Opinion
—Appellant Katherine Lee Bates contends the trial court erred in awarding costs to a defendant sued under the Elder Abuse and Dependent Adult Civil Protection Act (Welf. & Inst. Code, § 15600 et seq.; the Elder Protection Act) and abused its discretion in concluding that an offer to settle pursuant to Code of Civil Procedure section 998 by that defendant— respondent Presbyterian Intercommunity Hospital, Inc.—was reasonable and made in good faith.
FACTUAL AND PROCEDURAL BACKGROUND
A. Complaint
In December 2007, appellant, acting as the administrator of the estate of Rinda Lou Bates, brought suit against respondent and several others for injuries suffered by Rinda prior to her death.
Shortly after Rinda was sent home at the beginning of November, she was found to have a serious pressure sore over her coccyx. The home nurses notified Dr. Stimmler, who attempted to obtain authorization to readmit Rinda to PIH through Bright Medical’s utilization review department. The authorization was not secured until November 15. By that time the sore had grown and become infected. After Rinda’s readmission to PIH on November 15, efforts were made to treat the condition by medical personnel, but proved futile. Rinda was returned home and died of sepsis in December.
In her complaint, appellant contended that under the appropriate duty of care standard, once the home nurses assessed the severity of the pressure sore in early November, they should have obtained immediate hospitalization for Rinda by calling 911 or another emergency service, rather than waiting for Dr. Stimmler to obtain authorization. Appellant asserted that respondent was responsible for the actions of the nurses supplied by Arcadia as respondent was “the licensee and operator of [Arcadia]”; respondent “owed a duty to [Rinda] to contract only with those health care providers after engaging in a reasonable due diligence effort to ensure that such were able to . . . provide care which met minimum legal standards for such care”; and respondent was obligated “to use due care in selecting providers of skilled nursing services.” Appellant’s complaint also contended that respondent failed to provide sufficient nursing staff to care for Rinda before and after the original surgery, which caused her to develop a pressure sore at the site, failed to recommend insertion of a feeding tube when Rinda was originally hospitalized, and failed to insert a feeding tube in a timely fashion when requested by the family.
B. Respondent’s Offer to Compromise and Subsequent Dismissal
On February 9, 2010, respondent served an offer to compromise under section 998. Respondent offered to waive costs and to refrain from pursuing a claim for malicious prosecution if appellant agreed to dismiss her claims
C. Cost Bill and Motion to Tax
In March 2011, respondent submitted a memorandum of costs, seeking $83,713.43 in costs, including $64,826.75 in expert witness fees.
Appellant moved to strike the cost bill and/or tax costs, contending primarily that (1) a provision of the Elder Protection Act, specifically Welfare and Institutions Code section 15657, precludes recovery of costs by a successful defendant where the claims of the plaintiff bear any relation to elder abuse and (2) respondent’s February 2010 section 998 offer was unreasonable and/or not made in good faith. Appellant also requested several adjustments in the cost bill, including deletion of fees paid to experts prior to the February 2010 date of respondent’s section 998 offer and exclusion of fees paid to an expert who was not designated as a witness.
To support the contention the offer was unreasonable or made in bad faith, appellant presented evidence that within days of Rinda’s return home in November, nurses working for the Arcadia nursing agency observed the worsening of the pressure sore and sought authorization from Dr. Stimmler to transfer Rinda to PIH’s wound care clinic for evaluation, but did not seek emergency hospitalization. The authorization was not received for approximately 10 days. During this period, the pressure sore grew larger and became infected.
The trial court, after reviewing the parties’ supporting and opposition papers and hearing argument, struck the $5,547.45 in costs respondent conceded had been improperly included. It otherwise awarded costs in the amount requested by respondent in the cost memorandum, viz., $78,165.98. This appeal followed.
DISCUSSION
A. Recovery of Costs for Elder Protection Act Claims
The Elder Protection Act contains attorney fee provisions that permit an award of attorney fees to successful plaintiffs. Specifically, Welfare and Institutions Code sections 15657 and 15657.5 provide that where it is proven by a preponderance of the evidence that the defendant is liable for “physical abuse,” “neglect,” or “financial abuse” as defined elsewhere in the statute, “[t]he court shall award to the plaintiff reasonable attorney’s fees and costs.” Similar provisions can be found in a number of other statutes creating enforceable rights, and, as numerous courts have held, such provisions allow only unilateral or one-way fee shifting and do not permit successful defendants to recover their fees.* **
Some courts have taken an additional step and concluded that where all of a plaintiff’s claims are closely related to claims falling under a statutory scheme with a one-way attorney fee provision, a successful defendant may not recover fees even where another relevant statutory or contractual provision would arguably permit the court to award them. For example, in Carver v. Chevron U.S.A., Inc. (2004)
In Wood v. Santa Monica Escrow Co. (2007)
Relying on Carver and Wood, appellant contends that the same reasoning applied to attorney fee awards should be applied to an award of costs to a prevailing defendant, and that a plaintiff seeking to enforce the important public policies underlying the Elder Protection Act should not be concerned with the prospect of paying the defendant’s expert fees or costs if the litigation is unsuccessful. Adoption of appellant’s position is foreclosed by the Supreme Court’s holding in Murillo v. Fleetwood Enterprises, Inc. (1998)
Specifically addressing recovery of expert witness fees under section 998, the court further stated: “Section 998 explicitly states that it ‘augments]’ section 1032(b). Thus, the requirements for recovery of costs and fees under section 998 must be read in conjunction with section 1032(b), including the requirement that section 998 costs and fees are available to the prevailing party ‘[ejxcept as otherwise expressly provided by statute.’ (§ 1032(b), italics added.) Because the cost-shifting provisions of the Song-Beverly Act do not ‘expressly’ disable a prevailing defendant from recovering section 998 costs and fees in general, or expert witness fees in particular, we find nothing in the Act prohibiting the trial court’s exercise of discretion to award expert witness fees to seller under the circumstances of this case. [][]... [][] . . . Although the Legislature’s purpose in enacting the Song-Beverly Act was admittedly to encourage consumers to enforce their rights under the Act, nothing in Civil Code section 1794(d) suggests this legislative purpose should override the Legislature’s desire—expressed in section 998—to encourage the settlement of lawsuits.” (Murillo v. Fleetwood Enterprises, Inc., supra, 17 Cal.4th at pp. 1000-1001, fn. omitted.)
The provision at issue here is essentially the same as the attorney fee provision in Murillo. Welfare and Institutions Code section 15657 provides that under certain circumstances, the court shall award reasonable attorney fees and costs to a prevailing plaintiff under the Elder Protection Act. It does not mention prevailing defendants and does not expressly disallow costs to them. By implication, it precludes an award of attorney fees to prevailing defendants, as the court recognized in Wood. However, costs awardable under sections 1032 and 998 cannot be precluded by implication. Accordingly, respondent was entitled to the costs, including expert witness fees, awardable under those provisions.
Appellant contends, alternatively, that respondent was not entitled to section 998 costs because the offer it made in February 2010 was not reasonable or made in good faith.
There is no dispute that “a good faith requirement must be read into section 998 in order to effectuate the purpose of the statute.” (Adams v. Ford Motor Co. (2011)
“Even a modest or ‘token’ offer may be reasonable if an action is completely lacking in merit.” (Nelson v. Anderson (1999)
“Whether a section 998 offer was reasonable and made in good faith is left to ‘the sound discretion of the trial court.’ ” (Adams v. Ford Motor Co., supra,
Here, the dismissal resulted in zero liability for respondent and established the prima facie reasonableness of the section 998 offer. The burden was on appellant to establish unreasonableness or lack of good faith. Appellant failed to meet her burden. Preliminarily, we note that in contesting the reasonableness of the offer, appellant focused on the evidence she had gathered to support her claims as of the February 2011 date on which she voluntarily dismissed respondent. Appellant presented no evidence concerning the parties’ understanding of the relative strengths and weaknesses of the claims as of February 2010, the date respondent served the offer. Moreover, judging from the information in the record, even on the eve of trial, the evidence supporting appellant’s claim against respondent was weak. Appellant apparently abandoned her claim that respondent’s medical personnel mistreated Rinda during her October 2006 hospital stay or after her readmission in November. According to appellant’s expert, respondent’s culpability derived solely from the negligence of the home nurses. But even assuming the home nurses could have been deemed negligent after having notified Rinda’s doctor of the seriousness of the pressure sore and leaving further medical decisions in his hands, the basis for holding respondent liable for the actions of the home nurses remained unclear. The nurses were in the employ of Arcadia and appellant had only made vague allegations, unsupported by evidence, concerning the connection between respondent and Arcadia. Although appellant’s counsel stated his last-minute dismissal of respondent was not based on his perceived merits of the case, the court was not required to accept that statement at face value and could reasonably conclude that the dismissal represented an acknowledgment of the tenuous nature of appellant’s
C. Undesignated Expert
Appellant contends that because one of respondent’s experts, Halcyon Hamel, R.N., was retained as a consultant only and never designated as a witness, the cost of her expert services was not recoverable. Section 998 states that fees for expert witnesses “actually incurred and reasonably necessary in . . . preparation for trial” are recoverable. (§ 998, subd. (c)(1).) Although the statute refers to expert witnesses, courts have recognized that “section 998 . . . covers the cost of experts who aid in the preparation of the case for trial, even if they do not actually testify.” (Santantonio v. Westinghouse Broadcasting Co., supra,
D. Preoffer Expert Witness Fees
Appellant contends that only postoffer expert witness fees are recoverable, and that the court erred in awarding respondent all its expert witness costs without regard to when they were incurred. “[E]xpert witness fees under Code of Civil Procedure section 998, subdivision (c) have never been tied to when these fees were incurred relative to a compromise offer.” (Regency Outdoor Advertising, Inc. v. City of Los Angeles (2006)
The order is affirmed. Respondent is awarded costs on appeal.
Epstein, P. J., and Willhite, J., concurred.
A petition for a rehearing was denied March 9, 2012, and on March 22, 2012, the opinion was modified to read as printed above.
Notes
Undesignated statutory references are to the Code of Civil Procedure.
Because she shares a surname with appellant, Rinda Lou Bates will be referred to as “Rinda” to avoid confusion. Factual allegations are taken from the original complaint and the operative fifth amended complaint, filed in May 2010. The original complaint asserted claims for negligence, willful misconduct, and wrongful death; the amended complaint included a separate claim for elder abuse.
References to “respondent” are to Presbyterian Intercommunity Hospital, Inc. The hospital it operates will be referred to as “PIH.”
The cost bill included $17,816.68 for deposition costs and $920 for filing and motion fees. Respondent subsequently deleted $4,773.70 and $720 respectively from those categories, and withdrew mileage costs of $53.75, reducing the request to $78,165.98.
Fees of experts not ordered by the court are not ordinarily recoverable as costs. (§ 1033.5, subd. (b)(1).) Section 998, subdivision (a) provides that the costs allowed under section 1032 “shall be withheld or augmented as provided in this section.” Section 998, subdivision (c)(1) provides that if an offer made under section 998 by a defendant is not accepted “and the plaintiff fails to obtain a more favorable judgment or award,” the plaintiff “shall not recover his or her postoffer costs and shall pay the defendant’s costs from the time of the offer.” The subdivision goes on to state: “In addition, in any action or proceeding other than an eminent domain action, the court or arbitrator, in its discretion, may require the plaintiff to pay a reasonable sum to cover costs of the services of expert witnesses, who are not regular employees of any party, actually incurred and reasonably necessary in either, or both, preparation for trial or arbitration, or during trial or arbitration, of the case by the defendant.”
In a deposition excerpt attached in support of the motion to tax costs, appellant’s expert, Loren G. Lipson, M.D., expressed the opinion that respondent’s liability was derived solely from the negligence of the nurses. Appellant presented no other evidence of negligence by
See, e.g., Turner v. Association of American Medical Colleges (2011)
Accord, Turner v. Association of American Medical Colleges, supra, 193 Cal.App.4th at pages 1064-1071 (no attorney fee recovery where hours spent by defendant on claim for injunctive relief—for which attorney fees were recoverable under Civ. Code, § 55 were “inextricably intertwined” with defense of plaintiff’s claims under Unruh Civil Rights Act and Disabled Persons Act, both of which provide for recovery of attorney fees by plaintiff only); Davis v. Ford Motor Credit Co. LLC (2009)
Murillo was followed in Carver v. Chevron U.S.A., Inc. (2002)
Appellant’s suggestion that the legislative history of the Elder Protection Act—specifically Welfare and Institutions Code section 15600, subdivisions (h) and (j)—compels a different result is unavailing. First, as noted above, our Supreme Court has held that where a statute
