Reason: Plaintiffs Obtained HOA Enforcement Against Defendants Such That Defendants Were Not Prevailing Parties.
Even when a plaintiff voluntarily dismisses a lawsuit, the defendant is not necessarily the prevailing party under the Davis-Sterling Act’s fee shifting statute—because that determination depends on the reason for the dismissal and an assessment of who obtained their litigation objectives. Such a determination is a discretionary one for the lower court, reviewed under the abuse-of-discretion standard.
That was the context for the appeal in Asbury v. Bowers, Case No. G064728 (4th Dist., Div. 3 Sept. 19, 2025) (unpublished). There, plaintiffs brought a HOA rule enforcement case against both the HOA and defendant neighbors for neighbors’ improper use of a garage, with the HOA eventually enforcing rules on garage use. Once this occurred, plaintiffs voluntarily dismissed their action as to defendants, prompting defendants to move for attorneys fees under Civil Code section 5975. The lower court refused to grant fees because plaintiffs did achieve their litigation efforts by obtaining the HOA’s enforcement of rules relating to use of garages. The appellate court agreed, affirming the fee denial in a 3-0 opinion authored by Justice Scott.