Philpott v. Midwest Roofing Co. CA2/5

CourtCalifornia Court of Appeal
DecidedJanuary 15, 2016
DocketB262185
StatusUnpublished

This text of Philpott v. Midwest Roofing Co. CA2/5 (Philpott v. Midwest Roofing Co. CA2/5) 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
Philpott v. Midwest Roofing Co. CA2/5, (Cal. Ct. App. 2016).

Opinion

Filed 1/15/16 Philpott v. Midwest Roofing Co. CA2/5 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION FIVE

MARK PHILPOTT, B262185

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. YC 068948) v.

MIDWEST ROOFING CO., INC. et. al.,

Defendants and Respondents.

APPEAL from an order of the Superior Court of Los Angeles County. Stuart M. Rice, Judge. Affirmed. Michael W. Ayotte for Plaintiff and Appellant. Robert D. Feighner for Defendants and Respondents. Plaintiff and appellant Mark Philpott (plaintiff) filed a lawsuit against his former employer, named defendants Midwest Roofing Co., Inc. and Midwest Roofing and Solar Corporation (referred to together as defendant), seeking payment of unpaid commissions he claimed he was due. Plaintiff was the prevailing party after a short trial, recovering some but not all of the amount he claimed he was owed. Based on a statutory fee shifting provision, plaintiff thereafter sought $212,287.50 in attorney’s fees. Defendant objected to the fee request as extravagant and unreasonable, contending plaintiff was entitled to, at most, $30,000 in fees for what defendant argued was an uncomplicated case. The trial court awarded plaintiff attorney’s fees of $58,341.50, and we are asked to decide whether the trial court’s award was an abuse of discretion.

BACKGROUND In April 2013, plaintiff filed a lawsuit to recover unpaid commissions from defendant. Plaintiff sought commissions for 15 different jobs he sold while employed by defendant, worth a combined total of $58,202. Plaintiff also sought a statutory waiting time penalty1 of $13,380, bringing the total amount sought to $71,582. Although plaintiff entered into a “pure contingency” fee agreement with his attorney, Michael Ayotte, plaintiff was entitled to recover statutory attorney’s fees if he prevailed on his causes of action for violations of Labor Code sections 201, 202, 203, and 218. (Lab. Code, § 218.5.) In March 2014, which was early in the pre-trial discovery phase of the case, defendant unilaterally made a payment to plaintiff of $3,875 for the 11 smallest jobs on which he claimed to be owed a commission. Defendant continued to deny that a waiting time penalty was due, or that commissions were owed on the remaining four jobs. Later that same month, defendant brought a motion to amend certain of its responses to

1 Labor Code section 203 provides that if an employer willfully fails to pay the wages of any employee who is discharged or quits, the wages of the employee shall continue as a penalty for a maximum period of 30 days. These continuing wages are commonly referred to as a waiting time penalty.

2 requests for admissions. This was the sole pre-trial motion filed by either side in the case. Plaintiff opposed the motion, but defendant prevailed. On May 23, 2014, the trial court held a voluntary settlement conference. Plaintiff offered to settle for $75,000, a figure that included his attorney’s fees. Assuming a contingency fee arrangement of 40%, his attorney would have received $30,000.2 At that time, plaintiff’s attorney had billed a total of 120.3 hours. Defendant’s final offer at the settlement conference was $35,000, and no settlement was reached. A bench trial began on June 18, 2014. Almost immediately, defendant stipulated that it owed a waiting time penalty of $13,380. The trial court again attempted to settle the case, but without success: plaintiff repeated his offer of $75,000 (inclusive of fees), but defendant’s best offer was $55,000.3 By this point in the case, plaintiff’s attorney had billed an additional 142 hours for trial preparation undertaken after the voluntary settlement conference, for a total of 262.3 hours in the case overall. Trial continued over partial days on June 18, 19, and 25, 2014. Plaintiff and defendant’s owner Darren Tangen were the primary witnesses. Two current employees of defendant also testified briefly for the defense. The full trial lasted less than eight hours, and no request was made for a formal statement of decision. On August 14, 2014, the trial court orally rendered its decision and awarded plaintiff damages totaling $26,399.50 on the four jobs that had been litigated at trial. In awarding that sum, the trial court found plaintiff was not entitled to the full amount demanded on two of the most contentious claims. Adding the stipulated waiting time penalty to the damages awarded and the pre-trial payment defendant made to plaintiff for

2 Although plaintiff’s attorney declared under penalty of perjury that his fee agreement with defendant “was on a pure contingency basis,” he did not provide details of the agreement, such as the contingency percentage. 3 The record does not contain a reporter’s transcript of the proceedings on June 18, so we do not know the details of defendant’s settlement offer. But defendant’s settlement offer of $55,000 must have been inclusive of attorney’s fees because plaintiff was seeking a total of $54,327 in commissions at the time of the offer, and the offer was rejected.

3 the 11 smaller commissions, plaintiff recovered a total of $43,654.50, roughly 60% of the amount he had initially sought. Following trial, plaintiff filed a motion to recover attorney’s fees. He sought fees in the amount of $450 per hour for 329.1 hours ($148,095) and he also sought a multiplier of 1.5, for a total fee award of $212,287.50. Plaintiff’s calculation of the hours his attorney spent on pre-trial work included 120.3 hours of work performed through the voluntary settlement conference, including 12.3 hours for fact investigation, analysis and strategy, 12.6 hours preparing pleadings, 78.3 hours on discovery (including 25.4 hours on depositions and 19.7 hours on discovery motions), and 14.4 hours on settlement. He also sought fees for 165 hours of trial preparation and trial, consisting of 50 hours for witness preparation, 32 hours for trial document preparation, and 60 hours of “other” preparation, plus 23 hours of trial. He further sought fees for 43.8 hours of post-trial work, consisting of the fee motion and his opposition to defendant’s owner’s motion for costs. Defendant opposed the motion, contending that $30,000 in attorney’s fees was a more than reasonable amount. Defendant specifically argued that 12.6 hours to prepare the complaint, 25.4 hours to prepare for and attend two depositions, and 19.7 hours to oppose defendant’s motion to amend its answers to requests for admission were excessive. Defendant did not make itemized objections in its opposition to the other hourly calculations plaintiff presented, but defendant did contend the hours plaintiff’s attorney spent on trial preparation was excessive. Defendant did not submit a declaration or other evidence with its opposition papers. The trial court held a hearing on the motion and heard argument from counsel. The record on appeal does not contain a reporter’s transcript or settled statement of the hearing. As we set forth in more detail in our discussion below, the trial court issued a written ruling in which it found that plaintiff was the prevailing party and entitled to attorney’s fees, but the court concluded the amount of fees plaintiff sought was unreasonable. The court found 147.7 hours of attorney time, not 329.1 hours as plaintiff claimed, to be reasonable. The court further found an hourly rate of $395 to be

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Bluebook (online)
Philpott v. Midwest Roofing Co. CA2/5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/philpott-v-midwest-roofing-co-ca25-calctapp-2016.