Retzloff v. Moulton Parkway Residents' Ass'n

222 Cal. Rptr. 3d 330, 14 Cal. App. 5th 742, 2017 Cal. App. LEXIS 727
CourtCalifornia Court of Appeal, 5th District
DecidedAugust 23, 2017
DocketG053164
StatusPublished
Cited by6 cases

This text of 222 Cal. Rptr. 3d 330 (Retzloff v. Moulton Parkway Residents' Ass'n) 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
Retzloff v. Moulton Parkway Residents' Ass'n, 222 Cal. Rptr. 3d 330, 14 Cal. App. 5th 742, 2017 Cal. App. LEXIS 727 (Cal. Ct. App. 2017).

Opinion

MOORE, J.

*745Plaintiffs Amber Retzloff, James Franklin, and Nancy Stewart sued defendant Moulton Parkway Residents' Association, No. One (the association), twice for alleged violations of the Davis-Stirling Common Interest Development Act ( Civ. Code, § 4000 et seq. ; the Act). The first suit was dismissed without prejudice by plaintiffs; the trial court sustained the association's demurrer to the second suit without leave to amend. The court further concluded that plaintiffs' second action was frivolous and awarded the *746association costs and attorney *333fees under Civil Code section 5235 1 , subdivision (c) ( section 5235(c) ). Plaintiffs appeal this award.

Section 5235(c) states that a court may award a prevailing association "any costs." The association contends, and the trial court agreed, that "any costs" includes attorney fees. A plain reading of the statute, however, does not support this interpretation. As such, the association was erroneously awarded attorney fees and is entitled only to costs. We publish to clarify this point of statutory interpretation, which appears to be a matter of first impression.

Further, section 5235(c) permits a cost award to a prevailing association only if the members' action is deemed to be frivolous, unreasonable, or without foundation. Plaintiffs argue the trial court erroneously labeled their action frivolous. We disagree. There is sufficient support throughout the record to affirm the court's decision. The court did not err in concluding the association is entitled to costs under section 5235(c).

I

FACTS

Plaintiffs are all former board members of the association. Plaintiffs alleged that the association violated sections of the Act by conducting association business outside of board meetings and failing to maintain and make available certain corporate records.

Pursuant to section 5930, plaintiffs notified the association of their grievances in an e-mail titled "Demand for Alternative Dispute Resolution [ (ADR) ]" on May 21, 2014. The association accepted the demand for ADR on June 17. After much back and forth, the parties eventually settled on a mediator and potential mediation dates. Plaintiffs contend the mediation never occurred because they did not have "access to the association's documents ... which were necessary for Plaintiffs to prepare and engage in mediation, and as a result the mediation could not be completed within 90 days as required by Civil Code § 5940."

Subsequently, plaintiffs filed an action alleging violations of sections 4900 et seq., and section 5200 on October 9, 2014 (the first action). The association demurred to the first action on the grounds that plaintiffs did not comply with section 5950, which requires a certificate stating ADR or an attempt at ADR was completed prior to filing a lawsuit. Before the demurrer could be ruled on, plaintiffs dismissed the first action without prejudice.

*747Plaintiffs then filed a new action on December 15, 2014, that was practically identical (the second action). Plaintiffs attached a certificate purporting to comply with section 5950. The association demurred again on the grounds that the certificate was insufficient. The trial court agreed with the association and sustained the demurrer without leave to amend. The association was declared the prevailing party for the purposes of any costs recovery.

The association then moved for attorney fees. The trial court found the second action to be frivolous, and pursuant to section 5235(c), the court awarded the association $13,750 in attorney fees and $1,688.60 in costs. Prior to briefing and argument, plaintiffs satisfied the judgment in full.

II

DISCUSSION

Plaintiffs appeal the award of attorney fees and costs. They argue section 5235(c) does not entitle a prevailing association to *334attorney fees, and the association should not have been awarded costs because their action was not frivolous. The association also argues that plaintiffs waived their right to appeal by raising a new legal theory on appeal and satisfying the trial court's judgment in full. We shall first address the association's waiver arguments, then proceed to review the award of attorney fees and costs.

A. Waiver of New Theory on Appeal

In the trial court, plaintiffs never argued that section 5235(c) entitles a prevailing association to costs but not attorney fees. The association contends the waiver doctrine precludes plaintiffs from arguing a new theory on appeal. "It is the general rule that a party to an action may not, for the first time on appeal, change the theory of the cause of action. [Citations.] There are exceptions but the general rule is especially true when the theory newly presented involves controverted question of fact or mixed questions of law and fact. If a question of law only is presented on the facts appearing in the record the change in theory may be permitted. [Citation.]" ( Panopu lo s v. Maderis (1956) 47 Cal.2d 337, 340-341, 303 P.2d 738.) Statutory interpretation is a question of law. ( In re Jeffrey T. (2006) 140 Cal.App.4th 1015, 1018, 44 Cal.Rptr.3d 861.) The "review [of] a determination of the legal basis for an award of attorney fees ... [is] a question of law." ( Pueblo Radiology Medical Group, Inc. v. Gerlach (2008) 163 Cal.App.4th 826, 828, 77 Cal.Rptr.3d 880.) The court interpreted section 5235(c) to award a prevailing association costs and reasonable attorney fees. Plaintiffs challenge the court's *748interpretation of the statute, and their theory presents a question of law. Therefore, plaintiffs' new theory is not precluded.

B. Waiver by Satisfying Judgment in Full

The association also contends that plaintiffs waived their right to appeal by voluntarily satisfying the judgment in full. The association's reasoning is incomplete, and plaintiffs' decision to satisfy the judgment did not waive their right to an appeal.2

The right to appeal is not lost if compliance with a judgment occurs as a result of compulsion or coercion, such as by threat of execution under the judgment. ( Selby Constructors v. McCarthy

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Cite This Page — Counsel Stack

Bluebook (online)
222 Cal. Rptr. 3d 330, 14 Cal. App. 5th 742, 2017 Cal. App. LEXIS 727, Counsel Stack Legal Research, https://law.counselstack.com/opinion/retzloff-v-moulton-parkway-residents-assn-calctapp5d-2017.