Inadequate Record Plus “Incurred” for Prevailing Party Status Rules Sustained the Result.
Plaintiff was defensed in an real estate investment lawsuit, including a breach of contract claim involving an LLC operating agreement with a fees clause. One of the defendants received a $466,440.32 attorney’s fees award for prevailing in MB Urban Properties, LLC v. Lankford & Associates, Inc., Case No. D061297 (4th Dist., Div. 1 Dec. 16, 2013) (unpublished), prompting an appeal.
Plaintiff challenged that the principal of the winning defendant was indemnified by a third party, so the fee award was infirm. Plaintiff lost for several reasons: (1) the fee award was to principal’s business entity, not the principal individually; (2) plaintiff did not develop an adequate record on the indemnity argument; and (3) even if the defendant was indemnified, this did not matter because the fees were still “incurred,” which determines prevailing party status even if the defendant was not personally responsible to pay. Affirmed, in this one.