If you win a monetary judgment in an employment law dispute, you will likely be able to recoup the litigation costs. Here’s how this process works in California. If you have questions and would like to talk to an employment law attorney, contact PLBH at (800) 435-7542.
Understanding Costs in Employment Litigation
In California’s civil justice system, the victorious party (the one who prevails) usually has the right to recover litigation costs from the defeated party. As per this regulation, the prevailing party is defined as the one with a net monetary recovery or the one in whose favor the case is dismissed.
This seems straightforward when applied to conventional scenarios: If a plaintiff in an employment case is awarded financial damages, they can recover costs from the employer. Conversely, if the case is dismissed outright in the employer’s favor, the employer can recoup costs. However, most employment cases are settled out of court, and determining the prevailing party in such situations can get tricky. A recent California case highlights the intricate nature of allocating costs in these circumstances, and the value of a proficient employment law attorney who can successfully argue for the employee as the prevailing party.
A Close Look at the deSaulles Case
In 2007, Maureen deSaulles initiated a lawsuit against her former employer, Community Hospital of the Monterey Peninsula, citing wrongful termination. Her claim encompassed seven different charges, including failure to accommodate her medical condition, retaliatory actions for asserting her rights, and contract breach. The court agreed with the hospital’s motion for summary judgement on five out of the seven charges, ruling that only two of Ms. deSaulles’ claims could proceed. The remaining case was subsequently settled for $23,500 and dismissed.
As part of the agreement, Ms. deSaulles was allowed to appeal the court’s dismissal of the five causes of action. After the dismissal was upheld by the court of appeals, the hospital sought costs from Ms. deSaulles for these five causes of action. The trial court awarded the hospital $12,731.92, citing that it prevailed on these five charges.
Upon appeal, the California Court of Appeals determined that the trial court had erred: since Ms. deSaulles had obtained money from the hospital, she was indeed the prevailing party. In 2016, the California Supreme Court concurred, ruling that when a defendant pays a plaintiff to settle a case, it constitutes a “net monetary recovery” as per California law. Consequently, Ms. deSaulles, despite only winning a part of her claim, was deemed the prevailing party and was thus entitled to costs.
Key Takeaways from the deSaulles Case
The deSaulles case holds significant implications for plaintiffs in California employment disputes, affirming that they are likely eligible for costs from their employers even if they don’t win their case entirely. Provided they secure a net monetary recovery—either through settlement or a jury award—they are entitled to costs.
This case underscores the importance of experienced attorneys to draft a thorough settlement agreement. Ms. deSaulles’ lawsuit, which started in 2007, was eventually resolved in 2016, nearly a decade later. The California Supreme Court stressed that parties could negotiate the payment of costs as part of a settlement agreement. A proficient employment law attorney can ensure such a provision is included in the settlement agreement to circumvent extended, expensive litigation.
The deSaulles case also underscores the necessity of attorneys adept in employment law and appeals. At PLBH, our team is proficient in handling both employment law cases and appeals before courts of appeals, administrative tribunals, and more. We can support you throughout your case, from the initial filing to the final resolution. To learn more about how we can assist you with your employment law case, contact us at (800) 435-7542.