Andreini & Co. v. MacCorkle Insurance Service, Inc.

For the second time in recent years we are called upon to construe the scope of rule 8.278 of the California Rules of Court (rule 8.278), which governs recovery of costs allowed following a successful appeal. Last year the Supreme Court affirmed a decision by this court, and held that “rule 8.278(d)(1)(F) does not authorize an award of costs for interest expenses and fees incurred to borrow funds to deposit as security for a letter of credit that was procured to secure an appeal bond ....” (Rossa v. D.L. Falk Construction, Inc. (2012) 53 Cal.4th 387, 399 [ 135 Cal.Rptr.3d 329 , 266 P.3d 1022 ] (Rossa).) Here, the respondent borrowed money to deposit with the trial court in lieu of securing an appeal bond. After its appeal was successful, it was allowed to recover the more than $200,000 interest paid on the borrowed funds as a cost of appeal. The costs were included in an amended judgment from which this timely appeal was perfected.

We first consider whether rule 8.278 and the reasoning of Rossa preclude appellant recovering the interest paid on the borrowed funds as a cost of appeal. We conclude' this type of interest is likewise precluded. Next, we consider whether a…