DISCUSSION

Code of Civil Procedure, section 128, subdivision (a)(8), provides in relevant part: “An appellate court shall not reverse or vacate a duly entered judgment upon an agreement or stipulation of the parties unless the court finds both of the following: ¶ (A) There is no reasonable possibility that the interests of nonparties or the public will be adversely affected by the reversal. ¶ (B) The reasons of the parties for requesting reversal outweigh the erosion of public trust that may result from the nullification of a judgment and the risk that the availability of stipulated reversal will reduce the incentive for pretrial settlement.”

2 In this case, the parties’ reason for seeking a stipulated reversal is well- grounded in legal authority. Upon reversal of the underlying judgment, it necessarily follows that the trial court’s award of attorney fees under a statute authorizing a fee award to a prevailing party must also be reversed. (See National Parks and Conservation Assn. v. County of Riverside (2000) 81 Cal.App.4th 234, 238.) Thus, there could be no erosion of public trust because reversal is compelled by law. On a broader level, public trust in the courts is enhanced, not eroded, when parties recognize the legal reality of a final disposition in a related appeal and agree to resolve other pending cases based on it. Nor will reversal adversely affect the interests of nonparties or the public. To the contrary, the public interest is advanced because a pending appeal by a state agency will be resolved in its favor without its incurring further expense. (See Union Bank of California v. Braille Inst. of America, Inc. (2001) 92 Cal.App.4th 1324, 1329.) And because the order being challenged pertains only to attorney fees incurred in the underlying case, reversal will have no impact on nonparties to the appeal, and indeed no such nonparties have been identified. Finally, as to the last factor, the availability of a stipulated reversal will not reduce the incentive for pretrial settlement since the pursuit of this appeal would inevitably lead to reversal in any event.

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DISPOSITION

The order awarding attorney fees is reversed and the matter is remanded to the superior court with directions to enter a new order denying First American’s motion for attorney fees. Pursuant to stipulation, the parties shall bear their own costs on this appeal, and the remittitur shall issue forthwith.

DATO, J.

WE CONCUR:

AARON, Acting P. J.

GUERRERO, J.

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