Lack of Signatory Status in Moving Documents Was Dispositive.
One of the ABC’s in moving for fee entitlement is to show a contract or statute forming a predicate basis for a fee motion. Without it, a litigant is generally left with the American Rule, which does not allow a party to recover for fees. That reality stung the next plaintiff moving for fees, even though it did receive moneys under an accepted CCP § 998 offer.
The trial court in Classic Excalibur Holdings, L.L.P. v. Palm Springs Auctions, Inc., Case No. B218875 (2d Dist., Div. 5 Jan. 24, 2011) (unpublished) denied plaintiff’s motion for attorney’s fees after the defense accepted its 998 offer. The appellate court affirmed the fee denial under the abuse of discretion standard.
Reason? Very simple. Plaintiff never produced a contract under which it was a signatory. Even if prevailing under a 998 offer, the prevailing party must demonstrate it had a substantive basis for fee entitlement. This was missing here.
Plaintiff attached various car documents and a deposit receipt, some having fee clauses. However, none of the the documents showed plaintiff was a signatory to a contract with a fees clause. Under these circumstances, defendant could not be subject to fee exposure. (Canal-Randolph Anaheim, Inc. v. Wilkoski, 78 Cal.App.3d 477, 486, 496 (1978).)