4:19-cv-07123•WhatsApp Inc. et al v. NSO Group Technologies Limited et al
WhatsApp Inc. et al v. NSO Group Technologies Limited et al
4:19-cv-07123Cand30 janv. 2026
Texte intégral
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 United States District Court Northern District of California UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA WHATSAPP INC., et al., Plaintiffs, v. NSO GROUP TECHNOLOGIES LIMITED, et al., Defendants. Case No. 19-cv-07123-PJH ORDER GRANTING MOTION FOR ATTORNEY’S FEES, DENYING MOTION TO SEAL Re: Dkt. 816, 828 Before the court is plaintiffs’ motion for attorney’s fees. See Dkt. 816. Having read the papers filed by the parties and carefully considered their arguments and relevant authority, and good cause appearing, the court hereby rules as follows. A. Legal standard Section 502(e)(2) of the California Comprehensive Computer Data Access and Fraud Act (“CDAFA”) states that “[i]n any action brought pursuant to this subdivision the court may award reasonable attorney’s fees.” In “action[s] involving state law claims,” federal courts “apply the law of the forum state to determine whether a party is entitled to attorneys’ fees, unless it conflicts with a valid federal statute or procedural rule.” MRO Communications, Inc. v. AT&T Co., 197 F.3d 1276, 1282 (9th Cir. 1999). State law governs both plaintiffs’ right to fees and the method of calculating the fees. See Wilson v. Tesla, Inc., 833 Fed. Appx. 59, 61 n.2 (quoting Mangold v. Cal. Pub. Util. Comm’n, 67 F.3d 1470, 1478 (9th Cir. 1995)). Section 1717 of the California Civil Code also provides that “[i]n any action on a contract, where the contract specifically provides that attorney’s fees and costs, which are incurred to enforce that contract, shall be awarded,” the prevailing party “shall be Case 4:19-cv-07123-PJH Document 835 Filed 01/30/26 Page 1 of 6
2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 United States District Court Northern District of California entitled to reasonable attorney’s fees.” When a party prevails on a claim governed by a statutory fee-shifting provision, that party may also recover attorney’s fees for “work done on claims that involve a common core of facts” or are “based on related legal theories.” The Ninth Circuit has recognized that “the test for relatedness of claims is not precise,” explaining that “the focus is to be on whether the unsuccessful and successful claims arose out of the same ‘course of conduct.’” See Webb v. Sloan, 330 F.3d 1158, 1169 (9th Cir. 2003) (citing Schwarz v. Secretary of Health & Human Services, 73 F.3d 895, 903 (9th Cir. 1995)). The Webb court acknowledged that it may sometimes be “likely that some of the work performed in connection with the unsuccessful claim also aided the work done on the merits of the successful claim,” but emphasized that “the focus is on whether the claims arose out of a common course of conduct.” Id. California courts have similarly held that “[w]hen the liability issues are so interrelated that it would have been impossible to separate them into claims for which attorney fees are properly awarded and claims for which they are not, then allocation is not required.” See, e.g., Akins v. Enterprise Rent-A-Car Co. of SF, 79 Cal.App.4th 1127, 1133 (2000). B. Analysis Plaintiffs argue that they are entitled to fees under either CDAFA and/or section 1717 of the California Civil Code, which provides for attorney’s fees in contract cases. Defendants argue that CDAFA is the only basis for a fee award in this case. See Dkt. 823 at 11-13. Defendants further argue that plaintiffs may not recover any fees for their breach of contract claim, and that any portion of fees attributable to that claim should not be included in any fee award. See id. at 13-15. Defendants acknowledge that the court may forgo apportionment if “the liability issues are so interrelated that it would have been impossible to separate them,” but argue that plaintiffs’ contract claim is not sufficiently interrelated to their CDAFA claim. See id. at 14 (citing Akins, 79 Cal.App.4th at 1133. Case 4:19-cv-07123-PJH Document 835 Filed 01/30/26 Page 2 of 6
3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 United States District Court Northern District of California Specifically, defendants argue that plaintiffs’ contract claim presented “numerous issues that should be severed and isolated for purposes of the attorney fee award.” See Dkt. 823 at 14 (internal citation omitted). In particular, defendants point to the discovery regarding defendants’ activity reverse-engineering or decompiling Whatsapp code, arguing that such discovery was relevant only to the contract claim and not to the CDAFA claim. See id. at 14-15. In the court’s view, plaintiffs’ position regarding the relatedness of their claims is more reasonable than defendants’ position. All of plaintiffs’ claims are both legally and factually related. Factually, there is no question that plaintiffs’ claims “arose out of the same course of conduct.” It was defendants’ access of plaintiffs’ technology that formed the basis of all claims asserted in this case. Defendants argue that certain activities – such as reverse-engineering and decompiling plaintiffs’ code – were factually distinct from the conduct underlying the CDAFA violations and thus should be considered “unrelated” and part of a separate “course of conduct.” The court disagrees, as defendants’ view would run afoul of the Ninth Circuit’s guidance in Webb, which made clear that “the focus is on whether the claims arose out of a common course of conduct” even if the claims lack perfect overlap. At the pleadings stage of the case, the court observed that the “breach of contract claim involves the same common nucleus of operative facts as the tort claims,” and the subsequent proceedings have not persuaded the court to change that view. See Dkt. 111 at 32. Legally, the court also concludes that plaintiffs’ claims are sufficiently interrelated such that apportionment is not warranted. While defendants are correct that the breach of contract claim involved allegations of additional conduct (such as reverse-engineering and decompiling) beyond what was directly implicated by the CDAFA claim, that additional conduct is precisely what enabled defendants to access defendants’ information in violation of CDAFA. Thus, the authority cited by defendants, in which the Ninth Circuit found that different claims “involved completely different legal theories and Case 4:19-cv-07123-PJH Document 835 Filed 01/30/26 Page 3 of 6
4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 United States District Court Northern District of California questions” and thus chose to apportion fees, is not applicable to the present case. See, e.g., Entertainment Research Group, Inc. v. Genesis Creative Group, Inc., 122 F.3d 1211, 1230 (9th Cir. 1997); see also Heppler v. J.M. Peters Co., 73 Cal.App.4th 1265, 1297 (1999) (fees should be apportioned in cases involving multiple defendants with distinct theories of relief). Thus, both factually and legally, the court concludes that plaintiffs’ CDAFA claim is sufficiently related to their breach of contract claim such that apportionment is not required. The court reaches the same conclusion with respect to plaintiffs’ trespass to chattels claim, which was dismissed at the pleadings stage. See, e.g., Akins, 79 Cal.App.4th at 1133 (“The final ground of resolution may become clear only after a series of unsuccessful attacks. Compensation is ordinarily warranted even for those unsuccessful attacks, to the extent that those attacks led to a successful claim.”) Overall, the court concludes that plaintiffs have shown that they are entitled to recovery of fees under CDAFA, and that the fees incurred in connection with their breach of contract and trespass to chattels claims are sufficiently related under Webb and Akins. Thus, the court does not need to address whether fees are also recoverable under Cal. Civ. Code § 1717. In addition to challenging plaintiffs’ entitlement to fee recovery in the first place, defendants also challenge the amount of fees sought, arguing that they are unreasonable. See Dkt. 823 at 15-25. Specifically, defendants argue that plaintiffs improperly seek fees based on fixed-fee arrangements rather than the lodestar method, and that plaintiffs did not submit sufficient information about their expended hours. Defendants further argue that plaintiffs must be ordered to produce time records, that plaintiffs fail to establish their hourly rates, and that the amount of expended hours and requested fees is not reasonable. Regarding the fixed-fee agreement, the court rejects the argument that they are incompatible with a fee award. The court instead agrees with the view taken by Judge Alsup in Straight Path IP Group, Inc. v. Cisco Systems, Inc., that the lodestar method is Case 4:19-cv-07123-PJH Document 835 Filed 01/30/26 Page 4 of 6
5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 United States District Court Northern District of California not “the only method,” as “the flat-billing rate remains what clients actually pay for legal services.” 2020 WL 2539002 (N.D. Cal. May 19, 2020) (emphasis in original). Plaintiffs’ fee arrangement reflects a real-world valuation of counsel’s legal services, as they were negotiated by plaintiffs’ two main firms before they were involved in the case. See Dkt. 816 at 24; see also Moreno v. City of Sacramento, 534 F.3d 1106, 1115 (9th Cir. 2008) (“The district court’s function is to award fees that reflect economic conditions in the district.”). Thus, the court concludes that the fixed-fee agreements support the reasonableness of plaintiffs’ fee request, without any further need for detailed time records. Also, plaintiffs submit declarations to support the conclusion that an hourly billing method would have resulted in a lodestar that is greater than the fees that were actually bargained-for and paid. See Dkt. 816 at 25. Regarding plaintiffs’ counsel’s rates, plaintiffs are correct that they have cited multiple cases holding that rates higher than plaintiffs’ counsel’s were reasonable and consistent with the prevailing market. See Dkt. 816 at 27. Moreover, the amounts charged are actually lower than rates that this court has approved on similarly complex cases, and lower than prevailing rates in this district. See, e.g., Lansmont Corp. v. SPX Corp., 2014 WL 1267003 (N.D. Cal. Mar. 27, 2014) (“Ultimately, California law allows a judge, having been informed of the relevant circumstances, to determine a reasonable fee from his or her own knowledge and experience.”). The court finds no basis for defendants’ argument that plaintiffs must submit evidence regarding prevailing rates specifically for CFAA and CDAFA cases. Regarding the amount of hours expended by plaintiffs’ counsel, the court concludes that the amount of hours expended in the case was warranted given the case’s legal and technological complexity, as well as the number of discovery-related motions necessitated by the national security protections invoked by defendants. Accordingly, plaintiffs’ motion for attorney’s fees (Dkt. 816) is GRANTED, and fees are awarded in the amount of $15,914,095. Case 4:19-cv-07123-PJH Document 835 Filed 01/30/26 Page 5 of 6
6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 United States District Court Northern District of California Finally, plaintiffs have filed a motion to seal, seeking to shield certain information about their fee arrangements with counsel. Defendants oppose the motion to seal, arguing that attorney fee rates are typically not considered sealable. See Dkt. 830 at 2 (citing cases). The court finds defendants’ authority to be more persuasive, and DENIES plaintiffs’ motion to seal (Dkt. 828). Plaintiffs are directed to file unredacted versions of the documents filed provisionally under seal, no later than seven (7) days from the date of this order. IT IS SO ORDERED. Dated: January 30, 2026 /s/ Phyllis J. Hamilton PHYLLIS J. HAMILTON United States District Judge Case 4:19-cv-07123-PJH Document 835 Filed 01/30/26 Page 6 of 6
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