Gray

1 CPB, LLC V. SCC ACQUISITIONS, INC. 169 Cal.Rptr.3d 906 (2014)

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Nature of the Case

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Facts

P obtained a judgment in excess of $9.1 million, plus interest, against D and Elieff (D1) as a result of Ds' failure to make good on their guarantees of a loan made to a limited liability company owned by D1. The written guaranties contained provisions providing for the award of attorney fees. The judgment provided P was entitled to attorney fees and costs to be established by a cost bill or motion. The court amended the judgment to reflect the award of over $1.5 million in attorney fees and more than $44,000 in costs. On June 8, 2012, Ds' attorney appeared and hand-delivered to P's attorneys a cashier's check in the amount of $12,918,654.46 and a letter. According to the letter, the cashier's check covered the amount of the judgment, including accumulated interest, and the judgment was now fully satisfied. The letter demanded P immediately file a full satisfaction of the judgment. Twelve days after receiving the cashier's check, P filed a motion for post-judgment costs, including attorney fees incurred in attempting to enforce the judgment. P claimed it had incurred more than $3.1 million in attorney fees in efforts to collect on its judgment. P filed an acknowledgment of partial satisfaction of the judgment. P claims it was entitled to costs (including attorney fees) incurred in attempting to enforce its judgment, and therefore, the amount paid by Ds was not in full satisfaction of the judgment. P deposited the cashier's check the day after it filed the motion for post-judgment costs. The check clear on June 25, 2012. Ds then filed a motion 15 days after hand delivery to compel P to file an acknowledgment of full satisfaction of judgment on June 27, 2012. Ds alleged they paid the judgment in full and also overpaid by more than $281,000, based on a miscalculation as to the date post-judgment interest started accumulating. Ds assert the judgment was fully satisfied when the cashier's check was delivered and accepted on June 8, 2012. P concedes that had defense counsel walked into the office and paid off the outstanding judgment with a briefcase full of cash; the judgment would have been fully satisfied that same day. P claims that its motion was not untimely because a judgment paid by check is not satisfied until the check is ultimately honored by the issuing bank. The court denied Ds’ motion and also denied P’s motion for post-judgment costs. P appealed.