Second District, Division 4 Affirms $20,000 Fees/Cost Award to Alter Ego Winner.
In Legacy Construction and Development, Inc. v. De Francesca, Case No. B208851 (2d Dist., Div. 4 July 13, 2009) (unpublished), a defendant, following presentation of plaintiff’s declaratory relief case, obtained a ruling that he was not the alter ego of a separate corporation being sued in the case. Winning defendant was eventually awarded fees and costs of almost $20,000 under Civil Code section 1717 (based on a contract fees clause between Legacy and the separate defendant corporation).
The Second District, Division 4 affirmed the award. Relying on Pueblo Radiology Medical Group, Inc. v. Gerlach, 163 Cal.App.4th 826, 829 (2008) [reviewed in our June 5, 2008 post], the appellate panel found that defendant was a prevailing party notwithstanding that the plaintiff might obtain relief against other parties. The favorable alter ego finding did “end the case” against the one defendant who beat the alter ego exposure. Beyond that, the amount of the award was reasonable—winning defendant had asked for $42,130 in fees, but the trial court only awarded $19,150 (plus costs).