Special Fee Shifting Statutes: Partner Winning Dispute Against Other Partner Over Existence Of A Partnership Not Entitled To Fee Recovery Under Corporations Code Section 16041(c)

Intra-Partner Dispute Not Covered By The Statute.

            In SCSA Group, Inc. v. Worden, Case No. G058859 (4th Dist., Div. 3 June 28, 2021) (unpublished), one partner prevailing in an intra-partner dispute about the existence of a partnership sought attorney’s fees from the losing partner under Corporations Code section 16041(c).  The trial judge denied the fee request because only the partnership pays, with the partnership not being a party to the particular dispute at issue.  The 4/3 DCA affirmed, determining section 16041(c) does not apply to this type of intra-partner dispute and finding an unpublished Ninth Circuit decision factually distinguishable as well as unpersuasive.  Justice Goethals authored the 3-0 decision.