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39 Cal. App. 5th 270
Cal. Ct. App. 5th
2019
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Background

  • In 1997 Greene loaned Carriere $175,000; Carriere executed a promissory note (with an attorney-fees clause) and a deed of trust naming Greene's trust and consulting company. Interest was 14.5% and loan matured in 2008.
  • In 2012 Carriere sued to void the Note and Trust Deed; Greene cross-complained for breach of the Note. After a 4-day bench trial (2015) the court dismissed Carriere’s claims, found Greene prevailed on his cross-complaint but that some interest was usurious, and entered judgment for Greene for $150,329.21.
  • The trial court awarded Greene $123,975 in contractual attorney fees under the Note and declared him the prevailing party for purposes of Civ. Code § 1717.
  • While appeals were pending Greene argued calculation of damages; Carriere paid the judgment and fees, Greene executed an acknowledgment of satisfaction, and Greene voluntarily dismissed his appeal after the Court of Appeal issued an OSC questioning waiver.
  • Carriere then moved in the trial court for attorney fees incurred on Greene’s appeal under Civ. Code § 1717 (and alternatively sanctions under CCP § 128.5). The trial court awarded Carriere $67,238 in fees. Greene appealed that fee award.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Carriere is entitled to contractual attorney fees under Civ. Code § 1717 for fees incurred on Greene’s appeal/post-judgment proceedings Carriere: She prevailed on appeal and post-judgment matters and remittitur awarded costs on appeal; thus she is prevailing party for those proceedings and entitled to fees under the Note and § 1717 Greene: Trial court already found him the prevailing party in the lawsuit; appeal and post-judgment steps are part of same action, so § 1717 fees belong to Greene Reversed: § 1717 awards are determined by who prevailed in the lawsuit as a whole; Greene recovered greater relief and remains the sole prevailing party entitled to contractual fees, so Carriere is not entitled to fees under § 1717
Whether Carriere may recover fees as sanctions under CCP § 128.5 for Greene’s allegedly frivolous appeal Carriere: Alternatively seeks fees as sanctions because Greene’s appeal was moot/frivolous after he accepted payment and executed satisfaction Greene: Trial court did not find sanctions warranted; appeal was not totally without merit given authority that collecting judgment and filing satisfaction may not always moot an appeal Denied: Trial court did not rule under § 128.5; the appellate court will not substitute its discretion and additionally finds Carriere failed to show the appeal was totally without merit; appeal-sanction power lies primarily with reviewing courts

Key Cases Cited

  • Butler-Rupp v. Lourdeaux, 154 Cal.App.4th 918 (discusses fee recovery only by contract or statute)
  • Sessions Payroll Mgmt., Inc. v. Noble Constr. Co., 84 Cal.App.4th 671 (standard of review for legal basis of fee awards)
  • Frog Creek Partners, LLC v. Vance Brown, Inc., 206 Cal.App.4th 515 (only one prevailing party for § 1717 in a given lawsuit)
  • DisputeSuite.com, LLC v. Scoreinc.com, 2 Cal.5th 968 (fees under § 1717 awarded to party who prevailed on contract overall)
  • Roberts v. Packard, Packard & Johnson, 217 Cal.App.4th 822 (§ 1717 contemplates a single prevailing party)
  • Wood v. Santa Monica Escrow Co., 176 Cal.App.4th 802 (appeal/post-trial steps are part of same action for § 1717 purposes)
  • Mustachio v. Great Western Bank, 48 Cal.App.4th 1145 (distinguishing appellate costs from contractual fee determinations)
  • Heacock v. Ivorette-Texas, Inc., 20 Cal.App.4th 1665 (accepting judgment payment and filing satisfaction does not automatically bar appeal)
  • Olson Partnership v. Gaylord Plating Lab, Inc., 226 Cal.App.3d 235 (trial court's discretion under § 128.5)
  • Cravens v. State Bd. of Equalization, 52 Cal.App.4th 253 (limits on accepting late dismissals when summary judgment imminent)
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Case Details

Case Name: La Carriere v. Greene
Court Name: California Court of Appeal, 5th District
Date Published: Aug 28, 2019
Citations: 39 Cal. App. 5th 270; 251 Cal. Rptr. 3d 795; B285793
Docket Number: B285793
Court Abbreviation: Cal. Ct. App. 5th
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