Liu v. Bd. of Admin. of CalPERS CA2/2
CourtCalifornia Court of Appeal
Date FiledOctober 29, 2026
DocketB341221
StatusUnpublished
📰 News Coverage: Read the LAWS.com news report on this case
Full Opinion
Filed 10/29/26 Liu v. Bd. of Admin. of CalPERS CA2/2
NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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has not been certified for publication or ordered published for purposes of rule 8.1115.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
SECOND APPELLATE DISTRICT
DIVISION TWO
HUASHA LIU et al., B341221
Plaintiffs and Respondents,
(Los Angeles County
v. Super. Ct. No.
19STCP04056)
BOARD OF ADMINISTRATION OF
THE CALIFORNIA PUBLIC
EMPLOYEES’ RETIREMENT
SYSTEM,
Defendant and Appellant.
APPEAL from an order of the Superior Court of
Los Angeles County, Carolyn B. Kuhl, Judge. Affirmed.
Reed Smith, Raymond Cardozo, Terence N. Hawley,
Kathryn M. Bayes; Alston & Bird, Jason Levin and Lisa L.
Garcia for Defendant and Appellant.
Hadsell Stormer Renick & Dai, Dan Stormer, Brian Olney;
Robert D. Newman; Law Office of Lisa Holder and Lisa Holder
for Plaintiffs and Respondents.
______________________________
Defendant and appellant Board of Administration of the
California Public Employees’ Retirement System (CalPERS)
appeals from an order awarding plaintiffs and respondents
Huasha Liu (Liu) and Sandeepa Maheshwari (Maheshwari)
(collectively respondents) $2,989,269.75 in attorneys’ fees
pursuant to Code of Civil Procedure section 1021.5.1
Respondents’ litigation resulted in CalPERS applying the correct
definition of “bonus” under the applicable regulations when
calculating employees’ final compensation for pension purposes.
CalPERS challenges respondents’ statutory entitlement to
attorneys’ fees and the amount of fees awarded. We affirm.
BACKGROUND
I. CalPERS and “Special Compensation”
The Public Employees’ Retirement Law (PERL) establishes
CalPERS, “a prefunded, defined benefit pension plan for state
employees and employees of participating local public agencies.”
(Hale v. Public Employees’ Retirement System (2022) 82
Cal.App.5th 764, 772.) “An employee’s pension is determined by
a formula that takes into account the employee’s age at
retirement, number of years of service, and final compensation.”
(Ibid.) “Final compensation” is based on a formula that includes
“payrate” and “special compensation.” (Id. at p. 773.)
1 Unless otherwise stated, subsequent statutory references
are to the Code of Civil Procedure.
2
CalPERS promulgated California Code of Regulations,
title 2, section 571 to combat “pension spiking,” which is the
“intentional inflation” of “final compensation” of employees of
CalPERS’s contracting agencies. (DiCarlo v. County of Monterey
(2017) 12 Cal.App.5th 468, 485–486 (DiCarlo).) California Code
of Regulations, title 2, section 571 defines the criteria under
which “special compensation” may be included in pension
calculations. (DiCarlo, supra, at pp. 485–486.)
II. SCAG’s Merit Pay Policy
The Southern California Association of Governments
(SCAG) contracts with CalPERS to provide pensions for SCAG
employees. In July 2004, SCAG issued its merit pay policy “to
provide a merit increase to recognize an employee for
performance and achievement of objectives.” Evaluation ratings
of “meets standards,” “above expectations,” and “excels” result in
merit increases of 0–3 percent, 4–6 percent, and 7–9 percent,
respectively. A merit increase is applied to an employee’s base
salary or, if employees are already “at the top of the approved
salary range,” they are paid a “lump sum equivalent of the
percentage increase on an annualized basis,” i.e., a bonus.
In April 2006, after receiving a copy of SCAG’s merit pay
policy, CalPERS informed SCAG that its “current bonus plan
meets the definition of bonus/merit pay and is reportable to
CalPERS for retirement purposes.” However, in September 2017,
CalPERS reversed its position and determined that SCAG’s merit
pay policy did not fully comply with PERL. Specifically,
CalPERS determined that the following two items did not qualify
as “special compensation” under California Code of Regulations,
title 2, section 571: (1) SCAG’s merit payments for evaluation
ratings less than “excels”; and (2) any lump-sum merit payments
3
available only to employees at the top of their salary ranges.
III. CalPERS Excludes Merit Payments From the
Calculations of Respondents’ Pension Benefits
Liu and Maheshwari retired from SCAG in 2017 and 2018,
respectively. Respondents are “classic members” of CalPERS
because they became members prior to the effective date of the
Public Employees’ Pension Reform Act of 2013.
SCAG paid Liu $10,378.58 in merit pay during her final
year of employment pursuant to the merit pay policy. By
excluding the merit pay from Liu’s final compensation, CalPERS
reduced Liu’s retirement benefits by approximately $4,500 per
year.
Liu filed an administrative appeal. Following a hearing, an
administrative law judge (ALJ) denied Liu’s appeal and upheld
CalPERS’s interpretation of California Code of Regulations,
title 2, section 571. CalPERS adopted the ALJ’s proposed
decision.
IV. Trial Court Proceedings
A. Liu’s petition for writ of administrative
mandate
In September 2019, Liu filed a section 1094.5 petition
seeking a writ of administrative mandate requiring CalPERS to
set aside its administrative decision with respect to her pension.
The following month, Liu’s counsel sent a letter to CalPERS
demanding that it “provide full retirement benefits to . . . Liu and
all other similarly situated CalPERS members.” CalPERS did
not respond to this request.
In January 2020, Liu filed a first amended complaint
adding class action claims and a section 1085 petition for writ of
traditional mandate challenging CalPERS’s decision on behalf of
4
all similarly situated employees. In an email dated January 27,
2020, Liu’s counsel proposed a stipulation to dismiss the class
allegations without prejudice in exchange for CalPERS’s
“agreement to apply any ruling regarding [Liu] to all others
similarly situated in terms of retroactive pension benefits.”
(Italics added.) CalPERS rejected the stipulation as “overly
broad.” CalPERS later admitted that not agreeing to Liu’s
stipulation “trigger[ed] [respondents’] class certification [motions]
and discovery.”
At CalPERS’s request, the trial court stayed Liu’s class
claims, stayed discovery, and scheduled a bench trial on the
section 1094.5 petition. In December 2020, the court granted the
petition, finding that CalPERS erred in excluding lump-sum
merit payments from Liu’s “final compensation.” The court then
granted the parties’ joint stipulation to stay the order, lift the
stay on Liu’s class claims and discovery, and authorize Liu to file
a second amended petition. In the stipulation, CalPERS stated
that it “want[ed] to raise a number of legal challenges to the
operative pleading, in particular the class claims in this lawsuit.”
B. The second and third amended petitions
In February 2021, respondents filed a second amended
petition and complaint adding Maheshwari as a party and
revising the class definition, among other changes. CalPERS
demurred to the class allegations in the second amended petition.
CalPERS asserted that “the determination of special
compensation is an individualized process that cannot be
performed on a classwide basis” and the proposed class was
“unascertainable.” The trial court sustained the demurrer in
relevant part with leave to amend.
In July 2021, respondents filed a third amended petition
5
and complaint, which revised the class definition and identified
five other contracting agencies that have “SCAG-like [m]erit
[p]ay policies.” CalPERS demurred to the class claims. The trial
court overruled CalPERS’s demurrer in its entirety.
C. Class discovery
Respondents conducted extensive class discovery and made
California Public Records Act (CPRA) requests focused on
identifying state agencies with SCAG-like payment policies and
similarly situated employees. Respondents served 10 sets of
written discovery; took four depositions; participated in multiple
informal discovery conferences; and filed a motion to compel,
which the trial court granted in part. Respondents’ counsel sent
CPRA requests or subpoenas to 145 contracting agencies,
corresponded with agency staff to obtain the records, and
reviewed approximately 50,000 pages of documents the agencies
produced.
CalPERS objected to the written discovery, in part, on the
grounds that the requests were unduly burdensome because
CalPERS does not maintain or track the information requested.
CalPERS filed a motion for protective order, which the trial court
denied.
D. Motion for class certification and stipulation
In November 2022, Respondents moved to certify a class
comprised of SCAG employes who are classic members of
CalPERS and who “received and/or will receive [m]erit
[p]ayment(s) in lump sum(s) pursuant to policies adopted by
SCAG.” CalPERS opposed the motion.
In March 2023, the parties filed a stipulation stating they
had “reevaluated their respective positions on the necessity of
class certification in view of” questions for oral argument that the
6
trial court had issued before a hearing on the issue. The parties
stipulated that respondents would withdraw their class
certification motion and dismiss the class allegations without
prejudice. The parties stipulated that “[s]hould the [c]ourt issue
the requested writ of mandate on the grounds that CalPERS has
misconstrued or has misapplied [California Code of Regulations,
title 2, section] 571’s provisions relating to the pensionability of
‘Bonuses’ . . . , and should the [c]ourt’s decision not be reversed on
any appeal CalPERS may take, CalPERS will, without requiring
the certification of a class, apply the [c]ourt’s construction of
[California Code of Regulations, title 2, section] 571 to all [c]lassic
[m]embers of CalPERS currently or formerly employed by SCAG
or other contracting employers of CalPERS who, while at the top
of their pay schedule, received and/or will receive [m]erit
[p]ayment(s) in lump sum(s) pursuant to policies adopted by
these contracting employers.”
E. Ruling on petition for writ of traditional
mandate
The parties briefed respondents’ claims under section 1085.
Despite the March 2023 stipulation, CalPERS argued that the
requested “classwide” writ relief was improper because
determining whether lump-sum merit bonuses are pensionable
“requires multiple individualized inquiries.”
In February 2024, the trial court granted the section 1085
petition in relevant part, finding that “CalPERS violated the
relevant regulations in failing to treat [respondents’] lump sum
payments as pensionable ‘Bonus’ pay.” The court ordered
CalPERS to apply the December 2020 order granting Liu’s
section 1094.5 petition, including “that [o]rder’s interpretation of
California Code of Regulations, title 2, section 571, to all [c]lassic
7
[m]embers of CalPERS currently or formerly employed by SCAG
or other contracting employers of CalPERS who, while at the top
of their pay schedule, received and/or will receive [m]erit
[p]ayment(s) in lump sum(s) pursuant to policies adopted by
these contracting employers.”2
F. Judgment
In July 2024, the trial court entered judgment in favor of
Liu on one cause of action under section 1094.5, and in favor of
respondents on one cause of action under section 1085. The court
retained jurisdiction to ensure compliance with the judgment and
writ.
G. Motion for Attorneys’ Fees
In October 2024, respondents moved for attorneys’ fees
under section 1021.5. They requested a lodestar fee of
$1,973,115.45, a 1.5 multiplier, and $124,121 for work on the
reply, for a total fee award of $3,056,771.90. In April 2025, the
trial court granted the motion and awarded respondents a
lodestar fee of $1,992,846.50 and a 1.5 multiplier, for a total
attorney fee award of $2,989,269.75. CalPERS timely appealed.
2 Respondents request judicial notice of a letter, dated March
20, 2026, showing that CalPERS subsequently increased
Maheshwari’s retirement benefits, and paid her a retroactive
adjustment of $11,762.36. We deny the request because this
letter was not before the trial court and is not relevant to the
appeal of the trial court’s fee order. (See Duronslet v. Kamps
(2012) 203 Cal.App.4th 717, 737.)
8
DISCUSSION
I. Entitlement to Attorneys’ Fees Under Section 1021.5
A. Applicable law
“Section 1021.5 authorizes a court to ‘award attorneys’ fees
to a successful party . . . in any action which has resulted in the
enforcement of an important right affecting the public
interest . . . .’ ” (Vasquez v. State of California (2008) 45 Cal.4th
243, 250.) In determining whether to award fees under
section 1021.5 to a “successful party,” the trial court “appl[ies] a
three-prong test inquiring whether (1) the litigation resulted in
the enforcement of an important right affecting the public
interest, (2) a significant benefit has been conferred on the
general public or a large class of individuals, and (3) the necessity
and financial burden of private enforcement renders the award
appropriate.” (Save Our Heritage Organisation v. City of San
Diego (2017) 11 Cal.App.5th 154, 159.)
Here, CalPERS challenges only the trial court’s finding
that this action conferred a significant benefit on a large class of
individuals. “When determining whether a lawsuit conferred a
significant benefit on the general public or a large class of
persons, a trial court should perform ‘a realistic assessment, in
light of all the pertinent circumstances, of the gains which have
resulted in a particular case.’ [Citation.]” (McCormick v. Public
Employees’ Retirement System (2023) 90 Cal.App.5th 996, 1005
(McCormick).) “[T]he Legislature did not intend to authorize an
award of attorney[s’] fees in every case involving a statutory
violation.” (Woodland Hills Residents Assn., Inc. v. City Council
(1979) 23 Cal.3d 917, 939.) However, “[t]he courts are not
required to narrowly construe the significant benefit factor. ‘The
“extent of the public benefit need not be great to justify an
9
attorney fee[s] award.” ’ [Citations.]” (Indio Police Command
Unit Assn. v. City of Indio (2014) 230 Cal.App.4th 521, 543.)
“Furthermore, ‘evidence of the size of the population benefited by
a private suit is not always required. The substantial benefit
may be conceptual or doctrinal, and need not be actual and
concrete, so long as the public is primarily benefited.’
[Citations.]” (Id. at pp. 543–544.)
B. Standard of review
“We will uphold the trial court’s decision to award
attorney[s’] fees under section 1021.5 unless the trial court
abused its discretion. [Citation.] In making this determination
we review the entire record, noting the trial court’s stated
reasons for awarding fees and whether it applied the proper
standards of law in reaching its decision. [Citation.] Where, as
here, litigation ends at the trial court level, we owe ‘the trial
court a full measure of deference in deciding whether the trial
court abused its discretion.’ ” (Sweetwater Union High School
Dist. v. Julian Union Elementary School Dist. (2019) 36
Cal.App.5th 970, 980 (Sweetwater).)
CalPERS contends that we should apply de novo review
because this case “involved statutory construction and a quasi-
legal assessment of the action’s impact.” We disagree. This case
did not result in a published appellate decision, which is a factor
that could have justified de novo review. (See Wilson v. San Luis
Obispo County Democratic Central Committee (2011) 192
Cal.App.4th 918, 924.) Nor does the entitlement to fees under
section 1021.5 depend on statutory construction. Instead, the
trial court used its equitable discretion to determine, based on an
extensive record, the benefit of the judgment. In such
circumstances, “it is not our role to reweigh the equities.”
10
(Grossmont Union High School Dist. v. Diego Plus Education
Corp. (2023) 98 Cal.App.5th 552, 574.) Regardless, we would
reach the same decision even if we applied a de novo standard of
review.
C. Analysis
The trial court found that this litigation conferred a
significant benefit on a large class of persons because the court’s
ruling “clarified the pension rights of government employees in
nearly 3000 public agencies that contract with CalPERS.” The
court stated: “[U]ncertainty as to which individuals might
actually receive a financial benefit does not justify denial of
attorney[s’] fees under section 1021.5. The clear benefit accruing
to [c]lassic [m]embers is that their right to a proper calculation of
their pension benefits under California law is now being
enforced.” The trial court was correct.
As CalPERS admits, the lawsuit directly benefits some
CalPERS members “by requiring CalPERS to . . . recalculate
their pensions.” More broadly, however, the litigation benefits all
classic members of CalPERS because it compels CalPERS to
apply the correct definition of “bonus” in California Code of
Regulations, title 2, section 571 when calculating salaries for
pension purposes. A “central function” of section 1021.5 is “ ‘to
call public officials to account and to insist that they enforce the
law.’ [Citation.]” (Serrano v. Unruh (1982) 32 Cal.3d 621, 632.)
Moreover, California Code of Regulations, title 2, section 571 is
an important part of CalPERS’s pension scheme because it
prevents pension spiking. (DiCarlo, supra, 12 Cal.App.5th at
pp. 485–486.)
CalPERS contends that respondents failed to produce
sufficient evidence “of the size of the potentially impacted group.”
11
The class of persons benefited need not be “readily ascertainable”
to award fees under section 1021.5. (See Sweetwater, supra, 36
Cal.App.5th at p. 991.) The clarification of the pension laws
governing CalPERS was sufficient to satisfy the significant-
benefit requirement. Therefore, “evidence on the size of the
group benefited was not required.” (McCormick, supra, 90
Cal.App.5th at p. 1009; see also City of Oakland v. Oakland
Police & Fire Retirement System (2018) 29 Cal.App.5th 688, 711.)
Regardless, there is sufficient evidence that the litigation
conferred a significant benefit on a large group of CalPERS
members. CalPERS is the nation’s largest public pension,
administering retirement benefits for nearly 3,000 public
agencies and more than 2,000,000 members.3 CalPERS has more
than 675,000 retired “classic members” and 375,000 active
“classic members.”
In discovery, CalPERS produced a list of 484 agencies that,
since 2016, reported bonus payments for their employees to
CalPERS. According to CalPERS’s Office of Audit Services, four
of the 126 contracting agencies (3.2 percent) it audited between
2017 and 2020 had SCAG-like merit pay policies that CalPERS
disapproved for the same reasons it rejected respondents’ lump-
sum merit pay bonuses. Respondents submitted evidence that,
through CPRA requests to approximately 140 contracting
agencies, their attorneys identified nine additional contracting
3 Although CalPERS objected to respondents’ request for judicial
notice of documents containing this information, it did not object
to these documents as evidence. Furthermore, “the statements in
the documents, which were made by CalPERS, have not been
disputed by CalPERS.” The trial court properly considered this
evidence.
12
agencies (6.4 percent) that provide lump-sum merit payments
according to a rating system.
Finally, CalPERS acknowledged that this litigation may
impact a large number of employees. As the trial court noted,
“One of the reasons that CalPERS asked this court not to provide
relief for non-SCAG employees was because it might be
burdensome for CalPERS to provide such relief, given that
‘CalPERS has approximately 3,000 member agencies, and each
agency may have more than one bonus plan . . . ’ [Citation.]
After claiming that the large number of employers and [c]lassic
[m]embers would make provision of relief burdensome, CalPERS
should not now be heard to claim that no relief will be provided to
that large class of [c]lassic [m]embers.”
CalPERS resists this conclusion, arguing that the benefit of
the trial court’s ruling is limited because members must satisfy
five requirements: “[the] person must be (1) a [c]lassic [m]ember;
(2) currently or formerly employed by a contracting employer;
(3) at the top of their pay scale; (4) who received merit pay in
lump sum; (5) pursuant to the employer’s policy that is similar to
SCAG’s.” CalPERS also contends that each qualifying bonus
payment would have to meet nine requirements in California
Code of Regulations, title 2, section 571, subdivision (b)(1). These
requirements simply define the class of CalPERS members who
will receive a direct, pecuniary benefit from this lawsuit. They do
not limit the broader class of CalPERS members who benefit
from CalPERS applying the proper definition of “bonus” in
calculating their pensions. More important, CalPERS presented
no argument or evidence to the trial court that these
requirements would prevent any classic members from having
their lump-sum merit pay count toward their retirement.
13
In sum, the trial court did not err or abuse its discretion in
awarding attorneys’ fees under section 1021.5. Standing alone,
the clarification and enforcement of California Code of
Regulations, title 2, section 571 justifies the award, but based
upon the evidence, the trial court could reasonably find that a
large number of classic CalPERS members would benefit from
this litigation. We need not reach the court’s alternative finding
that the 53 people who benefitted from this litigation, per
CalPERS’s concession, were sufficient to satisfy the significant-
benefit requirement.
II. Amount of Attorneys’ Fees
A. Applicable law
“In determining the fee award, the trial court must first
determine ‘a “lodestar” or “touchstone” figure, which is the
product of the number of hours worked by the attorneys and a
reasonable fee per hour.’ [Citations.]” (Greene v. Dillingham
Construction N.A., Inc. (2002) 101 Cal.App.4th 418, 422.) “The
trial court then has the discretion to increase or reduce the
lodestar figure by applying a positive or negative ‘ “multiplier” ’
based on a variety of factors. [Citations.]” (Ibid.) “Factors that
the court may consider in adjusting the lodestar include ‘(1) the
novelty and difficulty of the questions involved, (2) the skill
displayed in presenting them, (3) the extent to which the nature
of the litigation precluded other employment by the attorneys,
[and] (4) the contingent nature of the fee award.’ [Citation] . . .
[A]ny one factor ‘may be responsible for enhancing or reducing
the lodestar.’ [Citation.]” (Yes In My Back Yard v. City of Culver
City (2023) 96 Cal.App.5th 1103, 1122 (Yes In My Back Yard).)
“The courts repeatedly have stated that the trial court is in
the best position to value the services rendered by the attorneys
14
in his or her courtroom [citation], and this includes the
determination of the hourly rate that will be used in the lodestar
calculus.” (569 East County Boulevard LLC v. Backcountry
Against the Dump, Inc. (2016) 6 Cal.App.5th 426, 437.)
B. Standard of review
“ ‘We review attorney[s’] fee awards for abuse of discretion.
An experienced trial judge is in the best position to evaluate the
value of professional services rendered in the trial court. We
presume the fee approved by the trial court is reasonable. We
will not disturb the trial court’s judgment unless it is clearly
wrong.’ [Citation.]” (Snoeck v. ExakTime Innovations, Inc. (2023)
96 Cal.App.5th 908, 921.)
C. Reasonable number of hours
Respondents sought a lodestar of $1,973,115.45,
representing 2,058.39 hours of work by six attorneys and two
legal assistants. Respondents also requested an additional 118.7
hours and $124,121.00 in fees for work on the reply. In total,
respondents sought 2,177.09 hours for more than six years of
work. Respondents excluded 70 hours of work completed by three
law clerks and one legal assistant; one attorney deleted more
than 30 hours of his time; and respondents reduced the
remaining hours by 10 percent “ ‘to account for any potential
billing errors or duplication of effort.’ ”
The hours claimed by respondents are well supported by
130 pages of billing entries and multiple attorney declarations.
With a few exceptions (discussed below), CalPERS does not
contest that 2,177.09 hours is a reasonable amount of time for a
class action of this nature.
Rather, CalPERS contends that the trial court did not
properly apportion time pursuant to Harman v. City and County
15
of San Francisco (2007) 158 Cal.App.4th 407. Harman
establishes a two-part test for apportioning time between
successful and unsuccessful claims. First, the court determines
whether the plaintiff lost on claims that were “unrelated to the
claims on which he succeeded[.]” (Id. at p. 417.) Claims that
“ ‘are based on different facts and legal theories . . . qualify as
unrelated claims.’ [Citation.]” (Ibid.) “ ‘Apportionment is not
required when the issues in the fee and nonfee claims are so
inextricably intertwined that it would be impractical or
impossible to separate the attorney’s time into compensable and
noncompensable units.’ [Citation.]” (Ibid.) Second, if the
successful and unsuccessful claims are found to be related, the
court then “evaluate[s] the ‘significance of the overall relief
obtained by the plaintiff in relation to the hours reasonably
expended on the litigation.’ [Citations.]” (Ibid.) “If the plaintiff
obtained ‘excellent results,’ full compensation may be
appropriate. [Citation.]” (Ibid.)
The trial court rejected CalPERS’s arguments that the
lodestar fees should exclude time pursuing class certification,
class discovery, and “unsuccessful or unnecessary” claims. As
CalPERS acknowledges, all of respondents’ claims were based on
the same lump-sum, off-salary-schedule payments and “concern
the calculation of [c]lassic [m]embers’ pension benefits.”
Accordingly, the trial court could not find that the off-salary-
schedule-pay issues and alleged civil rights violations were
“distinct in all respects” from the writ relief granted in this case.
Further, CalPERS is responsible for the extensive litigation
and related attorneys’ fees in this case. In January 2020,
respondents’ counsel proposed “dismissing [the] class allegations
without prejudice in exchange for [CalPERS’s] agreement to
16
apply any ruling regarding [Liu] to all others similarly situated
in terms of retroactive pension benefits.” This stipulation would
have alleviated the need for a class action and extensive
discovery, streamlining the litigation. Instead, CalPERS rejected
this stipulation, leading to the extensive class action litigation in
this case. Over the next three years, CalPERS twice challenged
respondents’ class allegations by demurrer, resisted class
discovery, and opposed the class certification motion.
Then, in March 2023, CalPERS finally agreed to “apply the
Court’s construction of [California Code of Regulations, title 2,
section] 571 to all [c]lassic [m]embers of CalPERS currently or
formerly employed by SCAG or other contracting employers of
CalPERS who, while at the top of their pay schedule, received
and/or will receive [m]erit [p]ayment(s) in lump sum(s) pursuant
to policies adopted by these contracting employers,” i.e., to
employees “similarly situated” to Liu. This supports the trial
court’s decision not to apportion fees in this case. “ ‘The
government cannot litigate tenaciously and then be heard to
complain about the time necessarily spent by the plaintiff in
response.’ [Citation.]” (City of Riverside v. Rivera (1986)
477 U.S. 561, 580, fn. 11.) The stipulation was similar, if not
preferable to, the class relief that respondents sought in their
third amended petition. Under these circumstances, the trial
court did not abuse its discretion in awarding fees for all hours
claimed by respondents.
CalPERS contends that the trial court did not undertake
the second step of Harman and determine the significance of the
overall relief obtained by respondents. “ ‘[T]here is no general
rule requiring trial courts to explain their decisions on motions
seeking attorney[s’] fees.’ [Citation.] Accordingly, we draw no
17
negative inference from an explanation [CalPERS] considers to
be ‘inadequate.’ ” (Gunther v. Alaska Airlines, Inc. (2021) 72
Cal.App.5th 334, 361–362.) Furthermore, the trial court
considered Harman and concluded that no apportionment was
required because respondents achieved their litigation objectives
based on “intertwined” claims. This was sufficient.
CalPERS next asserts that it “correctly rejected” the
January 2020 stipulation and had no choice but to challenge
respondents’ motion for class certification and class discovery.
The record belies this assertion. In January 2020, Liu’s counsel
proposed a stipulation to dismiss the class allegations without
prejudice in exchange for CalPERS’s “agreement to apply any
ruling regarding [Liu] to all others similarly situated . . . .”
(Italics added.) CalPERS declined the offer as “overly broad” but
then agreed to similar terms three years later. Contrary to
CalPERS’s assertion, the January 2020 proposed stipulation did
not state that CalPERS would be required to pay members
retirement benefits to which they were not legally entitled.
Regardless, CalPERS could have proposed changes to the
stipulation to address its concerns. Instead, CalPERS continued
to litigate and argued that the requested “classwide” writ
required “multiple individualized inquiries.”
Finally, CalPERS challenges the hours the trial court
awarded for CPRA requests (213.75 hours), the fourth amended
petition (55.62 hours), and the reply brief to the fee motion
(118.7 hours). We find no abuse of discretion. The CPRA
requests uncovered material evidence for this lawsuit; the CPRA
“does not limit a requester’s right to obtain fees and costs
pursuant to . . . any other law;” and there is no evidence of a
double recovery. (Gov. Code, § 7923.115, subd. (c).) Respondents
18
prepared the fourth amended complaint before the parties
reached a stipulation that alleviated the need to file it. The time
spent on the reply is not unreasonable because it included
preparing 96-page evidentiary objections and other papers, and
appearing at the hearing.
D. Reasonable hourly rates
In determining the hourly rates, the trial court relied on:
(1) “published market rate data for work on complex cases in the
Los Angeles legal community for counsel of comparable skill and
experience”; (2) “available information about rates charged by
counsel or awarded by other courts”; and (3) declaration evidence
concerning the experience and qualifications of the attorneys and
legal assistants. The court found flaws in “the parties’ respective
expert declarations regarding fees” and did not rely on that
evidence. In sum, the court considered all relevant evidence and
exercised its own independent judgment, which was not an abuse
of discretion.
CalPERS contends that the trial court should have credited
the declaration of its fee expert, who opined that respondents’
counsel rates should be compared to those at smaller law firms
rather than large, “premium-rate firms.” The court rejected the
expert’s approach, as it was entitled to do, because it “under-
compensate[s] lawyers who work for smaller law firms that
primarily do contingency work.” (See Building a Better Redondo,
Inc. v. City of Redondo Beach (2012) 203 Cal.App.4th 852, 873
[attorney fee award must be based on “the reasonable market
value of services”].) “We may not reweigh on appeal a trial
court’s assessment of an attorney’s declaration.” (Christian
Research Institute v. Alnor (2008) 165 Cal.App.4th 1315, 1323.)
CalPERS also contends that the trial court awarded “top-of-
19
market rates,” which were not justified for this “straightforward
mandamus proceeding.” CalPERS misstates the record. This
case was litigated as a class action for over three years because
CalPERS refused to proceed by way of a mandamus action,
declined efforts to mediate the case, and litigated this case
tenaciously. Furthermore, the court could reasonably find that
the rates it awarded—most of which were not “top-tier”—were
amply justified by the attorneys’ skills and experience. We find
no abuse of discretion in the court’s determination of the lodestar
rates.
E. Multiplier
Here, the trial court awarded a 1.5 multiplier because:
(1) respondents’ counsel litigated the case on a contingency basis;
and (2) the time spent on the litigation precluded employment on
other matters. We find no abuse of discretion. Respondents’
counsel litigated this case on a strictly contingent fee basis with
no guarantee that they would be paid for their legal work.
Several other law firms were unwilling to represent respondents
on a contingent basis. Respondents’ counsel devoted nearly 2,200
hours to this case, which precluded employment on other
matters. The trial court could reasonably award a 1.5 multiplier
based on these two factors alone. (See Hoglund v. Sierra Nevada
Memorial-Miners Hospital (2024) 102 Cal.App.5th 56, 83.)
CalPERS contends that the trial court erred in awarding a
multiplier based upon the level of skill and complexity of issues
because it considered these same factors in determining the
rates. CalPERS misinterprets the record. The court awarded a
multiplier based upon the contingent fees and the attorneys’
inability to accept other work. The court then found: “[N]othing
about [respondents’] counsel’s representation in this litigation or
20
the difficulty of California law regarding pension benefit
calculations suggests that a multiplier of 1.5 would be too high to
properly compensate [respondents’] counsel.” Thus, the court
merely considered these factors in deciding not to reduce the
multiplier. There was no double counting.
Finally, CalPERS contends that the current rates awarded
by the trial court sufficiently compensate respondents’ counsel for
the contingency risk and the time spent on the litigation. The
court found: “Although the reasonable hourly rates that support
the award here are current billing rates, and this litigation
stretches back several years to a period when reasonable rates
undoubtedly were lower, use of current rates offsets the harm
resulting from delay in payment, separate and apart from the
contingency consideration.”
A fee award under section 1021.5 “should be fully
compensatory.” (Ketchum v. Moses (2001) 24 Cal.4th 1122, 1133.)
“[W]hen determining the appropriate enhancement, a trial court
should not consider the[] [multiplier] factors to the extent they are
already encompassed within the lodestar.” (Id. at p. 1138, italics
added.) Here, the trial court implicitly found that the award of
current billing rates and a 1.5 multiplier were needed to fully
compensate respondents’ counsel given the long delay in
payment. The court could have reasonably found this approach
more practical than calculating the lodestar fee based on the
applicable rates for each year and then awarding a higher
multiplier. We “ ‘presume the trial court considered all the
appropriate factors in choosing the multiplier and applying it to
the whole lodestar.’ [Citation.]” (Espejo v. The Copley Press
(2017) 13 Cal.App.5th 329, 384.) CalPERS has not cited evidence
to overcome this presumption, and “we will not second-guess the
21
trial court’s assessment.” (Yes In My Back Yard, supra, 96
Cal.App.5th at p. 1123.)
DISPOSITION
The order granting attorneys’ fees is affirmed.
Respondents are entitled to their costs on appeal.
NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS.
GOORVITCH, J.
We concur:
LUI, P. J.
CHAVEZ, J.
22