No Abuse of Discretion Shown, With Appellate Court Reminding Practitioners That Fiduciary Breach Fee Sanctions Are Mandatory In Nature.
Ex-husband in Marriage of Tsatryan, Case Nos. B270784/B276299 (2d Dist., Div. 7 Jan. 14, 2019) (unpublished) was not happy with being hit with $65,000 in attorney’s fees sanctions under Family Code sections 1101(g) [for breach of fiduciary duty with regard to community assets], 271 [failure to promote settlement/hold down the costs of a dissolution case] and 2107(c) [failure to make required disclosures in declaration of financial disclosure]. However, the sanctions award was hardly an abuse of discretion when the record showed that ex-husband had siphoned off equity in the ex-couple’s house to the tune of $650,000 in encumbrances—making the sanctions award only 10% of the transfers (with section 1101(g) allowing a base award of 50% of any transferred asset). The appellate court also reminded everyone that the section 1101(g) award of fees for a spouse’s breach of fiduciary duty is mandatory. (In re Marriage of Fossum, 192 Cal.App.4th 336, 348 (2011).)