Opinion
aul Lewow unsuccessfully appeals from a $292,205.50 attorney fees order in favor of Surfside in Condominium Owners Association (Association). He contends that Association’s motion for attorney fees was not timely filed. While the trial court’s articulated ratiоnale concerning a bankruptcy stay was erroneous, it reached the correct result. The trial court’s use of an unsound course of reasoning is not determinative as long as the result reached is correct. (E.g., Schabarum v. California Legislature (1998)
Factual and Procedural Background
On February 3, 2010, judgment was entered in favor of Association on appellant’s complaint for failure to perform its duties. On February 10, 2010, notice of entry of judgment was mailed to appellant. That same day, appellant filed for relief under chapter 13 of the United States Bankruptcy Code.
Association’s counsel prepared a motion for attorney fees pursuant to Civil Code section 1354, subdivision (с). The statute provides: “In an action to enforce the governing documents” of a common interest development, “the prevailing party shall be awarded reasonable attorney’s fees and costs.” But counsel delayed filing the motion because counsel believed that “any proceedings in the trial court were stayed by the automatic bankruptcy stay.”
On July 23, 2010, the bankruptcy proceedings were dismissed. On July 25, 2010, notice of the dismissal was mailed to Association.
Association filed its mоtion for attorney fees on August 26, 2010, 32 days after the mailing of notice of the bankruptcy dismissal. Appellant objected that the motion was not timely filed. He noted that rule 3.1702(b) of the California Rules of Court provides: “A notice of motion to claim attorney’s fees . . . must be served and filed within the time for filing a notice
The trial court accepted Association’s argument that the 60-day statutory period was tolled by the bankruptcy stay. The court noted that, “[excluding the time that [appellant’s] bankruptcy was pending,” the motion was filed within the statutory deadline. Appellant’s counsel protested: “There is nothing in the automatic stay that tolls any period, whether it’s statutory, whether it’s under rules of court, whatever the source of that time frame is.” The court awаrded Association attorney fees of $292,205.50.
Discussion
Pursuant to section 362(a)(1) of title 11 of the United States Code, the filing of a bankruptcy petition operates as an automatic stay of “the commencement or continuation ... of a judicial. . . proceeding against the debtor that was or could have been commenced before the commencement of the [bankruptcy action] . . . .” (Ibid.) But the automatic bankruptcy stay does not toll the running of the 60-day statutory period. “The filing of a bankruptcy petition operates as an automatic stay of ‘the commencement or continuation ... of a judicial . . . proceeding . . . .’ (11 U.S.C. § 362(a)(1) . . . .) The running of a statutory time period does not constitute the commencement or continuation of a judicial proceeding within the meaning of this section. [Citation.]” (ECC Construction, Inc. v. Oak Park Calabasas Homeowners Assn. (2004)
Furthermore, Code of Civil Procedure section 356 is not “applicable to statutory time limits other than statutes of limitation. Statutes of limitation, which fix the time within which a suit must be commenced, are to be distinguished from other procedural statutes fixing times to do acts or seek judicial relief. [Citation.]” (Napue v. Gor-Mey West, Inc. (1985)
The effect of the automatic bankruptcy stay is set forth in 11 United Stаtes Code section 108(c) (section 108(c)), which provides: “[I]f applicable non-bankruptcy law . . . fixes a period for commencing or continuing a civil action in a court other than a bankruptcy court on a claim against the debtor, . . . аnd such period has not expired before the date of the filing of the petition, then such period does not expire until the later of—[¶] (1) the end of such period, including any suspension of such period occurring on or after the
Section 108(c)(1) is inapplicable because “[t]he ‘suspension’ referred to [in that section] is nоt a result of the automatic [bankruptcy] stay but results from other state or federal law. [Citations.]” (ECC Construction, supra,
“Section 108(c)(2) would have acted to extend the time to file a [motion for attorney fees] until 30 days after notice of the lifting of the automatic stay, if that date were later than the end of the time period otherwise provided for filing a [motion for attorney fees].” (ECC Construction, supra,
The 60-day statutory period expired on April 11, 2010, when the automatic stay was still in effect. Thus, the statutory period was extended until 30 days after notice to appellant of the dismissal of the bankruptcy proceedings. Notice was given on July 25, 2010, when it was mailed to Association. (Inco Development Corp. v. Superior Court, supra,
But the late filing of the motion for attorney fees does not mean that Association is precluded from recovering its reasonable attorney fees. Rule
We reject appellant’s contention that a rule 3.1702(d) extension of time must bе granted before the expiration of the 60-day period. “The ordinary principles of statutory construction govern our interpretation of the California Rules of Court. [Citations.] Our objective is to determine the drafter’s intent.” (Alan v. American Honda Motor Co., Inc. (2007)
Accordingly, for good cause the trial court had the power to extend the time for filing Association’s motion for attorney fees. The good cause would have been counsel’s mistake of law in believing that the bankruptcy stаy tolled the statutory 60-day period. “ ’ “The issue of which mistakes of law constitute excusable neglect presents a fact question; the determining factors are the reasonableness of the misconception and the justifiability of lack of dеtermination of the correct law. [Citation.] Although an honest mistake of law is a valid ground for relief where a problem is complex and debatable, ignorance of the law coupled with negligence in ascertaining it will certainly sustain a finding denying relief.” [Citation.]’ [Citation.] Thus ... a mistaken but reasonable decision by [Association’s] counsel that [the 60-day period was tolled by the bankruptcy stay] constitutes good cause for the trial court to permit belated [filing of the motion]. Counsel are not expected to be omniscient, as the [drafters] plainly recognized by writing the ‘good cause’ exception into [rule 3.1702(d)].” (City of Ontario v. Superior Court (1970)
The issue of whether the bankruptcy stay tolled the 60-day period is complex and debatable. It is understandable that the Assоciation was mistaken. “It is settled that an honest and reasonable mistake of law on such
Disposition
The postjudgment order awarding reasonable attorney fees to Association is affirmed. Association shall recover its costs on appeal.
Coffee, J., and Perren, J., concurred.
Notes
All rule references are to the California Rules of Court.
“The rules have the force of statute to the extent that they are not inconsistent with legislative enactments and constitutional provisions. [Citations.]” (In re Richard S. (1991)