$10,974 Fee Recovery to College District Reversed on Appeal.
Okay, real estate fans, we have an attorney’s fees decision in the stop notice area.
In Tri-State, Inc. v. Long Beach Community College Dist., Case No. B231848 (2d Dist., Div. 3 Mar. 12, 2012) (certified for publication), the appellate court decided that a public entity subject to stop notice requirements is not entitled to an attorney’s fees award under Civil Code section 3186, reversing a $10,974 fee award to a stop notice claimant in a case where a stop notice release bond was given to secure claimant’s claim. Nothing in section 3186 expressly authorizes a fee award, so the focus was on whether the statutory language allowing “reasonable cost of any litigation” to the public entity included fees. The appellate court concluded it did not; rather, section 3186 only authorizes ordinary costs exclusive of attorney’s fees, surveying the legislative history and prior analog statutes in the process to reaching the bottom line.
However, the appellate court did provide a possible escape valve to public entities–instigate an interpleader action for the contested funds. We shall see if this option is taken up by the public fisc under the right circumstances.
This was a 3-0 opinion by the Second District, Division 3, authored by Justice Croskey.