Redfern v. FCA US LLC

Background

Brett Redfern filed a lemon-law case in state court in January 2020 under the California Song-Beverly Consumer Warranty Act. He alleged that he bought a new 2018 Ram 2500 in October 2018 for about $60,500 and that the vehicle immediately had serious defects that FCA US LLC could not repair. FCA removed the case to federal court.

The parties conducted limited litigation, including initial disclosures, limited discovery, and mediation briefing. They settled the case in September 2020 for $110,000. They later were unable to agree on attorneys’ fees. Redfern sought almost $50,000, consisting of a claimed lodestar of $31,627.50, a 1.5 multiplier, and $996.23 in costs and expenses. A lodestar is a fee calculation based primarily on reasonable hourly rates multiplied by reasonable hours. FCA argued that no more than $16,507.50 in fees should be awarded.

Basis for Fees

The Song-Beverly Act allows a buyer who is harmed by a breach of the Act or of an express or implied warranty or service contract to seek damages and other relief. It also requires an award of reasonably incurred costs and attorneys’ fees when the buyer prevails.

The court stated that the parties did not dispute that Redfern was the prevailing party, meaning that he achieved his main litigation objective. The court therefore proceeded to determine the reasonable amount of fees and costs.

Hourly Rates and Lodestar

Redfern’s lawyers initially claimed these rates and hours:

- Mr. Daghighian, a partner: $575 per hour for 11.1 hours, totaling $6,382.50. - Mr. Murray, an associate: $450 per hour for 56.1 hours, totaling $25,245.

The court accepted Mr. Daghighian’s $575 hourly rate, citing his more than 14 years of litigation experience, prior fee awards, the passage of time, and the court’s own experience with fees. The court rejected FCA’s proposed $350 rate for him.

For Mr. Murray, the court rejected FCA’s proposed $225 rate but found Redfern’s requested $450 rate somewhat high. Considering his experience and prior fee decisions, the court applied a $400 hourly rate. This produced an adjusted lodestar of $28,822.50.

Reduction for Billing Issues

FCA argued that the billing records included block billing, vague entries, and duplicative work. The court found some vagueness, including unexplained references to client consultations, some entries that appeared to involve administrative tasks, and some anticipated hours that were excessive given the limited briefing and the cancellation of the hearing.

The court imposed a 5% reduction, or “haircut,” to account for these issues. After that reduction, the lodestar was $27,381.38.

Multiplier

Redfern requested a 1.5 multiplier based mainly on a contingency-fee agreement and delayed payment. The court denied the request. It explained that current hourly rates already accounted for payment delay and that Redfern had not shown particular case-related risk or that taking the case prevented counsel from taking other employment. The court described the case as straightforward for purposes of this request.

Disposition

The court granted Redfern’s motion for attorneys’ fees, costs, and expenses, but did not award all amounts requested. It awarded $27,381.38 in fees and $996.23 in costs, totaling $28,377.61. The court vacated the hearing and stated that the order disposed of Docket No. 44.