Boyzo v. FCA US LLC

Background

Jesus and Maria Boyzo purchased a new 2013 Dodge Grand Caravan equipped with a Totally Integrated Power Module known as the TIPM-7. They alleged that the vehicle had serious defects and that repeated repairs did not fix the problems. They sued FCA US LLC in state court under the Song-Beverly Consumer Warranty Act, asserting express- and implied-warranty claims and a fraudulent-inducement claim. FCA removed the case to federal court based on diversity jurisdiction.

FCA offered $50,000 to settle the case on June 6, 2017, but the Boyzos did not accept that offer. The court later dismissed the fraudulent-inducement claim on summary judgment and excluded certain testimony by the Boyzos’ experts. The parties eventually settled. The stipulated final judgment required FCA to pay $36,592 in restitution and allowed the Boyzos to seek attorneys’ fees and costs.

Attorneys’ Fees

The Boyzos moved for fees and costs under California Civil Code section 1794(d), which allows a buyer who prevails under the Song-Beverly Act to recover reasonable fees and litigation costs. The court treated the Boyzos as prevailing parties because they achieved their main litigation objective through the settlement.

The court evaluated the request using the lodestar method, which calculates fees by multiplying reasonable hours by reasonable hourly rates. It approved the requested rates for most attorneys based on rates established in related fee orders. It set Lauren Martin’s and Kevin Jacobson’s rates at $225 per hour and found Cynthia Tobisman’s requested rate of $650 per hour reasonable. The court found the billed time generally reasonable, but reduced Sepehr Daghighian’s hours by three and Kevin Jacobson’s hours by 6.5 because the requested time included anticipated work that was not supported by evidence that it was actually performed.

The court rejected FCA’s arguments that the Boyzos used too many attorneys, used nonlocal counsel, billed excessive travel time, or used improper quarter-hour billing entries. The resulting lodestar award was $64,065.

Multiplier

The court declined to increase the lodestar with a multiplier. It found that the case did not involve complex issues, the results were unimpressive, the settlement was less favorable to the Boyzos than FCA’s initial offer, and the record did not show that the contingent nature of the representation created significant risk or prevented counsel from taking other cases.

Costs and Disposition

The Boyzos requested $16,841.47 in costs, including filing, service, expert-witness, copying, messenger, mediation, communication, courier, travel, and interpreter expenses. The court rejected FCA’s arguments that many of these costs were not recoverable under federal cost rules or the court’s local rules. It found the costs reasonable and awarded the full $16,841.47.

Judge Joseph C. Spero granted in part and denied in part the motion for attorneys’ fees, costs, and expenses. The court awarded $64,065 in attorneys’ fees and $16,841.47 in costs, for a total award of $80,906.47.