Sherwood Partners, Inc. v. EOP-Marina Business Center, L.L.C.

INTRODUCTION

Plaintiff and appellant, Sherwood Partners, Inc. (Sherwood), as an assignee for the benefit of the creditors of an insolvent entity called WhatsHotNow.com (tenant), filed suit against tenant’s landlord, defendant and respondent EOP-Marina Business Center, L.L.C. (EOP), for return of tenant’s security deposit in the amount of $324,000. The trial court entered judgment in favor of Sherwood. EOP appealed. The Court of Appeal reversed and remanded the case, directing the trial court to enter judgment in favor of EOP, allowing it to retain the security deposit. (Sherwood Partners, Inc. v. EOP-Marina Business Center (July 8, 2005, B175899) [nonpub. opn.] (Sherwood I).)

On remand, the trial court granted EOP’s motion for costs and attorney fees in the amount of $323,000 based upon an attorney fee provision in the written lease agreement between tenant and EOP. The trial court found that Sherwood and tenant were jointly and severally liable for the costs and attorney fees. Sherwood appeals the award of costs and attorney fees against it personally. Sherwood does not appeal the award of costs and attorney fees against tenant.

We reverse. As an assignee for the…