Code of Civil Procedure Section 1030 Was Involved.
Tieni v. Biasiolo, Case No. B267697 (2d Dist., Div. 8 Feb. 22, 2017) (unpublished) concerned Code of Civil Procedure section 1030, which requires non-resident plaintiffs to post an undertaking for reasonable attorney’s fees to ensure collectability of those fees in the event defendant prevails at trial. The lower court concluded that the fees clause in a note applied to the plaintiffs, requiring an undertaking based on the perception the defense had a reasonable possibility of prevailing in the lawsuit.
The 2/8 DCA reversed, determining that plaintiffs—who were not signatories to the note with the fees clause and who did not sue on the note—did not have to post an undertaking. Nothing showed that the plaintiffs were trying to step in the shoes of the actual note signatory (a California corporation plaintiff, which did not have to post an undertaking because it was a California resident).