Garber

National Union Fire Insurance Co. of Pittsburgh v. Garber

Good Law
288 F. App'x 319
United States Court of Appeals for the Ninth CircuitJuly 8, 2008No. 06-16449California860 words

Opinion

Dissenting Opinion

Kleinfeld, J.

dissenting:

I respectfully dissent.

Though the California Uniform Fraudulent Transfer Act does not expressly provide for attorney's fees awards, neither does it expressly disallow them. It says, a creditor may obtain any type of "relief the circumstances may require" subject to "applicable principles of equity and in accordance with applicable rules of civil procedure."

Here, as a matter of equity, National Union is entitled to recover reasonable attorney's fees in the fraudulent conveyance case. The only reason National Union had to pursue the fraudulent conveyance action was to enforce the judgment in the bond case. After receiving a judgment against the Garbers in the bond case, National Union conducted a debtor's examination and discovered fraudulent transfers made by the Garbers. The fraudulent conveyance action was itself a procedure to enforce the judgment on the bond, and attorney's fees are expressly awardable for "enforcing a judgment" on a bond. In order to enforce the bond case judgment, National Union had to file the instant fraudulent transfer action. Therefore, the bond case and fraudulent transfer case are inextricably intertwined, and equity demands that…

Lead Opinion

MEMORANDUM *

National Union Fire Insurance Company (“National Union”) appeals the district court’s July 18, 2006, 2006 WL 2038538 , order denying it attorney fees sought in a fraudulent conveyance action (which it brought to collect a judgment it had previously received). The attorney fees sought were incurred in the fraudulent convey-anee action, the Garbers’ bankruptcy, Betty Ting s bankruptcy, and the appeals from these cases. We affirm the district court’s order. The factual and legal background is well-known to the parties so we need not recite it here.

The California Uniform Fraudulent Transfer Act does not provide for an award of attorney fees against the Garbers (the debtors). See Cal. Civ.Code § 3439 et aeq. National Union presents no California precedent authorizing an award of attorney fees against “a debtor” in such an action. National Union has conceded that Defendant Ting is not responsible for these fees.

Attorney fees (as allowed costs) may be added to a judgment, if the underlying judgment includes an award of attorney fees. Cal.Civ.Proc.Code §§ 685.040, 1033.5. However, such costs are “added to and become part of the judgment” (1) upon the filing of an order…

Sign in to read the full opinion

Create a free account to read the complete opinion text, citation history, and good-law status for this case.