Prevailing Party Determination Must Await A Final Resolution Of Parties’ Contractual Dispute.
West Hollywood, Santa Monica Blvd. 2013. Carol M. Highsmith, photographer. Library of Congress.
City of West Hollywood v. Kihagi, Case No. B270416 (2d Dist., Div. 1 Sept. 29, 2017) (unpublished) was a situation where a landlord and City of West Hollywood entered into a settlement agreement over alleged Ellis Act issues (such as where a landlord feigns getting out of the residential renting business but then comes back by re-renting some time later), with the agreement containing a fees clause in favor of the prevailing party. Landlord won an interim, non-dispositive battle, while the City eventually obtained a permanent injunction relating to tenancy terminations under the settlement agreement. The trial judge also awarded fees to City under the settlement agreement.
On appeal by landlord, the Court of Appeal reversed the permanent injunction based on its view that it was unenforceable as drawn, but allowing the parties to resubmit the issue to the trial judge. Based on this reversal, the City’s fee award fell also given that it only obtained partial relief (which was reversed) and landlord had won an interim battle. So, the prevailing party determination had to await a final resolution of the contractual dispute between the two sides.