Reasonableness Of Fees: 2/3 DCA Reverses An 82% Reduction In A FEHA Fee Request, Primarily Based On Reconstructed Time, As An Abuse Of Discretion And As Not Adequately Explained

“Haircut” Was Too Much, Requiring A Remand Revisit.

               In the fee award area, the amount awarded is governed by an abuse of discretion standard.  However, large “haircuts” sometimes strike an appellate panel as too arbitrary, requiring a revisit.  That was the case in Guevara v. Interstate Meat Co., Inc., Case No. B332546 (2d Dist., Div. 3 Mar. 18, 2025) (unpublished).

               Plaintiff settled a FEHA case, 18 months into the matter, for $25,000.  Plaintiff sought over $153,000 in fees based on some reconstructed time and without detailed time substantiation in some respects.  The trial court was troubled by the reconstructed time, allowing for none of it, thought the claimed hourly rates were excessive, and believed the fee request was excessive.  It reduced the fee request by 82%, awarding $27,500 in fees.

               The 2/3 DCA reversed, reasoning this way: (1) it was an abuse of discretion to reject reconstructed time outright; (2) the justices were not convinced that the explanation of the reduction sufficed, relying on the Kerkles and Gorman opinions which also involved substantial fee request reductions; and (3) the trial judge’s order did not show why he reduced plaintiff’s counsel’s hourly rates when the plaintiff’s showing was uncontested.

So, the matter was remanded for a revisit and a better explanation for any fee “haircut.”