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Interest Runs on Costs From Date of Judgment Though Set Later—C.A.
However, Interest on Attorney Fees, Determined Later Pursuant to Motion, Commences at the Time Fees Are Awarded, Justice Dato Declares
By a MetNews Staff Writer
Interest begins to run on awards of costs at the time of judgment even though the dollar amount is set later, Div. One of the Fourth District Court of Appeal declared on Friday, but interest on attorney fees, it said, does not start to run until the award is made.
San Diego Superior Court Judge Eddie C. Sturgeon ruled on Sept. 13, 2017 that a subclass of employees was entitled to $2 million in damages against defendant Apple Inc. based on wage-and-hour violations, with attorney fees and costs to be determined later. In March 2018, he awarded more than $2 million in fees, and on April 9, 2018 set costs at about $440,000.
Apple insisted that interest should be calculated as of the time the fees and costs were fixed while the plaintiffs contended each should relate back to the time of the 2017 judgment.
Affirms, Reverses
Justice William Dato wrote for the appeals court in affirming and reversing.
Under Code of Civil Procedure §1033.5, a judgment entails entitlement to specified costs, he noted, saying that the September 2019 judgment “established plaintiffs’ right to certain costs as the prevailing parties in the action.” He reasoned:
“That judgment was therefore a money judgment for these costs because it required Apple to pay them, even if the exact amount remained to be determined. Interest on those amounts began to accrue immediately upon entry of the judgment.”
Interest on Fees
Dato continued:
“At the same time, the September 2017 judgment did not include attorney’s fees. Although attorney’s fees are an element of costs included in section 1033.5, they are awardable only ‘when authorized’ by contract, statute or law….Plaintiffs sought attorney’s fees under [Code of Civil Procedure] section 1021.5, the ‘private attorney general’ doctrine, which permits prevailing plaintiffs to recover fees only if they establish several additional elements beyond the fact that they prevailed…. Thus, it was not until March 2018 when the court decided plaintiffs’ motion for attorney’s fees that their right to collect those fees was established. Accordingly, the order on attorney’s fees constitutes a separate money judgment and interest on that judgment began to accrue on that later date.”
The case is Felczer v. Apple, Inc., D077314.
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