Judge: Teresa A. Beaudet, Case: 19STUD00909, Date: 2024-05-17 Tentative Ruling
Case Number: 19STUD00909 Hearing Date: May 17, 2024 Dept: 50
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DE WITTE MORTGAGE INVESTORS FUND, LLC, Plaintiff, vs. 1565 HASLAM, LLC, et al., Defendants. |
Case No.: |
19STUD00909 |
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Hearing Date: |
May 17, 2024 |
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Hearing
Time: 10:00
a.m. [TENTATIVE]
ORDER RE: MOTION FOR
ATTORNEY FEES INCURRED ON APPEAL |
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Background
On January 25, 2019,
Plaintiff De Witte Mortgage Investors Fund, LLC (“Plaintiff”) filed the instant
unlawful detainer action against Defendants 1565 Haslam, LLC, Lee Wong (“Wong”),
Alex Cardenas aka Alejandro Cardenas, Ruben Trejo, and LW Asset Management,
LLC.
This action concerns
possession of the property located at 2115 Kress Street, Los Angeles,
California 90046 (the “Property”). (Compl., ¶ 2.) Plaintiff alleges that it
purchased the Property at a foreclosure sale, and that defendants continued to
occupy the Property after service of a 90-day notice to quit and deliver up
possession. (Compl., ¶¶ 2-5.)
On April 4, 2019, Sandra
Ann Will Carradine (“Carradine”) filed a Claim of Right to Possession in this
action. Carradine claimed a right to possession of the Property as the occupant
of the Property on the date the Complaint was filed. Carradine’s Claim of Right
to Possession was granted on April 23, 2019, and the Complaint was deemed
amended to include Carradine as a defendant.
On September 13, 2021,
the Court issued an Order granting Carradine’s motion for summary judgment. On
September 28, 2021, Judgment was entered by the Court for Carradine and against
Plaintiff.
On November 29, 2021,
Plaintiff filed a notice of appeal from the September 28, 2021 Judgment after
an order granting a summary judgment motion.
On May 24, 2023, the Court of Appeal, Second Appellate District issued
an opinion in Case No. B317957.
The opinion provides, inter alia, that “Carradine moved for summary
judgment, arguing that the notice to vacate De Witte had served in advance of
the unlawful detainer action did not comply with just cause-related eviction
requirements imposed by the Los Angeles Municipal Code (LAMC) that restrict the
grounds on which landlords can recover possession of rental units. Carradine’s
summary judgment motion addressed only alleged deficiencies in the notice to
vacate (namely, the failure to specify an authorized ground for eviction under
the LAMC), and did not argue that her lease fit within the terms of section 1161b(b). De Witte’s response likewise did not
mention or reference section 1161b(b). The trial
court found the notice to vacate non-compliant with the LAMC, granted the
motion, and entered judgment in Carradine’s favor.” (May 24, 2023 Opinion at pp. 2-3.)
The Court of Appeal’s May 24, 2023 opinion further provides that “De
Witte now challenges the summary judgment ruling on the ground that Carradine
failed to present evidence showing she was entitled to protection under section 1161b(b). Specifically, De Witte contends that
Carradine failed to present evidence to show her lease did not fall into the
‘arms’ length’ and ‘fair market rent’ exclusions set forth in section 1161b(b)(3) and (4). De Witte’s challenge
fails because Carradine did not rely on section 1161b(b)
when moving for summary judgment, and Carradine was not otherwise required to
present evidence to show that 1161b(b) applied. Accordingly, we affirm.” (May
24, 2023 Opinion at p. 3.) On September 14, 2023, a
Remittitur was filed in this action, providing, inter alia, that “the
attached is a true and correct copy of the original order, opinion or decision
entered in the above-entitled cause on May 24, 2023 and that this order,
opinion or decision has now become final. Carradine is awarded her costs on
appeal.”
Carradine’s
instant “motion for attorney fees incurred on appeal” seeks an order awarding
her attorneys’ fees in the amount of $85,250.00 The motion is unopposed.
Discussion
A. Entitlement to Attorney’s Fees
In the
instant motion, Carradine
asserts that “[t]he lease agreement between the parties entitles the
prevailing party to recover reasonable attorney fees.” (Mot. at p. 4:25-26.) ¿The Court notes that Civil Code section 1717¿, subdivision
(a) provides: “¿In any action on
a contract, where the contract specifically provides that attorney’s fees and
costs, which are incurred to enforce that contract, shall be awarded either to
one of the parties or to the prevailing party, then the party who is determined
to be the party prevailing on the contract, whether he or she is the party
specified in the contract or not, shall be entitled to reasonable attorney’s
fees in addition to other costs.¿” In addition, ¿Code of Civil
Procedure section 1033.5, subdivision (a)(10)(A)¿ provides that attorney’s fees, when authorized by
contract, are allowable as costs.
In
her declaration in support of the instant motion, Carradine states, inter
alia, that “[o]n or about May 1, 2018, I signed a three-year lease to rent
the property located at 2115 Kress Street, Los Angeles, CA 90046, with the
landlord at the time Lee Wong [sic].” (Carradine Decl., ¶ 3.) Carradine states
that “[a]ttached as ‘Exhibit B’ is a true and correct copy of the lease
agreement. I personally witnessed Ms. Wong signing the lease, and she was
present when I signed.” (Carradine Decl., ¶ 3.)
Carradine
points to paragraph 38 of the lease agreement, which provides, “ATTORNEY FEES:
In any action or proceeding arising out of this Agreement, the prevailing party
between Landlord and Tenant shall be entitled to reasonable attorney fees and
costs, except as provided in paragraph 37A.” (Carradine Decl., ¶ 3, Ex. B.) Carradine
argues that “[s]ince the Plaintiff became bound by this agreement
upon their taking of ownership of the property, Plaintiff became the ‘landlord’
for the purposes of the agreement, and is therefore bound by this lease term.”
(Mot. at p. 5:1-3.)
As
an initial matter, the Court notes that on July 28, 2022, the Court issued an Order
in this action denying a motion for attorney fees previously filed by
Carradine. On August 9, 2022, Carradine filed a notice of appeal from the July
28, 2022 Order.
On
December 19, 2023, the Court of Appeal, Second Appellate District
issued an opinion in Case No. B322747.
The Court of Appeal’s opinion provides, inter alia, as follows:
“Carradine then
sought attorney’s fees from De Witte premised on the lease she had entered with
the former owner, which provided for an award of attorney’s fees to the
prevailing party “[i]n any action or proceeding arising out of [the lease].”
The trial court denied the motion on several grounds, one of which was that the
unlawful detainer action was not based on the lease.
Carradine now
appeals. She raises multiple alleged errors in the court’s order denying her
fees; we find one issue dispositive and thus address only it. Carradine argues
the attorney’s fees language in her lease encompassed the unlawful detainer
proceeding against her. We disagree. In the circumstances of this particular
case, the unlawful detainer action did not “aris[e] out of” the lease as
required by the contractual language. As a result, Carradine’s claim for
attorney’s fees fails, and we affirm.” (December 19, 2023
Opinion at pp. 2-3.)
The Court of Appeal’s December 19, 2023 Opinion further provides that
“[t]he attorney’s fees clause in the lease at issue provides, in relevant part,
‘[i]n any action or proceeding arising out of this [lease a]greement, the
prevailing party between [the l]andlord and [the t]enant shall be entitled to
reasonable attorney fees and costs.’” (December 19, 2023
Opinion at p. 14.) The Court of Appeal found, inter alia, that “De
Witte’s unlawful detainer action did not ‘aris[e] out of Carradine’s alleged
lease. The action was not premised in any way on the interpretation of the
lease’s terms or the performance of the lease.” (Id.
at p. 15.) The Court of Appeal also found that “[t]he motion for summary
judgment upon which Carradine ultimately prevailed (and for which she seeks to
recover attorney’s fees) was premised on the claim that De Witte’s notice to
quit was defective under the provisions of the LAMC, not on any claim by
Carradine that she was entitled to possession of the Kress Street property
under the lease or other issues concerning the interpretation or performance of
the lease.” (Id. at p. 16.)
On March 13, 2024, a Remittitur was filed in this action, providing, inter
alia, that “attached is a true and correct copy of the original order,
opinion or decision entered in the above-entitled cause on December 19, 2023
and that this order, opinion or decision has now become final. De Witte is
awarded its costs on appeal.”[1]
The Court notes that in Benson v.
Greitzer (1990) 220 Cal.App.3d 11, 13-14, the Court of Appeal noted that “[w]here
an award of attorney’s fees is authorized by statute, a trial court has
jurisdiction following an appeal to award attorney’s fees for the appeal…If the
prior appellate opinion expressly ruled, however, upon a party’s entitlement to
attorney’s fees, the trial court is bound to follow the appellate court’s
expressions on the subject, under principles of law of the case.” ((See also In
re Marriage of Colvin (1992) 2 Cal.App.4th 1570, 1582, “our decision in appeal No. A052185 will be law of the case
on Glicksberg’s entitlement to any fees, and we therefore direct the trial
court to refrain from acting on any attorney fee request until the remittitur
has been filed in that case.”)
Carradine’s
counsel acknowledges in his supporting declaration that “if the
prior ruling denying attorney fees is affirmed, then Defendant would not be
entitled to attorney fees under the contract (although, perhaps, may have fee
entitlement on some statutory basis).” (Post Decl., ¶ 7.) In the instant
motion, Carradine does not appear to argue that she is entitled to attorney’s
fees on any statutory basis. Rather, as discussed, Carradine asserts that “the
lease agreement between the parties entitles the prevailing party to recover
reasonable attorney fees.” (Mot. at p. 4:25-26.)
In light of the foregoing, Carradine’s instant motion for attorney fees is denied.
Conclusion
Based
on the foregoing, Carradine’s motion
for attorney fees incurred on appeal is denied.
///
//
Carradine is ordered to
provide notice of this ruling.
DATED:
Hon. Teresa A.
Beaudet
Judge, Los
Angeles Superior Court
[1]The Remittitur
also attaches a January 8, 2024 “Order Modifying Opinion and Denying Rehearing;
No Change in Judgment.”