PNEC Corp. v. Meyer
190 Cal. App. 4th 66
| Cal. Ct. App. | 2010Background
- PNEC filed a November 2008 contract-related action against Meyer and others for unpaid petroleum products; only the guaranty claim against Meyer is at issue.
- Meyer, residing in Tacoma, Washington, moved to dismiss on forum non conveniens or to quash service; she had no California ties.
- The trial court granted dismissal on forum non conveniens grounds and entered a dismissal without prejudice.
- Meyer then sought attorney fees under the contract’s fee-shifting provision, arguing she was the prevailing party under Civil Code section 1717.
- The court awarded Meyer $21,677.25 in fees, relying on Profit Concepts and finding work on the forum issue allied with collection efforts.
- PNEC appealed, arguing fees are improper for forum non conveniens dismissals and the amount claimed was excessive.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 1717 permits attorney fees for forum non conveniens dismissals. | PNEC argues 1717 does not apply when dismissal is for forum non conveniens. | Meyer relies on Profit Concepts holding that prevailing-party status extends to such dismissals. | Yes; forum non conveniens dismissal can trigger 1717 fees where the contract provides for them. |
| Whether Profit Concepts controls and supports a fee award here. | PNEC contends Profit Concepts is distinguishable or inapplicable. | Profit Concepts governs, showing dismissal-type outcomes can confer prevailing-party status. | Profit Concepts governs; a dismissal on forum non conveniens can confer prevailing-party status under 1717. |
| Whether the fee amount was proper, or should be limited to work on the forum issue. | The award included time spent on non-forum issues; should be limited. | Award rested on pre-dismissal work and was within the court’s discretion; no abuse shown. | No abuse; the award was within the court’s discretion. |
Key Cases Cited
- Profit Concepts Management, Inc. v. Griffith, 162 Cal.App.4th 950 (Cal.App.4th 2008) (prevailing-party status can arise from forum non conveniens dismissals under 1717)
- Turner v. Schultz, 175 Cal.App.4th 974 (Cal.App.4th 2009) (awards for fees incurred in enforcing contract despite non-merits outcomes)
- Otay River Constructors v. San Diego Expressway, 158 Cal.App.4th 796 (Cal.App.4th 2008) (prevailing-party recovery where dismissal advances collection goals)
- Estate of Drummond, 149 Cal.App.4th 46 (Cal.App.4th 2007) (cautions against broad application of fees when merits are unaffected)