Aug 14, 2025
Holmes, Athey, Cowan & Mermelstein LLP, a LA-based law firm specializing in criminal defense and complex civil litigation, won another significant appellate victory when the California Court of Appeals issued a final opinion unanimously reversing a decision after a court trial, resulting in a net change of approximately $2 million in our client's favor.
Holmes, Athey, Cowan & Mermelstein LLP, a LA-based law firm specializing in criminal defense and complex civil litigation, won another significant appellate victory when the California Court of Appeals issued a final opinion unanimously reversing a decision after a court trial, resulting in a net change of approximately $2 million in our client's favor.
Following a 10-day bench trial in June of 2022 (led by Andrew B. Holmes of Holmes Athey), the trial court entered final judgment in February 2023. After offsetting certain amounts, the court entered a net judgment of $1,582,652 against Holmes Athey's client, and later added $731,817.10 in fees, for a total judgment against Holmes Athey's client in the amount of $2,314,469.10.
Mr. Holmes timely appealed, arguing (among other things) that the trial court erred in basic contract interpretation, and had incorrectly found that Holmes Athey's client breached the relevant contract. In fact, it had not breached the contract. Reversing this improper finding would have a two-fold effect: First, the firm's client was entitled to substantial additional damages. Second, the contractual attorney fee award had to be reversed, as it was based on the faulty premise that the firm's client was the breaching party.
The case was briefed by Holmes Athey, and Mr. Holmes argued it before before Justices Stone, Segal, and Feuer of the Second District Court of Appeal on April 4, 2025.
It took the Court of Appeals only 10 days to issue its opinion, but due to opposing counsel's motions for rehearing and a petition for review by the California Supreme Court (all of which were denied), the remittitur did not issue until August 14, 2025. Adopting Mr. Holmes' argument, the appellate opinion determined that there was no breach of the relevant contract by Holmes Athey's client, awarded substantial additional damages, reversed the attorney fee award, and awarded costs to Holmes Athey's client.
The net result of the appeal is a shift of approximately $2 million (after adding costs and prejudgment interest), changing a "net loss" of more than $2.3 million into an approximately $590,000 "win."
The appeal was Zeta Global Corp. v. Socialcom, Inc., B327582, in the California Court of Appeals, Second Division.