Javor

We granted a petition transfering this case, pursuant to California Rules of Court, rule 2(a), to resolve a significant issue of law about which there seemed to be a dispute among the appellate authorities: whether the imposition of sanctions under Code of Civil Procedure section 128.5 (hereafter section 128.5) requires a finding that the sanctioned party was guilty of bad faith. We are satisfied that it does. That was the determination of the Appellate Department of the Los Angeles Superior Court, which correctly resolved the issue before it.

Insofar as it bears on the issue before us, the factual background of the underlying lawsuit may be briefly stated. It arose out of a landlord-tenant dispute in which each side sought affirmative relief from the other. The trial court originally indicated that it would award a small sum to the plaintiff, and that defendant should take nothing. It later modified the award to zero.

Plaintiff’s counsel was directed to prepare a statement of decision, which he did. Defendant’s counsel (Carlson, the appellant here) then moved to strike the proposed statement of decision. The trial court denied that motion to strike and imposed $500…