Otherwise, 5 Nonappealing Parties Would Get Stuck With Substantial Fee Exposure Even Though Some Appealing Parties Might Win On Remand.
Appellate courts are comprised of justices, who not only follow the law but attempt to reach a fair result based on the circumstances. Adams v. MHC Colony Park Ltd. Partnership, Case No. F062160 (5th Dist. Mar. 10, 2014) (partially published on rehearing; fee discussion unpublished) illustrates this in the context of substantial fee exposure to nonappealing parties even though the underlying judgment had been reversed and would have to go back for remanded proceedings.
Mobile Home by Ford Motor Company. 1924.
What happened was that 66 plaintiffs of a mobilehome park, after suing owner for failure to maintain the park’s physical improvements and common facilities, either suffered nonsuits or an adverse jury verdict (after a 43-day jury trial). The lower court then assessed $1.975 million in attorney’s fees and costs against the losing plaintiffs. Of this plaintiff constituency, 5 did not appeal. Upon review, the appellate court reversed the judgment. However, that left the lingering question of what to do about the fee award against the 5 nonappealing plaintiffs.
The appellate court decided that the reversal of the judgment had to extend to all portions with respect to the 5 nonappealing parties. Although the general rule is that an unappealed judgment is final unless appealed, there is an exception allowing for an entire reversal of a judgment if the portions reversed are so interwoven with the remainder of the judgment. This exception was invoked here, because otherwise 5 people might be stuck jointly and severally with a large fee exposure even though some of the remaining appealing plaintiffs might ultimately succeed on remand. Unfairness was the theme in this one.
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