6126, LLC v. DNAM Apparel Industries CA2/4

DISCUSSION

Application of statutory and case authority to awards of attorney fees presents a question of law, which we review de novo. (Silver v. Boatwright Home Inspection, Inc. (2002) 97 Cal.App.4th 443, 448–449.) Code of Civil Procedure section 1032 generally provides that a prevailing party, including “a defendant in whose favor a dismissal is entered,” is entitled to recover its costs “as a matter of right” in any action or proceeding. (Id., § 1032, subd. (a)(4) & (b).) Attorney fees are recoverable as costs under section 1032 when authorized by either contract, statute, or law. (Id., § 1033.5, subd. (a)(10).) Civil Code section 1717 specifically allows an award of attorney fees to the prevailing party “[i]n any action on a contract,” where the contract provides for attorney fees and costs. (Id., subd. (a).) But when a case is voluntarily dismissed, “there shall be no prevailing party for purposes of this section.” (Id., subd. (b).)

3 In Santisas v. Goodin (1998) 17 Cal.4th 599 (Santisas), the court resolved the conflict between the general cost statutes and Civil Code section 1717 by holding that when a case is voluntarily dismissed, section 1717 bars an award of attorney…