Shapell SoCal Rental Properties v. Chico's FAS CA4/3

INTRODUCTION

Two basic rules resolve this appeal. First, “a prevailing party is entitled as a matter of right to recover costs in any action or proceeding.” (Code Civ. Proc., § 1032, subd. (b) (section 1032(b).) Second, a prevailing party is defined to include “a defendant in whose favor a dismissal is entered.” (Id., § 1032, subd. (a)(4) (section 1032(a)(4).) In this case, a dismissal was entered in favor of defendant Chico’s FAS, Inc. (CFI). As a defendant in whose favor a dismissal was entered, CFI is entitled as a matter of right to recover costs in this case. The trial court concluded, however, it had discretion to find that neither CFI nor plaintiff Shapell SoCal Rental Properties, LLC (Shapell) prevailed and granted each of their motions to strike the other’s motion to tax costs. Naturally enough, both CFI and Shapell were unhappy with the trial court’s decision and appealed it. The issue of prevailing party status is straightforward. CFI is the defendant. A dismissal was entered in favor of CFI. CFI is therefore the prevailing party and entitled under section 1032(b) to recover of its $6,348 in costs. Shapell raises a host of reasons why it, and not CFI, is the prevailing…