347 Group, Inc. v. Philip Hawkins Architect, Inc.

Filed 12/7/20 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA THIRD APPELLATE DISTRICT (Placer) ----

347 GROUP, INC., C091273

Plaintiff and Respondent, (Super. Ct. No. SCV0034521)

v.

PHILIP HAWKINS ARCHITECT, INC.,

Defendant and Appellant.

APPEAL from a judgment of the Superior Court of Placer County, Richard J. Couzens, Judge. Reversed with directions.

Law Offices of Ted A. Greene, Inc., and Glen F. Olives for Defendant and Appellant.

Jeppson & Griffin, Tory E. Griffin and Annabel H. Chang for Plaintiff and Respondent.

Plaintiff 347 Group, Inc. (347 Group) sued and obtained a default judgment against defendant Philip Hawkins Architect, Inc. (Architect, Inc.) for breach of contract. Defendants Philip Hawkins, as an individual, and Design-Build, Inc. (Design Build) were

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also named in the lawsuit, although were not defaulting parties. Instead, 347 Group dismissed its breach of contract cause of action against Hawkins and Design Build but maintained causes of action for fraudulent conveyance and conspiracy, seeking to establish Hawkins and Design Build were alter egos of Architect, Inc. and liable under the contract with Architect, Inc. After Design Build and Hawkins prevailed on those causes of action, they moved for attorney fees. The trial court denied the motion finding an attorney fees award improper because 347 Group dismissed its contract cause of action and the remaining tort causes of action did not allow for an attorney fees award. On appeal, Hawkins 1 argues the trial court erred and he is entitled to attorney fees because he was sued as an alter ego. We agree and reverse. FACTUAL AND PROCEDURAL BACKGROUND 347 Group filed suit against Architect, Inc., seeking damages for breach of contract and breach of the covenant of good faith and fair dealing after Architect, Inc., stopped paying for services performed by 347 Group. There was no personal guarantee by Hawkins, who created Architect, Inc., to pay the amount agreed to in the contract, and Design Build was not in existence at the time the contract was entered into. During pendency of the suit, Architect, Inc., declared bankruptcy and Hawkins created Design Build. 347 Group then “filed its second amended complaint which alleged four causes of action: breach of contract, common counts, fraudulent conveyance, and conspiracy,” against Architect, Inc., Hawkins, and Design Build. Thereafter, “[a]t a pretrial conference in chambers before the judge presiding over this matter, [347 Group] requested a default judgment be entered against [Architect, Inc.], and this having been agreed to, stipulated with defense counsel to dismiss the [contract] causes of action against Hawkins and [Design Build]. The stipulation to dismiss the