Molalla Holdings, Inc. v. Akers

In Molalla Holdings, Inc. v. Akers (2002) 100 Cal.App.4th Supp. 6, a collection agency sued its assignor's debtor for breach of contract and obtained a judgment by default by clerk for $ 2,998.09, which included an award of attorney fees. (Id. at p. 7.) The collection agency thereafter sought, unsuccessfully, to recover attorney fees incurred in enforcing the default judgment pursuant to section 685.040. (Molalla, supra, at p. 7.) On appeal, the appellate division of the superior court affirmed, concluding that because the amount of the fees was determined in accordance with a default schedule authorized by section 585, subdivision (a) and California Rules of Court, rule 388(b) now rule 3.1800(b), section 685.040 was inapplicable. (Molalla, supra, 100 Cal.App.4th Supp. at p. 8.) The court reasoned: "While appellant's default judgment obtained from the court clerk below was based upon contract, the attorney fees were awarded in accordance with the court's schedule following the default judgment, and not as a cost item pursuant to the contract in issue. Appellant could have obtained a judgment through a court hearing, and not simply through a clerk's judgment by default. In securing the clerk's judgment by default, appellant implicitly accepted an attorney fees awarded pursuant to the court's local rules, thus eschewing the section 1033.5, subdivision (a)(10) alternative. Appellant's election of that procedure, therefore, precludes an award of post-judgment attorney fees." (Ibid.)