Albertini v. Acebo-Houlihan CA4/1

CourtCalifornia Court of Appeal
DecidedNovember 10, 2021
DocketD078454
StatusUnpublished

This text of Albertini v. Acebo-Houlihan CA4/1 (Albertini v. Acebo-Houlihan CA4/1) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Albertini v. Acebo-Houlihan CA4/1, (Cal. Ct. App. 2021).

Opinion

Filed 11/10/21 Albertini v. Acebo-Houlihan CA4/1

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

COURT OF APPEAL, FOURTH APPELLATE DISTRICT

DIVISION ONE

STATE OF CALIFORNIA

GREGORY ALBERTINI et al., D078454

Plaintiffs, Cross-defendants and Appellants, (Super. Ct. No. v. 37-2018-0003732-CU-NP-NC)

ANNE ACEBO-HOULIHAN,

Defendant, Cross-complainant and Respondent.

APPEAL from a postjudgment order of the Superior Court of San Diego County, Robert P. Dahlquist, Judge. Affirmed. Lewis Brisbois Bisgaard & Smith and Lann G. McIntyre, Peter L. Garchie for Plaintiffs, Cross-defendants and Appellants. Gregory M. Garrison and Kevin T. Rhine for Defendant, Cross- complainant and Respondent. Plaintiffs, cross-defendants and appellants Gregory Albertini and Catherine Albertini appeal from an order awarding $216,625 in attorney fees to Anne Acebo-Houlihan after the trial court declared her and Jesse Houlihan prevailing parties on cross actions arising out of disputes over the parties’

adjoining homes. The court awarded the Houlihans fees under Civil Code1 section 5975, subdivision (c), a provision of the Davis-Stirling Common Interest Development Act (the Davis-Stirling Act, § 4000 et seq.), on the parties’ competing claims including for trespass and nuisance. In part, the court found the parties’ actions were brought “to enforce . . . governing documents” (covenants, conditions and restrictions or CC&Rs) under that section and their tort claims were inextricably intertwined with the claims arising under the governing documents. The Albertinis contend: (1) section 5975 does not provide a basis for the Houlihans’ recovery of attorney fees, in part because their defense of the Albertinis’ complaint was not an action to enforce the governing documents but one to determine they were unenforceable or nonexistent; (2) there is no contractual basis for an attorney fee award in the CC&Rs, which assertedly allows fees only for the initiation or bringing of an action, or for the “protection of the project”; (3) the Houlihans are judicially estopped from relying on the CC&Rs or the Davis-Stirling Act to recover their fees; and (4) the attorney fee award was excessive as a matter of law. We affirm the order. FACTUAL AND PROCEDURAL BACKGROUND We set out the background facts of the underlying litigation in our opinion on the Albertinis’ appeal from the judgment on the jury verdict and bench trial on equitable issues. (Albertini v. Acebo-Houlihan (Nov. 4, 2021, D077391) [nonpub. opn.].) Those facts need not be repeated here, other than

1 Undesignated statutory references are to the Civil Code. 2 to say that the trial court declared the Houlihans the prevailing parties and

ordered they recover costs of suit from the Albertinis.2 Thereafter, the Houlihans moved for an award of $235,220 in attorney fees under the Davis-Stirling Act based on 548.3 hours of attorney work. They asserted both the Albertinis’ complaint and the Houlihans’ cross- complaint sought relief for breach of the CC&Rs and all of the noncontract claims were founded on obligations contained in the CC&Rs. They pointed out that the CC&Rs themselves provided for attorney fees in “any other legal or equitable action that may be necessary to protect the project,” and asserted all of the claims were brought to protect the project, thus they were entitled to fees on all tort and contract claims. The Houlihans argued as the prevailing parties in both actions, attorney fees were recoverable under section 5975 on every claim in the Albertinis’ action and their cross-action because both parties alleged breach of the CC&Rs, their other claims were founded on rights contained in the CC&Rs, and every claim was brought for the “ ‘protection of the project’ ” as the CC&Rs’ attorney fee provision provided. They argued the requested fees were reasonable for the work done by their two attorneys Gregory Garrison and Kevin Rhine (at $600 and $400 hourly rates respectively) between February 2018 and the time of the motion.

2 We note that in the factual background of both their opening brief in this appeal and the accompanying appeal, the Albertinis state they were self- represented and not permitted to present any exhibits at trial. Based on our review of the record as recounted in our prior opinion, the suggestion that the trial court refused to allow them to present exhibits given their pro per status is a significant misrepresentation of the record, which shows the Albertinis had failed to exchange exhibits with opposing counsel and the court despite the court’s repeated admonishments and warnings about the consequences of not doing so. But the court nevertheless permitted the Albertinis to introduce some exhibits during the trial, making the assertion incorrect as a factual matter. 3 The Houlihans supported their motion with declarations from other attorneys on the prevailing hourly rate for counsel in Southern California and particularly the reasonable hourly rate for Garrison and Rhine, given their familiarity with them as well as their skill, experience and professional reputations. Garrison submitted his own declaration recounting his education and experience and that of attorney Rhine. The Albertinis opposed the motion, arguing section 5975 did not allow the Houlihans to recover attorney fees because their tort causes of action did not seek to enforce the CC&Rs’ terms and provisions. They argued the attorney fees clause in the CC&Rs did not extend to defending tort causes of action, thus the Houlihans could not recover fees under section 1717. The Albertinis argued the Houlihans were judicially estopped from asserting the validity of the CC&Rs having sought to declare them unenforceable and invalid, and having abandoned their breach of covenant cause of action before

trial.3 They argued the Houlihans’ fees were excessive in both reasonable hourly rate and time billed, and also because the Houlihans had not demonstrated the requested fees were caused by the Albertinis’ excessive or frivolous missteps. The Albertinis provided a declaration from counsel who averred for various reasons that an appropriate fee award to the Houlihans was between approximately $39,000 and $41,460.

3 The Albertinis further argued the Houlihans could not recover attorney fees if they were not damaged by reason of an insurer paying the fees; they maintained the Houlihans’ payment history suggested they had tendered their defense to an insurer who paid the law firm. The trial court found as a factual matter there was no evidence an insurer had paid the Houlihans’ fees, and further ruled the Albertinis showed no legal basis for their position that a prevailing party could not recover insurer-paid fees. The Albertinis do not repeat the insurance-related arguments on appeal. 4 The trial court awarded the Houlihans attorney fees in a reduced amount. It found the action was one to “enforce the governing documents” within the meaning of section 5975 given both parties’ claims alleging violations of the CC&Rs, and that the Houlihans prevailed on all claims seeking to enforce the CC&Rs. It ruled all of the causes of action, whether based on the CC&Rs or tort, involved a common nucleus of operative facts, and found that the claims arising under the CC&Rs and tort were so factually intertwined that it would be impossible to separate them. The court further found all of the parties’ claims fell within the scope of the attorney fee provision in the CC&Rs, thus permitting the Houlihans to recover all reasonable fees under section 1717.

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Bluebook (online)
Albertini v. Acebo-Houlihan CA4/1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/albertini-v-acebo-houlihan-ca41-calctapp-2021.