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sn Case Number: CGC-10-501168 ... .
Filing Date: Mar-28-2018 9:24
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REMITTITUR
=" TOHNA PECOT €f al VS. SAN FRANCISCO DEPUTY SHERIFF'S ASSOCIATION, —~
. Aetal
001006272281
Instructions:
Please place this sheet on top of the document to be scanned.os a
COURT OF APPEAL, FIRST APPELLATE DISTRICT
350 MCALLISTER STREET
SAN FRANCISCO, CA 94102
DIVISION 4
Office of the County Clerk
San Francisco County Superior Court’ - Main
Attention: Civil Appeals
400 McAllister Street, Ist Floor i a |
San Francisco, CA 94102 San Francisco County Superior Court
. MAR 28-2018
JOHNA PECOT et al., : - e/COURT
Plaintiffs and Cross-Respondents, CLERK Org
v. BY Deputy Clerk
DAVID WONG et al.,
Defendants and Cross-Appellants.
A139566
San Francisco County No. CGC10501168
* * REMITTITUR * *
I, Charles D. Johnson, Clerk of the Court of Appeal of the State of California, for the First
Appellate District, do hereby certify that the attached is a true and correct copy of the original opinion or
decision entered in the above-entitled cause on January 18, 2018 and that this opinion has now become
final.
___ Appellant __Kespondent to recover costs
___ Each party to bear own costs
Costs are not awarded in this proceeding
___ See decision for costs determination
‘Witness my hand and the Seal of the Court affixed at my office this
MAR 28 2018
Very truly yours,
Charles D. Johnson
P.O. Report:
Marsden Transcript:
Boxed Transcripts:
Exhibits:
None of the above: we
rem1COPY
Filed 1/18/18 . : a
NOT TO BE PUBLISHED IN OFFICIAL REPORTS
California Rules of Court, rule a3 715(a), prohibits courts ‘and parties from citing or relying on ‘Opinions not Certified for publication or
ocr uublisheg. except as specified by rule 8.1115(b). This opinion has ‘not been certified for publication or ordered published for
urs of rule 8. toe . :
IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
"DIVISION FOUR
JOHNA PECOT etal, uy
Plaintiffs and Cross-Respondents, | * Ass0s00
DAVID WONG et al., “ay Pp --}(San Francisco County
_, Super. Ct. No. CGC10501168
Defendants and Cross-Appellants. : “per ° 1168)
Plaintiffs brought this class action against the San Francisco Deputy Sheriff's
Association (SFDSA), the San Francisco Deputy Sheciff s Foundation (the Foundation),
and four individuals, alleging they misappropriated membership dues.’ Defendants
brought a special motion to strike six of the seven causes of action, which the trial court
granted. (Code Civ. Proc., § 425.16.) Defendants sought nearly $200,000 in attorney
_ fees for their expenses in bringing the-anti-SLAPP motion. (§ 425.16, subd. (c).) The
1 The named plaintiffs are Johna Pecot, Thomas Arata, Rich Owyang, Stephen
Tilton, Joseph Leake, and Oscar Taytor. The named individual defendants are David
Wong, Michael Zehner, Brian Savage, and Shedrick McDaniels, all allegedly current or
former officers.of the SFDSA. The cross-appellants are the individual defendants and the
Foundation.
2 All statutory. references are to the Code of Civil Procedure. Section.425.16
authorizes a party to bring a special motion to strike a cause of action arising from an act
in furtherance of the right to pétition or free speech. Such an action is coinmonly known
as a “strategic Jawsuit against public participation,” or SLAPP, and section 425.16 is
referred to as the “anti-SLAPP statute.” (Navellier v. Sletten (2002) 29 Cal.4th 82, 85,
_ fn. omitted.)trial court awarded them $20,000. On appeal,’ defendants contend the trial court abused
its discretion in not making a larger attorney fee award. We shall affirm the order.
I. BACKGROUND
The individual plaintiffs are employees of the San Francisco Sheriffs Department
and members of the SEDSA. The complaint alleged that SFDSA and its former
president, defendant David Wong, “hatched a:scheme to misappropriate the membership
dues of the rank and file Sheriff's Deputy members of the SFDSA.” The alleged scheme
involved inducing members of the SFDSA to approve an increase in their dues, which
would be placed in separate accounts desi ignated for specific purposes. Rather than
opening the accounts as promised, defendants allegedly misappropriated the funds and
directed them to Wong, the Foundation, or other individuals or entities. The complaint -
alleged causes of action for breach of contract (first cause of action), interference with
performance of contract (second cause of action); fraud (third cause of action),
conspiracy (fourth cause of action), ‘unfair competition (fifth cause of action), denial of
access to corporate records (sixth cause of action), and removal of directors for cause
(seventh cause of action). : :
Defendants brought an anti-SLAPP motion as to all causes of action except the’
sixth, on the grounds that the claims arose from protected acts in connection with union’
elections, advocacy, board votes arid decisions, and urlion governance. The triad-court
granted the motion, ruling that each of the challenged causes of action arose from
nonincidental protected activity and that plaintiffs had not shown they were likely to
prevail. po
Defendants then sought the fees they incurred bringing the anti-SLAPP motion. .
They argued that the motion required extensive amounts of time reviewing “boxes and
discs of documents from 2010 going back 40°2002” to establish that the basis of the
challenged causes of action was not theft, but’ protected activity, such as votes by the
union’s board of directors to approve Wong’s salary, by members of the union to increase
their dues, and by ‘Wong and the SFDSA to move from one union affiliation:to another.
Those documents included board minutes, correspondence, communications, notes, andadvocacy pieces. Moreover, defendants contended, they had to spend substantial time
showing that'plaintiffs were not likely to prevail on the merits of their causes of action,
either because they were identical to claims that plaintiffs had asserted against them ina
federal court action, which had been dismissed with prejudice, or because they were
baired by the statute of limitations.
Defendants contended the market rate for services provided by an attorney with
their counsel’s experience was $600 an hour and that he had worked 158.95 hours to
prepare the anti-SLAPP motion. ‘When the time spent by his ‘officer manager and
secretary were included, the total claimed cost, before a multiplier, was $99,195.75.7
Defendants also sought ’a fee multiplier of two, because the motion raised difficult issues,
because of the skill displayed by counsel (particularly in persuading the court its tentative
ruling was wrong), and because of the risk of losing the motion and the risk that counsel
would not be paid.
In opposition to the request for attorney fees, plaintiffs submitted expert testimony
that the veasonable hourly rate for a skilled attorney specializing in anti-SLAPP law in the
San Francisco Bay Area was approximately $300’to $500 per hour, depending on the
attomey’s experience; that defendant’s counsel had only “some” anti-SLAPP experience
_and only moderate success, that the anti-SLAPP motion was of only moderate complexity
and could have been handled in 40 to 50 hours; and that $395 was a reasonable hourly
rate. Plaintiffs argued a reasonable attorney fee recovery was $20,000.
The trial court awarded defendants attorney fees of $20,000. Defendants
challenge this award on appeal as inadequate.*
_
3 Defendants submitted expert testimony that this rate was consistent with the
normal and customary rate for similar services and that it would not be uncommon to
require 150 hours to complete work on the motion.
4 At the February 10, 2012 hearing on this matter, the court announced its intended
ruling and instructed defendant’s counsel to submit a proposed order. However, the trial
court did not sign and file the written order until October 9, 2013. In the interim, the trial
court had entered a judgment of dismissal after the anti-SLAPP motion, dismissing
plaintiffs’ claims against the Foundation and the individual defendants who were notII. DISCUSSION
Defendants argue the trial court failed to exercise its discretion appropriately in
setting the attorney fee award.
A defendant who prevails on an anti-SLAPP motion is entitled to.recover his or
her attorney’s fees and costs. (§ 425.16, subd. (c)(1).) We review such an attomey fee...
award for abuse of discretion. “ ‘ “While the concept ‘abuse of discretion’ is not easily
susceptible to precise definition, the appropriate test has been enunciated in terms of
whether or not the trial court exceeded ‘ “the bounds of reason, all ofthe circumstances
before it being considered, ...”° [Citations.|” [Citation.] “A decision will not be
reversed merely because reasonable people might disagree. ‘An appellate tribunal is
neither authorized nor warranted in substituting its, judgment. for the judgment. of the trial
judge.’ [Citations.] In the absence ofa clear showing that its decision was arbitrary or /
irrational, a trial court should be presumed to have acted to achieve legitimate objectives
and, accordingly, its discretionary determinations ought not be set aside on review.”
[Citation:]’ [Citation.] Accordingly, an.abuse of discretion transpires if * “the trial court
exceeded the bounds of reason” ’ in making its.award of attorney fees. [Citation.]”
(Maughan v. Google Technology, Inc. (2006) 143 Cal.App.4th 1242, 1249-1250.
(Maughan).)
In applying this standard of review, we bear in.mind that “ ‘ “[t]he ‘experienced,
trial judge is the best judge of the value of professional services rendered in his court, cand
while his judgment is of course subject to review, it will not be disturbed unless the
appellate court is convinced that it is clearly wrong’ [”]|-theaning that it abused its.
discretion. [Citations.]’ [Citation.] This rule applies in the context of fee awards under
the anti-SLAPP statutes just as it does in the context of similar statutory fee-shifting
named in the sole remaining cause of action; plaintiffs had appealed the judgment; and
defendants had cross-appealed: Thus, as to.the order granting attomey, fees, it appears the
defendants’ appeal was premature. We shall treat defendants’, notice of cross-appeal.as.a
notice, of appeal filed immediately after entry of the order granting attorney fees...(Cal.
Rules of Court, rule 8.104(d)(2), (e).) Plaintiffs have abandoned. their appeal, and.the
only issues before us are those raised by defendants in their cross-appeal.
4provisions. [Citations.]” (Cabral, vy. Martins (2009) 177 Cal.App.4th 471, 491.)
. |
Moreover, the trial court is not required to issue-a, statement of decision with regard to a
fee award, and “ ‘ “{afll intendments and presumptions are indulged to support {the
judgment] on matters as to which. the record is silent, and error must be affirmatively
shown.” ’ [Citation.]” (Ketchum vy. Moses (2001) 24 Cal.4th 1122, 1140 (Ketchum).)
In setting attorney fees, the trial court considers a variety of factors. The fee
award ordinarily includes compensation. for.all hours reasonably spent. (Premier Medical
Management Systems, Inc. v. California Ins. Guarantee Assn. (2008) 163 Cal.App.4th
550,556.) “The basis for the trial court’s.calculation must be the actual hours counsel
has devoted to the case, less those that result from inefficient or duplicative use.of time.
[Citation.]” (Horsford v. Board of Trustees of California State University (2005) 132
Cal .App.4th 359, 395 (Horsford).) Using the “lodestar” method, the court multiplies
those hours by the prevailing hourly rate for private attorneys in the community
conducting noncontingent, litigation of the same type; it may then adjust the resulting
figure based on a number of factors, including: “(1) the novelty and difficulty’ of the
questions involved, (2) the skill displayed in presenting them, (3) the extent to which the
nature of the litigation precluded other employment by the attorneys, (4) the contingent
nature ofthe fee award.” (Ketchum, supra, 24 Cal 4th at p. 1132; see also Horsford,
supra, 132 Cal.App.4th at p. 395.)
Defendants contend the trial applied the wrong standard in exercising its
discretion; that is, that rather than applying the lodestar factors, the court improperly
based its decision on a theory of “proportionality.” At the beginning of the hearing on
the attorney fee request, the trial court explained the basis for its tentative ruling: “It’s
the proportionality issue. It’s not even ihat you didn’t spend the time. You may have
spent the time, but it wasn’t reasonable if you did spend this amount of time. And Pm in
the business of reviewing motions. I’ve read far more motions than even you've had
trials... J know I saw you had—you said you had over a hundred trials. I probably read
over a hundred motions a week. I’ve read many, many anti-SLAPP motions. I have a
pretty good sense of what I think is reasonable, in terms of how long it takes to file andprepare reply papers and to argue a motion. And you have some good stuff here, . . . lots
of good stuff. [{] ..-[{]-.- You had some great stuff as to the protected, activity point.”
Defense counsel pointed out that ue trial court’s tentative ruling on the anti-SLAPP
ruling had been to deny the motion, and the court responded, “Nonetheless, in my view, it
shouldn’t have taken 160 hours to put forth the arguments here. It should have been a lot
less; that’s reasonable. That’s not to say that you—that it was inappropriate for you to
spend the time. That’s your decision or your client’s decision. It’s, in my view, though,
not appropriate for you to. shift those costs to the defendant, the losing party here.” The:
court reasoned, “This was not a four-month trial. This was a motion. This was a motion
that was aided by what had transpired in the federal court action,” and in particular by a
report prepared in connection with that action (the Special Litigation Committee Report)
that analyzed the bases and merits of the claims meee asserted.
The trial court also. concluded that deférige counsel’ Ss requested rate of $600.per
hour was excessive, stating, “I see it all the time. This i is well: in excess of market rate.
You are not an anti-SLAPP lawyer.” ‘
Defense counsel argued that under Horsford and other legal authorities, the trial
court must undertake a step-by-step analysis: review the time records to see what, work
was done, determine whether there was duplication, determine the legal rate in the
community, and consider the risk the attornéy would not be paid.. The court replied, “I’ve
considered all of this. And.T know that you may not gét paid by your. clients here, at least
one of your clients has affirmatively told you-they are.not going to pay you.” The court
awarded $20,000 in attorney fees, calculated as 50 hours at $400 per hour.
Wediscern no abuse of discretion in this ruling: The trial judge had read the.
papers.in support of the anti-SLAPP motion, was familiar with the evidence, and ...
conchided, based on the record of the motion and ‘on his own extensive experience with ,
such motions, that 160 hours was excessive. ‘The court’s conclusion that.50 hours—or
5 The anti-SLAPP motion and the attorney fee application were decided by
different judges.more than a full work week—was sufficient time to prepare a motion was not “clearly
wrong.” (Cabral v. Martins, supra, 177. Cal.App.4th at p. 491.)
Nor are we persuaded the trial court failed to consider the other relevant factors.
There'was evidence to support the trial court’s conclusion that a rate of $400 per hour
was reasontble. Although the court did not expressly make findings on the novelty and
difficulty of the questions involved, the skill displayed in presenting them, and the
contingent nature of any attorney fee, the court indicated that it was aware of and had
considered the step-by-step analysis contemplated by Horsford. We presume the trial
court took’ into account the relevantifactors. ‘(See Ketchum, supra, 24 Cal.4th at p. 1140.)
In fact, the record indicates the court took these factors into account. The judge noted
that counsel had “great stuff” in the anti-SLAPP motion, but concluded, based on his
experience, that the motion could have been prepared more efficiently. Indeed, as our
high court has explained, “g'trial court should award a multiplier for exceptional
representation only when the quality of representation far exceeds the quality of ,
representation that would have been provided by an attorney of comparable skill and
experience billing at the hourly rate used inthe lodestar calculation. Otherwise, the fee
award will result in unfair double counting and be unreasonable.” (Ketchum, supra, 24
Cal.4th at p. 1139.) The record does not compel a conclusion that counsel met that
standard. And although the court noted that at least one of the defendants was unwilling
to pay counsel’s fees, we are aware of nothing in the record showing defense counsel had
a contingent fee arrangement ‘with his clients.
This is not a case, such as Horsford, in which the trial court “failed generally to
exercise its judicial discretion to accomplish the purposes of the law granting such
discretion.” (Horsford, supra, 132 Cal.App.4th at p. 396.) In Horsford, the trial court
stated that the standard it was using to set a fee award was not “adequate compensation”
but “reasonable attorneys’ fees,” and the record of the fee award hearings did not show
the court “undertook its review of the fee issue with a focus on providing an award of
attorney, fees reasonably designed to fully compensate plaintiffs’ attorneys for the
services provided.” (id. at p, 395.) The transcript of the hearing here, on the other hand,indicates the trial court did provide an award that would, in its judgment, compensate
defense counsel adequately for the services provided.
This.case is more akin to Maughan, supra, 143 Cal.App.4th 1242, which also
considered an anti-SLAPP fee award. Defendant sought $1 12,288.63 in attorney fees and
costs, and the:trial court reduced that amount to $23;:000. (Ud: at pp. 1248-1249.)..In
doing so, the court explained that it routinely dealt with attorney fee requests, that it had
experience with how. much time attorneys typically spent on difficult and complex
matters, that the claimed hours—over 200 hours of work—were excessive, and that it
believed a:reasonable time to spend on the anti-SLABP motion and fee motion. was
approximately 50 hours... (Jd. at-pp. 1249, 1251.) The appellate court concluded there
was no abuse.of discretion. In the course of doing $0, it noted that the:trial court had
properly taken into account its own experience and expertise in handling complex civil
cases. (di at.p. 1251.) Similarly here, defendants have not shown the trial court’s
decision was “arbitrary, irrational, .or beyond the bounds of reason.” (Maughan, 143
Cal.App.4th at p. 1253.)
I. DISPOSITION
The order awarding attorney fees is affirmed.
6 In their respondents’ brief, plaintiffs argue extensively that defendants concealed
from the trial court the existence of various documents showing that the risk that their .,
counsel would not be paid was not as great as they had suggested to the trial court. We
do not rely on these documents in affirming the trial court’s order. In their reply brief,
defendants draw our attention to events that took place after the ruling at issue here. We
consider only the record before the trial court at the time it made its ruling. (Un re Zeth S.
(2003) 31-Cal.4th 396, 405.)¥
Rivera, J
We concur:
Ruvolo, P.J.
Reardon, J.
_
* Retired Associate Justice of the Court of Appeal, First Appellate District, Division
Four, assigned by the Chief Justice pursuant to article VI, section 6 of the California
Constitution.
Johna Pecot et al. v. David Wong et al. (A139566)