Arbitration: Where A Party Prevailed After Multiple Appeals And After Post-Arbitration Proceedings In Which Consumer Loan Interest/Loan Fee Provisions Were Voided, The Award Of Prevailing Party Fees Totaling $900,718 Was Proper

A Final Determination Was Made: Client Prevailed, And To The Victor Went The Spoils

–Substantial Attorney’s Fees.

Once again, Law Finance Group, LLC v. Key, Case Nos. B338733 et al. (2d Dist., Div. 2 Apr. 27, 2026) (unpublished) confirms that the victor in arbitration proceedings, which may entail having to overturn an adverse arbitration award and then sustaining it in further trial court and appellate proceedings, can give rise to substantial attorney’s fees to the eventual prevailing party.

Client obtained a loan from Law Finance Group to finance a probate action, but she disputed owing interest and other fees under the loan arrangement.  Client did not prevail before arbitrators, but she did so after several appeals and post-arbitration trial court confirmation/vacatur proceedings.  Eventually, the loan was found to be a consumer (not commercial) loan and voided based on not complying with consumer loan requirements. 

The lower court eventually awarded her $900,718 in attorney’s fees for her appellate and post-arbitration efforts in prevailing on the loan dispute.

That result was affirmed on appeal.  Law Finance Group’s argument that there was no final determination was rejected under the law of the case doctrine.  With that dispatched, the fees properly were awarded as the fruits of an arbitration victory in subsequent proceedings, supported by the reasoning in Marcus & Millichap Real Estate Investment Brokerage Co. v. Woodman Investment Group, 129 Cal.App.4th 508, 513 (2005). 

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