Image 2000 Multimedia, Inc. v. Quin CA4/1

California Court of Appeal·Decided September 16, 2013·No. D061776·Unpublished

Opinion

Filed 9/16/13 Image 2000 Multimedia, Inc. v. Quin CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

IMAGE 2000 MULTIMEDIA, INC., et al., D061776 Plaintiffs and Respondents,

v. (Super. Ct. No. 37-2007-0062035-

CU-BC-CTL)

YVONNE T. QUIN, as Trustee, etc.,

Defendant and Appellant.

YVONNE T. QUIN, as Trustee, etc., (Super. Ct. No. 37-2008-00033205-

Plaintiff and Appellant. CL-UD-EC)

v.

IMAGE 2000 MULTIMEDIA, INC., et al., Defendants and Respondents,

APPEAL from an order of the Superior Court of San Diego County, William S.

Dato, Judge. Affirmed.

Law Offices of Robert Lynn, Robert H. Lynn and Kevin R. Yee for Defendant, Plaintiff and Appellant.

Maldonado & Markham and William A. Markham for Plaintiffs, Defendants and Respondents.

Yvonne T. Quin, trustee of the Joseph Quin Family Trust (Landlord), appeals an order denying, in part, her request for attorney fees as prevailing party under a lease containing an attorney fees provision. Quin, in her capacity as trustee, served as the landlord under the lease. Image 2000 Multimedia, Inc. and El Cajon Grand Cocktail Lounge (together Lessees) were the lessees under the lease.1 Landlord contends the superior court abused its discretion by failing to engage in a proper lodestar analysis in determining the amount of reasonable fees to award Landlord's previous trial counsel, Slater & Truxaw LLP (Slater).

Landlord, however, minimizes the unique procedural history of this litigation in making her arguments. When this matter first proceeded to trial, Lessees prevailed and were entitled to their attorney fees. The matter involved two issues: whether an option under the lease was exercised and possession of the leased premises. In their motion for attorney fees, Lessees asked for $126,854.87. In opposing Lessees' motion, Landlord characterized Lessees' motion as an example of "the legal profession at its worst" because Lessees' attorneys requested such an "astounding amount." She expressed outrage at the "profiteering, abuse, and sheer audacity set forth in the billings of" Lessees' attorneys and described the subject billings as "shocking and disgusting." In the end, Landlord argued

1 The lease was guaranteed on behalf of the Lessees by Alex Kalogianis and Jason Kreider. Neither individual is a party to this appeal although both were parties in the litigation below.

that, at most, the superior court should award attorney fees in the amount of $27,045.15 because "[n]othing more is warranted or supportable" for a case comprising a one-day bench trial.

The superior court was persuaded by Landlord's arguments and awarded Lessees $35,000 in attorney fees. Landlord appealed the superior court's judgment against her, and we reversed the judgment with directions for the superior court to enter judgment in favor of Landlord on the option issue and to conduct further proceedings on the possession issue. (See Image 2000 Multimedia, Inc. v. Quin (July 13, 2010, D055719) [nonpub. opn.].)

After the case was remanded, Landlord disqualified the previous trial judge and was assigned to a new court. After further proceedings, Landlord was determined to be the prevailing party and then moved for attorney fees and costs under the lease in the amount of $235,276.47. Of the requested amount, $145,739 concerned fees billed by Slater for pretrial and trial services involving the previous one-day bench trial. The same bench trial for which Lessees had previously requested $126,854.87 when they were the prevailing party (prior to the reversal on appeal) and Landlord argued the requested fees were "astounding," "shocking and disgusting." Yet, now that Landlord was the prevailing party, she failed to explain why Slater's fees for its pretrial and trial services, which surpassed the Lessees' requested amount by almost $20,000, were reasonable considering Landlord's previous arguments. The superior court noted this omission in awarding Landlord fees of $35,000 for pretrial and trial related tasks. The superior court, however, awarded Landlord additional fees and costs for posttrial and appellate services

in the amount of $89,034.97, resulting in an award of attorney fees and costs of $124,034.97.

Landlord only appeals the amount of the attorney fees awarded for Slater's services. Here, the superior court awarded a total of $47,000 comprised of the $35,000 for pretrial and trial services and $12,000 for posttrial tasks. Because we do not conclude the superior court abused its discretion, we affirm.

FACTUAL AND PROCEDURAL BACKGROUND This appeal arises from the litigation of two civil cases that were consolidated for all purposes and tried together in July 2008. The first of these cases was an action for declaratory relief that Lessees brought, alleging that they were entitled to a judicial decree that they had properly exercised an option to renew the term of the lease for an additional five years (the Option Case). The second of these cases was an action for unlawful detainer that Landlord brought against Lessees, alleging that it was entitled to summary repossession of the leased premises under the unlawful detainer (the UD Action).

The consolidated cases concerned two distinct issues: One, whether Lessees could exercise their option to renew the lease and had done so in a timely and proper manner; and, two, whether Lessees had timely obtained the insurance required by the lease. The Option Case concerned only the option issue. The UD Action concerned both issues. The cases were consolidated, and the original trial court tried the option issue during the first part of a one-day bench trial and the insurance issue during the second part of this trial.

The bench trial lasted a total of six hours, which occurred after the parties exchanged written discovery, conducted two short depositions (one lasted six hours and the other only two), and litigated a few pretrial motions. At the bench trial, the trial court found in favor of the Lessees on the option issue after a three-hour trial in the morning, ruling from the bench before recessing for lunch. In the afternoon, the trial court heard the insurance issue. After closing argument, the trial court instructed the parties to brief two specific issues concerning the insurance matter. The parties complied, after which the court delivered a judgment in favor of Lessees with a statement of decision.

After finding in favor of Lessees on all claims, the trial court heard Lessees'

motion for attorney fees and costs, which were permitted under the lease. Lessees requested $126,854.87 in attorney fees, explaining in their submission that Landlord's attorneys had purposefully made the litigation far more contentious and complicated than necessary. In opposition, Landlord denigrated the request as "shocking" and "disgusting," and claimed it "represent[ed] the legal profession at its worst."

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