New Attorney Fee Case

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Attorney Fees

Understandably, attorney fees are near and dear to the hearts of California attorneys. Can attorney fees be recovered if they were not paid for by a party to the case, but instead were paid by a third party? Last month, the Fourth District Court of Appeal published a decision addressing this issue. To find out what they decided, watch the video above and read my summary of the case below.

New Attorney Fee Decision  

Cell-Crete Corp. v. Federal Ins. Co. (2022) _ Cal.App.5th _ , 2022 WL 4103354: The Court of Appeal reversed the trial court's order denying defendant's motion for attorney fees and taxing its request for costs. Defendant carrier was the prevailing party in a lawsuit plaintiff brought seeking to recover against defendant on a payment bond. After dismissal, the trial court denied defendant's request for attorney fees and taxed its costs on the ground that defendant did not incur any fees or costs because a third party, Granite Construction Company (Granite), paid the fees and costs of defendant's defense under an indemnity agreement between defendant and Granite. The Court of Appeal disagreed, concluding that defendant, as the prevailing party, was entitled to recover their reasonable attorney fees and costs anyway. (Civil Code, section 9564(c); Code of Civil Procedure, sections 1032(b), 1033.5(c)(1).) A party represented by counsel in an attorney-client relationship is entitled to an award of fees and costs even if they have been or will be borne by a third party. (C.A. 4th, September 8, 2022.)

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Best regards,
Monty A. McIntyre, Esq.
California Case Summaries™
Mediator, Arbitrator & Referee
Master Lawyer Mentoring™
CA Civil Trial Attorney Since 1980
ABOTA Member Since 1995
Past President San Diego County Bar Assn., SD ABOTA Chapter
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