Triad Properties v. Pini CA2/6

Filed 5/28/25 Triad Properties v. Pini CA2/6 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION SIX

TRIAD PROPERTIES, 2d Civ. No. B333958 (Super. Ct. No. No. 56-2019- Cross-complainant and 00526401-CU-BC-VTA) Appellant, (Ventura County)

v.

DARIO L. PINI,

Cross-defendant and Respondent.

A contract provides for attorney fees to the prevailing party in any action arising out of the contract. The contract also denies attorney fees to a party who “commences an action” without first attempting to resolve the matter through mediation. Here we hold that a party who cross-complains in response to a prior cross-complaint against it, is not a party who “commences an action” within the meaning of the contract. We reverse and remand.

FACTS Dario Pini owned an apartment building (property) in the City of Ventura (City). In 2018, Triad Properties (Triad), a nonprofit housing corporation, learned that Pini was interested in selling the property. The property was in poor condition. The City had issued notices of housing code violations. Contract of Sale On October 15, 2018, Pini and Triad entered into a contract for the sale of the property. Paragraph 31A of the agreement provides for mediation of disputes in part as follows: “If, for any dispute or claim to which this paragraph applies, any Party (i) commences an action without first attempting to resolve the matter through mediation, or (ii) before commencement of an action, refuses to mediate after a request has been made, then that Party shall not be entitled to recover attorney fees, even if they would otherwise be available to that Party in any such action.” Paragraph 34 of the contract provides for attorney fees as follows: “In any action, proceeding, or arbitration between Buyer and Seller arising out of this Agreement, the prevailing Buyer or Seller shall be entitled to reasonable attorneys fees and costs from the non-prevailing Buyer or Seller, except as provided in paragraph 31A.” Escrow closed on or around April 3, 2019. Lawsuits (a) Tenants v. Pini On March 19, 2019, with escrow still pending, 29 tenants of the property filed an action against Pini for breach of lease, breach of implied warranty of habitability, negligence, violation of Civil Code section 1942.4, intentional infliction of emotional