Opinion

Steiger v. Alameda Health System CA1/2

Court
California Court of Appeal
Filed
Jun 5, 2025
Status
Unpublished
Cited by
0 cases
Authority
More cited than 36.1%

The opinion

Filed 6/5/25 Steiger v. Alameda Health System CA1/2

NOT TO BE PUBLISHED IN OFFICIAL REPORTS

California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for

publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or

ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION TWO

SHONETTE STEIGER,

Plaintiff and Respondent,

A169457

v.

ALAMEDA HEALTH SYSTEM, (Alameda County

Super. Ct. No. RG19038883)

Defendant and Appellant.

Alameda Health System (AHS) appeals from an award of attorney fees

to its former employee, Shonette Steiger, who prevailed at trial on claims she

brought under the California Fair Employment and Housing Act (Gov. Code,1

§ 12900 et seq. (FEHA)). After a jury trial resulted in a judgment in her

favor, Steiger sought an award of $1,901,997.25 in attorney fees, which

included a multiplier of 1.5. After a hearing, the trial court issued a detailed

and closely reasoned eight-page single-spaced order awarding fees of

$997,106.44. The trial court’s nearly 50 percent reduction from the fees

sought by Steiger’s counsel reflected reductions in hourly rates, reductions in

hours worked, and a reduced multiplier of 1.2. On appeal, AHS argues that

the trial court abused its discretion by not further reducing the hourly rates,

1 Subsequent statutory references are to the Government Code unless

otherwise stated.

1

by awarding a multiplier, and by awarding fees for work on the fee request

that was documented in Steiger’s reply papers. We will affirm.

FACTUAL AND PROCEDURAL BACKGROUND

A. Underlying Litigation

After AHS terminated Steiger’s employment as a nurse in 2018, she

filed suit alleging four causes of action under FEHA: disability

discrimination based on disparate treatment in violation of section 12940,

subdivision (a); failure to engage in the interactive process in violation of

section 12940, subdivision (n); failure to provide reasonable accommodation

in violation of section 12940, subdivision (m); and retaliation in violation of

section 12940, subdivision (h). The case was heard by a jury in a trial

conducted over a three-week period at which 10 witnesses testified and 91

exhibits were admitted into evidence. The jury found for Steiger on two of

her causes of action, found against her on the other two, and awarded her

$355,428.19 in past economic losses and $110,000 in future economic losses,

and no non-economic damages. (See Steiger v. Alameda Health System (June

5, 2025, A168216, A168382) [nonpub. opn.] [affirming the judgment].)

B. Steiger’s Motion for Attorney Fees

On July 5, 2023, Steiger filed a motion for an award of attorney fees

under section 12965.2 She requested a lodestar of $1,216,776.50 for work

performed through June 27, 2023, and a multiplier of 1.5, for a total of

$1,825,164.75. She argued that she was also entitled to recover the fees

incurred in filing the fee motion, and stated that with her reply papers she

would provide a complete accounting of the time spent researching,

preparing, and arguing the fee motion.

2 Steiger sought, and was awarded, costs as well as fees. Costs are not

at issue in this appeal, so we do not discuss them.

2

Steiger’s motion was supported by several declarations, including one

from Steiger who stated that she had tried unsuccessfully to resolve her

dispute with AHS without legal counsel. She consulted with about a dozen

other attorneys before the firm of Siegel, LeWitter Malkani agreed to

represent her on a contingency basis, advancing all costs.

Steiger also filed declarations from her attorneys containing

information about their qualifications, experience, and past fee awards, along

with detailed records of the work they performed in this matter. She also

filed declarations from Bryan Schwartz and Phil Horowitz, two Bay Area

attorneys who represent plaintiffs in employment cases. Schwartz opined

that the hourly rates sought by Steiger’s counsel were “reasonable and

appropriate and well within market range for lawyers with similar

qualifications handling comparable litigation”; Horowitz opined that the

hourly rates were in line with, or lower than, fees charged by trial attorneys

in employment cases with similar levels of skill and experience.

C. AHS’s Opposition

In opposing Steiger’s fee motion, AHS argued that the fee request was

so excessive as to justify denying fees altogether and that if fees were

awarded at all, they should be awarded as a percentage of Steiger’s damages

because “[u]tilizing the lodestar approach in this matter is completely

speculative.” (AHS has not pursued these arguments on appeal.) AHS

argued that if the court used the lodestar approach, Steiger’s requested

hourly rates should be reduced because they were “unreasonable and higher

than the hourly rates of other attorneys in the area.” AHS further argued

that the requested hours were not reasonable and should be denied in their

entirety or significantly reduced, and that no multiplier was warranted.

3

In support of its opposition, AHS filed a declaration and report from its

retained expert Laura S. Johnson, an attorney licensed in the state of New

York, who is the legal operations manager of Sterling & Sterling, LLC, a firm

that reviews and audits legal bills. Johnson opined that no multiplier was

warranted and that the requested lodestar should be reduced by

approximately $800,000 to reflect her recommended reductions to the

requested hourly rates and the hours worked. AHS also filed a declaration

from an associate attorney at the firm that represented AHS in the trial

court, who recommended additional reductions amounting to about $150,000.

In addition, AHS filed objections to the Schwartz and Horowitz

declarations, arguing that the declarations should be stricken entirely or in

part.

D. Steiger’s Reply

In her reply papers, filed on August 25, 2023, Steiger requested a

lodestar of $76,832.50 for work performed from June 28 to August 24. The

request was supported by a declaration from one of Steiger’s attorneys,

Latika Malkani, and detailed time records supporting the additional fees.

Steiger also submitted objections to the Johnson declaration and the

declaration from the AHS associate.

E. Hearing and Order

The trial court’s tentative ruling was contested by both parties. After a

hearing at which both parties argued extensively, the court took the matter

under submission. The court subsequently issued a detailed written order

liberally citing the applicable law, discussing the evidence and arguments

presented by the parties, and explaining its reasons for granting the motion

in part and denying it in part.

4

The court disallowed the time for one of Steiger’s attorneys and reduced

the hourly rates that Steiger had requested for three other attorneys and a

paralegal, which reduced Steiger’s lodestar from $1,216,776.50 to $1,015,941.

The court further reduced the lodestar to $789,263.70 to account for hours it

determined were not reasonably expended. The court then applied a

multiplier of 1.2 to the adjusted lodestar, yielding $947,116.44. The court

awarded $49,990 of the $76,832.50 Steiger had requested in her reply papers

for fees incurred after the filing of the motion, with no multiplier, resulting in

a fee award of $997,106.44, about 52 percent of the total amount Steiger had

requested. This appeal timely followed.

DISCUSSION

A. Applicable Law and Standard of Review

FEHA provides that “the court, in its discretion, may award to the

prevailing party . . . reasonable attorney’s fees and costs.” (§ 12965, subd.

(c)(6).) To determine a fee award, the trial court first determines the

“lodestar” amount, calculated as the number of hours reasonably worked

times a reasonable hourly fee. (Greene v. Dillingham Construction, N.A., Inc.

(2002) 101 Cal.App.4th 418, 422 (Greene).) The court has the discretion to

increase or reduce the lodestar “by applying a positive or negative

‘ “multiplier” ’ based on a variety of factors.” (Ibid.)

In a case like this one, where “ ‘the sole issue before us . . . is the

amount of fees awarded, our review is deferential. “ ‘The “experienced trial

judge is the best judge of the value of professional services rendered in his

court, and 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”—

meaning that it abused its discretion.’ ” (PLCM Group v. Drexler (2000) 22

Cal.4th 1084, 1095, quoting Serrano v. Priest (1977) 20 Cal.3d 25, 49, and

5

citing Fed-Mart Corp. v. Pell Enterprises, Inc. (1980) 111 Cal.App.3d 215, 228

[an appellate court will interfere with a determination of reasonable attorney

fees “only where there has been a manifest abuse of discretion”].)’ Indeed,

our colleagues in Division Four have observed that the ‘only proper basis of

reversal of the amount of an attorney fees award is if the amount awarded is

so large or small that it shocks the conscience and suggests that passion and

prejudice influenced the termination.’ (Akins v. Enterprise Rent-A-Car Co.

(2000) 79 Cal.App.4th 1127, 1134.)” (Calvo Fisher & Jacob LLP v. Lujan

(2015) 234 Cal.App.4th 608, 620.) Thus the law that governs here requires

AHS to demonstrate an abuse of discretion. (Ibid.)

As we have stated, courts describe rulings that constitute an abuse of

discretion as “ ‘exceed[ing] the bounds of reason’ ” or as “arbitrary, capricious,

patently absurd, or even whimsical.” (Artus v. Gramercy Towers

Condominium Assn. (2022) 76 Cal.App.5th 1043, 1051.) “[O]ur Supreme

Court said that ‘A ruling that constitutes an abuse of discretion has been

described as one that is “so irrational or arbitrary that no reasonable person

could agree with it.” ’ ” (Ibid., quoting Sargon Enterprises, Inc. v. University

of Southern California (2012) 55 Cal.4th 747, 773.)

B. Challenge to Hourly Rates

1. Additional Background

Steiger requested hourly rates as follows: $975 for attorney Siegel (a

partner with over 40 years of experience in labor and employment matters),

$850 for attorney Malkani (a partner with more than 26 years of experience

as an employment litigator), $675 for attorney Weber (an associate with

almost 20 years of experience litigating employment cases), and $250 for

paralegal Ledezma. Attorney Malkani declared that these represent the

firm’s 2023 customary hourly rates for employment litigation, which apply to

6

the firm’s individual clients who are charged on an hourly basis. Malkani

declared that the firm was “regularly . . . successful in fee petitions and

negotiated fee agreements seeking our then-existing regular hourly rates.”

As evidence that the rates were “well within the range of rates charged by

and awarded to comparable attorneys for comparable work,” Steiger referred

to the Schwartz and Horowitz declarations and provided evidence that the

rates sought were consistent with or less than rates listed on the so-called

“Laffey Matrix,” which has served as the basis for attorney fee awards upheld

by California courts. (See Syers Properties III, Inc. v. Rankin (2014) 226

Cal.App.4th 691, 702 [affirming fee award based on adjusted Laffey Matrix]

(Syers).)

AHS argued that the requested rates should be reduced to those

recommended by its expert, Johnson: $600 for partners (i.e., Siegel and

Malkani), $400 for associates (i.e., Weber), and $150 for paralegal services

(i.e., Ledezma). Johnson opined that the rates sought by Steiger were

“unreasonable in comparison to the rates billed by other attorneys

performing similar labor and employment work in similar-sized firms in the

San Francisco area.” Johnson reported that her recommended rates were

“based on data from the Wolters Kluwer Real Rate Report for Employment

and Labor within the San Francisco area.”

The trial court found that Steiger’s attorneys and paralegal Ledezma

were well-qualified and experienced; that they achieved a good result for

Steiger; and that they “deserve a reasonable hourly rate.” The court also

found that the hourly rates Steiger sought were unreasonably high. The trial

court reduced the requested hourly rates to $750 for Siegel and Malkani,

$550 for Weber, and $150 for Ledezma, explaining that it based the

7

reductions on its “familiarity with prevailing rates for legal work in the San

Francisco Bay Area market.”

The court wrote that it had considered the evidentiary submissions

submitted by both parties, but found them unhelpful. The court overruled

AHS’s objections to the Schwartz and Horowitz declarations, but noted that

opinions expressed in the declarations were based on Schwartz’s and

Horowitz’s subjective impressions of Steiger’s attorneys rather than review of

the attorney’s time entries or work product, or the trial transcript. The court

also overruled Steiger’s objections to the Johnson declaration. The court

found that Johnson was “clearly qualified to give expert opinions on

attorney’s fees,” concluding that AHS’s failure to “secure the services of a

California-based expert familiar with the local market” went to the weight,

rather than the admissibility, of Johnson’s opinion. The court also noted that

Johnson had presented data drawn from the Wolters Kluwer 2022 Real Rate

Report “without any context,” and that she had not attached the report to her

affidavit, which she should have done.

2. Analysis

AHS contends that because Steiger presented “no reliable authority or

evidence” to support the hourly rates she requested, the trial court abused its

discretion by awarding higher rates than AHS’s expert, Johnson, determined

were reasonable. This argument is meritless.

Contrary to AHS’s assertion, Steiger supported her requested rates

with “reliable evidence,” including the declaration of her attorney Malkani,

who testified how the firm’s rates were set and that the firm had recovered

its then-existing hourly rates in other cases. Steiger also provided evidence

from other Bay Area employment counsel regarding prevailing and

recoverable rates, as well as evidence comparing the rates sought with those

8

on the Laffey Matrix. All this evidence was considered by the trial court.3

The fact that the trial court found Steiger’s evidentiary submissions

unhelpful does not mean they were not reliable. We note that the trial court

found AHS’s evidentiary submissions unhelpful, too.

Further, AHS cites no authority to support its claim that the trial court

abused its discretion by “insert[ing] itself as a fact witness” and awarding

higher rates than AHS’s expert Johnson determined were reasonable.4 It is

well-established that the trial court determines the reasonable hourly rate

“ ‘based on the rates prevalent in the community where the court is located,’ ”

and that the trial court judge “is in the best position to value the services

rendered by the attorneys in his or her courtroom.” (Syers, supra, 226

Cal.App.4th at p. 700, 702.) AHS cites no authority to suggest that the trial

court abused its discretion in determining based on its “familiarity with

3 Buried in AHS’s argument concerning hourly rates is the statement

that the trial court overruled its objections to the Schwartz and Horowitz

declarations “in clear error.” This issue has been forfeited by AHS’s failure to

identify it in a heading or subheading of its brief and develop the argument.

(See Cal. Rules of Court, rule 8.204(a)(1)(B) [briefs must “[s]tate each point

under a separate heading or subheading summarizing the point, and support

each point by argument and, if possible, by citation of authority”];

Tsakopoulos Investments, LLC v. County of Sacramento (2023) 95

Cal.App.5th 280, 310 [“ ‘[f]ailure to provide proper headings forfeits issues

that may be discussed in the brief but are not clearly identified by a

heading’ ”].) In any event, AHS fails to show prejudice from the trial court’s

overruling its objections, particularly in light of the trial court’s statement

that it found the declarations unhelpful. (See Century Surety Co. v. Polisso

(2006) 139 Cal.App.4th 922, 963 [appellant must affirmatively show how

error constitutes a miscarriage of justice].)

4 AHS claims that Johnson’s opinion on reasonable rates was

“unopposed,” but this is not accurate. Steiger’s counsel objected to Johnson’s

determination of purportedly reasonable hourly rates that were lower than

their own rates.

9

prevailing rates for legal work in the San Francisco Bay Area market” that

the reasonable hourly rate for Steiger’s attorneys was neither the rate

requested by Steiger nor the rate recommended by AHS’s expert.

AHS contends that the trial court abused its discretion by failing to

“appropriately consider” Johnson’s declaration. That is plainly incorrect; the

trial court explained that it considered Johnson’s declaration, but found it

unhelpful. The trial court did not exclude Johnson’s testimony: to the

contrary, it overruled Steiger’s objections to the Johnson declaration, while

noting issues that affected the weight it would give to Johnson’s testimony,

including her lack of familiarity with the local market, her failure to provide

the Wolters Kluwer report on which she relied in determining reasonable

rates, and her presentation of data from that report “without any context.”5

In short, AHS fails to show that the trial court abused its discretion in

determining reasonable hourly rates for Steiger’s counsel.

C. Challenge to Multiplier

The trial court may award a multiplier to account for the fact that

because of “the contingent and deferred nature of the fee award in a civil

rights” case, including a case brought under FEHA, “the fair market value of

legal services provided on that basis is greater than the equivalent

noncontingent hourly rate.” (Horsford v. Board of Trustees of California

State University (2005) 132 Cal.App.4th 359, 395 (Horsford).) Other factors

the court may consider in determining whether to apply a multiplier and the

amount of any multiplier include “the quality of the representation, the

5 For this reason, the cases cited by AHS to support its claim are

irrelevant: ABM Industries Overtime Cases (2017) 19 Cal.App.5th 277, 292-

293, and Garrett v. Howmedica Osteonics Corp. (2013) 214 Cal.App.4th 173,

187, stand for the proposition that a trial court’s ruling on the admissibility of

expert testimony is reviewed for abuse of discretion.

10

novelty and difficulty of the issues presented, [and] the results obtained.”

(Greene, supra, 101 Cal.App.4th at pp. 426-427.)

Here, plaintiff requested a multiplier of 1.5. The trial court clearly

explained how it exercised its discretion to award a multiplier of 1.2 as

follows: “On the one hand, Plaintiff’s counsel litigated this hotly-contested

case for four years on a pure contingent fee basis with no guarantee of

success, uncovered evidence of animus and motive in discovery, prevailed at

trial on two causes of action, and obtained for Plaintiff an award of economic

damages in the sum of $465,000. On the other hand, Plaintiff did not prevail

on two other causes of action and received zero noneconomic damages. In

light of this result, the Court finds that a reasonable multiplier is 1.2.”

In light of the trial court’s careful explication of how it chose the

multiplier, AHS’s arguments that the trial court abused its discretion fall

flat. AHS points out that Steiger achieved only “limited results.” True—and

that is something the trial court considered in reducing the requested

multiplier. AHS cites no authority suggesting that the award of a multiplier

is an abuse of discretion when a plaintiff achieves only partial success. AHS

emphasizes that Steiger did not show that she is entitled to a multiplier for

“exceptional representation,” but that is a straw argument: the trial court

did not award the multiplier on that basis. Finally, AHS contends that the

trial court abused its discretion by awarding a multiplier to account for

contingent risk because the hourly rate awarded by the court already

compensated for that risk. (See Horsford, supra, 132 Cal.App.4th at p. 395

[contingency adjustment may be made through lodestar calculation or

application of multiplier, but not both].) We disregard this unsupported

assertion. (Air Couriers International v. Employment Development Dept.

(2007) 150 Cal.App.4th 923, 928 [arguments must be supported by

11

appropriate references to the record; we may disregard unsupported factual

assertions]; Duarte v. Chino Community Hospital (1999) 72 Cal.App.4th 849,

856 [failure to provide adequate citations to the record forfeits claim of

error].) Moreover, “ ‘we presume that the trial court considered all

appropriate factors in selecting a multiplier and applying it to the lodestar

figure.’ ” (Taylor v. Nabors Drilling USA, LP (2014) 222 Cal.App.4th 1228,

1249 [affirming fee award where trial court neither specified the multiplier it

applied nor the factors it considered in selecting a multiplier].) There is

nothing here that suggests any abuse of discretion by the trial court.

D. Challenge to Fees Requested in Reply Papers

The attorney fees recoverable under a statutory attorney fee provision

“ordinarily include compensation for all hours reasonably spent, including

those necessary to establish and defend the fee claim.” (Serrano v. Unruh

(1982) 32 Cal.3d 621, 639 [addressing fees under Code Civ. Proc., § 1021.5].)

A party seeking to recover fees incurred after an initial fee motion is filed

may file a supplemental declaration before the hearing on the fee motion, as

Steiger did here, or may file a separate fee motion. (Doppes v. Bentley

Motors, Inc. (2009) 174 Cal.App.4th 967, 1002.)

Relying on cases holding that new legal issues cannot be raised for the

first time in a reply brief because of the unfairness to the other party, AHS

contends that the trial court abused its discretion by awarding Steiger’s

attorneys $49,990 in fees purportedly “first requested on reply” for work that

was performed by counsel after the fee motion was filed. (Capitalization

omitted.) Those cases have no application here: Steiger’s request for fees in

her reply papers raised no new legal issue, and there was no unfairness

because AHS was informed in Steiger’s moving papers that she sought fees

for researching, preparing and arguing the fee motion, with further

12

documentation to be provided with her reply papers. In any event, AHS has

forfeited its claim of error by failing to raise the issue in the trial court, which

it had the opportunity to do at the hearing on Steiger’s fee motion. (Newton

v. Clemons (2003) 110 Cal.App.4th 1, 11 [as a general matter “ ‘issues raised

for the first time on appeal which were not litigated in the trial court are

waived’ ”].) Although AHS addressed other issues concerning Steiger’s reply

papers at the hearing, AHS never argued that any fees should be denied on

the ground that they were requested for the first time in the reply papers.

We will not consider that argument now.

DISPOSITION

The challenged order is affirmed in its entirety. Respondent shall

recover her costs on appeal.

13

_________________________

Miller, J.

WE CONCUR:

_________________________

Richman, Acting P. J.

_________________________

Desautels, J.

A169457, Steiger v. Alameda Health System

14

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

A word about cookies

We need a few to keep you signed in and the library working. The rest help us see which pages people use and where they get stuck. They stay off unless you say yes.