Prevailing Party: Cross-Complainant Winning More Than Plaintiff Was The Prevailing Party For Fee Recovery Purposes

Cross-Complainant Obtained An $88,130.06 Net Recovery, Such That A Subsequent $90,013 Prevailing Party Fee Determination Was No Abuse Of Discretion.

            In VanLaw Food Products, Inc. v. New England Counry Foods, LLC, Case No. G061375 (4^th Dist., Div. 3 July 6, 2023) (unpublished), plaintiff received $27,441.25 under its complaint, and cross-complaint received $115,571.31 on its cross-complaint, with the lower court determining that the $88,130.06 edge for cross-complainant meant it was the prevailing party under a contractual fees clause.  That resulted in a fee award of $90,013 in cross-complainant’s favor.

            This determination was affirmed in a 3-0 decision by Acting Presiding Justice Bedsworth.  The prevailing party determination was no abuse of discretion under the circumstances.  But we will quote some ending comments from Justice “Beds” which are worthy of consideration by litigants and their attorneys: 

            “There are two questions every litigant must answer before suing or choosing to maintain a lawsuit. The first is whether he or she has a meritorious claim, and the second is whether it is worthwhile to pursue it. That second question will always involve consideration of whether the opponent’s claims are meritorious, and the decision whether to go forward with litigation will require a weighing of the risk such claims might succeed. The answers to those questions may change as the litigation proceeds, and they may very well be impacted by the claims and defenses presented by the other side.

            “Such is the nature of litigation – each side goes to trial believing it has the better claim, and the outcome is left to the trier of fact. Each side takes a risk. Here, NECF’s cross-complaint may have been brought late, and it may have been worth more money. But if the trial court had ruled against NECF on the cross-complaint, and for [Plaintiff] VanLaw on the complaint, NECF would owe VanLaw money. The so-called ‘chilling effect’ VanLaw forecasts is merely the wager each litigant must make. An adversary system will always include such wagers.”