Litigate Tenaciously, Pay Generously: First District Upholds $72K Fee Award Despite "Simple" Contract Claims
Imagine you start an argument with someone. Every time they prove you are wrong, instead of backing down, you change your story slightly and force them to prove you wrong all over again.
When the argument is finally over, can you turn around and complain: "Hey, why did you spend so much time arguing with me?"
According to a California appeals court in Nasey v. Fell Holdings LLC (2026), the answer is a firm no.
What Happened in the Case?
Laurence Nasey ran businesses out of two commercial buildings in San Francisco for decades. In 2020, he lost ownership of the properties when the bank foreclosed on them.
The new owners gave him a chance to buy the properties back for $10.5 million and let him keep operating his businesses there while paying rent. But the deal came with strict deadlines:
Nasey missed the first deadline to buy the properties.
The owners gave him an extension. He missed that too.
The owners gave him another extension, and then another—four extensions in total.
By late 2022, Nasey still had not purchased the buildings.
Instead of moving out, Nasey sued the owners in December 2023. He claimed he didn't have to follow the deadlines because the owners wouldn't let him run an environmental test on the land.
The Legal Tug-of-War
When you file a lawsuit, the other side can ask the judge to throw out your case early if the paperwork shows you don't have a valid legal claim.
That is exactly what happened here—repeatedly:
The owners asked the judge to dismiss Nasey’s case because the written contract didn't support his claims. The judge agreed, but gave Nasey permission to rewrite his complaint.
Nasey filed a rewritten version. The owners asked the judge to throw it out again. The judge agreed again, but gave Nasey one more chance.
Nasey filed a third version. The owners asked the judge to throw it out a third time. Finally, the judge dismissed the lawsuit permanently.
The Fight Over Attorney Fees
Because their original contract had an attorney fee clause (a rule stating the winner gets their legal fees paid by the loser), the property owners asked Nasey to pay their legal costs of $96,529. To prove it, their lawyers submitted 87 pages of detailed bills, showing they charged around $755 to $810 an hour.
Nasey pushed back. He argued:
"This was just a simple real estate dispute on a standard form."
"Those hourly rates are way too high."
"The case never even went to trial, so fees shouldn't be more than $15,000."
The trial judge cut the bill slightly and ordered Nasey to pay $72,441. Nasey appealed, asking a higher court to overturn the ruling.
What the Appeals Court Decided
The California Court of Appeal ruled against Nasey and ordered him to pay the $72,441. The judges highlighted two main rules:
1. You Can't Complain About a Fire You Started
The court brought up an old, famous legal rule: you cannot fight aggressively in court and then complain about how much time the other side spent defending themselves.
Nasey claimed the case was "simple," but he was the one who rewrote his lawsuit three times and dragged the case out for years. Because he forced the owners' lawyers to write multiple requests to get the case thrown out, he had to pay for the work he created.
2. Without a Court Record, You Can't Win an Appeal
When you ask an appeals court to overturn a judge's decision, you have to prove the judge made a major mistake. To do that, you normally need to give the appeals court a word-for-word transcript of what was said in the courtroom.
Nasey chose not to include a transcript of the hearing. Because the appeals court had no idea what was argued in the room, they had to assume the trial judge did their job correctly.
The Big Takeaways
Standard Contracts Can Still Cost Big Money: Even a "standard form" contract can lead to massive legal bills if you drag out the fight.
The "Tenacious Litigant" Rule: If you force the other side to do extra legal work to defend themselves, expect to pay for their lawyers' time if you lose.
Always Keep the Record: If you plan to appeal a judge’s decision, you need a written record of the hearing. Without it, your appeal is almost guaranteed to fail.
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