However, Failure to File Costs Memorandum Meant $80,758.75 Costs Award Went Away.
In Bustamante v. T.O. IX, LLC, Case No. B241233 (2d Dist., Div. 6 Oct. 25, 2012) (unpublished), plaintiffs lost a real estate purchase fraud case against defendants, with the purchase contract containing a fees clause. A judicial referee awarded attorneys fees totaling about $1,119,000 to four law firms representing the various defendants (yep–no typo, showing how fees can be ruinous to losing litigants) and costs totaling $80,758.75.
Plaintiffs appealed. They lost the fee challenge, but won the costs challenge, although that may be a small victory given the size of the total fee awards.
The main challenge to the fee awards was that redacted billings made review of the services provided impossible. However, the record showed that the referee ordered defendants to provide unredacted billings to be reviewed in camera. A big problem for plaintiffs/appellants is that they did not provide this information to the appellate court by asking that it be unsealed. Nevertheless, the records that were provided did have a sufficient description of services.
As far as the costs award was concerned, the defense lost that one became they failed to file a costs memorandum which impeded plaintiffs’ ability to file a motion to tax costs. Thus, the costs award was ordered stricken by the appellate court.