Salinas v. FCA US LLC

District Court, E.D. California·Decided September 9, 2019·No. 1:17-cv-00419·Unknown

Opinion

EDITH SALINAS, ) Case No.: 1:17-cv-0419 - JLT ) Plaintiff, ) ORDER GRANTING IN PART PLAINTIFF’S ) MOTION FOR ATTORNEY FEES AND COSTS v. ) ) (Doc. 55) FCA US LLC, et al., ) Defendants. ) ) )

Edith Salinas asserts that FCA US LLC is liable for violations of the Song-Beverly act and fraudulent inducement under California law. The parties settled the underlying claims, and Plaintiff now seeks an award of attorney fees and costs. (Doc. 55) For the reasons set forth below, Plaintiff’s motion is GRANTED in part, in the modified amount of $28,743.93. I. Background Plaintiff purchased a 2013 Jeep Grand Cherokee on October 14, 2012. (Doc. 1-1 at 7, ¶ 8) According to Plaintiff, the vehicle “was delivered to [her] with serious defects and nonconformities to warranty[,] and developed other serious defects and nonconformities to warrant including, but not limited to a defective [Totally Integrated Power Module].” (Id. at 27, ¶ 130) Plaintiff reports her vehicle “was factory-equipped” by Defendant with the Totally Integrated Power Module (“TIPM”), which “is the chief component in the … power distribution systems and consists of a computer, relays, fuses, and controls.” (Doc. 1-1 at 7, ¶¶ 10-11) According to Plaintiff, “The TIPM provides the primary means of voltage distribution and protection for the entire vehicle...” (Id., ¶ 11) Electrical systems receiving power from the TIPM included the vehicle’s “safety systems, security system, ignition system, fuel system, electrical powertrain, and … comfort and convenience systems.” (Id., ¶ 12) Plaintiff contends the TIPM installed in her vehicle was faulty and failed “to reliably control and distribute power to various vehicle electrical systems and component parts,” which caused her “check engine line [to] come[] on frequently.” (Doc. 1-1 at 7, ¶¶ 13-14) In addition, Plaintiff alleges the TIPM “is likely to cause a variety of electrical issues such as a loss of headlight function, and unexpected distractions, such as the vehicle’s horn or alarm sounding while on a roadway, which may increase the risk of injury for the driver, passengers, or others on the roadway.” (Id. at 7-8, ¶ 15) According to Plaintiff, “FCA US LLC had superior and exclusive knowledge of the TIPM defects, and knew or should have known that the defects were not known by or reasonably discovered by Plaintiff before [she] purchased or leased the Vehicle.” (Doc. 1-1 at 8, ¶ 17) Plaintiff reports: “FCA US LLC vehicles have been plagued with severe TIPM problems for the last decade. As a result, FCA US LLC has initiated multiple TIPM-related recalls to address safety or emissions concerns.” (Id., ¶ 19) Further, Plaintiff asserts the TIPM “defect is so widespread that… replacement parts have often been on national backorder, with drivers reporting from 2011 to 2014 that they had to wait weeks or months of have their TIPMs replaced.” (Id. at 8-9, ¶ 21) She alleges FCA UC LLC dealers and auto-technicians “advis[ed] many drivers to not drive their vehicles until the TIPM [was] replaced, due to safety risks.” (Id. at 9, ¶ 21) However, Defendant did not disclose the defect “to Plaintiff prior to the purchase of the Subject Vehicle or at any point during [her] ownership of the Subject Vehicle.” (Id. at 19, ¶ 89) In October 2015, “Plaintiff received a letter in the mail from the settlement administrator in a class action lawsuit informing Plaintiff that [she] was a member of a class of individuals for which a ‘class action settlement involving the Totally Integrated Power Module (TIPM)’ had been reached.” (Doc. 1-1 at 22, ¶ 106) The letter informed her that the plaintiff in Velasco, et al. v. Chrysler Group LLC, Case No. 2:13-cv-08080-DDP-VBK (C.D. Cal) claimed the TIPM “installed in model-years 2011, 2012, and 2013 Dodge Durango and Jeep Grand Cherokee vehicles is defective and poses a safety hazard.” (Id., ¶¶ 106, 111) Plaintiff contends “[t]his was the earliest date that FCA US LLC made any attempt to notify [her] of any of the known defects in the TIPM7.” (Id., ¶ 106) Plaintiff “opted out of the class action settlement in Velasco and filed the instant action to pursue [her] individual rights.” (Id. at 26, ¶ 125) On June 1, 2016, Plaintiff filed her complaint in Merced County Superior Court, Case Number 16CV-01595. (See Doc. 1-1 at 3, 5) Plaintiff identified the following causes of action in her complaint: (1) breach of an express warranty pursuant to the Song-Beverly Act, (2) breach of an implied warranty pursuant to the Song-Beverly Act, and (3) fraudulent inducement. (Id. at 5, 26-31) Plaintiff’s prayer for relief included, but was not limited to: general, special and actual damages; “recession of the purchase contract and restitution of all monies expended;” diminution in value; civil penalties totaling two times her actual damages, and reasonable attorney fees and costs. (See id. at 31-32) Defendant filed its answer on July 7, 2016, asserting in part that “Plaintiff’s entire Complaint [was] moot based upon the fact that FCA US LLC … offered to repurchase Plaintiff’s vehicle” as a repurchase under the Song-Beverly Act. (Doc. 1-4 at 8, ¶27) On March 22, 2017, Defendant filed a Notice of Removal pursuant to 28 U.S.C. §§ 1332, 1441(a) and 1446(a), thereby initiating the matter with this court. (Doc. 1) Plaintiff filed a motion to remand the action to the state court on June 5, 2017. (Doc. 5) The Court determined it had diversity jurisdiction over the action and denied the motion to remand on August 30, 2017. (Doc. 17) On July 15, 2019, Defendant filed a Notice of Plaintiff’s Acceptance of its Rule 68 offer to settle the action for $120,000. (Doc. 49; Doc. 49-1 at 2-4) At that time, Defendant also informed the court there “may still be a motion for attorneys’ fees to be filed by Plaintiff.” (Doc. 49 at 1) Pursuant to the information provided, the Court entered judgment in favor of Plaintiff on July 16, 2019. (Docs. 52, 53) Plaintiff filed a bill of costs on July 30, 2019. (Doc. 54) In addition, she filed the motion for attorney fees, costs and expenses on August 2, 2019. (Doc. 55) Defendant filed its objections to the bill of costs on August 6, 2019 (Doc. 57), and its opposition to the motion for fees on August 26, 2019 (Doc. 58) Plaintiff filed a brief in reply on August 30, 2019. (Doc. 59) /// II. Legal Standard “In a diversity case, the law of the state in which the district court sits determines whether a party is entitled to attorney fees, and the procedure for requesting an award of attorney fees is governed by federal law. Carnes v. Zamani, 488 F.3d 1057, 1059 (9th Cir. 2007); see also Mangold v. Cal. Public Utilities Comm’n, 67 F.3d 1470, 1478 (9th Cir. 1995) (noting that in a diversity action, the Ninth Circuit “applied state law in determining not only the right to fees, but also in the method of calculating the fees”). As explained by the Supreme Court, “[u]nder the American Rule, ‘the prevailing litigant ordinarily is not entitled to collect a reasonable attorneys’ fee from the loser.’” Travelers Casualty & Surety Co. of Am. v. Pacific Gas & Electric Co., 549 U.S. 443, 448 (2007) (quoting Alyeska Pipeline Service Co. v. Wilderness Society, 421 U.S. 240, 247 (1975)). However, a statute allocating fees to a prevailing party can overcome this general rule. Id. (citing Fleischmann Distilling Corp. v. Maier

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