Cardoso v. FCA US LLC

Background

Luiz Cardoso and Select Pavers purchased a new 2016 Dodge Ram 1500 manufactured or distributed by FCA US LLC. They later reported that the vehicle had a strong coolant smell in the cabin and overheated. The vehicle remained at the dealer for more than two months without being repaired. The dealer advised that it could not be repaired, and FCA notified Plaintiffs that the defect was a known problem that could cause a fire. Plaintiffs alleged that FCA violated California’s Song-Beverly Consumer Warranty Act by failing to repair the vehicle under its written warranty or repurchase it.

Plaintiffs filed the case in Alameda County Superior Court, and FCA removed it to federal court based on diversity jurisdiction. After the parties participated in mediation, they settled Plaintiffs’ legal claims. The remaining dispute concerned Plaintiffs’ motion for attorneys’ fees and costs.

Legal standard

Under California law, a buyer who prevails in a Song-Beverly Act action may recover reasonable attorneys’ fees, costs, and expenses. The court used the lodestar method, which calculates fees by multiplying the reasonable number of hours worked by a reasonable hourly rate. Plaintiffs and FCA agreed that Plaintiffs were the prevailing party and entitled to reasonable fees and costs; FCA challenged the amount requested.

Hourly rates

Plaintiffs requested compensation for work by associate Michael Klinzke, partners Gregory Babbitt and Christoper Barry, and senior law clerk Lilia Guizar. The court found the requested hourly rates reasonable: $340 for Klinzke, $545 for Babbitt, $624 for Barry, and $150 for Guizar.

Hours and deductions

Plaintiffs’ counsel billed 91.7 hours. The court found that the billing records devoted an excessive amount of time to vague email exchanges with Plaintiffs, FCA, defense counsel, and the mediator. It imposed an across-the-board 10 percent reduction for that billing. The court also struck $136 for three emails and one letter whose billing entries did not identify the recipient. It did not reduce the 13.4 hours billed for preparing the fee motion, although it noted that the amount was somewhat more than it expected and that FCA had not shown the time was unreasonable.

After these deductions, totaling $3,274, the court calculated a lodestar amount of $28,206, before any multiplier.

Multiplier

FCA requested a negative multiplier, while Plaintiffs requested a positive multiplier of 1.3. The court denied both requests. It found that the case was not particularly novel or complex, but that counsel obtained an excellent result. The court concluded that the statutory fee guarantee and the strength of Plaintiffs’ case made an enhancement unnecessary, and that the approved rates adequately accounted for any delay in receiving fees.

Costs

Plaintiffs requested $1,933.45 in litigation costs and expenses. FCA did not challenge those costs. The court found the costs reasonable but deducted $5 for listed items that did not apply, including docket fees and compensation for court-appointed experts. It awarded $1,928.45 in litigation costs and expenses.

Disposition

The court GRANTED IN PART and DENIED IN PART Plaintiffs’ motion for attorneys’ fees and costs. It awarded a total of $30,134.45 and stated that the order disposed of Docket No. 28.