Libman v. Bondarev Chiropractic CA2/2

Filed 7/7/16 Libman v. Bondarev Chiropractic CA2/2 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 TWO

MICHAEL LIBMAN, B259498

Plaintiff and Respondent, (Los Angeles County Super. Ct. No. BC518648) v.

BONDAREV CHIROPRACTIC, INC. et al.,

Defendants and Appellants.

APPEAL from an order of the Superior Court of Los Angeles County. Gregory Alarcon, Judge. Affirmed.

Krishel Law Offices, Daniel L. Krishel, for Defendants and Appellants.

No appearance for Plaintiff and Respondent.

******

A lawyer referred two clients to a chiropractor. After the clients’ lawsuit netted a small recovery and the clients did not pay their medical bills, the chiropractor sued the lawyer in small claims court for those unpaid bills. The chiropractor prevailed. The lawyer then sued the chiropractor civilly for improper debt collection. The trial court eventually dismissed the lawyer’s lawsuit on demurrer, but denied the chiropractor’s request for statutory attorney’s fees after finding that the lawyer’s action “was not prosecuted in bad faith.” The chiropractor challenges this ruling on appeal. We conclude substantial evidence supports the court’s finding and that the denial of attorney’s fees was not an abuse of discretion. We accordingly affirm. FACTS AND PROCEDURAL BACKGROUND In early 2007, Michael Libman (lawyer) agreed to represent Stephanie Thomas and Audrey Ewells (collectively, clients) on a contingency basis in their lawsuit for injuries arising out of an automobile accident. Clients signed a contract with Bondarev Chiropractic, Inc. (chiropractor) in which they (1) agreed to be responsible for all chiropractic bills, (2) authorized lawyer to pay any chiropractic bills for them and deduct those amounts from any eventual recovery, and (3) granted the chiropractor “a lien . . . against any and all proceeds of any settlement, [judgment] or verdict which may be paid to” lawyer or to themselves. Clients incurred approximately $9,175 in chiropractic services. Clients’ lawsuit proceeded to arbitration, and they recovered $100,000. Of that amount, lawyer was entitled to a 40 percent contingency fee and his costs of $76,160.05. This left no positive recovery for clients or for any of clients’ medical bills. In August 2012, Anatoly Bondarev (Bondarev) sued lawyer in small claims court. The court ruled for lawyer because Bondarev, in his individual capacity, was not a party to any contract and thus lacked standing to sue. In November 2012, chiropractor sued lawyer in small claims court and was awarded $9,260. Attorney appealed. After a de novo trial, the small claims court reduced the award to $5,085. In August 2013, lawyer sued chiropractor and Bondarev for improper debt collection—namely, for collecting clients’ debt from him when he was not a guarantor.