However, One Cross-Defendant’s Dismissal From Entire Pleading Did Give Rise To Potential Fee Recovery, With Any Apportionment To Be Considered On Remand.
The Mobilehome Residency Law (MRL), Civ. Code section 798 et seq., extensively regulates the landlord-tenant relationship between mobile home park owners and residents. It also has a fee-shifting provision in Civil Code section 798.85, which states: "In any action arising out of the provisions of this chapter the prevailing party shall be entitled to reasonable attorney’s fees and costs. A party shall be deemed a prevailing party for the purposes of this section if the judgment is rendered in his or her favor or where the litigation is dismissed in his or her favor prior to or during the trial, unless the parties otherwise agree in the settlement or compromise." The appellate court in Willow Bend, LLC v. City of Holtville, Case No. D062980 (4th Dist., Div. 1 Aug. 21, 2014) (unpublished) had to determine whether the lower court denial of fees was proper as to cross-defendants, some of whom only prevailed on some MRL-oriented claims and one of whom was dismissed from the entire cross-complaint. (The cross-defendants sought $298,502.10 in fees under the MRL.)
This one produced a splintered decision on the fee denial.
As to the cross-defendants dismissed on two MLR-oriented cross-claims, the appellate court agreed that they were not entitled to fees. After all, they did not prevail on the entire lawsuit, but merely some of the MRL causes of action. City did prevail on a declaratory relief claim—and that was enough to defeat fees for only "partially prevailing" parties. However, different matter as to one cross-defendant dismissed from every count. That party was dismissed from the litigation so as to be entitled to fee recovery, although the lower court would have to face apportionment and fee amount issues on remand.