Rostack Investments v. Sabella

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After Rostack obtained a summary judgment against defendant in a breach of contract action in an amount exceeding $50 million, the Court of Appeal reversed and awarded defendant her costs as prevailing party. Then defendant's memorandum of costs sought to recover costs related to her obtaining a surety bond, secured by a letter of credit, pending the appeal.The court affirmed the trial court's denial of Rostack's motion to tax those costs because defendant's bond-related expenses were both reasonable and necessary. Specifically, the court held that the judgment for costs was a final enforceable judgment, and that the bond and letter of credit premiums were reasonable and necessary. Accordingly, the court affirmed the trial court's entry of judgment against Rostack for the full amount of the disputed costs. View "Rostack Investments v. Sabella" on Justia Law