Guo v. Moorpark Recovery Service, LLCAnnotate this Case
Guo owned TVGC, which operated a Pleasanton spa. TVGC agreed to sell the business to Mazurova's corporation, LSI. The sale was partially financed through a promissory note. The sales agreement and promissory note contained provisions allowing a party prevailing in a legal action to recover attorney fees. After the sale, a dispute arose regarding Guo’s alleged nondisclosure of outstanding coupons for free spa services and Mazurova’s alleged failure to make payments. A judgment was entered for $161,085.58 against Guo and TVGC, which was affirmed. A subsequent order specifically stated that LSI and Mazurova were deemed the prevailing parties under Code of Civil Procedure Section 1032, “entitled to recover their costs of suit and reasonable attorney fees.” Mazurova and LSI assigned the judgment to Moorpark, which engaged in collection efforts and moved for attorney fees under Code of Civil Procedure section 685.040.
The court denied the motion because the underlying judgment did not include an award of attorney’s fees. The court of appeal reversed. The judgment awarded reasonable attorney fees to the prevailing parties, although it did not set a particular amount of fees and no costs bill including such fees was ever filed. The court’s failure to include a specific amount in the judgment does not defeat section 685.040.