D&G Autosound Inc. v. Mobile Electronics Products Inc.
Published: Mar. 23, 2004 | Result Date: Oct. 18, 2003 | Filing Date: Jan. 1, 1900 |Case number: BC201320 Arbitration – $347,267
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
Curtis L. Metzgar
(Wade & Lowe)
A. Harry Safarian
(The Safarian Firm APC)
Experts
Plaintiff
David C. Gurnick
(Lewitt Hackman)
(technical)
David B. Parker
(Parker Shaffie LLP)
(technical)
Facts
In June 1999, D&G Autosound tendered the defense of a cross-complaint in the underlying litigation to State Farm. The case was a complex franchise and trademark action. In August 1999, State Farm accepted the defense subject to a reservation of rights. On Feb. 19, 2000, State Farm filed a declaratory relief action. On May 18, 2000, D&G filed a cross-complaint for bad faith alleging, inter alia, that State Farm had failed to pay certain costs of defense and that the "cumis" rate of $150 per hour was inadequate since State Farm did not have panel counsel to defend this type of case at a similar rate. The arbitrator found that the case involved complex issues of franchise law such that the hourly rate to be paid D&G's counsel, Krane & Smith, was $220 per hour. The arbitrator also awarded D&G damages for unpaid pretender fees and costs, unpaid invoices and unpaid attorney fees, and costs for improper reductions made by State Farm based on its guidelines and deductions for amounts erroneously deducted for affirmative relief and discovery.
Damages
D&G sought recovery for defense fees plus damages for State Farm's alleged bad faith.
Result
$347,267
Other Information
The arbitration was ordered pursuant to a Civil Code Section 2860 motion filed by State Farm. State Farm paid the arbitration award on Oct. 31, 2003 in full.
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