Costs, Prevailing Party, Section 1717, Substantiation: $107,450 Fee And $22,318.45 Cost Awards In Favor Of Prevailing Plaintiff In Rescission Suit Affirmed

 

Routine Costs Do Include Privately Retained Reporters Who Transcribe Court Hearings.

     In Kim v. Park, Case No. A139056 (1st Dist., Div. 3 Oct. 23, 2015) (unpublished), plaintiff was awarded $107,450 in fees and $22,318.45 in costs after obtaining rescission of a purchase of a business, with the fees being awarded based on a contractual fees clause in the purchase agreement. Plaintiff won because the court determined the business was not worth its purchase price such that plaintiff gained the greater recovery, even though giving some credit adjustments were made in favor of defendants (the sellers).

     The defense challenges did not change the result on appeal.

     A prevailing party can still recover fees even though the contract has been rescinded. (Hastings v. Matlock, 171 Cal.App.3d 447, 463 (1985).) Counsel declarations of work effort and dollars expended suffice for fee substantiation at the state court level. (Trustees of Cent. States v. Golden Nugget, Inc., 697 F. Supp. 2d 1538, 1558-1559 (C.D. Cal. 1988).) Finally, the costs of a privately retained court reporter for a court hearing is an allowable routine costs, a determination which is very timely given that many courts do not automatically provide reporters at hearings anymore.

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