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Patel v. Mercedes-Benz USA

Court: California Courts of Appeal

Docket: B293813(Second Appellate District)

Opinion Date: December 31, 2019

Judge: Audrey B. Collins

Areas of Law: Consumer Law, Legal Ethics

Plaintiff filed suit against MBUSA under the Song-Beverly Consumer Warranty Act after the navigation system in the vehicle he leased from MBUSA experienced recurring problems. The jury found that the vehicle had a substantial impairment and that MBUSA failed to repair or replace the vehicle. Plaintiff did not lease the vehicle for his own use, but for his friend, Arjang Fayaz, who was the primary driver. The jury awarded damages solely to Fayaz. Both plaintiff and Fayaz moved for attorney fees as prevailing parties. The trial court granted the motion as to Fayaz only, and limited the award to fees incurred while Fayaz was a party to the case. The Court of Appeal reversed and held that the Act provides that successful plaintiffs are entitled to collect attorney fees based on actual time expended, determined by the court to have been reasonably incurred by the buyer in connection with the commencement and prosecution of such action. In this case, plaintiffs successfully proved to a jury that the vehicle was defective in breach of MBUSA's express warranty, MBUSA failed to repair or replace it, and damages resulted from MBUSA's breach. Therefore, the jury award did not support the trial court's holding and the court remanded for a hearing to determine a reasonable fee award.