No Basis for Fee Entitlement Shown.
Cain killing Abel. Jan Lievens.
De Freitas v. M.J.B. Pipeline, Case No. A133946 (1st Dist., Div. 3 Aug. 23, 2013) (unpublished) pitted two deadlocked 50-50 shareholder brothers of a corporation against each other. Although a voluntary dissolution had been initiated, one of the brothers successfully moved for the appointment of a provisional director to break deadlocks, an order affirmed in an earlier appeal. However, brother obtaining the provisional director appointment moved for a contempt order against other brother based on allegations that the latter was interfering with Board decisions, especially those involved in selling the corporation. The trial court came close to pulling the contempt trigger, but basically gave the other brother a reprieve by denying the contempt request but issuing an order compelling the brother to obey Board decisions “on pain of contempt.” The lower court also awarded the requesting brother $16,565.50 in attorney’s fees.
The appellate court reversed the fee award.
Although fees may be awarded in a proceeding where there is a finding of contempt (CCP § 1218(a)), there was no such finding in light of the denial of the contempt request. “[Brother winning the fee award] has not cited–and we have not found–any authority to support an award of attorney fees under the circumstances of this case.” (Slip Opn., p. 7.)