Opponent’s Fee Award of $40,588 Affirmed On Appeal.
Here is a pragmatic opinion that shows the “prevailing party” determination under Civil Code section 1717 is meant also to be pragmatic as far as the adjudicatory process is concerned. The decision is Brighton Collectibles, Inc. v. S&J Shoes, Inc., Case Nos. B224310/B226866 (2d Dist., Div. 1 Oct. 28, 2011) (unpublished) and is authored by Presiding Justice Mallano.
The case involved a plaintiff who lost a trademark license agreement dispute with defendants where it argued defendants had to keep a retail store open for the full term and breached the agreement by closing early, seeking damages at trial of $320,805. However, plaintiff was awarded nominal damages of $1 for defendants’ failure to turn over a customer list.
Defendants moved for fees, but plaintiff claimed it prevailed (by winning $1) or that there was no prevailing party. The trial court awarded the defense $40,568 in fees and $2,807.67 in costs, prompting an appeal by plaintiff.
Plaintiff lost. Here, the fee award was discretionary because neither party had an unqualified victory. But, pretty close, said the appellate panel. Plaintiff’s $1 award did not outweigh that the defense did achieve its primary litigation objectives of prevailing on the $320,805 trademark license contract claim. Under the circumstances, no abuse to give the fee recovery to the defense (the side that pragmatically won).