Frye v. Tenderloin Housing Clinic 7/27/04 CA1/4

State: California

Court: 1st District Court of Appeal 1st District Court of Appeal

Docket No: A104078

Case Date: 07/27/2004

Preview:Filed 7/27/04

CERTIFIED FOR PUBLICATION IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA FIRST APPELLATE DISTRICT DIVISION FOUR STEVEN FRYE, Plaintiff and Appellant, v. TENDERLOIN HOUSING CLINIC, INC., Defendant and Respondent. A104078 (San Francisco County Super. Ct. No. 989-112)

Roy Frye (Frye) was a former client of respondent Tenderloin Housing Clinic, Inc. (THC).1 Following a successful challenge against his landlord, Frye filed an action against THC arguing that it was not entitled to the statutory attorney fees awarded by the court because THC was not authorized to practice law and improperly included a contingent fee clause in his retainer agreement. This appeal presents two issues: (1) whether the trial court erred in granting summary adjudication as to Frye's fraud cause of action; and (2) whether the trial court erred in granting judgment on the pleadings as to the remaining causes of action for money had and received and breach of fiduciary duty. We affirm in part and reverse in part. BACKGROUND THC was incorporated in 1980 as a nonprofit public benefit corporation whose stated purpose was "to provide housing law education and information to low-income tenants in San Francisco, CA." The by-laws expanded on this purpose to include, without limitation: "the preservation and improvement of housing, particularly Roy Frye died on August 22, 2001. His son, appellant Steven Frye, was substituted as successor in interest on November 6, 2002. 1
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residential hotels, assisting tenants to assert their legal rights, using legal skills as necessary to serve the low and moderate income residents of the Tenderloin community." THC employs attorneys to whom it pays salaries to provide legal assistance to lowincome tenants. All of the attorneys employed by THC are active members of the California State Bar. However, THC itself is not registered with the State Bar. In 1993, THC entered into separate contingent fee retainer agreements with Frye and 14 other tenants at a residential hotel in the Tenderloin neighborhood of San Francisco to represent them in an action against their landlord regarding defective conditions at the hotel. The agreements provided the following language: "[

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