Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_06-cv-05818/USCOURTS-cand-5_06-cv-05818-4/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 15:2801 Petroleum Marketing Practices Act

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Case No. C 06-5818 JF

ORDER GRANTING IN PART AND DENYING IN PART MOTION FOR ATTORNEYS’ FEES AND COSTS

(JFLC1)

**E-Filed 5/30/2007**

NOT FOR CITATION

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

EQUILON ENTERPRISES LLC, a Delaware

Corporation, d/b/a SHELL OIL PRODUCTS US,

 Plaintiff,

 v.

MEHDI SHAHBAZI, et al.,

 Defendants.

Case Number C 06-05818 JF

ORDER GRANTING IN PART AND

DENYING IN PART MOTION FOR

ATTORNEYS’ FEES AND COSTS

[Docket No. 83]

On September 21, 2006, Plaintiff Equilon Enterprises LLC (“Equilon”), doing business as

Shell Oil Products US (“Shell”), filed this action against Defendants Mehdi Shahbazi

(“Shahbazi”), Balwinder Singh (also known as Ben Pannu) (“Pannu”), and the Shahbazi-Pannu

partnership doing business as Salinas Shell (“the partnership”). The complaint requested

declaratory relief, injunctive relief and damages arising from Equilon’s termination of

Defendants’ lease of the Salinas Shell service station located at 417 North Main Street in Salinas,

California and Shahbazi’s subsequent refusal to vacate. On March 13, 2007, the Court granted

Equilon’s motion for summary judgment against Shahbazi, Pannu, and the partnership. The

Court granted summary judgment for Equilon on the grounds that the lease was terminated

validly under both the Petroleum Marketing Practices Act and the terms of the lease itself

Case 5:06-cv-05818-JF Document 96 Filed 05/30/07 Page 1 of 4
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 The Court concluded that the matter was appropriate for decision without oral 1

argument. See Civ. L.R. 7-1(b).

 This amount is comprised of $192,274 requested for the period ending March 9, 2007, 2

Motion 10, plus $28,624 requested for the period between March 10, 2007 and May 4, 2007,

Reply 1, minus the amount of $4,029 that Plaintiff stated at oral argument should have been

included in another matter involving the same parties.

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Case No. C 06-5818 JF

ORDER GRANTING IN PART AND DENYING IN PART MOTION FOR ATTORNEYS’ FEES AND COSTS

(JFLC1)

because of (i) the partnership’s failure to pay rent, (ii) the partnership’s failure to sell fuel for

seven consecutive days, and (iii) Pannu’s withdrawal from the partnership. The Court also found

that there is no genuine issue of material fact as to Shahbazi’s assertions that Equilon terminated

the Lease for improper reasons or breached its duty to act in good faith and within the course of

business. On March 13, 2007, the Court entered judgment in favor of Equilon. On March 22,

2007, Shahbazi filed a motion to alter or amend the order granting Equilon’s motion for

summary judgment pursuant to Federal Rule of Civil Procedure 59(e). Equilon opposed the

motion, which was denied on April 4, 2007. 

1

On March 27, 2007, Equilon moved for attorneys’ fees and costs. Equilon requests

attorneys’ fees in the amount of $216,872 and costs in the amount of $15,586.87. Shahbazi filed 2

an untimely opposition on May 17, 2007, and the Court heard oral argument on May 18, 2007. 

The opposition filed by Shahbazi provides no specific objections to the amounts requested as

costs and fees by Equilon. Instead, the opposition requests reconsideration of the Court’s prior

rulings on the merits of this action. The Court has considered this request, but concludes that

Shahbazi has not provided sufficient new evidence to justify altering the Court’s prior orders. 

For the most part, Shahbazi states his own views as to the relevant facts. In the absence of

supporting admissible evidence, such statements are insufficient to create a triable issue of fact. 

The newly-offered statements made by David Burrow, Shell’s Regional Manager, in a recorded

voicemail are insufficient to raise a triable issue of fact as to Equilon’s bad faith. At most, the

statements show that Shell was unwilling to work with Shahbazi in the future but would be

willing to work with Pannu if he was separated from Shahbazi. The statement that the “[l]ongterm intention at the site, though, is to sell the – real estate and the improvements and let the

Case 5:06-cv-05818-JF Document 96 Filed 05/30/07 Page 2 of 4
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Case No. C 06-5818 JF

ORDER GRANTING IN PART AND DENYING IN PART MOTION FOR ATTORNEYS’ FEES AND COSTS

(JFLC1)

buyer become and open dealer with – you know, with a Shell wholesaler,” suggests that Shell in

fact would have endorsed Shahbazi’s legitimate efforts to sell his interest in the station. It does

not support the contention that Shell acted in bad faith by failing to exercise its right of first

refusal in a timely manner and thereby deprived Shahbazi of the ability to sell his interest in the

station.

Equilon is the prevailing party in this litigation and is entitled to attorneys’ fees under the

lease. The hours and rates that form the basis of the fee request are reasonable. The costs are

appropriate, with the exception of the costs claimed for electronic research. Equilon cites no

authority indicating that a court in this district may tax such costs. Equilon suggests in the

alternative that the amount should be granted as attorneys’ fees, but cites no California or Ninth

Circuit authority allowing such an award. Moreover, in light of the total fee request, the

complexity of the litigation, and the underlying hours and rates, the Court concludes that even if

such an award were permitted by law, it would not be appropriate in this case. Accordingly, the

Court concludes that the motion for attorneys’ fees and costs should be granted in part and

denied in part. Shahbazi shall pay attorneys’ fees of $216,869 and costs of $522 to Equilon

within ninety days of the date of this order. 

IT IS SO ORDERED.

DATED: May 30, 2007.

 

JEREMY FOGEL

United States District Judge

Case 5:06-cv-05818-JF Document 96 Filed 05/30/07 Page 3 of 4
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Case No. C 06-5818 JF

ORDER GRANTING IN PART AND DENYING IN PART MOTION FOR ATTORNEYS’ FEES AND COSTS

(JFLC1)

This Order has been served upon the following persons:

Gary Ernest Gray ggray@ggraylaw.com 

Rosanne L. Mah rosanne.mah@bingham.com 

James Severson james.severson@bingham.com 

Colin C. West colin.west@bingham.com 

Notice will be delivered by other means to:

Mehdi Shahbazi

3030 Del Monte Blvd.

Marina, CA 93933

Case 5:06-cv-05818-JF Document 96 Filed 05/30/07 Page 4 of 4