Hoffman v. Superior Ready Mix Concrete, L.P.
Lynda HOFFMAN, and v. SUPERIOR READY MIX CONCRETE, L.P., and
Attorneys
Wright, L'Estrange & Ergastolo, Joseph T. Ergastolo, Andrew E. Schouten, San Diego, and Daniel M. Doft for Defendants and Appellants., Goode Hemme & Barger and Jerry D. Hemme, San Diego, for Plaintiff and Respondent.
Full Opinion (html_with_citations)
*479*478Plaintiff Lynda Hoffman owns 28 acres of land (the property), a portion of which is used to grow plants for an intended nursery. The property is adjacent to a 211-acre rock quarry (the quarry) owned by National Quarries Enterprises LLC and operated by Superior Ready Mix Concrete L.P. (together SRM). After Hoffman prevailed in a trespass action against SRM, the trial court awarded her costs as the prevailing party and attorney fees under Code of Civil Procedure
SRM appeals, contending Hoffman is not entitled to attorney fees under section 1021.9 because SRM did not trespass onto the areas of land where she was actually growing nursery plants. Assuming we reject this argument, SRM argues that the trial court abused its discretion by awarding Hoffman $289,153.75 in attorney fees because the award was (a) not apportioned between her successful fee and unsuccessful non-fee causes of action, and (b) not reduced to reflect her limited success at trial. SRM also asserts that the trial court abused its discretion by finding that SRM's section 998 offer was invalid and less favorable than Hoffman's trial result.
We conclude that the trial court correctly interpreted section 1021.9 and properly awarded Hoffman her attorney fees as the prevailing plaintiff in this trespass action. We also reject SRM's arguments that the trial court erred when it failed to apportion or reduce Hoffman's attorney fees award. As SRM concedes, these decisions moot its argument regarding the validity of its section 998 argument.
FACTUAL AND PROCEDURAL BACKGROUND
Following the well-established rule of appellate review, we recite the facts in the light most favorable to the judgment. ( People v. Bogle (1995)
The Properties
Hoffman's property is landlocked and surrounded on three sides by SRM's land, which is a vested mining operation under the Surface Mining and *479Reclamation Act. Hoffman has an easement across SRM's land to access her property and SRM has an easement across Hoffman's property.
Hoffman's husband purchased the property in May 2000. Hoffman's husband grew plants as a hobby and developed a fairly substantial plant collection. The Hoffmans purchased the property intending to use their plant collection to open a commercial nursery and koi-growing operation on the site. The Hoffmans placed roads on the property and installed a water well, a water storage tank, an extensive irrigation system and fencing. From around 2001 through 2010, the Hoffmans grew a variety of plants, including palm trees, subtropical and tropical fruit trees, and citrus trees. They also propagated the plants by seed or cuttings to increase their inventory. In 2007 Hoffman's husband quitclaimed the property to Hoffman. During the summer of 2010, the water well pump on the property broke and the Hoffmans lost approximately 65 percent of their plant inventory.
The Lawsuit and Trial
In June 2015 Hoffman filed this action against SRM alleging causes of action for:
*480(1) trespass to land, (2) private nuisance, (3) negligence, (4) negligence per se, (5) quiet title to prescriptive easement, (6) quiet title to easement by necessity, and (7) quiet title to easement by implied reservation. SRM answered the complaint and filed a cross-complaint seeking declaratory relief and to quiet title to easement by implied reservation, and to quiet title to prescriptive easement. Hoffman asserted that SRM's trespass, which started in 2012, damaged five areas on their property as follows:
Area 1: Widening and reconfiguring the easement road on the property which blocked drainage, changed the natural water drainage patterns, and interfered with the operation of Hoffman's gate.
Area 2: Constructing a desiltation basin that encroached onto the property by about 5,000 square feet and caused silt build-up.
Area 3: SRM maintained gravel and/or dirt berms on the property above a natural ravine, which caused erosion.
Area 4: SRM constructed a large dirt berm which encroached on the property in one area and caused dirt and silt runoff onto the property.
Area 5: SRM cleared and graded along the western portion of the common property line and constructed a 672-foot long dirt berm along the common property line, which disrupted water flow and caused dirt and silt runoff onto the property.
*480The matter proceeded to trial with the parties stipulating that the court would decide the equitable issues raised by Hoffman's and SRM's quiet title and declaratory relief claims and instruct the jury on its findings. The parties also agreed to dismiss their causes of action for a prescriptive easement. Prior to instructing the jury, the trial court decided the parties' quiet title and declaratory relief claims. It determined that Hoffman had a 40-foot-wide right-of-way and utilities easement across the quarry, while SRM had a 20-foot right-of-way easement across the property. It also found that, except for a single berm, SRM's activities on the property were not within its secondary easement rights.
The jury later returned a special verdict finding for Hoffman on her trespass cause of action, but against her on the nuisance and negligence causes of action. The jury awarded Hoffman $17,000 in compensatory damages, $0 in discomfort and annoyance damages, and $0 in punitive damages. The trial court's judgment noted that Hoffman, in addition to her monetary award, had a 40-foot wide nonexclusive right-of-way easement to install electrical lines.
Posttrial Motions
Both parties filed a memorandum of costs. Hoffman sought costs and expert fees she incurred throughout the entire action. SRM sought costs and expert fees incurred by it on or after May 16, 2016, the service date of its section 998 offer. Hoffman filed a motion to recover her attorney fees under section 1021.9 and moved to strike or tax SRM's costs. SRM also moved to strike or tax Hoffman's costs.
The trial court issued a tentative ruling on the motions finding that Hoffman was the prevailing party in the action and awarded her costs. It concluded that SRM's section 998 offer was not reasonable and thus was not valid and, even if the offer were valid, that Hoffman obtained a more favorable judgment at trial than SRM's section 998 offer. It denied Hoffman attorney fees under section 1021.9, finding the statute inapplicable to the facts and circumstances of this case because SRM's trespass onto the property did not *481disrupt any agricultural cultivation on the property.
The court heard oral argument, which focused on Hoffman's right to recover attorney fees under section 1021.9. Hoffman's counsel explained how the case law did not support the court's interpretation of section 1021.9. The trial court took the matter under submission, stating: "It's going to take some time, so don't expect a quick decision. At a minimum, I will have read every single one of those cases and know them better than you do before I make my final decision in this case."
*481In its final ruling on the posttrial motions the court confirmed its rulings on the section 998 issues. It reversed its ruling with respect to Hoffman's motion for attorney fees, concluding that Hoffman was entitled to attorney fees as the prevailing plaintiff under section 1021.9. The court ruled that Hoffman was entitled to all attorney fees she requested, even though she did not prevail on every cause of action, because "all of Plaintiff's claims were based on the same core set of facts." After a small reduction in Hoffman's claimed costs, the court awarded Hoffman $16,178.66 in costs and $289,153.75 in attorney fees. SRM timely appealed from the judgment.
DISCUSSION
I. THE TRIAL COURT DID NOT ERR IN AWARDING HOFFMAN HER ATTORNEY FEES
SRM contends that the trial court erred in awarding Hoffman attorney fees under section 1021.9 because she failed to demonstrate eligibility for such an award as a matter of law. Specifically, SRM argues that it is undisputed that Hoffman used only six out of 28 acres for nursery purposes and that its trespass onto the property did not damage the portion of the property that Hoffman used for cultivation, nor did the trespass damage any of Hoffman's nursery plants. Hoffman disagrees, arguing that the trial court properly interpreted section 1021.9 because the term "lands ... under cultivation" refers to the character of the land, not the specific area of the land that was trespassed upon. We agree with Hoffman.
The question presented is the proper interpretation of section 1021.9, an issue that we review de novo. ( In re R. T. (2017)
*482Section 1021.9 provides: "In any action to recover damages to personal or real *482property resulting from trespassing on lands either under cultivation or intended or used for the raising of livestock, the prevailing plaintiff shall be entitled to reasonable attorney's fees in addition to other costs, and in addition to any liability for damages imposed by law." SRM does not challenge that Hoffman is the prevailing plaintiff in an action to recover damages to real property resulting from SRM's trespasses. The sole question is whether the trial court properly concluded that the trespass occurred on "lands ... under cultivation." On this issue we do not write on a blank slate.
In Haworth v. Lira (1991)
In Quarterman v. Kefauver (1997)
Here, while the Hoffmans had not yet opened a nursery business on the property, the property is zoned for agriculture and is located in a rural area *483characterized by farming. Over the course of the Hoffmans' ownership of the property they had mulch, planting mix and tree boxes delivered for their future nursery business. Before the well pump broke in 2010, the Hoffmans had about 20,000 plants growing on the property. Thereafter, the Hoffmans maintained their remaining plant inventory and tried to increase it. These facts show that the property was under cultivation, a point SRM does not challenge. ( Quarterman , supra , 55 Cal.App.4th at p. 1373,
SRM contends that Hoffman is eligible for fees under section 1021.9 only if its trespass against land (that was being prepared or used for agricultural purposes) constituted the cause-in-fact of her damages. Had the Legislature intended to only award attorney fees depending where on the plaintiff's property the trespass occurred, it could have drafted section 1021.9 to state: "In any action to recover damages to personal or real property resulting from trespassing on [the portion of] lands either under cultivation or intended or used for the raising of livestock, the prevailing plaintiff shall be entitled to reasonable attorney's fees in addition to other costs, and in addition to any liability for damages imposed by law." (Bracketed language added.)
If we were to accept SRM's interpretation of section 1021.9 then a hypothetical plaintiff, after successfully showing that a defendant's trespass made the only road to its cultivated land impassable, would not be able to recover attorney fees because the trespass did not damage that portion of the "lands ... under cultivation." We do not believe that the Legislature intended this result.
Finally, SRM argues that the plain language of the statute distinguishes between lands under cultivation (which must actually be under cultivation)
*484and lands used for raising livestock (which must either be used or intended to be used for raising livestock). This distinction, however, does not further SRM's argument because Hoffman's land was under cultivation. The issue is whether the defendant's trespass must cause damage to that portion of land actually being cultivated.
Starrh & Starrh Cotton Growers v. Aera Energy LLC (2007)
The trial court denied plaintiff's request for attorney fees under section 1021.9 finding that the trespass was not to " ' "lands ... under cultivation." ' " ( Starrh , supra , 153 Cal.App.4th at p. 589,
In Starrh , supra ,
Accordingly, we conclude that the trial court correctly interpreted section 1021.9 and properly awarded Hoffman her attorney fees as the prevailing plaintiff in this trespass action.
II. THE TRIAL COURT DID NOT ERR IN DECLINING TO APPORTION OR REDUCE THE ATTORNEY FEES AWARD
Assuming Hoffman is entitled to section 1021.9 attorney fees, SRM contends the trial court abused its discretion in awarding her $289,153.75 because it (1) failed to apportion Hoffman's fees incurred on the fee-shifting claim (trespass) from the non-fee-shifting claims (nuisance and negligence), and (2) refused to reduce her fee award to account for her limited success at trial. We disagree.
A. Apportionment
"Once a trial court determines entitlement to an award of attorney fees, apportionment of that award rests within the court's sound discretion." ( Carver v. Chevron U.S.A., Inc. (2004)
Here, SRM argued to the trial court that, should it award Hoffman her attorney fees, the fees should be apportioned to award fees only on her successful trespass claim. The trial court rejected this argument stating that, except as to Hoffman's quiet title cause of action, "[a]s previously discussed, all of [Hoffman's] claims were based on the same core set of facts" and that *486"case authority holds allocation of fees between causes of action is unnecessary in such circumstances ...."
"In filing suit, [Hoffman] sought to put an end to [SRM's] unauthorized use and alteration of her land. She alleged that from the end of 2012 through the filing of the action, [SRM] widened and reconfigured a dirt road that ran through her property, changed the grading of the area in a way that negatively impacted surface water flow and damaged [Hoffman's] storm drain system, removed trees and vegetation, creating retention ponds, storing gravel and vehicles, filling a natural ravine on [Hoffman's] property with quarry waste, and blocking [Hoffman's] gate. These allegations formed the basis for each of [Hoffman's] claims.
"While [Hoffman] did not prevail on all seven causes of action, the entire action and thus all seven causes of action pertained to the same set of facts. Success on one cause of action, combined with retention of a 40-foot-wide easement across the Quarry Property, and a ruling in her favor as to [SRM's] activities on her property, establishes [Hoffman] prevailed under the circumstances regardless of a monetary damages award significantly smaller than sought."
Although SRM acknowledges that attorney fees need not be apportioned when incurred for representation of an issue common to both successful fee and unsuccessful nonfee claims, it argues that this case falls into that category of cases where "overlapping fees may be denied where awarding them would 'impair legislative policies implicated by the respective claims.' " In support of this argument, SRM relies on Cassim v. Allstate Ins. Co. (2004)
Cassim , supra ,
Carver , supra ,
Cassim , supra ,
Given this judicial landscape and SRM's failure to identify how awarding Hoffman her attorney fees on unsuccessful nonfee claims would impair a legislative policy, we conclude that the trial court did not err when it applied the general rule stated in Reynolds Metals Co. v. Alperson (1979)
*488Hoffman's complaint shows that her trespass, nuisance and negligence causes of action were all based on the same set of facts.
B. Reduction
SRM next asserts that the trial court abused its discretion when it refused to reduce Hoffman's requested fees in light of her limited success at trial. SRM claims that the trial court was required to first determine Hoffman's lodestar figure on her successful claims and then consider her relative success in achieving her objective on overlapping claims and reduce the amount if appropriate. Relying on Mann v. Quality Old Time Service, Inc. (2006)
In evaluating the amount of attorney fees awarded by the trial court our review is deferential as "the 'experienced trial judge is the best judge of the value of professional services rendered in his court, and while his judgment is of course subject to review, it will not be disturbed unless the appellate court is convinced that it is clearly wrong.' " ( Serrano v. Priest (1977)
Here, in arguing that the trial court erred in the amount of attorney fees awarded, SRM exclusively focuses on Hoffman's success at trial. While the success of the party seeking fees is relevant, it is but one factor in the trial court's analysis. ( PLCM Group v. Drexler , supra , 22 Cal.4th at p. 1096,
In San Diego Police Officers Assn. , supra ,
The Mann court reviewed an attorney fees award to prevailing defendants under California's anti-SLAPP statute ( Code Civ. Proc., § 425.16 ) where defendants succeeded in striking one of four challenged causes of action. ( Mann , supra , 139 Cal.App.4th at p. 333,
As a threshold matter, Mann , supra ,
We reviewed the legislative history for section 1021.9. Comments on the bill note *489that plaintiffs suing for trespass "spend[ ] a major share of the recovery to pay his or her attorney." (Assem. Com. on Judiciary, com. on Sen. Bill No. 2513 (1985-1986 Reg. Sess.) as amended Aug. 12, 1986.) Thus, the unilateral fee award to prevailing plaintiffs in a trespass action "enhance[s] the ability of [farmers and] ranchers to sue trespassers for damages ...." (Ibid. ) Here, while Hoffman's monetary recovery was modest, she obtained a declaration of rights defeating SRM's claim that it was authorized under its right to "secondary easements" to maintain a silt basin, gravel and dirt berms, widen the road in excess of 20 feet, change the flow of surface water, or change the grade on its easement. In declaring Hoffman the prevailing party and awarding her attorney fees, the trial court acknowledged that Hoffman's "damages award [was] significantly smaller than sought." Nonetheless, the court did not reduce Hoffman's attorney fees award because Hoffman achieved her primary litigation goal of protecting her property and refuting SRM's secondary easement claims. Under these circumstances, we *491reject SRM's argument that the trial court abused its discretion when it declined to reduce Hoffman's attorney fees award.
III. SRM'S SECTION 998 OFFER
A. Additional Background
Hoffman instituted this action in June 2015. In May 2016, a few weeks before trial, SRM served a section 998 offer that offered: (1) to grant Hoffman a right of way easement over the existing road on the quarry property 20 feet in width, (2) to abandon any right to an easement over the her property, and (3) to pay Hoffman $70,000 in satisfaction of all damages, attorney fees and costs. Hoffman did not accept the offer.
B. Analysis
The trial court concluded that SRM's section 998 offer was not reasonable and thus was not valid and, even if the offer were valid, it concluded that Hoffman obtained a more favorable judgment at trial than SRM's section 998 offer. SRM claims that the trial court erred in finding that SRM's section 998 offer was invalid and abused its discretion in how it compared Hoffman's recovery with SRM's section 998 offer. In its reply brief, SRM conceded that a ruling against it regarding the propriety of Hoffman's attorney fees award moots this issue.
Section 998 "is a cost-shifting statute which encourages the settlement of actions, by penalizing parties who fail to accept reasonable pretrial settlement offers." ( Heritage Engineering Construction, Inc. v. City of Industry (1998)
Assuming the validity of SRM's section 998 offer and ignoring the valuation of the nonmonetary components of SRM's section *490998 offer, SRM offered Hoffman "$70,000.00, in satisfaction of all claims or damages, costs *492and expenses, attorney's fees, and interest in the complaint and cross-complaint of this action." When Hoffman received the offer she had already incurred $6,082.50 in preoffer costs and $93,827 in preoffer attorney fees. Thus, when Hoffman's monetary recovery of $17,000 is added to her preoffer costs and fees it far exceeded SRM's $70,000 offer. Accordingly, we accept SRM's concession and deem this issue moot.
DISPOSITION
The judgment is affirmed. Respondent is entitled to her costs on appeal.
WE CONCUR:
IRION, J.
DATO, J.
Undesignated statutory references are to the Code of Civil Procedure.
SRM contends that the "core set of facts" standard used by the trial court and advocated by Hoffman is incorrect and that the court should have considered whether Hoffman's tort claims were "inextricably intertwined" making apportionment impractical or impossible. Because the trial court used the wrong legal standard, SRM claims we must remand with instructions to reassess the issue under the correct legal standard. We reject this argument because the standard used by the trial court is one of three related standards that a court may use in exercising its discretion regarding the apportionment of attorney fees. (Graciano , supra , 144 Cal.App.4th at pp. 158-159,
SRM argues that Hoffman's tort causes of actions were not based on the same core set of facts because the nuisance and negligence claims required Hoffman to prove additional facts beyond those required for her trespass claim. This argument, however, confuses the elements of the three causes of action with the facts underlying these claims. The facts underlying each cause of action were identical.