California Appellate Tracker

Huerta v. Kava Holdings, Inc.

January 21, 2019

The extra costs allowed when a 998 offer is rejected may not be collected by a defendant in an action under California’s Fair Employment & Housing Act unless the defendant shows that the action was frivolous, unreasonable, or groundless when brought, or the plaintiff continued to litigate after it clearly became so.

Effective Jan. 1, 2019, Gov. Code 12965(b) has been amended to make it clear that the extra costs allowed when a 998 offer is rejected may not be collected by a defendant in a FEHA action unless the defendant shows that the action was frivolous, unreasonable, or groundless when brought, or the plaintiff continued to litigate after it clearly became so. This decision holds that the same standard governed the award of costs under CCP 998 in a FEHA action even before the effective date of the amendment.

California Court of Appeal, Second District, Division 8 (Dunning, J.); November 14, 2018 (partial publication); 29 Cal. App. 5th 74

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Huerta v. Kava Holdings, Inc.

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