Mai v. HKT Cal, Inc.
Annotate this CaseHue Thi Dong Mai was sued for breach of contract by a prospective purchaser of the apartment building she owned, brought about because of fraudulent conduct on the part of Mai’s real estate agent. The prospective purchaser ultimately dismissed the breach of contract action, and Mai invoked the “tort of another” doctrine in suing, by cross-complaint, the agent and her employer to recover the attorney’s fees Mai incurred defending the contract action. In the course of that litigation, Mai’s counsel failed to appreciate the difference between presenting a claim for attorney’s fees as damages at trial, and one for fees as costs of suit in a posttrial motion. By its own admission, the trial court was equally confused. The cross-defendants submitted, as dispositive authority, the Court of Appeal decision in Copenbarger v. Morris Cerullo World Evangelism, Inc., 29 Cal.App.5th 1 (2018). Figuring it was bound by Copenbarger, the trial court decided it had no discretion to guide the case to what it believed was a fair resolution. Urging Mai to appeal the decision, it ultimately concluded it could not award anything on her claim for attorney’s fees. Mai appealed, presenting two issues: (1) to what extent did Copenbarger accurately define the minimum showing required to sustain an award of attorney’s fees as damages?; and (2) was the trial court correct in believing that Copenbarger eliminated its discretion to allow Mai to present her attorney’s fee claim on the merits? As to the first issue, the Court of Appeal concluded Copenbarger’s analysis, some of which was dicta, might mislead trial courts by causing them to disregard well-established and binding precedent that predated it. For that reason, the appellate court offered a narrow reading of Copenbarger that harmonized it with other case authority to the extent that was possible. Regarding the second issue, even accepting Copenbarger’s analysis at face value did not, as the trial court here seemed to believe, eliminate all discretion the court possessed to make mid-trial adjustments and accommodations that respect defendants’ right to a fair trial while also allowing plaintiffs to litigate the merits of their claims. Accordingly, judgment was reversed and the matter remanded for a limited retrial on the issue of attorney’s fees as damages in which the court could both apply the proper legal principles and exercise its discretion to achieve substantial justice between the parties.
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