OPINION
ASHMANN-GERST, J.
Kristen Autry (Autry)
appeals the trial court's order awarding attorney fees to respondent
Villa Riviera Condominium Association (Association)1 pursuant to Civil Code section 1354, subdivision (c).2
We find no error and affirm.
FACTS
The complaintAutry sued the
Association, alleging: The Association's secretary received a petition
from members of the Association (petitioners) seeking a special meeting
to remove Autry as director. Under the Association's bylaws (bylaws),
section 4.8, a director may be removed from office by a vote of the
members representing 60 percent of the total voting power of the
Association. Any director whose removal is being sought has a right to
be heard at the meeting. If a director is removed, a new director shall
be elected at the same meeting. Section 3.4 of the bylaws requires the
secretary to provide notice of a special meeting.
The secretary, over
objection by certain members, mailed notice (first notice) that the
special meeting would take place on October 13, 2006. The petitioners
mailed their own notice (second notice), setting the special meeting
earlier. There was no authority for the second notice.
Not only was the
second notice unauthorized, it was defective because: (1) it was
fraudulently dated; (2) the petitioners identified themselves as a
recall committee even though no such committee was established through
the procedures set forth in section 4.15 of the bylaws; (3) the second
notice provided for mail ballots, but section 4.8 of the bylaws
prohibits mail ballots for recall votes; and (4) the petitioners used
Association stationary for the notice, thereby falsely implying that the
Association supported the recall efforts.
The petitioners sent a
third notice and a fourth notice. The fourth notice stated that
Corporations Code section 7222, subdivision (a)(2) provided that a
director can be removed without cause if the removal was approved by the
members as defined in Corporations Code section 5034. Under that
statute, "approval by (or approval of) the members" is a majority vote
of the votes represented and voting at a meeting at which a quorum is
present. Under bylaws, section 2.3, a quorum of the Association is the
presence of persons or proxies representing 51 percent of the
membership's voting power. The fourth notice attempted to reduce the
number of votes to remove a director from 60 percent to 26 percent, a
majority of a quorum.
Autry requested an
order enjoining the petitioners from holding a special meeting, from
removing Autry as director unless they obtained a vote of 60 percent or
greater of the members' total voting power.
Additionally, Autry
sought a declaration that mail ballots are not permissible and that
Corporations Code sections 7222 and 7151, subdivision (e) do not
prohibit the Association from adopting a higher voting standard than a
majority of a quorum to remove a director from office.
The September 22, 2006, hearingAutry filed an ex
parte application for an order to show cause why the special meeting
noticed by the petitioners should not be enjoined and why the
Association should not be enjoined from removing Autry as director
unless it was upon a vote of 60 percent or more of the total membership.
The trial court found
that the notices provided by the secretary and the petitioners were
invalid and set the special meeting for October 26, 2006. It declined to
rule on whether there was conflict between the Corporations Code and
the bylaws until a vote actually took place.
The December 7, 2006, hearingAfter Autry was
removed from office by a majority vote of members attending the special
meeting and sending mail in ballots, Autry filed an ex parte application
for an order to show cause for an injunction. She argued that a quorum
was not present at the special meeting, and that various irregularities
in the voting process rendered her removal void.
The trial court upheld Autry's removal.
The dismissal; the award of attorney feesAutry dismissed her action on January 19, 2007.
The Association moved for attorney fees and costs pursuant to section 1354, subdivision (c).
In opposition, Autry
argued that her request for declaratory relief fell under section
1363.09. Under that statute, a prevailing association cannot recover
costs unless the action was frivolous. Autry argued that her action was
not frivolous because the law was unclear. The bylaws required a vote of
60 percent or more of the membership for a recall. Though Corporations
Code sections 7222 and 5034 appeared to legitimize the recall vote
because they allowed a recall based on a majority of a quorum, they
possibly conflicted with Peak Investments v. South Peak Homeowners Assn., Inc. (2006) 140 Cal.App.4th 1363.
That case appeared "to suggest that . . . a super majority provision
will prevail until such time as the members of the association expressly
revoke it."
The trial court
granted the Association's motion and awarded it attorney fees and costs
in the amount of $34,574.43. It stated: "Upon entry of the plaintiff's
dismissal[,] the defendant is entitled to recover court costs incurred
up to the date of dismissal. Items that are recoverable are set forth in
[section] 1033.5 of the Code of Civil Procedure. The prevailing party
in a suit to enforce the governing documents of [a] common interest
development is entitled to recover the fees pursuant to [section] 1354[,
subdivision (c)] and [a] voluntary dismissal does not prevent [the
trial court] from assessing attorney's fees. [¶] The Association is
correct that [section] 1363.09 does not apply. This article . . .
concerns statutory nomination and election procedures not . . . a recall
of a director. [¶] . . . [¶] [Autry's] first cause of action sought to
enjoin the petitioners from holding a special meeting of the Association
to remove [Autry] as a director on [September 26, 2006,] or any
continued date thereafter and, secondly, to enjoin the Association from
removing [Autry] as director save and except that a motion to remove her
shall obtain a minimum of 60 percent or greater affirmative vote of the
total voting power of the Association. [¶] Second cause of action
sought declaratory relief . . . that mail ballots are not [a]
permissible mechanism for the removal of an Association director
pursuant to [bylaws, section] 4.8 and . . . Corporations Code [sections]
7222 and 7151[, subdivision (e)] do not prohibit the Association from
adopting a higher voting standard than a majority of [a] quorum to
remove a director.
"The [trial court]
allowed the special meeting to occur. The meeting was held and [Autry]
was recalled as a director. [¶] The [trial court] further upheld that
the recall based upon the statutory language requiring a majority of a
quorum of members to affirmatively vote at a meeting[,] . . . not as
prayed for by [Autry] by a super majority of 60 percent of the entire
membership, thus the Association clearly realized its litigation
objectives and [Autry] did not. Therefore, the Association would be the
prevailing party and would be entitled to . . . attorney's fees and
costs. [¶] The [trial court] used the lodestar method and calculated
from a compilation of time reasonably spent and reasonable hourly
compensation of each attorney and the breakdown was 101.9 hours for
[Adams & Kessler] for fees, $2,708.92, [Adams & Kessler] costs.
[Laura J. Snoke's] fees, ten hours at [$]275 for [$]2,750; [Laura J.
Snoke] costs at [$]359.51 for a total of [$]34,574.43."
This timely appeal followed.
STANDARD OF REVIEW
The issues of law presented by this appeal are subject to our independent review. (
Harustak v. Wilkins (2000) 84 Cal.App.4th 208, 212.) Factual findings are upheld if they are supported by substantial evidence. (
Bluehawk v. Continental Ins. Co. (1996) 50 Cal.App.4th 1126, 1130-1131 .)
DISCUSSION
Autry contends that
the trial court erred in failing to apply section 1363.09; it erred when
it determined that the Association was the prevailing party; it erred
by failing to make findings before awarding attorney fees; and it erred
when it ruled that the 2007 changes in section 1350 et seq.
3 replaced the super majority voting provisions in the bylaws. We find no basis for reversal.
1. The Association was the prevailing party under section 1354.One of the owners of a
common interest development may enforce a recorded declaration which is
intended to be an equitable servitude, or any other governing document.
(§ 1354, subd. (a) & (b).) "In an action to enforce the governing
documents, the prevailing party shall be awarded reasonable attorney's
fees and costs." (§ 1354, subd. (c).) We previously noted that a
prevailing party is one who prevailed on a "`practical level.'" (Parrott v. Mooring Townhomes Assn., Inc. (2003) 112 Cal.App.4th 873, 877.)
Autry sued the
Association to enjoin it from holding a special meeting to remove her
and from removing her as a director; to enjoin it from removing her
without a super majority vote; for a declaration establishing that
mailed ballots cannot be counted in a recall; and a declaration that the
bylaws supersede contrary statutes in the Corporations Code. Based on
the foregoing, Autry sued the Association to enforce its bylaws, i.e.,
she attempted to enforce notice procedures, voting procedures and the
super majority requirement for recalls. It is clear that the
Association's motion for attorney fees and costs was controlled by
section 1354.
We reject Autry's
contention that she is not liable for attorney fees and costs unless her
action was frivolous, unreasonable or without foundation within the
meaning of section 1363.09, subdivision (b).
Section 1363.09,
subdivision (a) provides that a member of an association "may bring a
civil action for declaratory or equitable relief for a violation of this
article by an association." The article (article 2, chapter 3 of the
Davis-Stirling Act (article 2)) pertains to elections and meetings in
common interest developments. Autry did not allege a violation of
article 2 in her complaint, nor did she identify a violation of article 2
in her opening brief. As a result, this argument has been waived. (Tan v. California Fed. Sav. & Loan Assn. (1983) 140 Cal.App.3d 800,
811.) We note that article 2 requires an association to adopt rules and
procedures for elections, it prohibits the use of association funds for
campaigning, it requires open meetings (with exceptions), and it sets
forth rules for a member's exclusive use of a common area. (§§ 1363.03,
1363.04, 1363.05, 1363.07.) A perusal of the issues argued both below
and on appeal fails to reveal a hint of a violation of any of these
statutes.
The trial court
permitted the special meeting and Autry was removed as a director based
on a majority of a quorum of those present and those who mailed in
ballots. These facts constitute substantial evidence that the
Association prevailed on a practical level in the underlying action
because Autry did not achieve her ultimate goal of preserving her
position as a director. Autry does not argue that the record is devoid
of substantial evidence, which defeats her challenge.
Instead of arguing
whether the trial court's finding was supported by substantial evidence,
she argues that "different entities sought to establish different dates
for an election to remove [Autry] as a director of [Association]. The
[trial court] held that . . . no meeting had been properly noticed.
Thereafter the [trial court] set a date for the meeting. [¶] Given these
facts, it is submitted that on the first cause of action for injunctive
relief [Autry] prevailed. [¶] On the declaratory relief portion of the
complaint [Autry] asked the [trial court] to determine whether the
super-majority provisions of the [bylaws] were trumped by statutory
revisions. The [trial court] held that the majority of quorum provision
of the statutes superseded the [60] percent of voting power set forth in
bylaw[s] [section] 4.8. [¶] While that declaratory decision no doubt
had negative ramifications for [Autry] personally, she had accomplished
her litigation objective: a declaration by the [trial court] holding
[bylaws, section] 4.8 was no longer valid under the revised statutory
scheme. [Bylaws, section] 4.8 mandated a different result, and [bylaws,
section] 9 held that [bylaws, section] 4.8 was to prevail until a court
decided to the contrary. It was only by [Autry's] litigation that the
Association regained clarity in its electoral processes. Such a result
should not result in an award against the party who sought and obtained
the clarity."
Whether the notices
sent out for the special meeting were valid was a derivative issue in
the first cause of action. In other words, the validity of the notices
was an issue only because Autry was being threatened with a recall. On
the principal issue in the first cause of action—whether Autry could be
recalled by less than a super majority vote—she lost. Further, a point
of correction is in order. Autry did not seek a declaration that the
Corporations Code superseded the bylaws. She sought the opposite, namely
that the Association could require a super majority despite the
Corporations Code. Also, she sought a declaration that mail in ballots
could not be used for a recall. She lost on both counts. Her claim of
victory is unavailing.
Next, Autry contends
that the trial court erred "in making findings and determining a
prevailing party subsequent to the dismissal of the action."
Regarding this
assignment of error, Autry contends that the trial court did not have
the authority to decide who prevailed in connection with the motion for
attorney fees and costs. According to Autry: "Subsequent to the
dismissal, at the hearing to consider the award of attorney's fees, the
[trial court], without notice by any party or the [trial court], or the
opportunity to brief or argue the issues, decided the remaining
declaratory relief issues adversely to [Autry], and thereafter declared
the [Association] to be the prevailing party. [¶] . . . [¶] While it is
conceded by [Autry] that the [trial court] retained jurisdiction to
consider the motion for the award of attorney's fees, it is respectfully
submitted that jurisdiction did not encompass ad hoc determination of
substantial issues after the filing of a voluntary dismissal."
Autry did not cite any law to support her argument. "It is not our responsibility to develop an appellant's argument." (Alvarez v. Jacmar Pacific Pizza Corp. (2002) 100 Cal.App.4th 1190,
1206, fn. 11.) Regardless, the trial court declined to enjoin the
special meeting or negate the recall based on Autry's arguments in
connection with her ex parte applications for orders to show cause.
Those issues were decided before the dismissal in response to Autry's
prompting. There were no ad hoc determinations without notice. The
ruling on the motion for attorney fees simply recognized both what
transpired and the practical effects of it.
In her reply, Autry
contends that the underlying theme of section 1354 is the promotion of
alternative dispute resolution. She bases this argument on an old
version of the statute with no relevance. Prior to its amendment in
2004, the statute provided: "In any action specified in subdivision (a)
to enforce the governing documents, the prevailing party shall be
awarded reasonable attorney's fees and costs. Upon motion by any party
for attorney's fees and costs to be awarded to the prevailing party in
these actions, the court, in determining the amount of the award, may
consider a party's refusal to participate in alternative dispute
resolution prior to the filing of the action." (Stats. 1996 ch. 1101, §
1, subd. (f).)
According to Autry:
"It should be noted that at no time did the [Association] seek
[alternative dispute resolution], respond to [Autry's] overtures to
[alternative dispute resolution], or insist that [alternative dispute
resolution] was a mandatory component of the resolution of the dispute
between the parties. By its conduct[,] it is submitted the [Association]
acknowledged that [Autry's] challenge was to the electoral process, and
therefore not governed explicitly by [section 1354]. This position was
maintained until such time as a fee award was sought, at which time the
[Association] sought the advantage of the statute."
There are a plethora of problems with this argument. The argument was neither made below nor in the opening brief.4 It cannot be raised now. (Doers v. Golden Gate Bridge Etc. Dist. (1979) 23 Cal.3d 180, 184-185, fn. 1 ["it is unfair to the trial judge and to the adverse party to take advantage of an error on appeal when it could easily have been corrected at the trial"]; Wurzl v. Holloway (1996) 46 Cal.App.4th 1740,
1754, fn. 1. [A point not argued in a party's opening brief is deemed
to have been abandoned].) Further, this action was filed in 2006 and
postdated the current amendment to section 1354.5
Thus, whether the Association refused to participate in alternative
dispute resolution was not a factor for the trial court to consider when
awarding attorney fees. We fail to see how the Association's refusal to
participate in alternative dispute resolution amounted to an admission
that this action did not fall under section 1354. Autry cited no law
supporting this theory.
Another argument
raised for the first time in the reply brief involves statutory
interpretation. According to Autry, section 1363.09 and section 1354
conflict. Therefore, because section 1363.09 is the more specific
statute, it should prevail. But this argument was belatedly raised. And
it lacks merit. Section 1363.09 does not cover actions to enforce a
homeowner association's governing documents. Undeniably, the two
statutes do not conflict.
2. The trial court's factual findings were sufficient.
When it ruled on the
Association's motion for attorney fees and costs, the trial court made
specific findings on the record regarding Autry's challenges to the
special meeting and her removal. It found that the Association achieved
its litigation objectives. As a result, the trial court concluded that
the Association was the prevailing party. Moreover, the trial court
shared its thoughts regarding its use of the lodestar method and how it
calculated the amount of the award.
Despite the foregoing,
Autry states that the trial court failed to make findings before
awarding attorney fees and costs. This contention bears no fruit. The
reporter's transcript establishes that findings were made.6
Last, Autry cites Rosenman v. Christenson (2001) 91 Cal.App.4th 859, 864 (Rosenman), apparently to suggest that the trial court was required to determine whether she has the ability to pay attorney fees. But Rosenman
is inapposite. It applied Government Code section 12965, which
authorizes a discretionary award of attorney fees and costs to a
prevailing party in any action brought under the Fair Employment and
Housing Act (FEHA). When awarding attorney fees and costs to a
prevailing defendant, a trial court must make written findings as to
whether the plaintiff's action was frivolous, and as to the plaintiff's
ability to pay. (Rosenman, supra, 91 Cal.App.4th at pp. 864-868.) Because Autry did not bring an action under the FEHA, the requirements set forth in Rosenman do not apply. Autry cited other cases, but none applied the Rosenman standard to section 1354.
3. Autry cannot challenge the trial court's rulings on the orders to show cause.
Autry argues that the
trial court "erred in deciding that 2007 changes in the Davis-Stirling
Act replaced super majority voting provisions in the [Association's]
bylaws." We lack jurisdiction to entertain this issue. She appealed from
the award of attorney fees and costs. She did not challenge the trial
court's rulings on the orders to show cause by petition for writ of
mandate or otherwise. Rather, she dismissed her action. The rulings are
final.
Aside from this
procedural hurdle, we find Autry's argument impossible to understand.
The bylaws state that any provisions that conflict with California law
are void upon "final court determination to such effect." A homeowners'
association may not enforce covenants, codes and restrictions that
violate statutory or common law. (Frances T. v. Village Green Owners Association (1986) 42 Cal.3d 490,
499, fn. 6.) Corporations Code section 7222, last amended in 1999,
provides that a director may be removed without cause if, in a
corporation of 50 or more members, the removal is approved by the
members as set forth in Corporations Code section 5034. Corporations
Code section 5034, last amended in 1979, defines approval of members to
mean an affirmative majority vote of a quorum. Under these statutes, the
super majority requirement in the bylaws was unenforceable. Moreover,
these statutes are not in the Davis-Stirling Act. Hence, we fail to
comprehend what Autry means when she claims the trial court misapplied
"2007 changes in the Davis-Stirling Act." We know of no such changes
that are relevant to this appeal.7
DISPOSITIONThe trial court's
order awarding attorney fees and costs to the Association is affirmed.
The Association shall recover its costs on appeal.
We concur:
DOI TODD, Acting P. J.
CHAVEZ, J.
Footnotes
1. The Association is a nonprofit corporation. It has 134 units.
2. All further statutory references are to the Civil Code unless otherwise indicated.
3. Section 1350 et seq. is known as the Davis-Stirling Common Interest Development Act (Davis-Stirling Act).
4.
At the hearing, Autry's counsel stated that the Association rejected
alternative dispute resolution. But her counsel did not posit that this
was an admission that section 1354 was inapplicable.
5.
Autry attached an appendix to her reply brief. The appendix purports to
contain "[t]he full text of [s]ection 1354 at the time of the
underlying litigation." She sets forth the text from the 1996 amendment.
She then purports to set forth "[t]he full text of the 2008 revised
[s]ection 1354." Our research reveals that the statute was amended in
2004, before this litigation commenced, not in 2008. Autry did not
provide a citation for a 2008 amendment.
6.
This contention is inconsistent with the assertion made elsewhere in
the opening brief that the trial court made findings of fact but erred.
7. All other issues raised by the parties are moot.