Stockton Theatres, Inc. v. Palermo

268 P.2d 799, 124 Cal. App. 2d 353, 1954 Cal. App. LEXIS 1740
CourtCalifornia Court of Appeal
DecidedApril 1, 1954
DocketCiv. 8222
StatusPublished
Cited by18 cases

This text of 268 P.2d 799 (Stockton Theatres, Inc. v. Palermo) 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
Stockton Theatres, Inc. v. Palermo, 268 P.2d 799, 124 Cal. App. 2d 353, 1954 Cal. App. LEXIS 1740 (Cal. Ct. App. 1954).

Opinion

SCHOTTKY, J.

This is an appeal by plaintiff and a cross-appeal by defendant from a judgment awarding attorney’s fees to plaintiff.

On September 13, 1940, defendant’s father and plaintiff entered into a written lease for the Star Theatre, to begin on January 1, 1941. Said lease contained the following provision relating to attorney’s fees:

“If either party shall commence any legal proceedings against the other for relief because of any default by the other because of failure to perform any term, covenant or condition of this lease and shall prevail in said action, the *355 party who has commenced and prevailed in said legal proceeding shall recover, in addition to all court costs a reasonable attorney’s fee to be fixed by the Court.”

On October 27,1941, defendant’s father died and defendant became the owner of the leased realty.

On June 5, 1944, defendant commenced an action against plaintiff for declaratory relief, asking the court to declare the lease void under the Alien Land Law, and for restoration of the realty to him. Subsequently the court entered judgment for the defendant declaring the lease to be illegal and void. On July 11,1945, defendant commenced an action against plaintiff in unlawful detainer to oust plaintiff from possession of the premises pursuant to the declaratory relief judgment. Judgment was entered in favor of defendant and defendant secured possession of the premises by writ of restitution. Appeals were taken from both of these judgments, and were consolidated on appeal. Both trial court judgments were reversed by this court and upon a petition for a hearing before the Supreme Court, same was granted and both trial court judgments were also reversed by the Supreme Court. On September 11, 1948, plaintiff commenced this action to recover attorney’s fees expended in defending and taking the appeal in the declaratory relief and unlawful detainer actions. The action was based on the above quoted portion of the lease providing for attorney’s fees.

The law firm of Rutherford, Jacobs, Cavalero and Dietrich represented plaintiff in the action for declaratory relief brought by defendant, and Messrs. Jacobs and Dietrich actually prepared and conducted the trial. Mr. Jacobs testified at the trial of the instant case as to the amount of work involved in preparing and conducting the case, and also that his firm was paid $7,500 legal fee. The law firm of Freed & Freed and its successor, Freed, Gebauer & Freed, prepared and conducted the unlawful detainer trial brought by defendant against plaintiff, and also prepared and conducted the appeals from the declaratory relief judgment and forcible detainer judgment on behalf of plaintiff. Mr. Eli Freed at the trial of the instant case testified to the work involved in connection with the unlawful detainer trial and the two appeals. He also testified that his firm was paid a fee of $12,500 for its representation in the unlawful detainer trial and the two appeals. There was no dispute as to the value of the services rendered by the two firms.

*356 The trial court found that the appeal taken by plaintiff in the unlawful detainer action “constituted legal proceedings commenced by Stockton Theatres, Inc., for relief because of the default by Emil Palermo in ousting Stockton Theatres from the leased premises, for which Stockton Theatres, Inc., is entitled to recover reasonable attorneys’ fees pursuant to the provisions of paragraph 16 of said lease,” but that none of the other legal proceedings engaged in by plaintiff in said declaratory relief and unlawful detainer actions “were commenced for relief because of any default by Emil Palermo because of any failure as lessor to perform any term, covenant or condition of said lease. ’' The court then went on to find that the value of the legal services rendered on behalf of plaintiff in the appeal in the unlawful detainer action was $2,500, and judgment was entered in favor of plaintiff in that amount. Both plaintiff and defendant have appealed from said judgment, plaintiff contending that it was entitled to a minimum amount of $10,000, and defendant contending that plaintiff was not entitled to recover any amount for attorney’s fees.

Plaintiff contends, correctly, that a lease creates two sets of rights and obligations, arising from “privity of estate” and “privity of contract” (Samuels v. Ottinger, 169 Cal. 209 [146 P. 638, Ann.Cas. 1916E 830]; Ellingson v. Walsh, O’Connor & Barneson, 15 Cal.2d 673 [104 P.2d 507]), and that, therefore, a lease is to be construed according to the general rules of interpretation applicable to all contracts. (6 Cal.Jur., Contracts, § 161; 15 Cal.Jur., Landlord and Tenant, § 31; Knox v. Wolfe, 73 Cal.App.2d 494 [167 P.2d 3].) Plaintiff correctly states further that in the absence of extrinsic evidence in aid of construction of a written instrument, an appellate court is not bound by the trial court’s interpretation and will independently ascertain the meaning of the instrument from the language thereof as a matter of law (Moore v. Wood, 26 Cal.2d 621 [160 P.2d 772]; Transport Oil Co. v. Exeter Oil Co., 84 Cal.App.2d 616 [191 P.2d 129]; Cash v. Blackett, 87 Cal.App.2d 233 [196 P.2d 585]; Fischer v. Means, 88 Cal.App.2d 137 [198 P.2d 389]), and that, therefore, notwithstanding the construction placed on the lease provision calling for attorney’s fees by the trial court, this court may, by use of the standard accepted rules of contract interpretation, independently determine whether or not the provision was to extend to fees as contended by appellant.

Section 1644 of the Civil Code provides:

‘ ‘ The words of a contract are to be understood in their ordi *357 nary and popular sense, rather than according to their strict legal meaning; unless used by the parties in a technical sense, or unless a special meaning is given to them by usage, in which case the latter must be followed. ’ ’

Section 1861 of the Code of Civil Procedure provides in part that ‘ ‘ The terms of a writing are presumed to have been used in their primary and general acceptation. ...” See also 6 California Jurisprudence, Contracts, section 175.

The general rule is that attorney’s fees are not recoverable by a successful party to an action either in law or equity, except in the instances where they are expressly provided for by contract. (7 Cal.Jur., Costs, § 27.)

In the instant case the parties did contract for the payment of fees under certain conditions. The language expressing these conditions must be construed in its ordinary and popular sense.

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Bluebook (online)
268 P.2d 799, 124 Cal. App. 2d 353, 1954 Cal. App. LEXIS 1740, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stockton-theatres-inc-v-palermo-calctapp-1954.