City may seek fees from boathouse’s $50M lawsuit
A judge ordered former Boathouse owner Naia Sheffield on Tuesday to reimburse Santa Monica $27,605 for legal fees and court costs stemming from litigation over the eviction of the restaurant from its Santa Monica Pier building.
But Sheffield’s attorney Kelly Bixby, said he will file a motion requesting Santa Monica Superior Court Judge Diana Wheatley to reconsider her judgment and allow him to present his argument that the city is seeking too much money.
Bixby said he was not able to file his motion opposing the city’s request for attorney costs and court fees because of personal circumstances that could not have been avoided.
“The prevailing law is that only reasonable attorneys fees and costs will be accepted and approved by the court,” Bixby said. “And obviously the court is sitting there with a motion and (the city) is asking for attorneys fees and they were the prevailing side but those fees are in contention.
“The city made it very simple by saying ‘It’s a three-day notice and then we’re going to kick you out.’ Well, in my estimation that doesn’t cost 30 grand,” he added.
“The city made it very simple by saying ‘It’s a three day notice and then we’re going to kick you out.’Well, in my estimation that doesn’t cost 30 grand.” — — KELLY BIXBY Naia Sheffield’s attorney
Deputy City Attorney Tony Serritella said the city came up with its estimate of court costs by multiplying the number of hours attorneys worked on the case by the market-rate being charged by attorneys in the eviction field, which is called “unlawful detainers” in legalese.
“When there is a written agreement that provides for attorneys fees when a dispute arises, the winning side can go after those costs,” he said.
If Judge Wheatley finds Bixby was unable to file his opposition motion in a timely manner due to his personal reasons, a new hearing will be set to decide if Sheffield should reimburse the city for having to legally evict her business from city-owned property. Otherwise, Tuesday’s ruling will remain in place.
Sheffield has filed a $50 million lawsuit against the City of Santa Monica and the Pier Restoration Corp., which handles leases on the pier, for allegedly reneging on a 25-year lease Sheffield negotiated in 1993. She is demanding a jury trial, claiming breach of contract.
The Boathouse, which was a fixture on the pier for 50 years, closed its doors permanently April 15, after Los Angeles County Sheriff’s deputies changed the locks as part of the court-ordered eviction.
The city, which owns the pier, ended its month-to-month lease with the Boathouse last July to make way for movie-themed chain restaurant, Bubba Gump Shrimp, which will pay significantly more rent to the city than the Boathouse did.
Sheffield claims she was forced to enter into the month-to-month lease in 1998 to keep possession of the restaurant. But John Gilchrist, the PRC’s executive director in 1993, had offered Sheffield a 20-year lease with an option to renew for another 10 years, the suit claims. That lease was never signed due to bureaucratic delays, Sheffield says.
However, in 1998 the PRC informed Sheffield it was considering leasing the space to other restaurants, though the Boathouse would be included in the selection process. In the end, the city awarded the 25-year lease to Bubba Gump, which was supposed to move in on Oct. 1, 2001.
When the Boathouse refused to leave and fought the city’s decision, the result was a long and costly court battle which the city won. The city claims it has been financially harmed because Bubba Gump’s plans to open in the spring of 2003 have been delayed.
The reimbursement awarded to the city is only for litigation from the eviction of the restaurant.
“There are only certain types of cases where the law allows you to go after lawyers fees,” Serritella said. “In most cases you’re not allowed to do it. In many cases all that is allowed is to recover (court) costs.”
“There are only certain types of cases where the law allows you to go after lawyers fees.” — — TONY SERRITELLA Deputy city attorney
Serritella said the city is still sustaining costs from the pending $50 million breach of contract lawsuit, which it may decide to recoup if it is victorious in that case as well.
Originally published in the Santa Monica Daily Press print edition on July 17, 2002. Read the original PDF.