Carp Property v. Corona CA2/6

Filed 11/17/22 Carp Property v. Corona 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NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

CARP PROPERTY, LLC, 2d Civil No. B316354 (Super. Ct. No. 19CV04212) Plaintiff and Appellant, (Santa Barbara County)

v.

EFRAIN CORONA, Individually and as Trustee, etc.,

Defendant and Respondent.

Appellant Carp Property, LLC (Carp) bought a mixed-use property with a gym on the first floor and apartments on the second floor. Two of the residential tenants soon moved out because the members of the gym made too much noise. Carp accused the seller and brokers of concealing pre-sale noise complaints and sued them for over $2 million in compensatory damages plus punitive damages and attorney’s fees. Carp litigated the case for two years before concluding it would recover much less than expected. It settled with some of the defendants for $90,000 and offered respondent Efrain Corona

(Corona) a walk-away settlement in exchange for a waiver of costs. When Corona rejected this offer, Carp dismissed him without prejudice. Corona later obtained attorney’s fees of $200,000 as a prevailing party. Carp appeals the award. It contends, among other things, the figure so exceeds the amount in controversy as to violate public policy. We affirm the judgment in full. FACTUAL AND PROCEDURAL HISTORY Corona is trustee of The Efrain Corona Family 2005 Revocable Trust (Trust). The Trust owned a mixed-use building in Carpinteria that housed a gym on the first floor and four residential units on the second floor. Carp agreed to buy the building from the Trust. Radius, real estate brokers, represented both parties in the transaction.1 Escrow closed in August 2016. Two of the building’s four residential tenants moved out after Carp took title. Carp accused Corona and Radius of concealing pre-sale complaints about noise levels at the gym as well as floor damage caused by gym members dropping weights during workouts. It sought compensatory and punitive damages from all defendants, alleging it would have refrained from buying the building or offered less money had it known about these defects. In addition, Carp sought attorney fees from Corona pursuant to a provision in their “Residential Income Property Purchase Agreement and Joint Escrow Instructions” (Agreement) stating: “ATTORNEY FEES: In any action, proceeding, or arbitration between Buyer and Seller arising out of this