Costs, Fee Clause Interpretation: Where Parties In A Residential Landlord-Tenant Dispute Stipulated To No Recovery Of Fees Or Costs Beyond $1,000, That Cap Was Enforceable

$14,000 In Routine Costs Reversed Because It Exceeded The $1,000 Cap.

               Freedom of contract was the theme resonating in the result in Gogal v. Deng, Case No. D084158 (4th Dist., Div. 1 July 22, 2025) (published).  The case was a residential landlord-tenant dispute where tenants were prevailing parties but had a contractual lease clause specifying that the losing party was not liable for recoverable costs and fees exceeding $1,000 (“the cap”).  The lower court did not honor the cap, awarding tenants roughly $14,000 in costs.  The 4/1 DCA revised, honoring the cap.  This was a private contractual matter, not a public interest case, such that the cap was going to be honored under CCP § 1032 language allowing the parties to agree how costs should be allocated. 

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