Daily Blast May 4, 2015

The California Supreme Court issued an opinion in Williams v. Chino Valley Independent Fire District (May 4, 2015, S213100) __ Cal.4th __, analyzing whether “a defendant prevailing in a [California Fair Housing and Employment Act (“FEHA”)] action [is] entitled to its ordinary costs as a matter of right pursuant to Code of Civil Procedure section 1032, or only in the discretion of the trial court pursuant to Government Code section 12965, a provision of FEHA itself.” (Slip opn., p. 1.) The Supreme Court concluded that “Government Code section 12965, subdivision (b), governs cost awards in FEHA actions, allowing trial courts discretion in awards of both attorney fees and costs to prevailing FEHA parties.” (Id. at p. 2.)

The Supreme Court determined that “Government Code section 12965, subdivision (b), is an express exception to Code of Civil Procedure section 1032, subdivision (b), and the former, rather than the latter . . . governs costs awards in FEHA cases.” (Slip opn., p. 9.) The Supreme Court explained that “[by] making a cost award discretionary rather than mandatory, Government Code section 12965(b) expressly excepts FEHA actions from Code of Civil Procedure section 1032(b)’s mandate for a cost award to the prevailing party.” (Ibid.)

The appellate court further concluded that “the Christiansburg [Garment Co. v. EEOC (1978) 434 U.S. 412 (Christiansburg)] standard applies to discretionary awards of both attorney fees and costs to prevailing FEHA parties under Government Code section 12965(b).” (Slip opn., p. 23.) “[Under] that standard a prevailing plaintiff should ordinarily receive his or her costs and attorney fees unless special circumstances would render such an award unjust.” (Ibid., italics in original, citing Christiansburg, supra, 434 U.S. at pp. 416-417.) “A prevailing defendant, however, should not be awarded fees and costs unless the court finds the action was objectively without foundation when brought, or the plaintiff continued to litigate after it clearly became so.” (Slip opn., pp. 23-24, italics in original, citing Christiansburg, supra, 434 U.S. at pp. 421-422.)

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