$181,933 “Generous” Fee Award Not Out of Bounds.
LA Open Door Presbyterian Church v. Evangelical Christian Credit Union, Case No. B246853 (2d Dist., Div. 2 Oct. 4, 2013) (unpublished) is a situation where a defendant was voluntarily dismissed from a suit involving a contract (a written forbearance agreement with a fees clause). Although the written contract claims could not justify fee exposure under Santisas, fee entitlement hinged on whether noncontract claims were covered by the language in the written agreement nonetheless.
The lower court decided they were, refusing to apportion work among claims and awarding fees of $181,933 to prevailing defendant.
Plaintiff appealed.
No reversal here.
Among the dismissed claims were fraudulent inducement, wrongful foreclosure, oral breach of contract, and unfair business practices, none being “on the contract.” Defendant raised the terms of the forbearance agreement as a defense to all of the claims. Given that the fees clause was broad (applying to costs and expenses including defense attorney’s fees/legal expenses whether or not a lawsuit was brought), the raising of the defense to the non-contract claims was encompassed within the liberal scope of the fees clause.
Given that the issues and proof were interrelated, no allocation was necessary.
Finally, although dubbed “generous,” the lower court’s award of $181,933 was not so “out of bounds” so as to constitute an abuse of discretion.
Below: In the ballpark. Dodger Stadium, 2012. Carol M. Highsmith, photographer. Library of Congress.
