme Court, 2001)
Wohlgemuth v. Caterpillar Inc.
207 Cal. App. 4th 1252 (California Court of Appeal, 2012)
Hartman v. Duffey
19 F.3d 1459 (D.C. Circuit, 1994)
Widrig v. Apfel
140 F.3d 1207 (Ninth Circuit, 1998)
Rodriguez v. County of Los Angeles
96 F. Supp. 3d 1012 (C.D. California, 2014)
Jones v. Metropolitan Life Ins.
845 F. Supp. 2d 1016 (N.D. California, 2012)
Gates v. Deukmejian
987 F.2d 1392 (Ninth Circuit, 1992)