Fee Award Reversed Against Corporate, Nonsignatory Principal Where No Alter Ego Unfairness Shown.
In Posada v. Stone Steps Properties, LLC, Case Nos. B271664/B277933 (2d Dist., Div. 5 Sept. 11, 2017) (unpublished), a residential property seller failed to disclose to a buyer that an unlicensed contractor performed renovations on the property, resulting in a 5-day bench trial where the trial judge eventually awarded buyer $49,520.90 in compensatory damages. Based on a fees clause in the purchase documents, the trial court later awarded attorney’s fees against the seller and the seller’s principal to the tune of $90,310.50 (out of a requested $94,932.50). On appeal by the selling-related litigants, the appellate court modified the compensatory damages judgment down to $32,004.70 based on the determination that some of the awarded damages were not related to the unlicensed contractor’s renovations. However, the fee award was affirmed as to seller, but reversed against seller’s principal since he was not a signatory to the agreement and nothing showed that he was an alter ego (given that party did maintain the separateness of the corporate defendant for alter ego purposes).
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