Sayta v. Martin

CourtDistrict Court, N.D. California
DecidedJanuary 28, 2022
Docket3:16-cv-03775-LB
StatusUnknown

This text of Sayta v. Martin (Sayta v. Martin) 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
Sayta v. Martin, (N.D. Cal. 2022).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 NORTHERN DISTRICT OF CALIFORNIA 10 San Francisco Division 11 SHAUNAK SAYTA, Case No. 16-cv-03775-LB

12 Plaintiff, ORDER DENYING RECOVERY OF 13 v. COSTS AND FEES IN PART AND DENYING MOTION TO QUASH 14 BENNY MARTIN, et al., WITHOUT PREJUDICE 15 Defendants. Re: ECF Nos. 169, 170, 171, 173, 180 16 17 INTRODUCTION AND STATEMENT 18 The court previously confirmed arbitration awards in favor of Shaunak Sayta’s former lawyer, 19 Benjamin Martin, and awarded him attorney’s fees and costs.1 Mr. Sayta appealed.2 The Ninth 20 Circuit affirmed and entered judgment in Mr. Martin’s favor against Mr. Sayta and his lawyer, John 21 Cowan, awarding $47,372 attorney’s fees and costs. Sayta v. Martin, No. 18-17090, Mem. Op. (9th 22 Cir. Feb. 21, 2020), ECF No. 37; id., Am. Mandate (9th Cir. Feb. 3, 2021), ECF No. 47. The court 23 issued a Writ of Execution in the amount of $47,372 on September 20, 2021.3 Mr. Martin served 24 25

26 1 Orders – ECF Nos. 50, 70; Judgments – ECF Nos. 51, 71. Citations refer to material in the Electronic Case File (ECF); pinpoint citations are to the ECF-generated page numbers at the top of documents. 27 2 Notice of Appeal – ECF No. 73. 1 subpoenas on several third parties in an apparent effort to identify and levy Mr. Cowen’s assets.4 2 Mr. Martin also filed a Memorandum of Costs on October 19, 2021 seeking costs and attorney’s 3 fees incurred to enforce the Ninth Circuit’s judgment.5 Mr. Cowen moved to quash the subpoenas 4 on October 26, 2021 and objected to the Memorandum of Costs on November 2, 2021.6 5 On January 18, 2022, Mr. Martin filed an Application for a Writ of Execution claiming 6 $25,725.03 for an October 19, 2021 “judgment.”7 On the same day, Mr. Cowen objected on grounds 7 that there is no judgment to support Mr. Martin’s Writ.8 The purported “judgment” referenced in the 8 Writ appears to be an erroneous reference to Mr. Martin’s Memorandum of Costs, which is the 9 subject of this order. 10 The court denies in part recovery of the costs claimed in the Memorandum of Costs. Most 11 costs sought therein are not claimable as a matter of right without a noticed motion, and the 12 majority of the claimed attorney’s fees were not “reasonable and necessary.” The court denies Mr. 13 Cowen’s motion to quash without prejudice for failing to comply with the court’s Standing Order 14 concerning discovery disputes. All parties have consented to magistrate jurisdiction.9 The court 15 can decide the case without oral argument under Civil Local Rule 7-1(b). 16 17 ANALYSIS 18 1. Statutory Framework: Recovery of Costs Incurred to Enforce a Judgment 19 Absent an applicable federal statute, California law governs the enforcement of writs of 20 execution when the district court proceedings were held in California. Fed. R. Civ. P. 69; Hilao v. 21 Est. of Marcos, 95 F.3d 848, 851 (9th Cir. 1996). California’s Enforcement of Judgments Law is 22 codified as Title 9 of California’s Code of Civil Procedure and provides a comprehensive scheme 23

24 4 Martin Decl. – ECF No. 176-1 at 2 and 6–18. 25 5 Mem. of Costs – ECF No. 169. 26 6 Mot. to Quash – ECF Nos. 170, 171; Obj. to Mem. of Costs – ECF No. 173. 7 Writ of Execution – ECF No. 180 at 1. 27 8 Obj. Writ of Execution – ECF No. 181 at 2. 1 governing the enforcement of judgments. Hilao, 95 F.3d at 851. Courts should apply the 2 Enforcement of Judgments Law “in a common sense manner.” Carnes v. Zamani, 488 F.3d 1057, 3 1060 (9th Cir. 2007). Enforcement costs fall into two categories, those authorized as a matter of 4 right (claimable through a memorandum of costs or noticed motion) and other costs that may be 5 granted on a discretionary basis (claimable by noticed motion). Xcentric Ventures, LLC v. 6 Elizabeth Arden, No. C 10-80058 SI, 2010 WL 5018386, at *2 (N.D. Cal. Dec. 3, 2010). 7 Costs that are available as a matter of right are identified in California Code of Civil Procedure 8 § 685.070(a). Xcentric Ventures, 2010 WL 5018386, at *2. To obtain costs as a matter of right, the 9 judgment creditor need only file a memorandum of costs with an attestation that the costs are 10 correct, reasonable, necessary, and have not been satisfied. Id. To challenge the claimed costs, the 11 judgment debtor has ten days after being served with the memorandum of costs to file either a 12 noticed motion to have the costs taxed by the court or objections to the memorandum of costs. Id. 13 (costs should be challenged through a noticed motion) (citing Cal. Civ. Proc. Code § 685.070(c)); 14 Schutza v. Walter E. Fielder, Inc., No. 18-CV-0257-BAS-LL, 2019 WL 5295075, at *2 (S.D. Cal. 15 Oct. 18, 2019) (“The filing of objections to a memorandum of costs may be deemed a motion to 16 tax costs where the motion was timely, and each item in the objections corresponds to each 17 successive line in the other party’s cost memorandum.”) (citing 16 William Lindsley, Cal. Juris., 18 16 Cal. Jur. 3d Costs § 96 (3d ed. 2019)). 19 While judgment creditors may seek additional “reasonable and necessary” costs that are not 20 specifically identified in § 685.070, the judgment creditor must file a noticed motion to request 21 those costs. Xcentric Ventures, 2010 WL 5018386, at *2; see also Cal. Civ. Proc. Code § 22 685.080(a) (“The judgment creditor may claim costs authorized by Section 685.040 by noticed 23 motion.”). Regardless of whether costs are claimed through a noticed motion or a memorandum of 24 costs, the request must be made before the judgment is fully satisfied. Yeager v. Bowlin, No. Civ. 25 2:08-102 WBS, 2015 WL 3795585, at *1 (E.D. Cal. June 17, 2015) (“Under either method [i.e., a 26 memorandum of costs or noticed motion], however, the judgement creditor must request 27 postjudgment attorneys’ fees before the underlying judgment is fully satisfied”) (citing 1 2. Recoverability of Attorney’s Fees 2 California law provides that judgment creditors may obtain attorney’s fees incurred in 3 enforcing a judgment as a matter of right “if allowed by Section 685.040” by filing a noticed 4 motion or memorandum of costs. Cal. Civ. Proc. Code § 685.070(a)(6); Carnes, 488 F.3d at 1060 5 (“The judgment creditor may seek to recover attorney fees incurred in enforcing a judgment by 6 either filing a memorandum of costs or by serving a noticed motion.”); see also Love v. Guerrero, 7 No. ED CV 13-1655-DMG(SPx), 2016 WL 11672296, at *1 (C.D. Cal. Oct. 31, 2016) 8 (“Attorney’s fees are also allowable as of right, on the judgment creditor’s memorandum of costs, 9 when those fees are authorized by statute or contract.”); but see Karnazes v. Hartford, No. 10 A136400, 2014 WL 511089, at *1 (Cal. Ct. App. Feb. 10, 2014) (a noticed motion, rather than a 11 memorandum of costs, is required in order to claim attorney’s fees incurred while attempting to 12 enforce a judgment under §§ 685.070 and 685.040), as modified on denial of reh’g (Mar. 3, 2014) 13 (unpublished). In this regard, § 685.040 provides that: 14 [t]he judgment creditor is entitled to the reasonable and necessary costs of enforcing a judgment. Attorney’s fees incurred in enforcing a judgment are not 15 included in costs collectible under this title unless otherwise provided by law.

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Sayta v. Martin, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sayta-v-martin-cand-2022.