Case Was Extensively Litigated, Justifying This Level Of Fee Recovery.
Home Depot. 2003. Santa Fe, New Mexico. John Margolies, photographer. Library of Congress.
In First City Pacific, Inc. v. Home Depot U.S.A., Inc., Case No. B268604 (2d Dist., Div. 7 Dec. 19, 2017) (unpublished), sublessor (tenant to a ground lease) lost an unlawful detainer action to sublessee Home Depot when a jury determined that the notice to pay/quit was not a reasonable estimate of what was owed by Home Deposit. The trial judge then awarded Home Depot $1,334,368.30 in fees and $4,637.03 in costs based on a fees clause in the sublease.
The 2/7 DCA affirmed. Sublessor argued that Home Depot did not prevail, but the appellate court determined it did get an unqualified win on the sole contractual claim involved in the unlawful detainer action (which triggered Civil Code section 1717 fee entitlement). With respect to whether discretion was abused by the large fee award, the panel believed that it was justified because the case was extensively litigated and the lease reimbursement issue was complex—warranting two partners billing over two thirds of the 3,647.6 hours for which fees were requested.
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