In Palm Valley Homeowners Assn., Inc. v. Design MTC (2000) 85 Cal.App.4th 553, the Court upheld a sanctions order pursuant to Code of Civil Procedure section 128.5, concluding that a trial court had not abused its discretion by finding that a law firm had acted in bad faith by continuing to represent a corporation in litigation after the firm knew that its client was a suspended corporation. ( Id. at pp. 562-563.)