Stiner v. Travelers Indemnity Co.

226 Cal. App. 2d 128, 37 Cal. Rptr. 813, 1964 Cal. App. LEXIS 1264
CourtCalifornia Court of Appeal
DecidedApril 2, 1964
DocketCiv. 7464
StatusPublished
Cited by3 cases

This text of 226 Cal. App. 2d 128 (Stiner v. Travelers Indemnity Co.) 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
Stiner v. Travelers Indemnity Co., 226 Cal. App. 2d 128, 37 Cal. Rptr. 813, 1964 Cal. App. LEXIS 1264 (Cal. Ct. App. 1964).

Opinion

GRIFFIN, P. J.

In the interest of securing uniformity of decision and settling important questions of law, the instant case was transferred for hearing and further decision to this court, under rules 62 and 63, California Rules of Court. An opinion was published. (Stiner v. Travelers Indem. Co. * (Cal. App.) 35 Cal.Rptr. 57.)

Plaintiffs in this action were sued in municipal court action No. 95348 (denominated rent case) for $3,900 claimed installment rent due under a lease to Fifir, Inc., a corporation, attaching creditor. Two bank accounts of individual plaintiffs here were there attached in the sum of $185.22.

Defendant here, The Travelers Indemnity Company, was the surety on the undertaking in that action for the attachment in the sum of $2,500. In the rent case, plaintiffs here contested the validity of the lease by cross-complaint and the cause was transferred to the superior court for further proceedings. Plaintiffs here, and defendants and cross-complainants there, were successful in a trial on the merits. Plaintiffs here then brought this action (No. 278118) against defendant The Travelers Indemnity Company on the attachment bond. Judgment was rendered against defendant company on its bond for $1,487.60 attorney’s fees incurred by plaintiffs in defending the rent case, together with costs of suit fixed at $18.05. In the rent case, John Stiner Construction Company, a corporation operated by the plaintiffs here, was also sued, but no assets of the corporate defendant were attached.

Code of Civil Procedure, section 539, sets forth the condition of an undertaking on attachment to the effect that: “... if the defendant recovers judgment, the plaintiff will pay all costs that may be awarded to the defendant and all damages which he may sustain hy reason of the attachment. ...” (Italics ours.) As to the recovery for deprivation of the use of money, the trial court was authorized to allow the legal rate of interest during the period of detention, which was about $15. As to the cost of attorney’s fees in defending the rent suit brought by Fifir, Inc., the attaching creditor, it *131 is claimed by defendant company that such fees were the entire fees of the case and were not assessable against it because it not only included fees for releasing the attachment but for defending the suit on its merits, and that these fees should be allocated accordingly.

It is also argued that the attachment bond could have been released in varying ways, i.e., by putting up a release bond, depositing the attached money in court under Code of Civil Procedure, sections 540-554, or by stipulation; and that no recovery is generally allowed for defending the suit on its merits unless the defense of the rent case is necessary to defeat the attachment. (Citing Ideal Heating Corp. v. Royal Indent. Co., 107 Cal.App.2d 662, 664 [237 P2d 521].)

The true rule appears to be that if the damages arc incurred in defending the suit itself, as distinguished from the damages caused by the attachment, no recovery is allowed for defending the suit on its merits, unless the defense of the suit was necessary to defeat the attachment. (Reachi v. National Auto. & Gas. Ins. Co., 37 Cal.2d 808 [236 P.2d 151]; Albertsworth v. Glens Falls Indent. Co., 84 Cal.App.2d 816 [192 P.2d 66]; Byard v. National Auto. & Cas. Ins. Co., 218 Cal.App.2d 622 [32 Cal.Rptr. 613]; Russell v. United Pacific Ins. Co., 214 Cal.App.2d78 [29 Cal.Rptr. 346].)

The question before us then is whether the trial court could, under the evidence, properly determine that such attorney’s fees as were allowed were necessary to defeat the attachment, and if not, whether an allocation should be made.

It appears that the rent case was an action for $3,900 for rent claimed to be due under a lease. The attachment was of a bank account containing $185.22. Defendant argues that the fixing of an attorney’s fee and costs as damages for such a wrongful attachment for the amount indicated is an unreasonable award of damages and such damages could not be a proximate result of the attachment. It is true that Stiner himself testified that the reason he obtained an attorney was to prove that there was an illegal claim against him for funds demanded by Fifir, Inc. under the lease, and in retaining counsel it was his primary concern to win the lawsuit over the money claimed due under the lease, and, secondly, to release the attachment of funds; that there were not sufficient funds under attachment to create a monetary problem, but a judgment as prayed for would have put him into bankruptcy and it was primarily necessary to defeat that claim.

*132 Plaintiffs’ exMbit one is an itemized bill for all the services rendered and costs advanced by counsel in connection with the rent suit generally and the judgment was for the total amount sought in said exhibit.

Plaintiffs’ complaint alleges that $1,487.60 was due plaintiffs for attorney’s fees, plus costs and interest, for defending the action and that all proceedings respecting the levy of said attachment were fair on their face and for that reason plaintiffs made no motion nor brought any proceedings to discharge or dissolve said attachment, as said motion would have been unsuccessful and an idle act, and the only manner by which said attachment could be dissolved or discharged would have been to appear and win the above-mentioned action on its merits, and that to defend said action on its merits plaintiffs expended attorney’s fees and costs in the sum of $1,487.60. The answer of defendant denied these allegations. In response to a request for an admission of facts, defense counsel admitted that said attachment and bond were proper in form and fair on their face.

The minutes of the court reflect the following minute entry: “Opening statement by plaintiff and stipulation: Other than the legal questions at issue, the only factual issues in question are the amounts of fees and costs and the reasonableness thereof in defending the suit . . . .”

Defendant proposed the following findings:

“That the primary purpose in defending the aforesaid action ... was not to obtain a release of the funds under attachment, but to avoid a judgment requested therein.
“That it is true that the primary purpose for defending the aforesaid action wherein Fifer, Inc. was plaintiff was to avoid forcing the plaintiffs herein into a bankruptcy proceeding.” These proposed findings were refused. The court then found:
“That it is true that in order to recover said judgment the plaintiffs incurred costs and expenses in the reasonable sum of $1,487.60.

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226 Cal. App. 2d 128, 37 Cal. Rptr. 813, 1964 Cal. App. LEXIS 1264, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stiner-v-travelers-indemnity-co-calctapp-1964.