Tercero v. Mercedes-Benz USA, LLC

CourtDistrict Court, S.D. California
DecidedJune 24, 2025
Docket3:24-cv-02084
StatusUnknown

This text of Tercero v. Mercedes-Benz USA, LLC (Tercero v. Mercedes-Benz USA, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tercero v. Mercedes-Benz USA, LLC, (S.D. Cal. 2025).

Opinion

1 2 3 4 5 6 7 8 9 UNITED STATES DISTRICT COURT 10 SOUTHERN DISTRICT OF CALIFORNIA 11 12 LUIS TERCERO, Case No.: 24-CV-2084 TWR (KSC)

13 Plaintiff, ORDER (1) GRANTING IN PART 14 v. PLAINTIFF’S MOTION FOR ATTORNEYS’ FEES; 15 MERCEDES-BENZ USA, LLC, a (2) GRANTING PLAINTIFF’S Delaware Limited Liability Company; and 16 MOTION FOR COSTS AND DOES 1 THROUGH 10, inclusive, EXPENSES; AND (3) DENYING AS 17 Defendants. MOOT PLAINTIFF’S MOTION TO 18 REMAND

19 (ECF Nos. 8, 19, 20) 20 21 Presently before the Court are Plaintiff Luis Tercero’s Motion for Attorneys’ Fees 22 (“Fees Mot.,” ECF No. 19), and Motion for Costs and Expenses (“Costs Mot.,” ECF No. 23 20), as well as Defendant Mercedes-Benz USA, LLC’s Opposition to (“Opp’n,” ECF No. 24 22) and Plaintiff’s Reply in support of (“Reply,” ECF No. 24) the Fees Motion. For the 25 reasons set forth below, the Court GRANTS IN PART Plaintiff’s Fees Motion and 26 GRANTS Plaintiff’s Costs Motion. Additionally, in light of the settlement agreement 27 between the Parties, (see ECF No. 16), the Court DENIES AS MOOT Plaintiff’s Motion 28 to Remand to State Court (“Remand Mot.,” ECF No. 8). 1 BACKGROUND 2 On October 1, 2024, Plaintiff initiated this action by filing his Complaint in the 3 Superior Court of California, County of San Diego. (See ECF No. 1-2 (“Compl.”) at 4.) 4 The Complaint alleged two claims, both for violations of the Song-Beverly Consumer 5 Warranty Act.1 (Compl. at 6:6, 7:10.) Defendant removed the action to this Court on 6 November 6, 2024, (see ECF No. 1), and the case settled at the Early Neutral Evaluation, 7 which the Honorable Karen S. Crawford held on February 10, 2025. (See ECF No. 16; see 8 also ECF No. 19.) 9 LEGAL STANDARD 10 “In a diversity case” such as this one, “the law of the state in which the district court 11 sits determines whether a party is entitled to attorney fees, and the procedure for requesting 12 an award of attorney fees is governed by federal law.” Carnes v. Zamani, 488 F.3d 1057, 13 1059 (9th Cir. 2007). “Under § 1794(d) of California’s Song-Beverley Act, the prevailing 14 party shall be allowed to recover attorneys’ fees ‘based on actual time expended, 15 determined by the court to have been reasonably incurred by the buyer in connection with 16 the commencement and prosecution of such action.’” Nguyen v. BMW of N. Am., LLC, 17 No. 20-CV-2432 JLS (BLM), 2023 WL 173921, at *1 (S.D. Cal. Jan. 12, 2023) (quoting 18 Cal. Civ. Code § 1794(d)). “A prevailing buyer has the burden of showing that the fees 19 incurred were allowable, were reasonably necessary to the conduct of the litigation, and 20 were reasonable in amount.” Id. (quoting Nightingale v. Hyundai Motor Am., 31 Cal. App. 21 4th 99, 104 (1994)). “The opposing party may object to specific costs, placing the burden 22 on the buyer to demonstrate their necessity.” Aispuro v. Ford Motor Co., No. 18-CV-2045 23 DMS (KSC), 2020 WL 4582677, at *2 (S.D. Cal. Aug. 10, 2020) (citing Rappenecker v. 24 Sea-Land Serv., Inc., 93 Cal. App. 3d 256, 266 (1979)). 25 / / / 26

27 1 These claims are colloquially referred to as “lemon law” claims. E.g., Blood v. Mercedez-Benz, 28 1 “Courts calculate attorneys’ fees under § 1794(d) using the ‘lodestar adjustment 2 method.’” Id. (quoting Robertson v. Fleetwood Travel Trailers of Cal., Inc., 144 Cal. App. 3 785, 818 (2006)). First, the Court “begins with a touchstone or lodestar figure, based on 4 the careful compilation of the time spent and reasonable hourly compensation of each 5 attorney.” Id. (quoting Ketchum v. Moses, 24 Cal. 4th 1122, 1131–32 (2001)). Next, the 6 Court has the discretion to adjust the lodestar figure based on “(1) the novelty or difficulty 7 of the questions involved, (2) the skill displayed in presenting them, (3) the extent to which 8 the nature of the litigation precluded other employment by the attorneys, [and] (4) the 9 contingent nature of the fee award.” Id. (quoting Ketchum, 24 Cal. 4th at 1132). “The 10 purpose of such adjustment is to fix a fee at the fair market value for the particular action.” 11 Ketchum, 24 Cal. 4th at 1132. 12 DISCUSSION 13 Plaintiff requests that the Court award a lodestar figure of $35,105.50, a lodestar 14 multiplier enhancement of $17,552.75, and actual costs in the amount of $865.50. (Fees 15 Mem. at 7:22–8:3.) In total, Plaintiff seeks $53,523.75 in attorneys’ fees and costs for the 16 work done by his attorneys from Knight Law Group, LLP (“KLG”) on a lemon law claim 17 related to a vehicle leased for $56,571.80. (ECF No. 19-1 (“Fees Mem.”) at 8:2–6.) 18 I. Attorneys’ Fees 19 A. Reasonableness of Hourly Rates 20 “The burden is on the fee applicant to produce satisfactory evidence—in addition to 21 the attorney's own affidavits—that the requested rates are in line with those prevailing in 22 the community for similar services by lawyers of reasonably comparable skill, experience, 23 and reputation.” Nguyen, 2023 WL 173921, at *2 (alteration adopted) (quoting Camacho 24 v. Bridgeport Fin., Inc., 523 F.3d 973, 979 (9th Cir. 2008)). “The relevant community is 25 that in which the district court sits.” Carr v. Tadin, Inc., 51 F. Supp. 3d 970, 978 (S.D. 26 Cal. 2014). “Once the fee applicant has proffered such evidence, the opposing party must 27 produce its own affidavits or other evidence to rebut the proposed rate.” Nguyen, 2023 WL 28 173921, at *2. 1 Here, Plaintiff requests the following rates: 2 Name Position Hourly Rate 3 Debra Reed Associate Attorney II $495 4 Jacob Cutler Senior Attorney $550 5 Lauren Ungs Partner $550 6 Russell Higgins Partner $550–6002 7 Scot Wilson Partner $645 8 Norman Little Paralegal $145 9 10 (See ECF No. 19-3 (“KLG Invoice”) at 9.) 11 Plaintiff asserts that these rates are reasonable because “numerous court orders 12 [have] confirm[ed] the reasonableness of Plaintiff’s counsels’ hourly rates[,]” “[t]his case 13 required a range of specialized knowledge[,]” and “Plaintiff’s attorneys’ experience has 14 enabled them to develop litigation strategies that are highly effective and cost and time 15 efficient.” (Fees Mem. at 13:22–23, 14:12–13, 15:14–16.) Roger Kirnos, the Managing 16 Partner at KLG, submitted a declaration in support of the Fees Motion in which he 17 describes the fees awarded to his firm in twenty different cases from jurisdictions 18 throughout California. (ECF No. 19-2 (“Kirnos Decl.”) ¶¶ 28–47.) Notably, only two of 19 these cases are from the Southern District of California, and both are approximately five 20 years old. (See Kirnos Decl. ¶¶ 35, 39.) 21 Defendant contends that Plaintiff’s requested hourly rates are unreasonable and 22 instead suggests hourly rates of $400 for all attorneys and $100 for paralegals. (Opp’n at 23 8:12–16.) Specifically, Defendant argues that “[n]o evidence is presented that [Plaintiff’s] 24 attorneys actually bill any clients at th[e requested] rates” and that Kirnos “do[es] not 25 26 27 2 Although Plaintiff does not squarely address the increase in Russell Higgins’s rate from $550/hour to $600/hour, it appears that KLG changed his rate at the beginning of 2025. (See generally KLG Invoice; 28 1 provide any details about the respective cases cited[.]” (Opp’n at 8:2–4.) In support of its 2 argument, Defendant submitted a declaration from Mehgan Gallagher—one of 3 Defendant’s attorneys of record—and copies of orders on attorneys’ fees motions from 4 seven different federal cases in California. (See ECF Nos.

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Bluebook (online)
Tercero v. Mercedes-Benz USA, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tercero-v-mercedes-benz-usa-llc-casd-2025.