Kathleen Angel Eisenberg v. Citibank NA
2:13-cv-01814
C.D. Cal.Oct 11, 2017Background
- Eisenberg sued Citibank, Homeward, and Power in 2013 challenging foreclosure and seeking rescission, UCL relief, breach of contract, and declaratory relief; the state court had issued a temporary restraining order pre-foreclosure.
- After removal and multiple amended complaints and motions, the court dismissed rescission and UCL claims with prejudice and granted summary judgment for defendants on remaining claims; judgment entered July 13, 2017.
- Defendants filed an untimely Rule 54(d)(2) motion for attorneys’ fees (filed 20 days late) based on fee provisions in the Note and Deed of Trust; they sought $74,090.90 in fees and $8,195.71 in costs.
- Defendants explained the late filing resulted from counsel’s calendaring error and attempted a settlement offer trading waiver of appeal for no fee request; plaintiff did not file written opposition.
- The court permitted the late filing as excusable neglect, found defendants prevailing under Cal. Civ. Code §1717, held the Note’s Section 7(e) is a valid fee-shifting clause invoking acceleration, and awarded reduced fees of $55,568.18 while directing defendants to submit evidentiary support for costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether court should extend Rule 54(d)(2) deadline | Opposed implicitly; no written opposition filed | Counsel miscalendared; excusable neglect warrants extension | Extension granted — 20-day delay excusable under Pioneer factors |
| Whether Deed of Trust Sections 9 and 14 permit recovery of attorney fees via Rule 54 motion | These sections authorize lender fees | Sections permit lender to add fees to loan balance, not a prevailing-party personal-fee award | Sections 9 and 14 do not support a Rule 54 fee award; they allow fees to be added to debt |
| Whether Note Section 7(e) authorizes prevailing-party attorney fees | Fee award not appropriate | Section 7(e) shifts reasonable fees incurred to enforce the Note after acceleration | Section 7(e) is a valid fee-shifting provision; defendants satisfied acceleration condition and are entitled to fees under §1717 |
| Whether requested fees and costs are reasonable | (No substantive opposition filed) | Requested $74,090.90 in fees and $8,195.71 in costs based on detailed billing | Fees reduced 25% to $55,568.18 as excessive compared to comparable cases; costs request denied without supporting documentation |
Key Cases Cited
- Perfect 10, Inc. v. Giganews, Inc., 847 F.3d 657 (9th Cir. 2017) (untimely fee motions are a sufficient reason to deny absent compelling showing)
- Pioneer Inv. Servs. Co. v. Brunswick Assocs. Ltd. P’ship, 507 U.S. 380 (U.S. 1993) (excusable neglect factors for late filings)
- Pincay v. Andrews, 389 F.3d 853 (9th Cir. 2004) (calendaring error can be excusable neglect depending on factors)
- MRO Commc’ns, Inc. v. Am. Tel. & Tel. Co., 197 F.3d 1276 (9th Cir. 1999) (Rule 54(d)(2) procedural; independent source of authority required for fee awards)
- Alyeska Pipeline Serv. Co. v. Wilderness Soc’y, 421 U.S. 240 (U.S. 1975) (state law on attorney fees applies when federal court exercises jurisdiction over state claims)
- Camacho v. Bridgeport Fin., Inc., 523 F.3d 973 (9th Cir. 2008) (lodestar standard and market rates guide reasonableness of fees)
- PLCM Grp. v. Drexler, 22 Cal.4th 1084 (Cal. 2000) (California courts’ broad authority to fix reasonable attorney fees)
- Siligo v. Castellucci, 21 Cal.App.4th 873 (Cal. Ct. App. 1994) (fees to enforce contract include fees defending against challenges to validity of obligation)
