Downen's

A government agency pays only a portion of a judgment against it for inverse condemnation. In this case of first impression, we hold that Code of Civil Procedure section 1036 authorizes litigation expenses to the prevailing plaintiff in an action to enforce the inverse condemnation judgment under Government Code section 970 et seq. We therefore reverse the trial court’s decision to tax costs and remand with directions to award litigation expenses.

Facts

Appellants Downen’s, Inc., and Mary and Dave Downen (Downens) owned and operated Lakewood Suzuki, an automobile dealership, on leased property purchased by respondent City of Hawaiian Gardens Redevelopment Agency (Agency) in 1993. In 1994, the Agency served the Downens with a 90-day notice to vacate the property. The Downens did not find a suitable site to relocate and were forced to close the dealership and liquidate its assets.

On September 21, 1994, the Downens filed a complaint in inverse condemnation against the Agency to recover compensation for the taking of their leasehold interest in the property and damage to their business. In October 1996, the parties settled the case by stipulation. The Agency agreed to pay…