Individual Defendants Did Not Gain Their Main Litigation Objective, Given No Adjudication Of
Alter Egos Issues Too Boot.
In Fedco Construction, Inc. v. International Fidelity Ins. Co., Case Nos. A146999/A148407 (1st Dist., Div. 5 Dec. 19, 2017) (unpublished), alter ego defendants (Individual Defendants) for developers were dismissed on a directed verdict after alter ego issues were deemed moot even though developers were ultimately found liable for $15,657.85. Individual Defendants moved for fees and routine costs; they obtained routine costs but were denied attorney’s fees by the trial judge.
The fee award denial was sustained on appeal. The primary legal infirmity was that the operative fees clause said both sides would bear their own fees, except for an indemnification dispute—and that type of dispute was not at issue in the case. Beyond that, the appellate court agreed with the trial judge’s decision that there was no prevailing party—after all, Individual Defendants were tailgating on developers’ position that nothing was owed, but the other side did obtain some damages on the contract cause of action. Further, there was no merits ruling on the alter ego allegations, another factor justifying the denial of fees by the lower court.