Yarovoy v. Tesla Motors, Inc.

CourtDistrict Court, N.D. California
DecidedApril 23, 2024
Docket3:23-cv-04182
StatusUnknown

This text of Yarovoy v. Tesla Motors, Inc. (Yarovoy v. Tesla Motors, Inc.) 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
Yarovoy v. Tesla Motors, Inc., (N.D. Cal. 2024).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 VADIM YAROVOY, Case No. 23-cv-04182-JSC

8 Plaintiff, ORDER RE: PLAINTIFF’S MOTION 9 v. FOR ATTORNEY’S FEES

10 TESLA, INC, Re: Dkt. No. 22 Defendant. 11

12 13 Plaintiff moves for attorney’s fees and costs after accepting Tesla’s Rule 68 offer in this 14 lemon law action. (Dkt. No. 24.)1 Plaintiff seeks $37,462.50 in total reimbursement, including 15 $24,962.50 in attorney’s fees, $554.60 in costs and $12,500 for briefing this motion.2 (Dkt. No. 16 30 at 7.) After carefully considering the parties’ written submissions, the Court GRANTS in part 17 and DENIES in part the motion. The Court awards Plaintiff $14,436.25 in fees and $554.60 in 18 costs.3 19 BACKGROUND 20 In June 2014, Vadim Yarovoy purchased a Tesla Model S for $80,766. (Dkt. No. 1-1 ¶ 3.) 21 The vehicle suffered “serious nonconformities” and underwent a dozen repair visits. (Dkt. No. 1-1 22 ¶¶ 11-12.) Tesla “repeatedly failed to repair the Vehicle in a timely manner, fix the defects, or to 23 offer Plaintiff a buyback.” (Dkt. No. 1-1 ¶ 17.) 24

25 1 Record citations are to material in the Electronic Case File (“ECF”); pinpoint citations are to the ECF-generated page numbers at the top of the documents. 26 2 Plaintiff changes his total fee request several times throughout the briefing, including twice in his Reply. The numbers cited here reflect the final request in Plaintiff’s Reply. However, Plaintiff’s 27 final figure does not accurately reflect the sum of his specified fee requests; those numbers add up 1 On July 11, 2023, Plaintiff filed this state lemon law action in Alameda County Superior 2 Court. (Dkt. No. 1-1 at 3-18.) One month later, on August 14, 2023, Tesla served a California 3 Code of Civil Procedure Section 998 offer—the California state court Federal Rules of Civil 4 Procedure 68 equivalent—with an option for $3,500 in fees and costs, which Plaintiff rejected. 5 (Dkt. No. 29-1 ¶ 7.) On August 16, 2023, Tesla removed the case to this Court. (Dkt. No. 1.) On 6 October 3, 2023, Tesla served Plaintiff a Rule 68 offer. (Dkt. No 29-1 ¶ 9.) Plaintiff accepted 7 Tesla’s $65,000 buyback offer, but rejected Tesla’s $5,000 offer for fees, opting to pursue higher 8 attorney’s fees and costs via the present motion. (Dkt. No. 13-1.) On November 1, 2023, Tesla 9 served another Rule 68 offer for $12,000 in fees, which Plaintiff also rejected. (Dkt. No. 29-1 ¶ 10 11.) 11 Plaintiff’s counsel billed 32.5 hours litigating this case since December 2022—23.4 hours 12 at $625/hour and 9.1 hours at $675/hour. (Dkt. No. 22-4 at 2-16.) Counsel’s paralegal billed 47 13 hours—7.8 hours at $125/hour and 39.2 hours at $100/hour. Id. Plaintiff submits a declaration 14 from his attorney and a peer attorney to support allegations Plaintiff’s counsel has practiced law 15 for nearly 18 years, litigated thousands of auto warranty matters, and received numerous industry 16 plaudits. (see Dkt. No. 22-3 ¶ 2; see also Dkt. No. 22-1 ¶ 5.) 17 Plaintiff now seeks $37,462.50 in total reimbursement. (Dkt. No. 30 at 7.) This amount 18 includes $24,962.50 in attorney’s fees, $554.60 in “costs incurred prior to filing this motion,” and 19 $12,500 “for fully briefing and arguing this motion.” Id. Tesla requests Plaintiff’s motion be 20 dismissed entirely, or alternatively requests the Court reduce Plaintiff’s fees to $2,955. (Dkt. No. 21 29 at 6.) 22 LEGAL STANDARD 23 State law governs attorney’s fees in diversity cases such as this. Riordan v. State Farm 24 Mut. Auto. Ins. Co., 589 F.3d 999, 1004 (9th Cir. 2009) (“In a diversity case, the law of the state in 25 which the district court sits determines whether a party is entitled to attorney fees, and the 26 procedure for requesting an award of attorney fees is governed by federal law”). 27 The Song-Beverly Act allows a prevailing plaintiff to recover “the aggregate amount of 1 court to have been reasonably incurred by the buyer in connection with the commencement and 2 prosecution of such action.” Cal. Civ. Code § 1794(d). A party is a prevailing party if the court, 3 guided by equitable principles, decides that the party has achieved its “main litigation 4 objective.” Graciano v. Robinson Ford Sales, Inc., 144 Cal. App. 4th 140, 150–51 (2006); see 5 also Wohlgemuth v. Caterpillar Inc., 207 Cal. App. 4th 1252, 1262 (2012) (holding “consumers 6 who successfully achieve the goals of their litigation through a compromise agreement” may 7 recover attorney’s fees and costs as prevailing parties under the Song-Beverly Act). 8 Courts calculate attorney’s fees under California Civil Code § 1794(d) using the “lodestar 9 adjustment method.” Robertson v. Fleetwood Travel Trailers of Cal., Inc., 144 Cal. App. 4th 785, 10 818 (2006). The lodestar figure consists of “the number of hours reasonably expended multiplied 11 by the reasonable hourly rate.” PLCM Grp. v. Drexler, 22 Cal. 4th 1084, 1095 (2000). A 12 reasonable hourly rate is defined as “that prevailing in the community for similar work.” Id. As 13 to the computation of hours, “trial courts must carefully review attorney documentation of hours 14 expended; ‘padding’ in the form of inefficient or duplicative efforts is not subject to 15 compensation.” Ketchum v. Moses, 24 Cal. 4th 1122, 1132 (2001). 16 The lodestar figure may be adjusted, “based on consideration of factors specific to the case, 17 in order to fix the fee at the fair market value for the legal services provided.” Ketchum, 24 Cal. 18 4th at 1134. These factors include: 19 [T]he nature of the litigation and its difficulty; the amount of money 20 involved in the litigation; the skill required and employed in handling the litigation; the attention given to the case; the attorney’s success, 21 learning, age and experience in the particular type of work demanded; the intricacy and importance of the litigation; the labor and necessity 22 for skilled legal training and ability in trying the case; and the amount of time spent on the case. 23 24 Niederer v. Ferreira, 189 Cal. App. 3d 1485, 1507 (1987). “To the extent a trial court is 25 concerned that a particular award is excessive, it has broad discretion to adjust the fee downward 26 or deny an unreasonable fee altogether.” Ketchum, 24 Cal. 4th at 1138. A district court may, in 27 awarding fees based on a lodestar calculation, “impose a small reduction, no greater than 10 1 explanation.” Moreno v. City of Sacramento, 534 F.3d 1106, 1112 (9th Cir. 2008). If a court 2 imposes a reduction greater than 10 percent, it must give a “clear” explanation and “articulate its 3 reasoning with . . . specificity.” Id. 4 DISCUSSION 5 The parties do not dispute Plaintiff’s right to recoup reasonable attorney’s fees, costs, and 6 expenses under the Song-Beverly Act. (Dkt. No. 29 at 4); see also Cal. Civ. Code § 1794(d). 7 Instead, the question is what fees, costs, and expenses are reasonable. 8 A. Lodestar Calculation 9 1. Reasonable Hourly Rates 10 To determine whether counsel’s hourly rates are reasonable, the Court looks to the “hourly 11 amount to which attorneys of like skill in the area would typically be entitled.” Ketchum, 24 Cal. 12 4th at 1133.

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