Anderson

Appellant Loni Anderson contends respondent had no standing to bring this action as an individual, but should have brought a derivative action on behalf of the corporation of which the two were the sole shareholders. We agree, and reverse the judgment. The corporation’s attorneys, Musick, Peeler & Garrett, who obtained a defense verdict in respondent’s action against them for malpractice, appeal from an order taxing costs. We reverse the order in part and affirm in part.

Factual and Procedural Background

Respondent Nancy Nelson formed a corporation, Lonan, Inc., with appellant, television actress Loni Anderson, for the purpose of marketing skin care products. When the business venture failed, Nelson sued Anderson and the corporation’s attorneys, Musick, Peeler & Garrett, and one of its partners, Geoffrey C. (Geoff) Brown, for intentional and negligent interference with contract and prospective economic advantage, and attorney malpractice as to the attorneys. The second amended complaint, filed July 19, 1996, also alleged that the failure of the corporation was caused by Anderson’s breach of her fiduciary duties as the majority shareholder. Nelson dismissed the…

Dissenting.—I concur in the judgment as to all issues except the majority’s reversal of the trial court’s order reducing by two-thirds the cost award to appellant Musick, Peeler & Garrett.

In my view, the trial judge was well within her discretion in determining the “reasonable amount” of defendant’s costs respondent owed only included respondent’s proportionate share of the total costs appellant had to lay out in defending against all three plaintiffs. Appellant law firm does not have an absolute right to recover all its costs against respondent after gaining the benefit of absolving the other plaintiffs of any responsibility for their share of the cost bill when it concluded its settlement agreements with those plaintiffs.

The majority opinion implies the trial court lacks discretion to do anything other than award a prevailing party its full costs from whichever party or parties it chooses to seek its cost award. But this is plainly wrong. It is axiomatic Code of Civil Procedure 1032 and its associated code provisions only authorize a prevailing party to receive the benefit of its reasonable costs once. That is, in multiparty litigation the prevailing party is not entitled to…

Appellant Loni Anderson contends respondent had no standing to bring this action as an individual, but should have brought a deri vative action on behalf of the corporation of which the two were the sole shareholders. We agree, and reverse the judgment. The corporation's attorneys, Musick, Peeler & Garrett, who obtained a defense verdict in respondent's action against them for malpractice, appeal from an order taxing costs. We reverse the order in part and affirm in part.

Respondent Nancy Nelson formed a corporation, Lonan, Inc., with appellant, television actress Loni Anderson, for the purpose of marketing skin care products. When the business venture failed, Nelson sued Anderson and the corporation's attorneys, Musick, Peeler & Garrett, and one of its partners, Geoffrey C. (Geoff) Brown, for intentional and negligent interference with contract and prospective economic advantage, and attorney malpractice as to the attorneys. The Second Amended Complaint, filed July 19, 1996, also alleged that the failure of the corporation was caused by Anderson's breach of her fiduciary duties as the majority shareholder. Nelson dismissed the interference with contract claims before…