McLarand, Vasquez & Partners, Inc. v. Downey Savings & Loan Ass'n

Following a jury trial both McLarand, Vasquez & Partners, Inc. (McLarand), and Downey Savings & Loan Association (Downey) were denied relief on the complaint and cross-complaint they brought against each other. Both sought costs and attorneys’ fees. The trial court awarded costs to Downey but denied its attorneys’ fees; it denied both to McLarand. On appeal McLarand contends it, too, was a prevailing party at trial and is entitled to costs and attorneys’ fees. Downey separately appeals, contending the trial court abused its discretion in denying its attorneys’ fees. We affirm.

McLarand, an architectural design firm, entered into a contract with Downey for the design of an office building in Newport Beach. By its first amended complaint filed in September 1988, McLarand sought $29,598.02 in general and compensatory damages from Downey for breach of the contract and related claims. It also sought punitive damages in an unspecified amount for tortious denial of the contract. Downey filed a cross-complaint against McLarand seeking $3.5 million in damages for breach of the contract, negligence, interference with contractual relationship and prospective economic advantage.…