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HACKLER DAGHIGHIAN MARTINO & NOVAK, P.C.
Sepehr Daghighian (SBN 239349)
10250 Constellation Blvd., Suite 2500 FILED
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Los Angeles, CA 90067 Superior Court of Cal
Telephone: (310) 887-1333
County of Placer rm®
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Facsimile: (310) 887-1334 DEC 27 2019
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Email: sd@hdmnlaw.com Jake
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Officer
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& Clerk
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Attorneys for Plaintiff, Deputy
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ANNA P. KING
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SUPERIOR COURT OF CALIFORNIA
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COUNTY OF PLACER
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ANNA P. KING, Case No.: SCV0038637
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Plaintiff, PLAINTIFFS’ REPLY TO
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DEFENDANT’S OPPOSITION TO
vs. MOTION FOR ATTORNEY’S FEES
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AND COSTS AND EXPENSES
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HYUNDAI MOTOR AMERICA, INC., a Date: January 3, 2020
California Corporation; and DOES 1 through Time: 8:30 a.m.
Dept. 31
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10, inclusive,
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Defendants.
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Plaintiffs’
Reply BriefIn Support of Motion for Attorney’s Fees and Costs
I. INTRODUCTION
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Instead of repurchasing Ms. King’s defective 2010 Hyundai Tucson knowing that Plaintiff
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had presented the vehicle to an HMA authorized dealership at least four (4) times for electrical
issues that could not be fixed, HMA hoped to fleece even more California consumers
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out of her
hard-earned money by denying her request and forcing her to seek legal action. As a matter of
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fact, every dollar in attorney’s fees incurred in this matter — including the Defendant’s attorney’s
fees — could and should have been avoided by HMA. Instead HMA steadfastly held firm and
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continued to double-down on itstactic of bullying Ms. King into submission, after HMA had
knowingly violated the Song-Beverly Act. HMA’s calculations were proven wrong.
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HMA contends that just because it served an offer to compromise early in the litigation,
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Plaintiff should have been happy with the offer and accepted it. However, its logic is misplaced
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and contrary to caselaw. As in every case they defend, HMA’s attorneys strung this litigation
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out.
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Finally, while HMA spends pages hurling ad hominem attacks at Plaintiff's counsel, HMA
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only specifically identifies only a handful of time entries that it challenges. (Opp. Brief 9:3-
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11.) HMA’s silence with respect to the hundreds of other time entries speaks volumes.
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Furthermore, HMA’s failure to address these entries is tantamount to a concession — HMA
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concedes that the bulk of counsel’s time entries are fair and legitimate. (See, e.g., Tiernan v.
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Trustees of Cal. State University & Colleges (1982) 33 Cal.3d 211, 216, fn. 4 (issues not raised
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are deemed waived)).
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Now, HMA must be ordered to compensate Plaintiff's counsel for the fees and costs
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incurred in securing a victory for them over a multi-national corporation and righting a wrong
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that occurred when HMA knowingly violated the Song-Beverly Act. Furthermore, HMA’s
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continued obstinate actions demonstrate why a Lodestar multiplier is warranted.
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Plaintiffs’
Reply Brief InSupport of Motion for Attorney’s Fees and Costs
II. ARGUMENT
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A. Without Presenting Any Evidence, Defendant Fails to Rebut the Presumption of
Credibility Given to Plaintiffs’ Fee Bill
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A verified fee bill is prima facie evidence that the costs, expenses, and services listed
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were necessarily incurred. (Hadley v. Krepel (1985) 167 Cal.App.3d 677, 682.) A declaration
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attesting to the accuracy of the fee bill is presumption
entitled to a of credibility. (Horsford v.
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Board of Trustees of California State University (2005) 132 Cal.App.4th 359, 396 (holding that
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the “time statements of the attorneys, as officers of the court, are entitled to credence in the
absence of a clear indication that the records are erroneous”)). Under California law, ifa
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prevailing party presents an itemized fee bill, the burden shifts to the opposing party to make
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specific objections to particular time entries. (McGrath v. County of Nevada (1995) 67 F.3d 248,
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255 (a fee opponent “bears the burden of providing specific evidence to challenge the accuracy
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and reasonableness of the hours charged”).) Defendant has the burden of showing that the
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requested hours are duplicative, excessive or unnecessary. (See Gates v. Rowland, (9th Cir.
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1994) 39 F.3d 1439, 1449.) Failure to submit evidence on any specific aspect of a fee claim
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results in waiver of any objection. (Blum v.Stenson (1984) 465 U.S. 886, 892, fn. 5 [emphasis
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added].) Here, Plaintiffs submitted itemized fee bills and declarations attesting to their accuracy,
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with just a few exceptions listed below and discussed by Defendant. Those fee billsare entitled
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presumption of reasonableness, and the burden shifts to Defendant to rebut it with
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evidence. In response, rather than carry its burden and offer evidence disputing Plaintiffs’
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showing, Defendant incorrectly triesto place the burden on Plaintiffs. Defendant has failed to
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submit any evidence that Plaintiffs’ fees were not incurred or were not reasonably.
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The facts undercut HMA’s argument that this was a “straightforward lemon law case” or
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that Plaintiffs’ counsel’s staffing was at all unreasonable. With a few exceptions addressed
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below, HMA fails to show any billing entry that was unnecessary or duplicative as a result
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of Plaintiffs’ administration and staffing.
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As to the specific entries that Defendant addresses:
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Plaintiffs’
Reply Brief InSupport of Motion forAttorney’s Fees and Costs
1. $6,875 billed by Kevin Jacobson relating to the time entries between June 10-12, 2019 for
Plaintiff's Motions in Limine and trial related documents. Plaintiff concedes that as a result of
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system error, these entries were inadvertently included twice in Plaintiff's fee bill. Plaintiff was
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not attempting to “get one over HMA and thisCourt.”
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2. $26,950 billed by Kevin Jacobson relating to the time entries between June 30-July 7,
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2019 for trialattendance and travel. Plaintiff concedes that as a result of system error, these entries
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were inadvertently included twice in Plaintiff's fee bill. Again, Plaintiff was not attempting to
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“get one over HMA and this Court.”
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3. All time associated with trialattendance (113.5 hours, $31,212.5) Defendant HMA spends
a bulk of itsmotion attacking Mr. Jacobson’s work on this case and knowingly liesto this Court
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by claiming that his work was limited to “operating acomputer for visual representations and aids
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during the trial.”(Defendant’s Opposition at 10:1-8.) First, Mr. Jacobson was involved in allof
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the pretrial litigation aspects of this case and his presence was necessary to provide insights as
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the facts of this case. Second, Mr. Jacobson’s trialtime was spent preparing exam questions and
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preparing trialgraphics. Furthermore, Mr. Jacobson defended the deposition of Ms. King during
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the trial.All of the time expended by Mr. Jacobson at trialwas necessary
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4. $7,975.00 for the time spent preparing Plaintiff's motion for Attorneys fees, reviewing the
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Opposition Brief, drafting this reply, and attending the hearing on this Motion. First, HMA falsely
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appears to believe that Plaintiff's counsel’s time spent replying to itsOpposition and attending
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the associated hearing is neither reasonable nor necessary. This is the extent to which HMA will
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go intrying tocut down Plaintiffs’ attorneys’ fees, and the Court should conclude otherwise. With
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respect to SD’s presence at the hearing on this motion, itwould be impossible for Plaintiff's
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counsel to account for the time spent attending the hearing without labelling itas “anticipated.”
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5. Quarter- BillingHour
Increments
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HMA also takes issue with HDMN’s practice of billing in quarter-hour increments.
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However, while quarter-hour billing might not be the industry standard, it is by no means
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impermissible, as HMA seems to imply. In fact, Courts have held charging for time in quarter-
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hour increments excessive.
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Plaintiffs’
Reply Brief In Supportof Motion forAttorney’s Fees and Costs
Courts have held that a reduction for billing in quarter-hour increments should only occur
when there is evidence the practice “pose(s) a threat of over-billing.” Foundation v. Office of
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Director of Nat. Intelligence, 2008 WL 2331959 *6 (ND. Cal. 2008). Courts have also held the
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practice should be rejected only where there isa showing that the billed time was not an accurate
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reflection of the time actually expended. Davis v. Perry, 991 F.Supp.2d 809, 838 (W.D. Tex.
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2014). If the practice is not “widespread and excessive”, no reduction or a small, five percent
reduction is appropriate. Foundation, supra at *6 (no reduction required); O'Bannon, supra, at
833 (small five percent reduction upheld).
Further, the California State Bar has issued an advisory opinion on the topic, stating that
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the Court may consider “the terms of the written fee agreement, the frequency with which
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apparent minimum billing entries appeared on the bill, and whether the lawyer was judicious in
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not employing the high minimum billing entries for brief activities either by (1) not recording
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such activities, (2) aggregating them with other related activities, or (3) “no charged” the entry.
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Arbitration Advisory 2016-02, p. 8.
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C. Defendant Fails to Rebut the Reasonableness Plaintiff's Hourly Rates
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True to form, Defendant has not provided any actualevidence suggesting the requested hourly
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rates are improper, and instead requests the Court to arbitrarily lower Plaintiff's counsel’s rates
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without any analysis whatsoever. Once again, Defendant’s counsel simply opines that they feel
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the rates are too high. However, Defendant fails to present this Court with any evidentiary
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basis upon which make any reductions to the rates or the billing entries. Plaintiffs have provided
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ample evidence to support the rates. Indeed, in a published opinion from late 2016, a rate of
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$575/hour was deemed reasonable for a 15-year lemon law attorney in San Diego. (Goglin, supra,
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4 Cal.App.5th at 473-474.)
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HMA also argues Plaintiffs’ other evidence, such as the summary of rates charged by other
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California lemon law attorneys and the various prior orders confirming Plaintiffs’ counsels’ rates
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are reasonable, are not probative evidence. The United States Supreme Court, however, disagrees
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with HMA, and has stated “awards in similar cases” is one of twelve possible factors to be
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considered when determining an appropriate hourly rate. (Hensley v.Eckerhart (1983) 461 U.S.
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Plaintiffs’
Reply Brief InSupport of Motion forAttorney’s Fees and Costs
424, 429-430.) “Affidavits of the plaintiffs’ attorney and other attorneys regarding prevailing fees
in the community, and rate determinations in other cases, particularly those setting a rate for the
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plaintiffs’ attorney, are satisfactory evidence of the prevailing market rate.’” (United Steelworkers
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of Am. v.Phelps Dodge Corp. (1990) 896 F.2d 403, 407.) Likewise, in both Goglin and Graciano,
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declarations from counsel were probative of the prevailing hourly rates. (Goglin, supra, 4
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Cal.App.5th at 473-74; Graciano, supra, 144 Cal.App.4th at 156.) Here, Defendant does not
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provide itsown billing rates,let alone actual contrary evidence to establish the reasonable billing
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rate. In the absence of such evidence, itsarguments should be afforded no weight by the Court.
While HMA challenges the propriety of the hourly rates charged by Plaintiff's counsel,
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HMA offers no evidence whatsoever that the hourly rates are excessive or fall outside of the
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industry standard. Notwithstanding HMA hyperbolic arguments, the evidence
lack of supplied
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by HMA should be viewed by the Court as a concession that Plaintiff's counsel’s rates are
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appropriate and should be paid.
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D. Plaintiff's Attorneys’ Time isReasonable and Necessary
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HMA rather audaciously claims that this litigation was unnecessary and unproductive;
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despite the excellent result in the end. Plaintiff's counsel’s fees were reasonably and necessarily
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incurred to achieve that result. HMA’s conduct was in fact the very reason Plaintiff was forced to
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prepare this matter for trial.
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E. A Lodestar Multiplier isWarranted.
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A contingent fee contract, since it involves a gamble on the result, may properly provide
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for a larger compensation than would otherwise be reasonable. (Ketchum v. Moses (2001) 24
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Cal.4th 1122, 1132.) The purpose of a fee enhancement, or so-called multiplier, for contingent
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risk is to bring the financial incentives for attorneys enforcing important rights into line with
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incentives they have to undertake claims for which they are paid on a fee-for-services basis. (/bid.)
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The contingent nature of Plaintiffs’ counsel’s representation is reason enough to grant a
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lodestar multiplier. A \odestar multiplier is intended to take into account the delay in
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compensation and to “compensate the lawyer not only for the legal services he renders but for the
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loan of those services.” (Ketchum, supra, 24 Cal.4th at 1132.) “A lawyer who both bears the risk
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Plaintiffs’
Reply Brief InSupport of Motion forAttorney’s Fees and Costs
of not being paid and provides legal services isnot receiving the fair market value of his work if
he ispaid only for the second of these functions.” (/d. at 1133.)
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As far as delay, nearly three years have passed since the filing of this action, and
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Plaintiff's counsel has not been compensated anything, while having paid out tens of
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thousands of dollars on Ms. King’s behalf. By not awarding a multiplier, the regular lodestar
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rate fails totake into account the loan of Plaintiffs attorneys’ time to this
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case.
Plaintiff's counsel shouldered the risk of litigating against a multi-billon dollar company
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that was represented by an international law firm. Yet, remarkably, Defendant issuggesting that
Plaintiffs’ counsel should have accepted
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a vague low-ball settlement in order to secure attorney’s
fees for themselves. Defendant’s suggestion istroubling, as recommending acceptance of a bad
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settlement offer for such self-serving reasons could be construed as a breach of Plaintiffs’
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counsel’s fiduciary duty.
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F. Court Orders Provide A Sampling of Similarly Reasonable Fee Awards
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HMA takes issue with Plaintiff’s references to court orders that show when this Court and
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other courts have deemed Plaintiffs’ fees reasonable. While Plaintiffs recognize this Court is
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under no specific obligation, these orders provide a sampling of instances when similar fees have
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been awarded as reasonable. Additionally, they are indicative of the various courts’
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determinations of similarly reasonable fees over a longer arc of time, which further places
Plaintiffs’ request in context. Despite HMA’s claims, Plaintiffs have not violated his duty of
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candor to the court—including every court order in an exhaustive listwould be highly impractical
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and unnecessary.
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Ill. CONCLUSION
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In summary, HMA’s Opposition Brief fails to specifically challenge all but a few of
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counsel’s billing entries, some of which Plaintiff has withdrawn in the amount of $33,825.00.
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Thus, HMA essentially concedes the reasonableness of counsel’s bill.Here, HMA could and
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should have avoided all of the fees incurred in this case. Instead, time and time again, HMA
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doubled down on itsbullying litigation tactics. Therefore, Plaintiff respectfully requests this
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Honorable Court award attorney’s fees, costs and expenses, including a 1.5 lodestar multiplier,
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Plaintiffs’
Reply BriefIn Support ofMotion forAttorney’s Fees and Costs
as follows:
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Lodestar Fees Requested: $91,700.00
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—Less Duplicative Entries: ._——————s$33,825.00
Total Lodestar Fees: $57,875.00
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+Lodestar
Enhancement: S28, 937.50
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Total Fees Requested: $86,812.50
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Dated: December 27, 2019
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ANNA P. KING
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Plaintiffs’
Reply Brief In Support ofMotion forAttorney’s Fees and Costs
PROOF OF SERVICE
I am employed in the County of Los Angeles, State of California. I am over the age of 18
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and not a party to the within action. My business address is 10900 Wilshire Blvd., Suite 300, Los
Angeles 90024.
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On December 27, 2019, I served the foregoing document described as:
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PLAINTIFF’S REPLY TO DEFENDANTS’S OPPOSITION TO MOTION FOR
ATTORNEY’S FEES AND COSTS AND EXPENSES
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That document was served on parties herein in thisproceeding by placing true copies of the original
in enclosed, sealed envelope(s) addressed as follows:
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THETA LAW FIRM, LLP
Sohey] Tahsildoost, Esq.
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15901 Hawthorne Blvd., Suite 270
Lawndale, CA 90260
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[](BY MAIL) Iam “readily familiar” with the practices of HACKLER DAGHIGHIAN
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MARTINO & NOVAK, P.C., in collecting and processing correspondence and documents for
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mailing. Under that practice, documents for mailing would be deposited with the US Postal
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Service on that same day this affidavit issigned with postage fully prepaid at Los Angeles,
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California in the ordinary course of business. I am aware that on motion of the party served,
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service ispresumed invalid ifthe postal cancellation date is more than 1-day after the day of
deposit for mailing the affidavit. [CCP § 1013]
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[X] (BY OVERNIGHT MAIL) I am “readily familiar” with the practices of the HACKLER
DAGHIGHIAN MARTINO & NOVAK, P.C., for collection and processing of documents for
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mailing via overnight delivery. Icaused such document(s) to be placed in a sealed envelope
designated by the overnight service carrier, addressed to the person(s) on whom it isto be served
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pursuant to the attached service list,and deposited said envelope in a box or other facility
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regularly maintained by the overnight service carrier with delivery fees paid or provided for.
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[CCP § 1013(c)]
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[X] (BY ELECTRONIC MAIL) I caused the document(s) to be transmitted by electronic mail
to the e-mail addresses for each party indicated on the attached service list.
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[] (BY PERSONAL DELIVERY) I caused to be delivered such envelope by hand to the
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addressee at the address indicated on the attached service list.
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I declare under penalty of perjury under the laws of the State of California that the foregoing is
true and correct.
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Executed on December 27, 2019.
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/s/\jeoma Chima
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Ijeoma Chima
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SERVICE LIST
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PROOF OF SERVICE
Counsel for Plaintiff
KNIGHT LAW GROouP LLP
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Steve Mikhov, Esq.
10250 Constellation Blvd., Suite 23500
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Los Angeles, CA 90036
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THETA LAW FIRM, LLP Counsel for Defendant:
Soheyl Tahsildoost, Esq.
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15901 Hawthorne Blvd., Suite 270
Lawndale, CA 90260
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PROOF OF SERVICE