Hedging Concepts, Inc. v. First Alliance Mortgage Co.

This appeal concerns a contract dispute tried to the court. The court found that defendant’s understanding of the contract was correct, that plaintiff had not performed a condition precedent to plaintiff’s right to be paid, and that defendant had therefore not breached the contract by not paying. The court then declared the contract rescinded and awarded a quantum meruit recovery to plaintiff, notwithstanding that the court had found that plaintiff had not performed and that defendant had not breached. Attorney fees requested by the prevailing party defendant on plaintiff’s breach of contract claim were denied. Prejudgment interest and costs were awarded to plaintiff.

The trial court’s construction of the contract, the finding that plaintiff had not performed, and the finding that defendant had not breached are affirmed. The award of quantum meruit damages, prejudgment interest and costs to plaintiff is reversed. The case is remanded for a determination of attorney fees to the prevailing party defendant, plus costs.

The Facts

Defendant First Alliance Mortgage Company is a corporation engaged in arranging, purchasing and selling second trust deed loans. First Alliance…