Special Fee Shifting Statute: L.A. Rent Stabilization Ordinance Still Allows Trial Judge To Award Fees Under Unlimited Jurisdictional Amount ($25,000) In Its Discretion

$25,575 Fee Recovery for Case in Which $11,590 Recovered Is Affirmed on Appeal.

     Do not think that everything is lost when you win a case in unlimited jurisdiction court but your recovery is still less than the jurisdictional limit. The trial court still has discretion to award attorney’s fees to the prevailing party in its discretion. (Valentino v. Elliott Sav-On Group, Inc., 201 Cal.App.3d 692, 701-703 (1998) [as long prevailing party has a good faith belief in the case].) The next case illustrates that a prevailing party can still get fees under a special fee-shifting ordinance.

     In Carter v. Cohen, Carter's Little Liver Pills Case No. B214393 (2d Dist., Div. 4 Sept. 28, 2010) (certified for publication), tenant recovered $11,590 in rental overpayments under the L.A. Rent Stabilization Ordinance (RSO), and was awarded $25,575 (out of a requested $43,025) in fees under a fee-shifting provision of the RSO. The fee award was sustained on appeal.

     Landlord challenged the award because the ultimate compensatory recovery was under the jurisdictional floor for an unlimited civil action, but the appellate court rejected this contention given the lower court’s discretion under Valentino to award fees anyway.

     And, a bonus award for winning tenant. Because the appeal was won, tenant could seek appellate fees as the victor under the RSO. (Kirby v. Sega of America, Inc., 144 Cal.App.4th 47, 62-63 (2006).)

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