Narek Davtian v. Jaguar Land Rover North America LLC et al

Filing 146

ORDER GRANTING PLAINTIFFS MOTION FOR ATTORNEYS FEES IN PART AND DENYING THE MOTION IN PART 125 by Judge Dean D. Pregerson: The court awards Plaintiff $157,341.10 in fees and $29,373.02 in costs, for a total of $186,714.12. (lc). Modified on 3/3/2017 (lc).

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1 2 O 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 11 NAREK DAVTIAN, 12 Plaintiff, 13 14 v. JAGUAR LAND ROVER NORTH AMERICA LLC, 15 Defendant. 16 17 ___________________________ ) ) ) ) ) ) ) ) ) ) ) ) ) Case No. CV 14-05417 DDP (Ex) ORDER GRANTING PLAINTIFF’S MOTION FOR ATTORNEY’S FEES IN PART AND DENYING THE MOTION IN PART 18 19 Presently before the court is Plaintiff’s Motion for 20 Attorney’s Fees. 21 and heard oral argument, the court grants the motion in part, 22 denies the motion in part, and adopts the following Order. 23 I. 24 Having considered the submissions of the parties Background Plaintiff’s Complaint, originally filed in state court and 25 then removed to this court on the basis of diversity jurisdiction, 26 alleged a single “lemon law” cause of action under California’s 27 Song-Beverly Consumer Warrant Act (“Song Beverly”). 28 § 1790 et seq. Cal. Civ. Code Plaintiff alleged that a vehicle he had leased was 1 defective, and that Defendant failed to remedy the problems after 2 several repair attempts. 3 the assistance of this Court, the parties settled. 4 agreement provided that Defendant would pay $17,750, plus 5 Plaintiff’s “reasonably incurred attorney’s fees, costs, and 6 expenses pursuant to California Civil Code Section 1794(d) in an 7 amount to be determined by the Court by motion.” 8 Erika N. Kavicky in Support of Motion, Ex. N at 5.) 9 moves for attorney’s fees. 10 11 II. Ultimately, on the eve of trial, and with The settlement (Declaration of Plaintiff now Legal Standard In a diversity action, this court applies state law in the 12 method of calculating attorneys’ fees. Mangold v. California 13 Public Utilities Commission, 67 F.3d 1470, 1478 (9th Cir. 1995). 14 Song Beverly entitles a prevailing plaintiff to recover “ a sum 15 equal to the aggregate amount of costs and expenses, including 16 attorney’s fees based on actual time expended, determined by the 17 court to have been reasonably incurred by the buyer in connection 18 with the commencement and prosecution of [the] action.” 19 Code § 1794(d). 20 all the circumstances of the case the amount of actual time 21 expended and the monetary charge being made for the time expended 22 are reasonable.” 23 4th 99, 104 (1994). 24 of the case, the skill demonstrated in prosecuting the case, and 25 the results achieved. 26 charged are not reasonable, the reviewing court must award fees in 27 a lesser amount than that sought. 28 burden of demonstrating that the fees sought were allowable, Cal. Civ. The reviewing court must determine “whether under Nightingale v. Hyundai Motor Am., 31 Cal. App. Relevant circumstances include the complexity Id. If the time expended or the money Id. 2 The plaintiff bears the 1 reasonably necessary to the conduct of the litigation, and 2 reasonable in amount. 3 F.Supp.2d 1032, 1036 (C.D. Cal. 2013). Karapetian v. Kia Motors Am., Inc., 970 4 5 6 III. Discussion The “lodestar” method is appropriate to fee motions pursuant 7 to Section 1794(d). 8 Cal.App.4th 967, 997 (2009). 9 figure based upon actual time spent and reasonable hourly Doppes v. Bentley Motors, Inc., 174 The court must first determine a 10 compensation, then augment or reduce that figure by taking various 11 factors into account, such as the complexity of the issues 12 presented and the results achieved. 13 Cal.App.4th at 104. 14 by Plaintiff are reasonable in comparison with rates charged in the 15 Los Angeles area for similar work. 16 Plaintiff contends that counsel expended 740.2 hours on this 17 matter, for which they seek $195,125.00 in fees.2 18 Id. at 998; Nightingale, 31 The court is satisfied that the rates sought (Kavicky Decl. ¶¶ 38 ,40.)1 This Court may, in its discretion, reduce a fee award where 19 the fees incurred were not reasonable, such as where a case is 20 overlitigated. 21 that appears to be the case here. 22 complicated, and involved a relatively simple vehicle suspension 23 problem related to a compressor and a fuse. Karapetian, 970 F.Supp.2d at 1036. At first blush, The issue here was not Nevertheless, eight 24 1 25 26 27 28 Although the Kavicky declaration includes information about rates charged in various communities throughout California, it does include examples of rates in the Los Angeles area sufficient to establish the reasonableness of Plaintiff’s counsel’s rates. 2 Although counsel claim they expended 740.2 hours, they do not seek payment for 28.8 of those “no charged” hours. (Kavicky Decl. ¶ 6, Ex. A at 34.) 3 1 different Plaintiff’s lawyers from the Bickel Firm worked on this 2 case in some capacity.3 3 fully occupy one attorney for over four months. 4 Collectively, they billed enough hours to Furthermore, although Plaintiff’s counsel have provided 5 billing records in connection with the instant motion, the 6 credibility of counsel’s representations regarding the necessity of 7 the items billed and the time required to complete those tasks is 8 weakened by the nature of counsel’s fee arrangement with Plaintiff. 9 Counsel’s standard retainer agreement requires clients such as 10 Plaintiff to pay a flat fee of $2,000, even though counsel will 11 also recover for their actual expenses from defendants. 12 (Declaration of Richard Stuhlbarg, Ex. 17 at 1.) 13 the discretion however, regardless of the client’s wishes, “to 14 refuse to submit to fee motion to the Court for determination.” 15 (Id. at 2.) 16 settlement which includes a provision for submission of fees and 17 costs to the court, “Law Firm shall have a lien on Client’s 18 recovery for the full amount of fees, costs, and expenses billed or 19 advanced by Law Firm, regardless of the amount awarded by the 20 Court.” 21 does not cover counsel’s costs, the client “will remain obligated 22 to pay Law Firm for all unrecovered costs and expenses.” 23 2.) 24 contingent work, that does not appear to be the case. Counsel retain If a client, absent counsel’s approval, accepts a (Id. at 3.) If a client accepts a settlement offer that (Id. at Thus, despite counsel’s representations that they perform Counsel’s 25 26 27 28 3 Although eight different attorneys worked on this case for Plaintiff, Plaintiff’s counsel’s firm “no charged” all of the time billed by two of those attorneys. Plaintiff seeks fees for 711.4 hours billed by six attorneys. Nearly 75 percent of those hours were billed by attorney Isaac Agyeman. (Kavicky Decl., Ex. C.) 4 1 firm’s retainer agreement is structured in a way that guarantees 2 that counsel will be paid, either by a defendant or by the client, 3 for all costs and fees. 4 disincentives to litigate efficiently, let alone settle a case in 5 its early stages. Such an arrangement creates obvious 6 The court’s review of Plaintiff’s billing records is further 7 complicated by counsel’s block-billed entries, particularly those 8 of attorney Isaac Agyeman. 9 No. 11-CV-01786 MJS, 2014 WL 2801243 at *3 (reducing by half vague, See, e.g., Gordillo v. Ford Motor Co., 10 block-billed entry). 11 together over a dozen tasks, some as vague or seemingly unnecessary 12 as “Receive e-mail from opposing counsel regarding potential 13 settlement.” 14 40.6 of attorney Agyeman’s hours impossible to verify due to 15 vagueness and the block-billed nature of the entries. 16 further finds 49.2 of the hours billed by attorney Agyeman as 17 unnecessary or duplicative, many of them involving redundant 18 meetings with other lawyers and, in particular, excessive time 19 spent opposing motions in limine and preparing for oral argument. 20 The court also finds 3.2 hours billed by attorney Kyle Fellenz for 21 meeting with other lawyers to be duplicative and unnecessary. 22 Attorney Carol McBirney also billed 20.2 unjustifiable hours for 23 trial preparation, particularly in light of the simplicity of the 24 issues in this case, with which attorney Agyeman was sufficiently 25 well-versed to try the case unaided. 26 appear to have spent an unreasonable amount of time scanning 27 documents, meriting a 2.1 hour decrease in the paralegal time 28 billed. Counsel’s entries, in some cases, lump (Kavicky Decl., Ex. A at 15, 23.) 5 The court finds The court Counsel’s paralegals also 1 Lastly, the court finds it appropriate to reduce the fees 2 awarded for attorney travel time. Although the court would 3 typically award fees for attorney travel time, Plaintiff has 4 provided no explanation why he could not obtain counsel in the Los 5 Angeles area, and instead retained a San Diego-based firm. 6 Plaintiff’s own submissions establish that there are experienced 7 lemon law lawyers in the Los Angeles area who would not have had to 8 travel such great distances to attend court proceedings and vehicle 9 inspections. Indeed, Accordingly, the court reduces the fee award by 10 $8,500.4 11 demonstrate that $37,783.90 of the $195,125.00 sought was 12 reasonably incurred. 13 $157,341.10 in fees and $29,373.02 in costs, for a total of 14 $186,714.12. 15 All told, the court finds that Plaintiff has failed to The court therefore awards Plaintiff Defendant submits that a total award of approximately $20,000 16 is appropriate. 17 here were not complex. 18 $17,750 recovery was hardly an “outstanding result.” 19 4:2.) 20 settlement did not entitle Plaintiff to retain possession of a 21 $65,000 vehicle. 22 law suits may allow some plaintiffs to keep their vehicles, the 23 vehicle at issue here was leased. (Opposition at 20.) As noted above, the issues And, as Defendant points out, Plaintiff’s (Mot. at Contrary to Plaintiff’s counsel’s representation, the (Mot. at 4.) Although resolution of some lemon Indeed, Plaintiff’s lease 24 25 26 27 28 4 The court will also reduce the costs awarded by $3,236.59 for travel-related costs that would not have been incurred by local counsel. 6 1 payments on the allegedly defective vehicle significantly exceeded 2 the amount of his monetary recovery.5 3 Defendant, however, bears some responsibility for protracting 4 this matter. 5 as early as August 2015, on financial terms not significantly 6 different from those ultimately reached. 7 Plaintiff’s fees were less than 65% of those ultimately sought. 8 Defendant, however, refused to agree to fairly standard “prevailing 9 party” language, apparently because it wished to preserve an The parties appear to have been close to a settlement At that point, 10 argument that Plaintiff is not entitled to any attorney’s fees at 11 all. 12 ultimately agreed that Plaintiff had met the requirements of 13 California Civil Code Section 1794(d), the delay in agreeing to 14 that term cannot be laid solely at Plaintiff’s feet.6 15 although Defendant asks that the court award fees for only one 16 hundred hours of work (Opp. at 20:21), the court learned at oral 17 argument that Defendant’s counsel themselves billed approximately 18 600 hours on this matter. 19 joint responsibility for prolonging these proceedings, and the 20 totality of the circumstances, an award significantly higher than 21 that suggested by Defendants is appropriate. 22 IV. (Stuhlbarg Decl., Exs. 32, 35.) Although the parties Furthermore, In light of that fact, the parties’ Conclusion 23 5 24 25 26 27 For these reasons, the court declines to apply a positive multiplier to the award. See, e.g. Ketchum v. Moses, 24 Cal. 4th 1122, 1139 (2001) (“[A] trial court should award a multiplier for exceptional representation only when the quality of representation far exceeds the quality of representation that would have been provided by an attorney of comparable skill and experience . . . .”). 6 28 The court notes, however, that the nature of Plaintiff’s fee arrangement with counsel may well have affected his calculus. 7 1 For the reasons stated above, Plaintiff’s motion is GRANTED in 2 part and DENIED in part. The court awards Plaintiff $157,341.10 in 3 fees and $29,373.02 in costs, for a total of $186,714.12. 4 5 6 IT IS SO ORDERED. 7 8 9 Dated: March 3, 2017 DEAN D. PREGERSON United States District Judge 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 8

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