Orien v. Lutz

224 Cal. Rptr. 3d 736, 16 Cal. App. 5th 957, 2017 WL 5022364, 2017 Cal. App. LEXIS 962
CourtCalifornia Court of Appeal, 5th District
DecidedNovember 3, 2017
DocketB277323
StatusPublished
Cited by12 cases

This text of 224 Cal. Rptr. 3d 736 (Orien v. Lutz) is published on Counsel Stack Legal Research, covering California Court of Appeal, 5th District primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Orien v. Lutz, 224 Cal. Rptr. 3d 736, 16 Cal. App. 5th 957, 2017 WL 5022364, 2017 Cal. App. LEXIS 962 (Cal. Ct. App. 2017).

Opinion

*738FLIER, J.

*959Defendants Mista L. Lutz and Russell A. Howells appeal from an order granting attorney fees to plaintiff Stara Orien, respondent here, after the trial court entered an interlocutory judgment of partition in her favor. The trial court found that an attorney fee provision in an earlier settlement agreement among the parties applied to the partition action, and thus awarded all fees to plaintiff under Civil Code section 1717 rather than apportioning the costs of partition under Code of Civil Procedure section 874.040. We hold that the partition action did not fall within the terms of the attorney fee provision. Accordingly, we reverse the order.

*960BACKGROUND

In 2003 plaintiff and defendants received a gift of two residences from their mother. Each took an undivided one-third interest in the properties.

In 2006 the parties entered into a settlement agreement to resolve a probate claim regarding their mother's estate initiated by defendant Howells. Paragraph 11.1 of the settlement agreement, entitled "Sale of properties," stated, "Mista, Stara and Russell [ (i.e., plaintiff and defendants) ] may sell the properties at any time they agree to do so. However, this provision shall not prevent any one or more of the parties from filing a partition action with respect to either or both the properties, in the event that Mista, Stara and Russell are unable to unanimously agree on whether or not the properties should be sold."

Paragraph 21.1 of the settlement agreement provided for attorney fees, stating, "Should any party hereto retain counsel for the purpose of enforcing or preventing the breach of any provision herein, including but not limited to instituting an action for a declaration of such party's rights or obligations hereunder, or for any other judicial remedy, then the prevailing party shall be entitled in addition to such other relief as may be granted, to be reimbursed by the other party for all costs and expenses incurred thereby, including but not limited to, reasonable attorney's fees and costs."

In October 2013, plaintiff filed a complaint against defendants seeking partition by sale of both properties. The complaint referred to the 2006 settlement agreement, alleging that as part of that agreement "the Parties stipulated that any one of them could partition the Properties in the absence of a unanimous agreement among them." The complaint also referenced the attorney fee provision in the agreement, and plaintiff sought attorney fees and costs in the prayer.

The trial court granted summary judgment for plaintiff, and entered an interlocutory judgment for partition by sale. In a separate order, the trial court awarded attorney fees to plaintiff pursuant to paragraph 21.1 of the 2006 settlement agreement and Civil Code section 1717, which governs awards of attorney fees for actions on contract.1 The court found that plaintiff's partition action "concerned enforcement of one of the provisions of the settlement agreement-paragraph 11.1-that allowed for partition by sale of the properties at issue" and therefore fell within the attorney fees provision. The court rejected defendants' argument that plaintiff had the right to seek partition *961independent of the agreement: "... Defendants, who were represented by counsel in the execution of the Settlement Agreement, voluntarily included this provision *739in the agreement. Plaintiff, through this action, specifically sought to enforce that provision as cited in her complaint."

The court found that the fees sought by plaintiff "were incurred for the common benefit," as required to apportion attorney fees among the parties to a partition action. (See Code Civ. Proc., §§ 874.010, 874.040.) Given its ruling under Civil Code section 1717, however, the court declined to apportion fees and instead awarded them all to plaintiff.2

Defendants timely appealed.3

DISCUSSION

1. Entitlement to attorney fees under settlement agreement

Defendants argue the court erred in interpreting the settlement agreement to allow recovery of attorney fees for a partition action. We agree with defendants.

"We review de novo a determination of an award of attorney fees under a contractual provision where, as here, no extrinsic evidence has been offered to interpret the contract, and the facts are not in dispute." ( Kangarlou v. Progressive Title Co., Inc. (2005) 128 Cal.App.4th 1174, 1177, 27 Cal.Rptr.3d 754.) "Our goal in interpreting a contract is to give effect to the mutual intention of the contracting parties at the time the contract was formed. ( Civ. Code, § 1636.) We ascertain that intention solely from the written contract if possible, but also consider the circumstances under which the contract was made and the matter to which it relates. (Id., §§ 1639, 1647.) We consider the contract as a whole and interpret its language in context so as to give effect to each provision, rather than interpret contractual language in isolation. (Id., § 1641.) We interpret words in accordance with their ordinary and popular sense, unless the words are used in a technical sense or a special meaning is given to them by usage. (Id., § 1644.) If contractual language is clear and explicit and does not involve an absurdity, the plain meaning governs. (Id., § 1638.)" ( *962Windsor Pacific LLC v. Samwood Co., Inc. (2013) 213 Cal.App.4th 263, 274, 152 Cal.Rptr.3d 518 ( Windsor Pacific ), disapproved of on other grounds by Mountain Air Enterprises, LLC v. Sundowner Towers, LLC (2017) 3 Cal.5th 744, 756, fn. 3, 220 Cal.Rptr.3d 650, 398 P.3d 556.)

At issue here are the trial court's findings that the settlement agreement "provided a right to partition by sale" and plaintiff's partition action sought to enforce that contractual right, thus entitling plaintiff to attorney fees under paragraph 21.1 and Civil Code section 1717.4 Defendants dispute that the right to partition is contractual.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Seaboard v. Cloutier CA4/2
California Court of Appeal, 2025
(PS) DeMartini v. DeMartini
E.D. California, 2025
Gentino v. Yaghoobia CA2/4
California Court of Appeal, 2023
Drexler v. Ryckman CA2/1
California Court of Appeal, 2023
Nielson v. Courtney CA2/6
California Court of Appeal, 2023
Hernandez v. Luna CA4/2
California Court of Appeal, 2022
Thornber v. Colby CA3
California Court of Appeal, 2022
Solis v. Clean Harbors, Inc.
N.D. California, 2022
Tolley v. Kobzoff CA5
California Court of Appeal, 2020
Murray v. Hull CA2/2
California Court of Appeal, 2020
Land Value Holdings, LLC v. Miller CA1/3
California Court of Appeal, 2020
People v. Handwerk CA4/2
California Court of Appeal, 2020

Cite This Page — Counsel Stack

Bluebook (online)
224 Cal. Rptr. 3d 736, 16 Cal. App. 5th 957, 2017 WL 5022364, 2017 Cal. App. LEXIS 962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/orien-v-lutz-calctapp5d-2017.