569 EAST COUNTY BOULEVARD LLC et al., Plaintiffs and Respondents, v. BACKCOUNTRY AGAINST THE DUMP, INC., Defendant and Appellant.
No. D068538
Fourth Dist., Div. One.
Dec. 5, 2016.
426
Law Offices of Stephan C. Volker, Stephan C. Volker, Daniel Garrett-Steinman and Jamey M.B. Volker for Defendant and Appellant.
Mark M. Clairmont and Paul W. Pitingaro for Plaintiffs and Respondents.
OPINION
IRION, J.—Plaintiff 569 East County Boulevard LLC et al. (plaintiffs) filed an action against numerous entities and individuals. Plaintiffs’ complaint named Backcountry Against the Dump, Inc. (BAD), as a defendant and alleged a single cause of action against BAD for unlawful interference with prospective economic advantage. BAD moved to strike the action pursuant to
I
BACKGROUND
A. The Underlying Action and Anti-SLAPP Motion
Plaintiffs’ first amended complaint alleged a single cause of action against BAD for unlawful interference with prospective economic advantage.3 BAD
B. The Attorney Fees and Costs Motion
BAD sought attorney fees and costs as the prevailing party, pursuant to
Plaintiffs raised numerous objections to the amount of the request, asserting (1) the hourly rate charged by BAD‘s attorneys was excessive for the nature of the case, (2) BAD‘s fee request included billings for work unrelated to the anti-SLAPP motion, or unnecessary, or administrative in nature or duplicative or padded, and (3) BAD‘s fee request included fees premised on vague time entries or “blockbilled” time. For all of these reasons, plaintiffs argued, the amount of the fee and cost award requested by BAD was unreasonable.
The court first determined the hourly rate sought by BAD‘s attorneys was “excessive compared to those in the San Diego community” and that “a reasonable hourly rate for equally qualified counsel” was $275 dollars per hour.6 The court then turned to the question of the reasonable hours expended on the anti-SLAPP motion. After noting it had “culled through the billing statement” submitted by BAD in support of its fee request, the court observed that many of the hours listed in that statement encompassed work “on the demurrer, coordinating with other counsel, work related to the [case management conference], and duplicative time with [cocounsel].” The court also
II
LEGAL FRAMEWORK
BAD asserts the court erred in calculating the fee award in two principal respects. First, BAD argues the court erred when it selected $275 as the reasonable hourly rate to be applied to hours worked in connection with the anti-SLAPP motion. Second, BAD argues it was error to reduce the hours worked in connection with the anti-SLAPP motion below the number of hours it claimed in its fee motion.
Legal Framework
Principles Applicable to Attorney Fees Award
“[A]s the parties seeking fees and costs, defendants ‘bear[] the burden of establishing entitlement to an award and documenting the appropriate hours expended and hourly rates.’ [Citation.] To that end, the court may require defendants to produce records sufficient to provide ‘“a proper basis for determining how much time was spent on particular claims.“’ (ComputerXpress, Inc. v. Jackson (2001) 93 Cal.App.4th 993, 1020 [113 Cal.Rptr.2d 625].) Importantly, when considering a fee award, the trial court is not required to award the amount sought by the successful moving parties,7
A prevailing defendant on an anti-SLAPP motion is entitled to seek fees and costs “‘incurred in connection with‘” the anti-SLAPP motion itself, but is not entitled to an award of attorney fees and costs incurred for the entire action. (Wanland v. Law Offices of Mastagni, Holstedt & Chiurazzi (2006) 141 Cal.App.4th 15, 21 [45 Cal.Rptr.3d 633]; see Lafayette Morehouse, Inc. v. Chronicle Publishing Co. (1995) 39 Cal.App.4th 1379, 1383 [46 Cal.Rptr.2d 542].) An award of attorney fees to a prevailing defendant on an anti-SLAPP motion properly includes attorney fees incurred to litigate the special motion to strike (the merits fees) plus the fees incurred in connection with litigating the fee award itself (the fees on fees). (Wanland, at p. 21.) However, a fee award under the anti-SLAPP statute may not include matters unrelated to the anti-SLAPP motion, such as “attacking service of process, preparing and revising an answer to the complaint, [or] summary judgment research.” (Christian Research, supra, 165 Cal.App.4th at p. 1325.) Similarly, the fee award should not include fees for “obtaining the docket at the inception of the case” or “attending the trial court‘s mandatory case management conference” because such fees “would have been incurred whether or not [the defendant] filed the motion to strike.” (Ibid.) In short, the award of fees is designed to “reimburs[e] the prevailing defendant for expenses incurred in extracting herself from a baseless lawsuit” (Wanland, at p. 22, italics added) rather than to reimburse the defendant for all expenses incurred in the baseless lawsuit.
Standard of Review
Although a SLAPP defendant who brings a successful motion to strike is entitled to mandatory attorney fees, he or she is entitled “‘only to reasonable attorney fees, and not necessarily to the entire amount requested. [Citations.]’ [Citation.] We review the trial court‘s ruling for abuse of discretion.”8 (G.R. v. Intelligator (2010) 185 Cal.App.4th 606, 620 [110 Cal.Rptr.3d 559].) Applying this standard, we may not disturb the trial court‘s
III
ANALYSIS
A. The Abuse of Discretion Standard Applies to This Appeal
Although BAD acknowledges the ordinary standard of review for fee awards is the deferential abuse of discretion standard, it appears to argue we should apply a de novo review to its claims in this appeal. We agree the determination of whether the trial court selected the proper legal standards in making its fee determination is reviewed de novo (see, e.g., City of Sacramento v. Drew, supra, 207 Cal.App.3d at p. 1297) and, although the trial court has broad authority in determining the amount of reasonable legal fees, the award can be reversed for an abuse of discretion when it employed the wrong legal standard in making its determination. (Walker v. Ticor Title Co. of California (2012) 204 Cal.App.4th 363, 370 [138 Cal.Rptr.3d 820].)
BAD cites numerous cases, including Graham v. DaimlerChrysler Corp. (2004) 34 Cal.4th 553 [21 Cal.Rptr.3d 331, 101 P.3d 140], to argue a fee award can be reversed when the court applied the wrong legal standards, and asserts those authorities support reversal of the fee award in this case. We believe the cases cited by BAD for its argument in favor of de novo review have no persuasive applicability here because the record makes clear the court did not misunderstand the legal matrix that guided its evaluation of BAD‘s fee request.10 To the contrary, the minute order addressing the various fee requests specifically recited that the amount of an attorney fee award under the anti-SLAPP statute is to be computed by the lodestar method, which begins with calculating the number of hours reasonably expended on the anti-SLAPP motion (and the fees on fees motion) and excluding hours spent on non-SLAPP tasks or tasks that were inefficient or duplicative, and then multiplying those hours by the reasonable hourly rate prevailing in the community for similar work to obtain the “lodestar” (see, e.g., Cabral, supra,
Because the record affirmatively shows the court understood and employed the correct legal matrix here, the cases cited by BAD have no application. For example, in Graham v. DaimlerChrysler Corp., supra, 34 Cal.4th 553, the court merely held that a trial court award, calculated by applying the same “risk multiplier” to a lodestar amount that amalgamated both fees and “fees on fees” work, should be reconsidered “in light of this opinion‘s conclusion that the risk multiplier for [fees on fees work] generally should be lower than for fees in the underlying litigation.” (Id. at p. 584.) Thus, the ruling in Graham was premised on the finding the trial court did not apply (and indeed could not have applied) the new principle decided in Graham, which has no application here. The other authorities cited by BAD appear to be similarly inapposite.11 Because we perceive that BAD‘s appellate attack on the fee award challenges how the court applied the applicable standards to its fee request, rather than on what standards the court employed, we reject BAD‘S argument that this court may abandon the abuse of discretion standard of review in favor of a de novo review of the fee award.
B. The Hourly Rate Claim
BAD first asserts that, when tabulating the lodestar, the trial court abused its discretion when it set a flat hourly rate of $275 for all of BAD‘s counsel
The courts repeatedly have stated that the trial court is in the best position to value the services rendered by the attorneys in his or her courtroom (see, e.g., Ketchum, supra, 24 Cal.4th at p. 1132), and this includes the determination of the hourly rate that will be used in the lodestar calculus. (See, e.g., Syers Properties III, Inc. v. Rankin (2014) 226 Cal.App.4th 691, 700-703 [172 Cal.Rptr.3d 456].) In making its calculation, the court may rely on its own knowledge and familiarity with the legal market, as well as the experience, skill, and reputation of the attorney requesting fees (Heritage Pacific Financial, LLC v. Monroy (2013) 215 Cal.App.4th 972, 1009 [156 Cal.Rptr.3d 26]), the difficulty or complexity of the litigation to which that skill was applied (Syers Properties, at p. 700; accord, Moreno v. City of Sacramento (9th Cir. 2008) 534 F.3d 1106, 1114), and affidavits from other attorneys regarding prevailing fees in the community and rate determinations in other cases. (Heritage, at p. 1009.)
Here, the parties presented conflicting affidavits concerning the appropriate hourly rate for seasoned attorneys and fifth-year associates. BAD‘s expert, who premised his opinion on numerous factors (including the so-called “Laffey Matrix“), testified that $750 per hour for Mr. S. Volker and $350 per hour for the three fifth-year associates working on the case was within the market range charged for similar services by similarly qualified attorneys. However, plaintiffs submitted contrary declarations that the market range charged for similar services by similarly qualified attorneys was much lower.12 Moreover, the court was cognizant that the rate charged by a very seasoned attorney from the relevant community (San Diego), who represented Ms. Tisdale in this same litigation and whose anti-SLAPP motion successfully extricated her from the multiple and complex claims pleaded against her, was $275 per hour. Moreover, noted the trial court, the anti-SLAPP
On this record, the trial court concluded (1) the rate claimed by BAD‘s attorneys was excessive, and (2) a rate of $275 per hour was an appropriate overall rate to apply to the hours properly attributable to BAD‘s anti-SLAPP motion. Certainly, the trial court was not bound by the contrary opinions submitted by BAD‘s expert. (Syers Properties III, Inc. v. Rankin, supra, 226 Cal.App.4th at p. 702 [“the trial court was neither required to follow the Laffey Matrix nor to adopt the rate defense counsel opined was the ‘market rate’ for services of this type“].) BAD‘s appellate argument merely asks this court to reweigh the competing evidence. For example, BAD suggests the $275 rate charged by Tisdale‘s counsel was an “admittedly low-end contract rate with a public entity,” and hence cannot represent an appropriate market rate, without citing anything in the record containing that “admission.” BAD also argues the $275 rate lacked any evidentiary support because even plaintiffs’ experts opined $450 was an appropriate rate for a seasoned attorney. This argument overlooks two alternative evidentiary groundings for selecting the $275 per hour rate. First the $275-per-hour rate was found and used by the trial court as an appropriate rate when it considered the fee award for the “seasoned” attorney representing Ms. Tisdale (who was confronted with a more complex set of issues than was BAD‘s counsel), and we must presume there was evidentiary support for that determination.13 Second, BAD‘s argument ignores the opinions contained in the attorney declarations filed by plaintiffs that the heavy lifting would ordinarily be done by younger associates, whose rates would begin as low as $200 per hour, rather than by a senior attorney at a higher billing rate.14 (See fn. 12, ante.) Because there was
BAD‘s claim—that failure to adopt the rates set forth by its expert was an abuse of discretion—is unconvincing.16 Instead, we conclude the trial judge
C. The Total Hours Claim
BAD‘s fee motion submitted declarations, along with billing summaries, averring it spent 213.7 hours on the merits motion (nearly 80 percent of which was attributed to the senior attorney‘s efforts) and another 86.7 hours on the fees on fees motion (largely attributed to the work of the associates). BAD argues the court abused its discretion by reducing the hours worked in connection with the merits and fees on fees motions below the hours claimed by BAD in its fee motion.17
Here, the record contains sufficient support for the trial court‘s decision to adjust downward the hour component for the lodestar calculus. First, the court could conclude many of the hours represented work unrelated to either the merits motion or the fees motion, such as work on discovery, ex parte appearances, work surrounding the case management conference, and conferring with cocounsel. The court could also have concluded downward adjustment was necessary because many billings involved entries that were either vague or were blockbilled time entries, and represented padding.18 (Christian Research, supra, 165 Cal.App.4th at pp. 1325-1326.) Finally, the court could have concluded a substantial number of the hours claimed by BAD were unnecessary19 because it concluded that, although BAD‘s counsel
Under these circumstances, we cannot conclude the trial court abused its discretion in limiting the hour component of the lodestar calculus to a combined amount, for both the merits motion and the fees on fees motion, to over 100 hours.
DISPOSITION
The trial court‘s attorney fees award is affirmed. Plaintiffs are entitled to their costs on appeal.
Aaron, Acting P. J., and Prager, J.,* concurred.
A petition for a rehearing was denied December 29, 2016, and the opinion was modified to read as printed above. Appellant‘s petition for review by the Supreme Court was denied March 22, 2017, S239531.
*Judge of the San Diego Superior Court, assigned by the Chief Justice pursuant to article VI, section 6 of the California Constitution.
