Plaintiffs James C. Hill and Dawn L. Hill as trustees under a revocable trust dated February 17, 1977 (the Hills), appeal from a postjudgment order awarding contractual attorney fees to Affirmed Housing Group (Affirmed) under Civil Code section 1717.
We find no abuse of discretion and affirm.
In the underlying suit, the Hills sued San Jose Family Housing Partners, LLC (LLC), and Affirmed, a managing member of LLC, for alleged violations of a written easement agreement.
The trial court ruled that Affirmed was immune from suit under Corporations Code former section 17101, noting that the Hills had presented no evidence to show that Affirmed engaged in any conduct outside of its capacity as a member of LLC. As to LLC, the court rejected the illegality defense and concluded LCC had violated the easement agreement. Following entry of judgment in its favor, Affirmed moved to recover attorney fees and costs pursuant to Civil Code section 1717. The trial court denied that motion on two independent grounds: (1) Affirmed was not a prevailing party on the underlying contract, and (2) Affirmed was barred from recovery based on the principle of unity of interest.
On appeal, we reversed the order denying Affirmed's motion for attorney fees, reasoning that (1) Affirmed was the prevailing party vis-à-vis the Hills; (2) the unity of interest principle does not apply to Civil Code section 1717; and (3) even if the unity of interest principle were applicable, it would not bar Affirmed's claim for attorney fees because "Affirmed prevailed at trial on an entirely separate defense from those raised by LLC" — its statutory immunity. (Hill v. Affirmed Housing Group (Mar. 12, 2012, H035541) [nonpub. opn.].) In a footnote, we noted: "the record does not disclose whether or not Affirmed moved for summary judgment on its affirmative defense of statutory immunity. Since the Hills presented no evidence at trial to overcome that defense, we presume Affirmed would have prevailed on such a motion, thus avoiding the (likely substantial) attorney fees generated both in preparing for trial and in the course of the trial itself." (Ibid.) We remanded the matter to the trial court "for a determination of the amount of reasonable attorney fees to be awarded to Affirmed." (Ibid.) We also ruled that "Affirmed shall recover its costs on appeal." (Ibid.)
On remand, Affirmed filed a renewed motion for an award of attorney fees and costs. It sought $299,401.61 in contractual attorney fees and costs incurred in the trial court and $27,665.12 in attorney fees and costs incurred on the initial appeal. The trial court awarded Affirmed the full amount of fees it requested, finding the hours billed and billing rates to be reasonable. The Hills timely appealed.
"We will reverse a fee award only if there has been a manifest abuse of discretion." (EnPalm, supra, 162 Cal.App.4th at p. 774.) The Hills bear the burden of affirmatively establishing that the trial court abused its discretion. (Ritter & Ritter, Inc. Pension & Profit Plan v. The Churchill Condominium Assn. (2008) 166 Cal.App.4th 103, 128 [82 Cal.Rptr.3d 389].) On matters as to which the record is silent, we indulge all intendments and presumptions to support the trial court's order. (Ibid.)
With respect to the lodestar figure the trial court employed in awarding attorney fees to Affirmed, the Hills argue that the number of hours should have been reduced to eliminate hours the joint counsel billed on behalf of LLC. In other words, the Hills contend that the trial court erred by not apportioning between fees incurred by Affirmed and those incurred by LLC. The Hills further contend that the trial court erred by not reducing the lodestar figure, which they contend was unreasonably high because (1) Affirmed rode LLC's "coattails" in defending the case, (2) any award of attorney fees will result in a windfall to LLC because Affirmed is a managing member of LLC, and (3) Affirmed failed to mitigate its attorney fees. The Hills also argue that the trial court abused its discretion by granting Affirmed attorney fees in connection with its first successful appeal.
The Hills contend that the trial court erred by awarding Affirmed all of the fees incurred by both defendants in their joint defense. The court's failure to apportion between fees incurred by Affirmed and those incurred by LLC was an abuse of discretion, the Hills maintain. Affirmed responds that apportionment was not possible, let alone required, because all of LLC's defenses
We agree with Affirmed that this case is analogous to Cruz, supra, 155 Cal.App.4th 1270, in which the court held that apportionment of fees incurred by the jointly represented plaintiffs was impracticable because their claims were inextricably intertwined. In Cruz, "[a]ll [the plaintiffs] asserted the same causes of action. The[ir] attorneys conducted legal research pertaining to the overarching legal issues common to all [plaintiffs] ... [and] had to do the same legal research and analysis in preparing their case on behalf of [plaintiffs], irrespective of the number of potential [plaintiffs] benefiting from the legal work performed." (Id. at p. 1278.) Likewise, here, both LLC and Affirmed asserted the joint defenses, and their counsel would have been
In support of their contention that the trial court should have reduced the lodestar amount (or denied Affirmed attorney fees entirely), the Hills advance three arguments: (1) the "coattails" argument, (2) the "windfall" argument, and (3) the mitigation argument. None has merit.
As we understand it, the coattails argument is that an award of fees to Affirmed will unfairly compensate it for work done primarily on behalf of LLC. That same concern underlies the apportionment issue and is addressed adequately, in that context, above. The coattails argument also appears to be premised on the contention that Affirmed — despite being a prevailing party on the Hills' contract claim against it — is not entitled to attorney fees because its codefendant, LLC, was not also a prevailing party. We addressed and rejected that theory in our prior opinion in connection with the Hills' unity of interest argument.
Like the coattails argument, the Hills' windfall argument essentially rehashes the unity of interest argument (i.e., because LLC lost Affirmed should not get fees), and fails for that reason. Moreover, the Hills merely speculate that an award of fees to Affirmed will end up in LLC's pockets. The trial court's apparent refusal to credit that hypothesis does not constitute an abuse of discretion.
The Hills' claim that Affirmed should have mitigated their attorney fees by moving for summary judgment on statutory immunity grounds is based entirely on a footnote in our earlier, unpublished decision. The Hills fail to cite a single case reducing an award of attorney fees for failure to mitigate. Accordingly, we consider the argument to have been abandoned. (Berger v. Godden (1985) 163 Cal.App.3d 1113, 1117 [210 Cal.Rptr. 109] ["the failure of appellant to advance any pertinent or intelligible legal argument ... constitute[s] an abandonment of the appeal"].)
Finally, the Hills urge that the trial court's award to Affirmed of attorney fees incurred in its first successful appeal constituted an abuse of discretion. The Hills fail to establish any error.
But, say the Hills, the fees awarded were not reasonable. First, they claim that the fee award was unreasonably high because Affirmed could have mitigated the fees it incurred on appeal by filing a motion for summary judgment prior to trial. It is not apparent to us how such a motion would have impacted the fees incurred in connection with the prior appeal. At issue in the first appeal was the threshold question whether Affirmed was entitled to fees under Civil Code section 1717. Presumably, that issue would have arisen on appeal regardless of when the trial court entered judgment in Affirmed's favor.
The order awarding attorney fees is affirmed. Affirmed Housing Group shall recover its costs on appeal.
Rushing, P. J., and Elia, J., concurred.