A case recently decided by the United States District Court of Appeals proved that “prevailing party” status for purposes of an attorneys’ fee award isn’t always as clear as one might think.
A jewelry store sustained a loss from a break-in of more than $800,000. The company filed an action against the alarm company alleging, among other things, breach of contract and gross negligence, along with a request for attorneys’ fees. The case was filed in the United States District Court of the Central District of California. The court granted summary judgment in favor of the alarm company on the claim for gross negligence, upheld the enforcement of the limited damages provision after granting summary judgment in favor of the jewelry store (the plaintiffs) on the breach of contract claim and refused to award attorneys’ fees to the plaintiffs, notwithstanding the fact that a judgment was entered in favor of plaintiffs.