Prevailing Party: In Licensee Dispute Over Removal Of Improvements On Property, Reversal Of Security Deposit Ruling In Licensor’s Favor Required A Restudy Of Fees/Costs Award

$121,043 Fee Award And $14,374.60 Costs Award Had To Be Examined Based On Partial Reversal.

            In Aljabban v. Fontana Indoor Swap Meet, Inc., Case No. D076214 (4^th Dist., Div. 1 Aug. 18, 2020) (unpublished), licensor and licensee in swap meet space got into a spat over licensee’s claim about removing certain improvements and withholding $680 of a security deposit to repair the space when licensee removed some beauty salon items.  After a bench trial, a lower court found against licensee’s contract and tort claims, later awarding licensor $121,043 in attorney’s fees and $14,374.60 in costs based upon a fee clause in the license agreement.

            The fees/cost awards got reversed on appeal and remanded.  What happened is that the appellate court reversed the $680 security deposit withholding on licensee’s breach of contract/conversion claims because the license agreement did not allow for repairs to be taken out of the security deposit.  That being said, the partial reversal required a restudy of the “older” fees/costs award to determine which side actually prevailed.

            UPDATE: We can now report that this case was certified for publication on September 10, 2020.