Appellate Court Also Assessed $9,000 Against Appellant For Frivolous Appeal.
Plaintiff sued to collect on a note with a fees clause, alleging that an individual defendant was the alter ego of the entity obligor. However, plaintiff’s case was dismissed for failure to prosecute it. The lower court then awarded fees of $125,000 out of a requested $731,340 to the prevailing defendant.
That result was upheld on appeal in Ascarrunz v. Hsu, Case No. A143766 (1st Dist., Div. 2 Oct. 23, 2015) (unpublished).
The leading case of Reynolds Metals Co. v. Alperson, 25 Cal.3d 124 (1979) allows Civil Code section 1717 fee recovery against a litigant losing an alter ego claim. Appellant never showed why this authority was not dispositive, as it was.
Then, the appellate court assessed $9,000 against appellant as sanctions for a frivolous appeal, payable to the First District court clerk. It has a nice survey of frivolous appeal awards in the past few years for you readers out there who might need this type of information for a frivolous appeal sanctions motion.