Datacom, Inc. v. Charter Communications Holding Co.

240 F. App'x 194
Court of Appeals for the Ninth Circuit·Decided June 29, 2007·No. No. 05-56288·Published

Opinion

MEMORANDUM **

Datacom, Inc. and Richard W. Moore (“appellants”) appeal the district court’s summary judgment order in favor of Charter Communications Holding Co., LLC and Charter Communications, Inc. (“Charter”) as well as the award of attorney’s fees to Charter in this diversity action alleging breach of contract, fraud, and negligent misrepresentation. We affirm the attorney’s fee award as to Datacom. We reverse the attorney’s fee award as to Moore, and hold that we do not have jurisdiction over the summary judgment order.

The California courts have held that actions for negligent misrepresentation and fraud are not actions on a contract within the meaning of California Civil Code § 1717 that would entitle the prevailing party to an award of attorney’s fees. See Stout v. Turney, 22 Cal.3d 718, 730, 150 Cal.Rptr. 637, 586 P.2d 1228 (1978); McKenzie v. Kaiser-Aetna, 55 Cal.App.3d 84, 89,127 Cal.Rptr. 275 (1976). However, when a complaint is based on a contract cause of action and a non-contract cause of action, a court is not required to engage in the impracticable and sometimes impossible task of “separat[ing] the multitude of conjoined activities into compensable or noncompensable time units.” Abdallah v. United Savings Bank, 43 Cal.App.4th 1101, 1111, 51 Cal.Rptr.2d 286 (1996). Instead, “[a]pportionment of a fee award between fees incurred on a contract cause of action and those incurred on other causes of action is within the trial court’s discretion.” Id.

In this case, appellants do not challenge the district court’s conclusion that Datacom’s tort and contract claims were inextricably intertwined. Therefore, we affirm the attorney’s fee award against Datacom.

However, Moore was not a party to the Charter contract, or to Datacom’s causes of action based on contract. As a result, Moore would not have been entitled to fees against Charter had Moore prevailed on his tort claims.1 We therefore hold Charter is not entitled to fees from Moore by prevailing on contract claims against Datacom.2 See Abdallah, 43 Cal.App.4th at 1111, 51 Cal.Rptr.2d 286 (holding that each plaintiff is liable for fees if [196] “he would have been entitled to his fees if he had prevailed.”); Hsu v. Abbara, 9 Cal.4th 863, 870, 39 Cal.Rptr.2d 824, 891 P.2d 804 (1995) (explaining that mutuality of remedies in contract claims is the policy behind § 1717).

We do not have jurisdiction to address the summary judgment order. Appellants failed to designate the summary judgment order in the Notice of Appeal, see Fed. R.App. P. 3(c)(1)(B); Lolli v. County of Orange, 351 F.3d 410, 414 (9th Cir.2003), and in any event that Notice is untimely as to the summary judgment order, see Fed. R.App. P. 4(a); Leslie v. Grupo ICA, 198 F.3d 1152, 1160 (9th Cir.1999).

AFFIRMED in part, REVERSED in part.

Footnotes

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Datacom, Inc. v. Charter Communications Holding Co., 240 F. App'x 194 (9th Cir. 2007).

240 F. App'x 194 (Datacom, Inc. v. Charter Communications Holding Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Chia-Lee Hsu v. Abbara
891 P.2d 804 (California Supreme Court, 1995)
Stout v. Turney
586 P.2d 1228 (California Supreme Court, 1978)
Leach v. Home Savings & Loan Assn.
185 Cal. App. 3d 1295 (California Court of Appeal, 1986)
McKenzie v. Kaiser Aetna
55 Cal. App. 3d 84 (California Court of Appeal, 1976)
Abdallah v. United Savings Bank
43 Cal. App. 4th 1101 (California Court of Appeal, 1996)
Leslie v. Grupo ICA
198 F.3d 1152 (Ninth Circuit, 1999)
Lolli v. County of Orange
351 F.3d 410 (Ninth Circuit, 2003)