Judgment Debtors’ Failure to Timely File Motions to Costs Was Expensive–Resulting in Affirmance of Renewal Costs/Fee of Almost $750,000
As the “latest chapter of a 10-year saga,” judgment debtors (former clients) appealed a lower court’s grant of fees/costs to judgment creditor law firm in a total of sum of about $750,000 under postjudgment renewal statutes (Code of Civil Procedure sections 685.040 and 685.040). The problem here was that judgment debtors failed to file a motion to tax the requested costs within the 10 day deadline after the costs memoranda were served on judgment debtors. Judgment debtors appealed, but lost.
The infirmity was that the 10-day deadline under section 685.070(c) is clear in nature and has no exceptions to it. (Lucky United Properties Investment, Inc. v. Lee, 185 Cal.App.4th 125, 146 (2010).)
However, judgment debtors creatively argued that the costs could be challenged through a section 683.170 motion to vacate the renewed judgment. Although finding a “dearth of published cases construing section 683.170 and none deal with the issue currently before us,” the appellate court took solace in sister state judgment law, finding that none of the common defenses of sister state judgments fit within the section 683.170 challenge being advanced by judgment debtors. Besides, if judgment debtors were permitted to challenge costs under section 683.170 after forfeiting their right to do so under section 685.070(d), “section 685.070’s procedure for challenging costs would become meaningless.” (Slip Opn., p. 14.)
Code of Civil Procedure section 473’s relief from forfeiture provisions did not aid judgment debtors, because the delay in seeking the relief appeared to be a tactical decision more than a mistake caused by inadvertence or excusable neglect.
The decision affirming the renewed judgment fees/costs award is Keenan v. Webb & Carey, APC, Case No. D057430 (4th Dist., Div. 1 Aug. 16, 2011) (unpublished).