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« Arbitration/Employment/Unconscionability: Fifth District Reverses Trial Court And Orders Arbitration, Finding No Unconscionability | Main | Arbitration/Nonsignatories/Equitable Estoppel/Agency/Third Party Beneficiaries: Ninth Circuit Holds Parties Remain Bound By Agreements They Made And Not By Agreements They Didnt Make »

08/04/2013

Arbitration/Fees: First District, Division 1 Overturns Fee Award Because Party Prevailing In Declaratory Judgment Action To Stay Arbitration Was Not Necessarily The Ultimate Prevailing Party

It Ain’t Over Till Its Over

     Plaintiff Abbey filed two lawsuits against Fortune Drive Associates, LLC, the first lawsuit concerning his business dealings, the second lawsuit seeking declaratory relief to stay an arbitration commenced by Fortune.  Abbey prevailed in the second lawsuit, successfully staying the arbitration, and before the conclusion of the first lawsuit, obtained an award of attorney’s fees in the second lawsuit.  Fortune appealed.  Abbey v. Fortune Drive Associates, LLC, Case No. A135062 (1st Dist. Div. 1 July 29, 2013) (Margulies, Acting P.J., author 3:0) (unpublished). 

     The Court agreed with Fortune:  the award of attorney’s fees is available only to the prevailing party in the underlying contractual dispute.  See my May 27, 2012 post on Frog Creek Partners, LLC v. Vance Brown, Inc., 206 Cal.App.4th 515 (2012) (“there may only be one prevailing party entitled to attorney fees on a given contract in a given lawsuit”).  Reversed.   

Posted by on 08/04/2013 at 08:49 AM in Arbitration: Fees |

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