Petropoulos v. FCA US LLC
3:17-cv-00398
S.D. Cal.May 29, 2019Background
- Plaintiffs (Petropoulos & Nelson) sued under the Song–Beverly Act over a defective 2011 Dodge Durango; case removed to federal court on diversity grounds.
- Wirtz Law APC associated into the case in January 2017; both Knight Law Group (KLG) and Wirtz billed concurrently through settlement.
- Parties settled on August 8, 2018 for $90,921.46 and stipulated Plaintiffs were the prevailing party entitled to fees and costs under Cal. Civ. Code § 1794.
- Plaintiffs submitted a Bill of Costs for $20,336.20; the Clerk taxed only $3,203.77, disallowing most witness costs and some administrative items.
- Plaintiffs moved for attorney’s fees and to re‑tax costs; Court applied California law (lodestar) to calculate fees and reviewed reasonableness of billed hours/rates.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Proper fee method and amount | Fees recoverable under Song–Beverly; lodestar based on actual time and reasonable rates for both firms totaling $55,780 | Contends double billing by two firms and excessive fees | Court applied California lodestar, found $55,780 (79.4 + 66.6 attorney hours across firms minus improper entry) reasonable and awarded that amount |
| Multiplier for contingent risk | Requests multiplier due to contingent fee arrangements and litigation risk | Opposes enhancement, noting case not novel or public‑interest and two firms billed concurrently | Denied: multiplier inappropriate given nature of claim and concurrent firm billing |
| Duplicate/unnecessary billing from two firms | Two firms were retained; fees reflect actual, reasonable time across ~29 months | Argues duplication/unreasonable overlap because two firms billed simultaneously | Denied: defendant failed to identify specific duplicative entries; overall hours and average monthly work reasonable |
| Costs after removal / re‑taxing Clerk’s decision | Song–Beverly and California substantive law govern post‑removal costs; Clerk misapplied federal/local rules and should allow full $20,336.20 | Relied on federal/local rules to limit taxed costs | Granted: Court re‑taxed costs in the full amount $20,336.20 and awarded $3,850 in additional fees for litigating the taxation issue (total fees awarded $59,630) |
Key Cases Cited
- Mangold v. California Pub. Utilities Comm’n, 67 F.3d 1470 (9th Cir.) (state law governs entitlement and calculation of fees in diversity cases)
- Doppes v. Bentley Motors, Inc., 174 Cal. App. 4th 967 (Cal. Ct. App.) (lodestar method required under Song–Beverly; fees must be based on actual time reasonably incurred)
- Ketchum v. Moses, 24 Cal. 4th 1122 (Cal.) (factors permitting lodestar adjustment and rationale for contingent‑fee multipliers)
- Robertson v. Fleetwood Travel Trailers of California, Inc., 144 Cal. App. 4th 785 (Cal. Ct. App.) (factors for augmenting or diminishing lodestar)
- Serrano v. Unruh, 32 Cal. 3d 621 (Cal.) (prevailing party entitled to recover fees for securing costs awarded)
- Clausen v. M/V New Carissa, 339 F.3d 1049 (9th Cir.) (choice‑of‑law principles: substantive state law applies in diversity cases)
