CITY OF LA VERNE VS. MICHEL GONZALEZ

Case Number: BC464193    Hearing Date: July 16, 2014    Dept: 56

Case Name: City of La Verne v. Gonzalez, et al.
Case No.: BC464193
Matter: Motion for Attorney Fees
Moving Party: Plaintiff City of La Verne
Responding Party: Defendants Michel Gonzalez and David Snow

Tentative Ruling: Motion for attorney fees is granted in part.

Plaintiff City of La Verne filed this action against Defendants Michel Gonzalez and David Snow to enforce a settlement agreement concerning the use and occupancy of a garage. On 1/3/14, the matter was heard in a one-day court trial, and the Court ruled in favor of Plaintiff on the 1st and 2nd COAs and in favor of Defendant on the 3rd COA. On 1/3/14, the Court entered judgment accordingly, permanently enjoining Defendants from renting the garage and restoring the structure as a garage.

On 9/13/07 the parties entered into the settlement agreement which is the subject of Plaintiff’s complaint. The agreement resolved a dispute and earlier lawsuit between the parties concerning the same garage property involved in our case. Paragraph 7 of the agreement states in pertinent part that “If any legal action is necessary to enforce the terms of this Agreement, the prevailing Party shall be entitled to reasonable attorney’s fees in addition to any other relief to which it may be entitled.” Plaintiff accordingly moves for attorney fees incurred in this action, pursuant to CCP §1033.5 and CC §1717(a).

Plaintiff submits that it incurred attorney fees of $46,515 consisting of 216.50 hours expended by Cary S. Reisman and 5 hours expended by Robert L. Kress at the hourly rate of $210. Plaintiff also requests additional attorney fees of $735 for the 3.5 hours in responding to Defendants’ opposition, bringing the total attorney fee request to $47,250.

In opposition, Defendants assert that the major portion of Plaintiff’s action was the demand for rents collected, which Plaintiff lost. Plaintiff responds that this is wrong, because the primary focus was to have Defendants vacate the garage and restore it to use as a garage; and that Plaintiff would have waived the claim for rents if Defendants had simply complied with the settlement agreement. Plaintiff also submits that discovery on the rents was required because Defendants failed to respond to discovery requests.

The determination of a reasonable amount of attorney fees is within the sound discretion of trial courts upon consideration of a number of factors including the nature of the litigation, its difficulty, and other circumstances. PLCM Group v. Dexler (2000) 22 Cal.4th 1084, 1095. California courts generally follow the “lodestar” method of calculating a fee award: determining the number of hours reasonable expended, multiplied by the reasonable hourly rate, which may be adjusted by a positive or negative multiplier. E.g., Graciano v. Robinson Ford Sales, Inc. (2006) 144 Cal.App.4th 140, 154.

Plaintiff’s fee request is based upon reasonable hourly rates, and the overall amount of time spent is also reasonable. The Court will, however, reduce Plaintiff’s fee request by 25 percent to account for unproductive time spent on the 3rd COA for disgorgement of rents. Under these circumstances, the trial court has discretion to adjust and allocate a fee award. E.g. Thompson Pacific Constr. v. City of Sunnyvale (2007) 155 Cal.App.4th 525, 555-56. Having heard the evidence at trial and reviewed the record of pretrial proceedings (in this and earlier departments), the Court is convinced that a 25 percent reduction fairly accounts for unproductive time and effort.

The motion is granted, and Plaintiff’s fee request of $47,250 is reduced by 25 percent, producing a total fee award of $35,438.

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