Homeowner Associations/Prevailing Party: Mixed Results Meant Remand Was Necessary

 

However, One Party Did Clearly Prevail, But Got No More On Appeal.

     Both trial and appellate courts are faced with situations where some parties prevail to some extent, but then have to determine if one or more truly did prevail on a convincing basis.

     In Marina Pacifica Homeowners Assn. v. So. Cal. Financial Corp., Case No. 255413 (2d Dist., Div. 8 Mar. 4, 2016) (unpublished), HOA billed unit owners for assignment fees in protracted litigation which to say the least produced “mixed results” except for one defendant party. Everyone then moved for attorney’s fees and costs. HOA sought $3.1 million in fees and almost $54,000 in costs, and other parties sought $2.5 million in fees and about $105,000 in costs. The trial judge found that only one defendant truly prevailed, denying fees and costs to everyone else, but awarding the defendant $601,560 in fees (one-fifth of the work) and $25,002.01 in costs (about half of the request when one half of the costs were taxed through a motion to tax costs).

     On review, the Court of Appeal remanded the fee/costs denial as to HOA and one party based on the fact the prevailing party determination might change based on the merits appeal decision. However, as to the defendant awarded $601,560 in fees and $25,002.01, that determination was affirmed—the 20% fee award out of requested fees and the reduced costs award had adequate substantiating bases in the record.

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