Schaffer

Donner Management Company appeals from an order awarding attorney fees to Michael Schaffer, following the dismissal without prejudice of Donner’s shareholder derivative lawsuit against Schaffer and nominal defendant Asia Web Holdings, Inc. (Asia Web). In the pub lished portion of this opinion, we hold that when at the commencement of a derivative lawsuit a shareholder-plaintiff voluntarily posts security under Corporations Code section 800, a prevailing defendant seeking attorney fees at the conclusion of the lawsuit need not retrospectively show the lawsuit had no reasonable possibility of benefiting the corporation. We also reject Donner’s argument that a frivolous litigation standard should be imposed as a prerequisite to a prevailing defendant’s collection of a security furnished under section 800. Finally, we hold the practical definition of “prevailing party” applies to this case involving a dismissal without prejudice, and the trial court did not abuse its discretion in determining Schaffer was the prevailing party for purposes of an attorney fees award based on the security. Accordingly, we affirm the order.

In the unpublished portion of this opinion, we (1) deny…