Appealability/Equity: Appellate Court Reverses Adverse Fee Judgment Based On Parties’ Settlement Stipulation

 

No Public Policy Concerns Militate Against Honoring Parties’ Settlement.

     In GMAC Mortgage v. Sandoval, Case No. E059111 (4^th Dist., Div. 2 Apr. 8, 2014) (unpublished), lenders won a declaratory relief action with respect to lien priority and were awarded attorney’s fees of $21,284.25 based on a trust deed fees clause. Defendants appealed only the postjudgment fee order, but later reached a post-appeal filing settlement stipulation with plaintiffs through which only the fee order (not merits judgment) would be vacated, if the appellate court agreed.

     It did. Although the appeal could not be dismissed, the appellate court did agree to reverse the fee award based on the parties’ settlement—finding that the policy favoring settlement was fostered while there was no prejudice to the adverse parties/erosion of public trust. (Code Civ. Proc., § 128(a).) The merits judgment remained in place, but the fee award was reversed.