Obrien v. FCA US LLC

CourtDistrict Court, N.D. California
DecidedOctober 18, 2019
Docket3:17-cv-04042
StatusUnknown

This text of Obrien v. FCA US LLC (Obrien v. FCA US LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 KRISTI M. OBRIEN, et al., 7 Case No. 17-cv-04042-JCS Plaintiffs, 8 v. ORDER GRANTING IN PART AND 9 DENYING IN PART MOTION FOR FCA US LLC, ATTORNEYS' FEES, COSTS AND 10 EXPENSES Defendant. 11 Re: Dkt. No. 86

12 13 I. INTRODUCTION 14 Plaintiffs Kristi M. O’Brien and John D. O’Brien filed this action in Santa Clara Superior 15 Court, asserting claims against Defendant FCA U.S. LLC (“FCA”) under the Song-Beverly 16 Consumer Warranty Act (“Song-Beverly Act”), Cal. Civ. Code section 1790, et seq. FCA 17 removed the action to this Court on the basis of diversity jurisdiction and the parties eventually 18 entered into a settlement agreement. Plaintiffs now bring a Motion for Attorneys’ Fees, Costs and 19 Expenses (“Motion”) as the prevailing parties under California Civil Code section 1794(d). A 20 hearing on the Motion was conducted on Friday, August 30, 2019 at 9:30 a.m. Plaintiffs submitted 21 additional material in support of the Motion on September 27, 2019. For the reasons stated below, 22 the Motion is GRANTED in part and DENIED in part.1 23 II. BACKGROUND 24 Plaintiffs purchased a 2012 Jeep Grand Cherokee on January 29, 2012 for a total purchase 25 price of $53,825.90. O’Brien Complaint ¶ 8; Mikhov Decl. ¶ 3 & Ex. C. According to Plaintiffs’ 26 counsel, “within the applicable express warranty period, the vehicle began exhibiting serious 27 1 transmission and electrical issues due to the vehicle’s power distribution component, the Totally 2 Integrated Power Module (‘TIPM’).” Mikhov Decl. ¶ 4. He says that Plaintiffs took their vehicle 3 to FCA’s repair facility on seven separate occasions related to the transmission and at least seven 4 occasions for “serious electrical concerns related to the TIPM” but FCA was “never able to fix the 5 issues.” Id. ¶ 5. 6 On June 30, 2016, Plaintiffs filed this action, retaining Knight Law Group (“Knight Law”) 7 to represent them on a contingent basis. Id. ¶¶ 8-9. On August 1, 2016, FCA offered to 8 repurchase the vehicle for $57,000. ¶ 10 & Ex. D. According to Plaintiffs’ counsel, the offer was 9 “fatally vague, ambiguous and failed to account for its willful violation of the Song-Beverly Act.” 10 Id. ¶ 10. Therefore, Plaintiffs rejected the offer. Id. After an unsuccessful mediation on August 11 23, 2016, the parties engaged in discovery. Id. ¶¶ 11-13. On January 29, 2018, the law firm of 12 Hackler Daghighian Marino & Novack P.C. (“HDMN”) associated in to the case to assist Knight 13 Law with trial preparation; attorney Sepehr Daghighian was to act as lead trial counsel in the case. 14 Daghighian Decl. ¶¶ 10-11. 15 On May 4, 2018, FCA made Plaintiffs a “reasonable settlement offer that accounted for 16 FCA’s egregious actions under the Song-Beverly Act.” Mikhov Decl. ¶ 17 & Ex. E (“Rule 68 17 Offer”). Under the Rule 68 Offer, FCA offered to pay Plaintiffs $152,000 plus reasonable 18 attorneys’ fees and costs. Id. Plaintiffs initially rejected the offer, but at a settlement conference 19 on April 5, 2019, soon after the Court granted summary judgment in favor of FCA on Plaintiffs’ 20 claim for punitive damages, they accepted the Rule 68 Offer. Id. ¶ 20. In the meantime, between 21 the time the offer was first made and its acceptance, Plaintiffs’ counsel took the deposition of 22 FCA’s person most knowledgeable, defended a deposition of their expert, drafted an opposition to 23 Defendant’s motion to exclude Plaintiffs’ experts, and travelled to appear at the motion hearing on 24 Defendant’s motion for summary judgment. Id. ¶¶ 18-19. 25 In the Motion, Plaintiffs ask the Court to award attorneys’ fees in the amount of 26 $107,718.75, that is, a lodestar amount of $71,812.50 plus a .5 multiplier of $35,906.25, and costs 27 in the amount of $15,953.16. The lodestar amount consists of fees incurred by Knight Law in the 1 2 & Ex. A (Knight Law time sheets); Daghighian Decl. ¶ 8 & Ex. A (HDMN time sheets). 2 Plaintiffs’ costs are set forth in their Bill of Costs. See Docket No. 85. 3 FCA challenges the amounts Plaintiffs request in the Motion. FCA contends the rates 4 requested are unreasonable, the time billed is excessive, and that no multiplier should be awarded. 5 In particular, it argues that fees incurred after the Rule 68 offer was made did not advance 6 Plaintiffs’ interests and therefore were excessive, that fees associated with travel were excessive 7 because Plaintiffs could have retained counsel that was local, that the staffing of the case was 8 inefficient and the association of a second law firm resulted in duplicative billing, that HDMN’s 9 time should be reduced because it billed using 15-minute increments, and that time that is 10 “anticipated” in connection with HDMN’s Reply on the instant motion and travelling to and 11 attending the hearing on the fee motion should not be awarded. FCA also identifies certain 12 specific billing entries it contends are unreasonable. FCA argues that no multiplier should be 13 awarded because Plaintiffs’ counsel did not take on significant risk in representing Plaintiffs on a 14 contingent basis. FCA also filed objections to Plaintiffs’ Bill of Costs, as set forth below. 15 III. ANALYSIS 16 A. Legal Standard 17 In diversity actions, federal courts look to state law in determining whether a party has a 18 right to attorneys’ fees and how to calculate those fees. Mangold v. Cal. Pub. Util. Comm’n, 67 19 F.3d 1470, 1478 (9th Cir. 1995). Under California law, buyers who prevail in an action under the 20 Song-Beverly Act are entitled to “the aggregate amount of costs and expenses, including 21 attorney’s fees based on actual time expended, determined by the court to have been reasonably 22 incurred by the buyer in connection with the commencement and prosecution of such action.” Cal. 23 Civ. Code section 1794(d). A party is a prevailing party if the court, guided by equitable 24 principles, decides that the party has achieved its “main litigation objective.” Graciano v. 25 Robinson Ford Sales, Inc., 144 Cal.App.4th 140, 150–51 (2006); see also Wohlgemuth v. 26 Caterpillar Inc., 207 Cal. App. 4th 1252, 1262 (2012) (holding that “consumers who successfully 27 achieve the goals of their litigation through a compromise agreement” may recover attorneys’ fees 1 California courts have found that in awarding fees under the Song-Beverly Act, the trial 2 court must “make an initial determination of the actual time expended; and then [must] ascertain 3 whether under all the circumstances of the case the amount of actual time expended and the 4 monetary charge being made for the time expended are reasonable.” Nightingale v. Hyundai 5 Motor Am., 31 Cal. App. 4th 99, 104 (1994). In evaluating the reasonableness of counsel’s 6 charges, the court may consider “factors such as the complexity of the case and procedural 7 demands, the skill exhibited and the results achieved.” Id. The prevailing party has the burden of 8 showing that the attorneys’ fees it requests are reasonable. Id. 9 California courts have further held that the Song-Beverly Act permits the trial court to 10 award a multiplier where it deems appropriate under the lodestar adjustment method. Robertson v. 11 Fleetwood Travel Trailers of California, Inc., 144 Cal. App. 4th 785, 819 (2006) (citing Ketchum 12 v. Moses, 24 Cal. 4th 1122, 1132 (2001)).

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

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)

Cite This Page — Counsel Stack

Bluebook (online)
Obrien v. FCA US LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/obrien-v-fca-us-llc-cand-2019.