Judge: Virginia Keeny, Case: 20STCV47542, Date: 2025-04-08 Tentative Ruling

Case Number: 20STCV47542    Hearing Date: April 8, 2025    Dept: 45

FITNESS & SPORTS CLUBS, LLC v. ANCHOR INVESTMENTS

defendant’s motion for attorney fees and costs on appeal

Date of Hearing:        April 8, 2025                                      Trial Date:       N/A   

Department:              45                                                        Case No.:        20STCV47542

Moving Party:            Defendant AISBD, LLC

Responding Party:     No opposition.

BACKGROUND

Plaintiff Fitness & Sports Club, LLC filed this action on December 11, 2020 and a First Amended Complaint (FAC) on March 5, 2021. Plaintiff filed a Second Amended Complaint (SAC) on February 23, 2022 against defendant AISBD, LLC, a California limited liability company formally known as Anchor Investments, a California general partnership, alleging causes of action for (1) Breach of the Lease – Breach of Landlord’s Representations, Warranties, and Covenants; (2) Breach of the Lease – Failure to Excuse Rent; (3) Common Count – Money Had and Received; (4) Common Count – Money Paid by Mistake; (5) Common Count – Money Paid and Expended; and (6) Declaratory Judgment. The complaint alleges as a result of the COVID-19 pandemic and Executive Order N-33-20 issued by Governor Newsom, Plaintiff has been prohibited from using the subject property due to the government mandated closure orders and the Lease’s purpose has been frustrated.

On February 21, 2023, the court sustained Defendant’s demurrer without leave to amend. The court awarded attorney fees in Defendant’s favor and against Plaintiff.

[Tentative] Ruling

Defendant AISBD, LLC, a California limited liability company formally known as Anchor Investments, a California general partnership’s Motion for Attorney Fees is GRANTED.

REQUEST FOR JUDICIAL NOTICE

Defendant AISBD, LLC, a California limited liability company formally known as Anchor Investments, a California general partnership request this court take judicial notice of several court documents. The court GRANTS Defendant’s request for judicial notice.

discussion

Defendant AISBD, LLC moves the court for an order awarding attorney fees and costs in favor of Defendant and against Plaintiff Fitness & Sports Clubs, LLC in the aggregate amount of $48,665.25 ($46,955.00 in attorney fees and $1,710.25 in costs).

Code of Civil Procedure section 1032 and 1033.5(a)(10) provide that a prevailing party may recover its costs as a matter of right, and that those costs may include attorneys’ fees when authorized by statute, law, or contract.   

“[A]bsent circumstances rendering the award unjust, an attorney fee award should ordinarily include compensation for all the hours reasonably spent, including those relating solely to the fee.  We explained that the purpose behind statutory fee authorizations—i.e., encouraging attorneys to act as private attorneys general and to vindicate important rights affecting the public interest—will often be frustrated, sometimes nullified, if awards are diluted or dissipated by lengthy, uncompensated proceedings to fix or defend a rightful fee claim.”  (Ketchum v. Moses (2001) 24 Cal.4th 1122, 1133-34 (emphasis in original).)  “The fee setting inquiry in California ordinarily begins with the ‘lodestar,’ i.e., the number of hours reasonably expended multiplied by the reasonable hourly rate.... The lodestar figure may then be adjusted, based on consideration of factors specific to the case, in order to fix the fee at the fair market value for the legal services provided.”  (Id. at 1134.) 

On November 22, 2023, the Court of Appeal affirmed the trial court’s order sustaining the demurrer to the second amended complaint and awarded costs on appeal. (Exh. 2.) As a result, Defendant seeks an award of its reasonable attorney’s fees incurred in connection therewith in the amount of $48,665.25 ($46,955.00 in attorney fees and $1,710.25 in costs). Defendant notes before the remittitur issued, on January 2, 2025, Plaintiff filed a Petition for Review in the California Supreme Court, which was denied. (Exhs. 3 and 4.) Accordingly, Defendant is entitled to attorney fees. (See also CRC Rule 8.278.) Moreover, the court finds Defendant’s request for attorneys’ is reasonable and necessary. As there has been no opposition to review or reply filed, the court reduces the attorney fees to $44,255.00. The court finds the Memorandum of Costs is reasonable and necessary as well.

Accordingly, the court GRANTS Defendant AISBD, LLC, a California limited liability company formally known as Anchor Investments, a California general partnership’s Motion for Attorney Fees and costs in the total amount of $45,965.25.