McGary v. FCA US LLC
- Susan Illston
- 3:20-cv-03313
- U.S. District Court · Northern District of California
- 6
In McGary v. FCA US LLC, Judge Illston granted in part and denied in part fees and costs after the parties settled a warranty dispute.
McGary received $39,317.50 in attorney’s fees and $6,103.56 in costs; FCA US LLC was not required to pay the requested multiplier or fees and costs tied to the canceled vehicle inspection.
What happened
McGary sued FCA US LLC under California’s Song-Beverly Consumer Warranty Act, alleging that a defective 2019 Ram 3500 pickup could not be repaired under its warranty. The parties later settled after McGary accepted FCA’s offer of $127,000 in exchange for returning the vehicle and seeking reasonable fees and costs separately.
The court awarded $39,317.50 in attorney’s fees and $6,103.56 in costs. It denied fees and costs tied to a canceled vehicle inspection and denied McGary’s request for a 0.5 enhancement to the basic fee calculation.
Judge Susan Illston found most of the claimed time and counsel’s hourly rates reasonable, but concluded that the case was not unusually complex or novel and involved limited discovery and litigation. The motion was therefore granted in part and denied in part.
The detailed version
- McGary v. FCA US LLC · No. 3:20-cv-03313
- Susan Illston
- Dec. 28, 2021
Background
Patrick H. McGary brought warranty claims against FCA US LLC under California’s Song-Beverly Consumer Warranty Act. He alleged that the 2019 Ram 3500 pickup truck he purchased was defective and that FCA could not bring it into compliance with its written warranty within a reasonable number of repair attempts. FCA removed the case from state court to the Northern District of California.
The parties conducted some discovery, attended case-management conferences, participated in a settlement conference, and settled the underlying claims on or about June 7, 2021. McGary accepted FCA’s offer under Federal Rule of Civil Procedure 68 for $127,000 in exchange for returning the vehicle with clear title. The settlement also allowed McGary to seek reasonable attorney’s fees and costs by motion.
Attorney’s Fees
McGary requested $43,585.00 under California Civil Code section 1794(d), the Song-Beverly Act’s fee-shifting provision. He also requested a 0.5 enhancement, or multiplier, of $21,792.50, for a total requested fee award of $65,377.50. He additionally requested $7,593.04 in costs and expenses.
The court applied the lodestar method, which calculates fees by multiplying the reasonable hours worked by a reasonable hourly rate. The court found that most of the claimed time was reasonable and that the billing records were detailed enough for meaningful review. It also found counsel’s requested hourly rates reasonable and concluded that FCA had not submitted evidence challenging those rates.
The court agreed with FCA that fees associated with a January 26, 2021 vehicle inspection canceled by McGary were not reasonable. It deducted $4,267.50 for that work. The court did not reduce the award merely because McGary had sought more in his complaint or settlement demands, finding that the settlement provided significant relief.
Multiplier
The court denied the requested 0.5 multiplier. Although it recognized the contingent risk taken by McGary’s counsel, it found that the case did not involve particularly complex or novel issues. The parties conducted little discovery and no litigation beyond case-management conferences and settlement discussions, and the record did not show that the case prevented counsel from taking other work.
Costs
The court found that the itemized list supporting McGary’s costs was sufficient. It nevertheless denied reimbursement for costs associated with the canceled vehicle inspection: $389.76 for mileage, $174.72 for travel and lodging, and $925.00 for an invoice, totaling $1,489.48 in disallowed costs.
Disposition
Judge Susan Illston granted in part and denied in part McGary’s motion for attorney’s fees and costs. The court awarded $39,317.50 in attorney’s fees and $6,103.56 in costs.
Read the full 6-page opinion on CourtListener, the free public archive maintained by the Free Law Project.