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Smart Summary

Factual and Procedural Background

This case involves two consolidated actions arising from an undertaking on attachment. In the original action, plaintiffs named several defendants, including fictitious "Doe" defendants whose true names were initially unknown. The defendant surety filed an undertaking on attachment captioned with the named plaintiffs and defendants, obligating itself to the named defendants. Subsequently, White and Katsaros, originally served as Doe defendants, were identified and served with summons and attachments were levied on their residences under writs of attachment issued pursuant to the undertaking. Motions to quash the attachments and for summary judgment were denied. The underlying case was tried, resulting in judgments for defendants White and Katsaros. They then brought these actions to recover under the undertaking on attachment. The cases were consolidated for trial, and judgments were awarded to the plaintiffs for attorney's fees and, in White's case, interest on cash deposited to release the attachment.

Legal Issues Presented

  1. Whether plaintiffs who were not specifically named in the undertaking on attachment as obligees may recover under the undertaking.
  2. Whether attorney's fees incurred in defending the underlying action on its merits, as opposed to efforts solely to release the attachment, are recoverable under the undertaking.
  3. Whether the trial court abused its discretion in awarding attorney's fees in the amounts granted.

Arguments of the Parties

Defendant and Appellant's Arguments

  • Respondents cannot recover under the undertaking because they were not named as obligees in it.
  • Attorney's fees for defense of the action on the merits are not recoverable under the undertaking, only fees related to efforts to release the attachment.
  • The awards of attorney's fees were excessive or unjustified.

Plaintiffs and Respondents' Arguments

  • The undertaking should be interpreted to include all defendants, including Doe defendants who were later identified, because the phrase "et al." ("and others") was used and should not be rendered meaningless.
  • Modern California precedent allows recovery of attorney's fees incurred in defending the entire action on its merits under an undertaking on attachment.
  • The trial court's discretion in awarding attorney's fees should not be disturbed on appeal.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Standard Oil Co. v. Houser, 101 Cal.App.2d 480, 225 P.2d 539 Interpretation of suretyship contracts according to general contract principles. Guided the court to interpret the undertaking to give effect to the mutual intention of the parties and to every part of the contract if reasonably practicable.
Reachi v. National Auto Cas. Ins. Co., 37 Cal.2d 808, 236 P.2d 151 Recovery of attorney's fees for defense on merits under undertaking on attachment. Supported the court's rejection of appellant's argument that fees for defense on merits are not recoverable.
Byard v. National Auto. Cas. Ins. Co., 218 Cal.App.2d 622, 32 Cal.Rptr. 613 Same as above regarding attorney's fees under undertaking on attachment. Reinforced the principle that attorney's fees for defense on merits are recoverable.
Stiner v. Travelers Indem. Co., 226 Cal.App.2d 128, 37 Cal.Rptr. 813 Same principle on attorney's fees recoverability. Further precedent supporting recovery of attorney's fees for defense.
Schneider v. Zoeller, 175 Cal.App.2d 354, 346 P.2d 515 Same principle on attorney's fees recoverability. Used to reject appellant's contention on attorney's fees.
Bunn v. Lucas, Pino Lucas, 172 Cal.App.2d 450, 342 P.2d 508 Trial court's discretion in awarding attorney's fees and its non-interference on appeal. Supported the court's refusal to disturb the trial court's attorney fee awards.
State of California v. Westover Co., 140 Cal.App.2d 447, 295 P.2d 96 Same as above regarding trial court discretion on attorney fees. Affirmed the trial court's discretion and the appellate court's non-interference.

Court's Reasoning and Analysis

The court analyzed the undertaking on attachment as a suretyship contract governed by general contract interpretation principles. It emphasized that the undertaking's language, including the phrase "et al.," must be given effect to reflect the mutual intention of the parties. Limiting the obligation only to named defendants would render "et al." meaningless. The singular use of "defendant" in the undertaking did not restrict its scope, especially since the plaintiffs were also described in the singular despite being a partnership, indicating the singular form was not intended as a limitation. The court found that once the Doe defendants were identified and served, they were entitled to protection under the undertaking just like the named defendants. The pretrial order substituting the Doe names superseded the pleadings, effectively naming White and Katsaros as defendants.

Regarding attorney's fees, the court relied on established California precedent holding that fees incurred in defending the underlying action on the merits are recoverable under an undertaking on attachment. Attempts by respondents to quash or dismiss the attachments failed, leaving trial on the merits as their only recourse. The court rejected appellant's detailed challenges to the attorney fee awards, noting that the trial court's discretion in valuing and awarding fees is not subject to appellate review absent abuse of discretion, which was not found here.

Holding and Implications

The court affirmed the judgments for plaintiffs and respondents.

As a direct consequence, plaintiffs White and Katsaros are entitled to recover attorney's fees incurred in defending the underlying action as well as interest awarded to White. The decision confirms that an undertaking on attachment extends protection to defendants initially named as Doe defendants when later identified, provided the undertaking includes language such as "et al." No new precedent was established beyond the application of existing contract interpretation principles and settled California law regarding attorney's fees under undertakings on attachment.

EDWIN D. WHITE, Plaintiff and Respondent, v. INDEMNITY INSURANCE COMPANY OF NORTH AMERICA, Defendant and Appellant. DORIS KATSAROS, Plaintiff and Respondent,

DRAPER, P.J.

Plaintiffs had judgments upon an undertaking on attachment. Defendant surety appeals.

[1a] In the earlier action in which the attachment issued, the complaint, filed by two plaintiffs, named as defendants "Wilson Dills, Black and White Company, a co-partnership, First Doe, Second Doe and Third Doe." It alleged that the then plaintiffs did not know the true names of the three Does, but asked leave to insert them when discovered. The undertaking on attachment filed by appellant was captioned "Bauer-Lesser, a partnership, et al., Plaintiff, v. Wilson Dills, et al., Defendant." In it, the surety obligated itself to "Wilson Dills, et al., Defendant." White, one of the plaintiffs here, was served with summons as defendant First Doe, and Mrs. Katsaros as Second Doe. Their respective residences were then levied upon under writ of attachment which had issued upon filing of the undertaking. Their motions to quash the attachments and for summary judgment were denied. The case in which the attachments had issued was tried and defendants White and Katsaros had judgment. They brought these actions upon the undertaking. The cases were consolidated for trial. [2a] Each had judgment for attorney's fees incurred in defense of the basic action, and White also was awarded interest upon cash which he had deposited to release the attachment when he arranged a sale of his home.

[1b] Defendant surety argues that respondents may not recover upon the undertaking because they are not named in it as obligees. [3] But we deal here with a contract of suretyship, and its interpretation is governed by the rules applicable to contracts generally (Civ. Code, § 2837; Standard Oil Co. v. Houser, 101 Cal.App.2d 480 [ 225 P.2d 539]). Thus, we must so interpret the undertaking as to give effect to the mutual intention of the parties (Civ. Code, § 1636), and to every part of the contract, if reasonably practicable (Civ. Code, § 1641). We must favor a construction which renders the contract operative and capable of being carried into effect (Civ. Code, § 1643).

[1c] The undertaking does not specifically name the Does. But it does run to Dills, "et al." This is, of course, the common abbreviation for "et alii," meaning "and others." To limit the obligation to the named defendant is to deprive the phrase "et al." of all meaning and effect. Nor can we attach significance to the use of the descriptive word "defendant" in the singular, both in caption and body. The caption also describes the two plaintiffs, the principals who contracted with appellant surety, as "Bauer-Lesser, a partnership, et al., Plaintiff." Appellant's use of the singular to describe the two principals who bought the bond from it and who obviously were known to it, negates construction of the singular "defendant" as a word of limitation.

It is apparent from the face of the undertaking that it ran to all defendants as obligees. When "First Doe" and "Second Doe" were identified, they were served with summons and attachments were levied against them. Thereafter, they were quite as much protected by the bond as the named Dills. It is true that the complaint was not formally amended to substitute the names of White and Katsaros for the Does. But the identical result was obtained by the pretrial order which did substitute them, since that order superseded the pleadings (Cal. Rules of Court, rule 216).

Appellant's undertaking served to hand the plaintiffs in the earlier action a loaded writ of attachment, ready to be used upon any defendant, whether named directly or as a Doe. It does not lie with appellant to deny its responsibility to those who suffered thereby.

[2b] Appellant argues, however, that the attorney's fees for defense of the action on the merits as distinguished from mere efforts to release the attachment, cannot be recovered. The modern California authorities flatly reject this contention. ( Reachi v. National Auto Cas. Ins. Co., 37 Cal.2d 808 [ 236 P.2d 151]; Byard v. National Auto. Cas. Ins. Co., 218 Cal.App.2d 622 [ 32 Cal.Rptr. 613]; Stiner v. Travelers Indem. Co., 226 Cal.App.2d 128 [ 37 Cal.Rptr. 813]; Schneider v. Zoeller, 175 Cal.App.2d 354 [ 346 P.2d 515]). Language in other cases relied upon by appellant is but dictum. Each attachment here was regular on its face. Respondents' attempts to dispose of them by motions to quash and for summary judgment were unsuccessful, and their only remaining recourse was to defend the action in a trial on the merits.

Appellant attacks, in great detail, the awards of attorneys' fees. Much of this attack turns upon the claim that fees for defense of the basic action on its merits are not recoverable under the undertaking on attachment. We have disposed of this assertion. Insofar as the attack turns upon the value and necessity of the attorneys' services, it must fail, because determination of such value lies within the sound discretion of the trial court. We do not retry those issues here ( Bunn v. Lucas, Pino Lucas, 172 Cal.App.2d 450, 468 [ 342 P.2d 508]; State of California v. Westover Co., 140 Cal.App.2d 447 [ 295 P.2d 96]). We find no abuse of discretion.

Judgments affirmed.

Salsman, J., and Devine, J., concurred.

A petition for a rehearing was denied December 2, 1966, and appellant's petition for a hearing by the Supreme Court was denied December 28, 1966.

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WHITE v. INDEMNITY INS. CO
(Nov 4, 1966)