Wilson
Wilson, McCall & Daoro v. American Qualified Plans, Inc.
Opinion
Opinion
Haning, J.
J.Wilson, McCall & Daoro, a certified public accounting partnership, and Robert R. Daoro (hereafter collectively Wilson) appeal a summary judgment in favor of American Qualified Plans, Inc. (AQP), in Wilson’s cross-action for indemnity. AQP appeals a summary judgment in favor of Wilson in AQP’s cross-action for indemnity, contending the court erred in determining AQP was not entitled to attorney fees under Code of Civil Procedure section 1021.6. AQP also appeals a subsequent order denying its motion for attorney fees under section 1038.
Background
In February 1994 Ben A. Trainer (Trainer) filed a professional negligence action against Wilson and the law firm of Stanton & B allsun and one of its partners, Kathryn A. Ballsun (hereafter collectively Stanton), alleging they failed to advise him that California tax law did not conform with federal tax law regarding the sale of stock to an employee stock ownership plan (ESOP). As a result, Trainer’s gain from the sale of his stock to the ESOP was fully taxable under California law, and he was assessed state taxes and interest in excess of $458,000. Trainer and Stanton are not parties to this appeal.