Kinney v. Clark
B265267M
| Cal. Ct. App. | Jun 14, 2017Background
- Clark obtained a December 15, 2008 attorney fees award of $9,349 against Kinney under the real estate purchase agreement; Kinney appealed and the award was affirmed.
- Kinney and Kempton’s related actions led to Kinney being declared a vexatious litigant and a prefiling order prohibiting new filings without leave of a judge.
- Clark declared bankruptcy in July 2010; the bankruptcy court later discharged Clark but allowed state court proceedings to determine further recovery of fees.
- In 2013–2015 Clark sought enforcement of the 2008 fee award and additional attorney fees; Kinney opposed and pursued exemptions, leading to appellate proceedings (B253093) that were dismissed for lack of standing.
- On May 5, 2015 the trial court awarded Clark an additional $22,115 for work defending the related appeal; Kinney appealed, leading to the present appeal.
- This court granted sanctions against Kinney for filing a frivolous appeal and imposed an expanded prefiling order requiring Kinney to obtain leave to file new litigation against Clark or her attorneys.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Post-bankruptcy enforceability of fees | Kinney argues Clark’s post-bankruptcy fees are invalid and would create windfall. | Clark contends post-bankruptcy enforcement under the Agreement is proper state-law enforcement and not stayed by discharge. | Post-bankruptcy enforcement affirmed; not stayed or barred. |
| Standing to challenge 2008 award after discharge | Kinney lacks standing to challenge the 2008 award given bankruptcy discharge. | Clark argues Kinney cannot defeat enforcement; he lacks rights as a creditor of the estate. | Kinney lacked standing; challenge rejected. |
| Effect of appellate stays on subsequent fee orders | Kinney argues pending appeals stay enforcement of later fee awards. | Clark argues stays do not automatically bar later fee awards or enforcement. | Appeals did not stay new enforcement orders; subsequent fees may be awarded. |
| Expanded prefiling order authority | Kinney contends section 391.7 limits prefiling orders to self-represented litigants. | Clark argues inherent powers allow expansion to curb abuse when counsel acts as a puppet for a vexatious litigant. | Expanded prefiling order authorized; Kinney barred from filing without leave. |
| Sanctions for frivolous appeal | Kinney maintains merit to arguments; sanctions unwarranted. | Clark seeks sanctions for persistent meritless appeals. | Sanctions imposed; $10,000 payable to Clark. |
Key Cases Cited
- In re Shieh, 17 Cal.App.4th 1154 (Cal. Ct. App. 1993) (puppet-attorney prefiling orders extend to vexatious litigants through counsel)
- Shalant v. Girardi, 51 Cal.4th 1164 (Cal. 2011) (addressed limits of section 391.7 and attorney conduct)
- John v. Superior Court, 63 Cal.4th 91 (Cal. 2020) (prefiling requirements do not apply to certain self-represented vexatious litigants)
- In re CFLC, Inc., 89 F.3d 673 (9th Cir. 1996) (definition of executory contract for bankruptcy purposes)
- In re Marriage of Flaherty, 31 Cal.3d 637 (Cal. 1982) (frivolous appeal standard)
- Mojtahedi v. Vargas, 228 Cal.App.4th 974 (Cal. App. 2014) (regarding standing related to attorney fees liens)
- Neary v. Regents of University of California, 3 Cal.4th 273 (Cal. 1992) (inherent powers of courts to control proceedings)
