Mooney v. Argus Realty Investors CA4/3

CourtCalifornia Court of Appeal
DecidedFebruary 2, 2023
DocketG060440
StatusUnpublished

This text of Mooney v. Argus Realty Investors CA4/3 (Mooney v. Argus Realty Investors CA4/3) 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
Mooney v. Argus Realty Investors CA4/3, (Cal. Ct. App. 2023).

Opinion

Filed 2/2/23 Mooney v. Argus Realty Investors CA4/3

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FOURTH APPELLATE DISTRICT

DIVISION THREE

LORELEI MOONEY, as Trustee, etc., et al., G060440 Plaintiffs and Respondents, (Super. Ct. No. JCCP 4811) v. OPINION ARGUS REALTY INVESTORS et al.,

Defendants and Appellants.

Appeal from a postjudgment order of the Superior Court of Orange County, Peter J. Wilson, Judge. Affirmed. Tencersherman, Philip C. Tencer and Jessica L. Mulvaney for Defendants and Appellants. Catanzarite Law Corporation, Kenneth J. Catanzarite, Nicole M Catanzarite-Woodward and Eric V. Anderton for Plaintiffs and Respondents. Lorelei Mooney as trustee and on behalf of the Herbert and Helen Schweiger Trust, ARI-DFW East & West 9, L.P., Gary Lamm, and James Mieuli (Plaintiffs) filed a lawsuit in 2014 on behalf of themselves and a putative class. The action was dismissed six years later, on January 28, 2021, due to Plaintiffs’ failure to bring the action to trial within five years. (Code Civ. Proc., § 583.310.) In a prior opinion, this court recently affirmed the dismissal. (Mooney v. Argus Realty Investors (Nov. 29, 2022, G060076) [nonpub. opn.] (Mooney).) After dismissing the lawsuit, the trial court awarded the prevailing parties a total of $100,604.41 in attorney fees and costs. This appeal challenges the court’s decision to award less in attorney fees than what was requested. We affirm the court’s postjudgment order. FACTS We incorporate by reference our detailed summary of the procedural history of this case set forth in Mooney, supra, G060076. Relevant to the issues raised in this appeal, Plaintiffs’ lawsuit (the Mooney Action) initially named over 20 defendants, but by 2021 all that remained were Argus Realty Investors, L.P., ARI Financial Services, Argus Realty, L.L.C., ARI Commercial Properties, Inc., Richard Gee, Maxwell B. Drever, Timothy E. Snodgrass, William Brian Candler, ARI-DFW, East & West, L.P., ARI-Barrett Office Center, LLC, ARI-Atrium Office Building, LLC, ARI-Powers Ferry Office Park, LLC, ARI Copley Business Center, LLC, ARI-Shoreview Corporate Center, LLC, ARI-Securities Centre One & Two, LLC, and ARI-Meridian Plaza, LLC. For ease of reading, we will refer collectively to these parties as Defendants. Although the action was initiated in 2014, Defendants did not actively defend themselves in the case until 2019, when they filed a demurrer to the third amended complaint (TAC). Thereafter, Defendants filed several other documents,

2 including a response to a list of facts, an omnibus objection, documents requested by the trial court, and exhibit lists. Defendants filed a demurrer and answer to the fourth amended compliant before filing their motion to dismiss. After the lawsuit was dismissed, Defendants filed a motion for attorney fees and costs as the prevailing party requesting a total of $197,617.98. Their counsel, Philip C. Tencer, declared Defendants were invoiced $170,338.28 for attorney fees. He expected to invoice an additional two hours ($1,100) for time associated with the motion. He noted Defendants incurred $2,514 in attorney fees that had not yet been invoiced and related to the motion to dismiss and for attorney fees and costs. Counsel itemized $23,665.70 for costs already invoiced plus an additional $2,514 not yet invoiced. Thus, Defendants requested a total of $171,438.28 for attorney fees and $26,179.70 in costs. Plaintiffs opposed the motion, arguing the claim for over $170,000 in attorney fees was not credible because Defendants copied arguments from other parties appearing earlier in the action. They added Defendants’ own work was limited, straightforward, and non-complex. They maintained Defendants’ counsel needed to provide evidence of the rates charged, the hours worked, the attorney who did the work, and the types of issues addressed. Plaintiffs stated another reason a more detailed accounting was warranted was because Defendants’ briefing admitted the case was one of eight concerning the fraudulent investment scheme and they could have padded their fee request for services rendered in the other cases. And finally, Plaintiffs argued more information about the billing was required because of the need for apportionment. They noted the claims consisted of contract and non-contract claims, and the prevailing parties were not entitled to more than fees incurred on the contract. (Citing Santisas v. Goodin (1998) 20 Cal.4th 599, 615.)

3 The rest of Plaintiffs’ arguments related to interpretation of the two contracts containing the attorney fee provisions. Specifically, they asserted neither contract provision obligated all the individual plaintiffs in the lawsuit to pay attorney fees. In addition, they claimed certain parties were not entitled to the requested relief. Defendants filed a reply that focused on the contract interpretation issues. They argued Plaintiffs “brought breach of contract claims on the PSAS [Purchase Agreement and Escrow Instructions].” “This was the primary, if not exclusive, basis for the allegations in the litigation, including breach of contract.” They added, “Plaintiffs also sued for breach of contract on the Property Management Agreement (‘PMA’).” They concluded, “Plaintiffs cannot now claim that the basis for all of their claims for breach of contract . . . were sufficient to bring the breach of contract claims, yet are now insufficient to support an award of fees.” Defendants also addressed the claim the requested attorney fees were unreasonable. They argued the amount was justified because the trial court designated the case to be a complex matter and it required multiple rounds of amended pleadings and demurrers. Tencer submitted a declaration stating he was lead counsel and charged an hourly rate of between $500 to $550 per hour. He stated the case required multiple demurrers, communications with clients, appearances, production of documents, responses to discovery requests, and propounding of discovery. In a footnote, Defendants stated that if the court required additional evidence, counsel would provide copies of the invoices for in camera review. On May 6, 2021, the trial court issued a tentative ruling continuing the matter. It explained Defendants had not presented sufficient evidence to support their attorney fee request, “including the tasks performed and the number of hours worked.” The court added, “Defendants also failed to provide any or sufficient information to

4 enable the [c]ourt to determine the possible allocation of fees and costs between contract and tort claims. (Italics added.) There [was] insufficient information to determine whether the fees requested are reasonable and necessary.” The court “permitted” the parties to submit supplemental briefing to address these points. Defendants’ supplemental brief cited case authority holding it was not necessary to provide detailed billing timesheets to support an attorney fee award under the lodestar method. (Citing Wershba v. Apple Computer, Inc. (2001) 91 Cal.App.4th 224, 254-255, overruled on other grounds by Hernandez v. Restoration Hardware, Inc. (2018) 4 Cal.5th 260, 269.) They maintained an attorney’s testimony as to the number of hours worked, the tasks performed, and the reasonable hourly rate was all that should be required. Defendants submitted new calculations that increased the total amount billed to $184,435 and the sum unbilled to $6,572.50 (for a new total of $191,007.50). Defendants did not increase their request for costs.

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Bluebook (online)
Mooney v. Argus Realty Investors CA4/3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mooney-v-argus-realty-investors-ca43-calctapp-2023.